For the credit provider is there a difference between a HP and a SP?

[CredStudent]

I think it has to do with the the response I've gotten many times with GW requests. Some are happy to oblige if you've remedied the issue and some time has passed. Others respond with something along the lines of in order to maintain the integrity of the credit reporting process/be fair to other creditors you may be seeking credit from that mark will stay on your report until 7 years has passed. So maybe some creditors believe anytime you ask for credit wether it be CLI or new all creditors deserve to know your seeking credit to maintain the integrity whereas others think since they already report the relationship there is no need to tell the others about your request.

[Anonymous]

1) I wouldn't be shocked if the CRA didn't charge differently to help steer traffic both ways

2) I know for sure some vendors will ABSOLUTELY HP a denial, due to avoiding discrimination

claims and/or claims of unfair/unjust treatment.

I.E. To show good faith PROOF of actually evaluating a file vs rubber stamping 'no's'

based upon zip codes, red hair, females etc

We have a lot of rules/laws/regs that lenders need to CYA with enough of a papertrail to show a good faith effort

If apps are approved via SP...no fuss, no muss

3) Also, SP's are only seen internally and with CR's pulled by you SP info isn't seen by other lenders, so BOA won't see that

PenFed A/R done on their own client.

Technically... credit isn't supposed to be pulled w/o a permissible purpose

a SP is either an A/R or a Promo 

an A/R is permissible b/c a business relation already exist and in credit agreements etc we give the ok etc

the Promo SP really shouldn't show as much info as they are only to be used as a 1st level screen towards granting credit

(what happens is a Promo pull will say look for X scores mixed within Y zip codes assuming/guessing  at Z income....throw that data together

and viola basically an approval...THEN a full SP (or HP) approval can be done but from the consumer side it's just SP/HP)

But the idea of mass SPulling the entire state b/c doesn't happen b/c of a) cost and b) rules/regs and c) It's a waste if not targeted for 'some' reason

They chase profiles, professions, buying patterns...you have to spend your money on ppl more likely to app and accept your offer or your wasting time and money.

FP and Merrick have a good idea whom they are chasing vs wasting their efforts chasing 'A' paper outside their wheelhouse. etc.

[RonM21]

What's interesting to me, some try to keep away from the lenders that mostly do HP's for obvious reasons. I myself now take how HP crazy they may be into account. But I still weigh out the benefits of the card.

[Anonymous]

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@RM21 wrote:
What's interesting to me, some try to keep away from the lenders that mostly do HP's for obvious reasons. I myself now take how HP crazy they may be into account. But I still weigh out the benefits of the card.

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I do the same!

[elim]

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@Loquat wrote:

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@Anonymous wrote:

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@Anonymous wrote:

I have always wondered what the credit provider can see in your report. Do they see the same in a HP and a SP? So if it is the same why do some choose to do a SP instead of a HP?  Any ideas?

Really curious about this.

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Soft inquiries do not affect your credit score. Hard inquiries do.

Here’s how it works: Each time you apply for credit, your credit score drops a little bit—usually less than five points per inquiry, according to myFICO.com. That’s because seeking new credit can make you seem like more of a risk for lenders.

Hard credit checks are occasionally conducted multiple times for a specific item like a car loan or a mortgage. These can happen within a certain time frame — FICO calls them shopping periods and while each lender may use a different formula to calculate a shopping period, it’s typically 14–45 days. This means that multiple inquiries during this time are usually treated as a single inquiry on your credit score.

The impact of hard inquiries

New lines of credit represent only 10 percent of your score, according to myFICO.com, so the damage to your credit score from hard inquiries is typically minimal. But that doesn’t mean you’re in the clear to rack up hard credit inquiries:

• Inquiries can have a greater impact for someone with a short credit history and few accounts than for someone with a long history and wide range of credit experience.
• To a lender reviewing your credit report, many hard credit inquiries in a short period of time may indicate high credit risk, which could appear to creditors as if you are trying to get a lot of credit in a short period of time. (The exception is if you are rate shopping for a car, student or home loan during a short time period.)
• Even small drops in your credit score can result in higher interest rates when you borrow, which means you will pay more over the life of a loan.
• While credit inquiries are factored into your credit score for only 12 months, they remain on your credit report for two years.

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This isn't exactly true in regards to point drops...that may be true initially (or if you have a thin file)...but in my experience, after I hit a certain number of inquiries they no longer affected my score at all.  

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+1 ...  don't even phase my score anymore (the last 3 new accounts didn't move it either)

[Anonymous]

True.  But what is the sense of an HP when you have AAOA and your report will show the new acct?  The only thing I get out of it is the fact that they can see what you applied for and what you were approved for?  No other reason I can see to have them.

[Anonymous]

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@Anonymous wrote:

True.  But what is the sense of an HP when you have AAOA and your report will show the new acct?  The only thing I get out of it is the fact that they can see what you applied for and what you were approved for?  No other reason I can see to have them.

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Good point.

[takeshi74]

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@Anonymous wrote:

But what is the sense of an HP when you have AAOA and your report will show the new acct?

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Not sure what you mean by "sense".  Inquiries, AAoA and accounts are different things.  Having the impact to AAoA and the new account doesn't mean that the inquiry shouldn't be logged.  Granted, some new accounts can be added without an HP but this is a matter up to each creditor.  Don't assume that creditors are or should be all identical on such matters as inquiry coding.