How does a SP Work?

[Anonymous]

Hi all,

So I understand what a SP is vs a HP, but my specific question is how the creditor uses the SP.  Are they simply pulling up the info from your report the last time the creditor did a review (typically coded as a AR on a report) or are they pulling the info as of the date of their request?  

For example, if I recently paid off all my credit cards and have confirmed that my reports have been updated with the new scores, new utilization, etc. and I request a CLI on my Amazon Prime Store Card (Sync typically does SPs), then I'm wondering if the SP will reflect the updates scores and balances or is the lender simply referencing info pulled from their last account review?

Yikes - hope that question makes sense.

[Anonymous]

Every creditor does it differently. Some will use their last SP from an account review, others will pull fresh.  Some might even pull an HP without warning, some may offer to pull an HP with warning and an SP if you decline the HP.

[Anonymous]

Yes, it depends on the lender. Some will SP and others will HP for CLI, product changes, even applications.

The general consensus is that if the bank is going to give you a very large CLI or process an application, it will likely be a HP (but again varies by lender). For example, Chase will always do a HP if you ask for a CLI (they may also do an auto CLI with SP without you asking) and Capital One will almost always be a SP CLI.

The reason the lender wants to perform a HP is to also notify other lenders, "hey we just did something or the customer wants something that we didn't do." Keeps the customer in check by putting a ding on their report if something major may have occurred, like an application for credit or major increase in your credit line, and let's the other lenders know that too.