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Personal inquiry removed because it is a business card?

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JimmiS
Established Member

Personal inquiry removed because it is a business card?

There is a credit repair company that is getting inquiries for "business" credit cards removed. Their argument is they pulled personal credit for what the banks are touting as a business card. This is a legitimate credit repair company.

 

I know credit card companies have been accused of blurring the difference between corporate and business cards but is there any case law on this? Has anyone else tried this? It makes sense, but why haven't I heard of this before?

Message 1 of 12
11 REPLIES 11
JoeRockhead
Senior Contributor

Re: Personal inquiry removed because it is a business card?

These days, the majority of small business cards are personally guaranteed, which entitles the credit card company to pull the applicant's credit and in turn denies any ability to remove the inquiry as it's completely legit. Authorized Users on Small Business cards are SP only as they are with Corporate cards. I would guess their success rate at having legit inquiries removed is virtually non existent. 

Message 2 of 12
JimmiS
Established Member

Re: Personal inquiry removed because it is a business card?

If the active account doesn't report, the inquiry becomes "extraneous data." The creditor may be justified in pulling the inquiry but CRA, by not reporting the underlying account is practicing "insufficient matching procedures." It could also impair credit by being misinterpreted by underwriting as failure to obtain funding.

Message 3 of 12
SouthJamaica
Mega Contributor

Re: Personal inquiry removed because it is a business card?


@JimmiS wrote:

There is a credit repair company that is getting inquiries for "business" credit cards removed. Their argument is they pulled personal credit for what the banks are touting as a business card. This is a legitimate credit repair company.

 

I know credit card companies have been accused of blurring the difference between corporate and business cards but is there any case law on this? Has anyone else tried this? It makes sense, but why haven't I heard of this before?


Color me skeptical. Yes a lender is allowed to pull your personal credit for a business credit application.


Total revolving limits 710800 (590300 reporting) FICO 8: EQ 712 TU 710 EX 710

Message 4 of 12
CreditCuriosity
Moderator Emeritus

Re: Personal inquiry removed because it is a business card?

That inquiry will remain.  Inquiries are factual and will not be removed as one was seeking credit business or personal.

Message 5 of 12
sccredit
Valued Contributor

Re: Personal inquiry removed because it is a business card?

Sorry, I don't see how the argument holds water. Take an SBA loan for example. If you get an SBA loan you will PG the loan (just like a business credit card) and it will not be reported to personal credit (just like a business credit card). The fact is you did seek credit and are personally liable in the case of default. The lender has permissible purpose. 

 

Also, matching procedures has to do with reporting. It has to do with identity verification. An account reporting or not reporting is irrelevant to "insufficient matching procedures" and is an utter misuse of the term. 

 

 

 

 

Message 6 of 12
pizzadude
Credit Mentor

Re: Personal inquiry removed because it is a business card?


@JimmiS wrote:

 This is a legitimate credit repair company.

 


If you're personally guaranteeing the credit then lenders have PP to pull your reports and the inquiries are valid ; anyone can claim to be legit but if they're telling you anything differently they're questionable. 

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 7 of 12
JimmiS
Established Member

Re: Personal inquiry removed because it is a business card?

The creditor has the right to pull the inquiry. The creditor has the right to not report the activity. The CRA does NOT have the right to display extraneous data. If the account doesn't report, the inquiry can be misinterpreted as multiple failures to obtain funding. They are only giving the creditor half of the picture. Such a practice is neither accurate nor fair and is not in line with maximum possible accuracy. 


 

Message 8 of 12
JoeRockhead
Senior Contributor

Re: Personal inquiry removed because it is a business card?

Considering we're talking about personal reports, not everyone is approved for a credit card or loan every time they apply. By your logic, those inquiries should be expunged because they don't correspond to a new account. 

 

If a potential lender has the right to pull the inquiry, the inquiry is therefore both accurate, and relevant.  The reporting of such corresponds to the fact that an individual's credit was pulled from that bureau and subsequently means they were/are seeking credit.

 

Message 9 of 12
JimmiS
Established Member

Re: Personal inquiry removed because it is a business card?

Nope. Not the same. The CRA knows an attached account exists but is not reporting it. Bye.

Message 10 of 12
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