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Is it pretty safe to apply to credit cards that soft pull, and give you a hard pull if approved? I mean to say if I only apply to cards that only hard pull if approved it will do no harm to my fico score (safe approach), when actively trying to get a credit card? Is there any negative consequence in following this method?
Welcome @grootinator
Your basically saying the same thing. They all HP. Except for AMEX Members and a couple others. SP approved doesnt always mean a actual approval. Its happened to many. Your approved for this much after doing a SP check. Once HP'ed. Denied. If approved. The new card hits your reports. AoYA resets back to 0. AAoA's drops a bit. The HP in most cases is the least hit to scores. Thick files usually dont get hits for HP's. Its credit file dependant. YMMV.
@grootinator wrote:if I only apply to cards that only hard pull if approved it will do no harm to my fico score (safe approach)
Regarding credit check hp vs sp dings.... not talking about the amount of harm once the new acct hits your cr's...then ....
I'd say "Yes, it's a safe approach" but I'd also say that a "sp approval" is the safest approach regarding scoring/dings. eg. Truist cc's. . A lot of these banks, including Truist, offer a Pre-approval link that is a great gauge of how that particular bank views your credit (un)worthiness before delving a little deeper into your cr while you're actually applying. On that note, once that FI gets a thorough look at your file and finds certain things ie. past, current derogs or a poor dti and/or low scores it's only then that you'll truely know how that FI judges your credit profile so you can move on while working on your negatives.
Actually being patient and applying when the "fruit is ripe" is the safest approach of all...meaning...when your profile is "good to very good to excellent" those hp/sp dings are minimal and lowering your AAoA will be recoverable in a shorter amt. of time because you've already aged your credit file a little more. You're scores have you in a "poor" rating. If you hold off on app'ing until you get all 3 cb scores into the "good" range/category you will have the ability to make decisions that will be best for your spending needs and hopefully with better sl approvals. Now you know that ymmv= considerations due to income, scores, dti, etc.
Be sure to look around here for sp preapproval links and preapprovals that'll give you a credit limit beforehand like Synchrony Bank does with the personal Lowe's preapproval. It's like playing chess....100% strategic moves win....don't lessen the odds if you have the ability to plan.
@grootinator wrote:Is it pretty safe to apply to credit cards that soft pull, and give you a hard pull if approved? I mean to say if I only apply to cards that only hard pull if approved it will do no harm to my fico score (safe approach), when actively trying to get a credit card? Is there any negative consequence in following this method?
Welcome to My FICO Forums, @grootinator.
Safe?? Honestly, I believe you're over-thinking it. Yes, avoiding *unnecessary* hard pulls is desirable, and yes, it is frustrating to apply for credit, "waste" a hard pull, and end up with a denial. And "soft pull preapprovals" are usually pretty reliable, such as with the Goldman Sachs Apple or GM cards, Synchrony preapprovals, Chase "Green Star" or "Black Star" - you're already approved, or AMEX "you're already approved."
But if you're applying for credit like a "normal" consumer, reasonably adding new credit lines and avoiding the "kid in the candy store" approach, you're probably unlikely to waste hard pulls. I usually suggest that a safe rule-of-thumb is to add no more than one new account every six months. A quicker pace may lead to a denial from stricter underwriting standards with some lenders, but 1/6; 2/12; 4/24 is pretty safe for most underwriting purposes. Sometimes, you can get away with more and that particularly applies to credit profiles that are thick, aged, with higher FICO scores. If you're not going on app sprees or aggressively-seeking credit, and if you're thoughtful about which cards you want to pursue in which order, you're much less likely to waste HPs or need to overly obsess about taking them.
Hard pulls aren't the devil. Don't go out of your way to completely avoid them. They are a tool in our toolbox for building a credit profile. Just treat them with respect and ration how you elect to use them. HPs that are between 12 and 24 months show up on your credit profile, but after 12 months there is no effect on FICO. As HPs become more distant, they tend to be less of a concern to most credit underwriting within reason. Having 1-4 on a single bureau at one time is okay, but less is better. For thin profiiles, going to 5+ or higher may especially start to degrade approvals or FICO.
If you know which CRB (Credit Reporting Bureau) that different lenders may favor, it can help to disperse HPs more evenly across the three bureuas or avoid running up the numbers on a single bureau. See the >Which Report Will They Pull< thread under the General Credit Topics forum for some community data points including geographic-specific breakdowns.
For now good advice was given on what needs to be done for now in your other thread.
Get the baddies fixed and get higher scores for better chances.