topic Re: Soft pulls in General Credit Topics

Soft pulls

IOBA — Thu, 22 Oct 2009 18:38:15 GMT

How do soft pulls affect the FICO score? Just a few points? I know that they are not seen by others when a hard pull is done.

Thanks!

Re: Soft pulls

Lel — Thu, 22 Oct 2009 18:53:10 GMT

Absolutely no effect whatsoever on FICO scores.

Re: Soft pulls

donkort — Thu, 22 Oct 2009 18:53:42 GMT

Correct me if I'm wrong--but I don't believe soft pulls affect the FICO score at all.

Re: Soft pulls

XAVIERSMAMA — Thu, 22 Oct 2009 18:54:05 GMT

They don't affect your FICO score at all. Soft pull to your heart's content

Re: Soft pulls

Lel — Thu, 22 Oct 2009 18:54:59 GMT

LOL - I think we have a quorum now!

Re: Soft pulls

IOBA — Thu, 22 Oct 2009 19:11:35 GMT

Dang - in a way good...

How can companies pull FICO scores every month? day? Do they pay a fee to monitor credit reports?

Re: Soft pulls

XAVIERSMAMA — Thu, 22 Oct 2009 19:35:31 GMT

Yes companies pay fees to access CRA info. Remember that companies have always been the main customer to CRA's. The money they get from us, the individuals, is peanuts compared to what they get from banks and collection agencies.

Re: Soft pulls

RobertEG — Thu, 22 Oct 2009 21:02:24 GMT

Actually, the terms "hard" and "soft" pull are not even used in the FCRA in describing the rules for credit inquiries.

That is purely a credit reporting distinction based on how the inquiree justifiies and codes the inquiry. FICO does not score any credit inquiry with a code that is designated as a soft inquiiry.

Potential credtiors who are accessing your credit file simply to extend a non-solicited "promotional" offer for new credit is entitled, under the FCRA, to only receive your name and address. These are always scored in FICO as soft inquiries, as are any inquiries that you make to review your own CR.

The picture gets muddy for credit inquiries that you initiate for the purpose of obtaining new credit, or extending existing credit, or that an existing creditor may make to review your account. The FCRA does not mandate how such inquiries are coded. Sometimes the creditor will code it as a soft inquiry, in which event it is ignored totally by FICO scoring. IF they code it as hard inquiry, it will show in your CR for two years, but FICO only scores in for one year. Inquiries made simply for the purpose of reviewing an account in good standing, such as to evaluate a potential credit limit reduction, are almost invariably scored as soft pulls.