Why are CLIs sometimes hard pulls, sometimes soft?

[pdxmike]

Why do some credit cards occasionally require hard pulls for CLIs, but at other times just do a soft pull?

Could it have to do with how recent their last regularly scheduled soft pull was, and they're not actually performing new soft pulls? For example, with cards where it seems like a coin flip whether they do a hard or soft pull, maybe if they don't have a recent copy of your credit report, they'll be more likely to do a HP.

Or with cards that normally do a SP but are sometimes willing to give you a bigger CLI with a HP, maybe they just want to see more recent information to make sure you haven't just gone on a spending/app spree or become delinquent.

Or maybe there's information that HPs show but SPs don't? Or maybe there's some arcane agreement between the card servicer and the credit reporting agency about when to require an HP, an agreement that's different for different banks?

Any ideas?

[Anonymous]

I imagine it has to do with the individual banks interpretation of what they consider to be "seeking credit" and what they consider simply fostering their current relationship. The way I understand the federal law is lenders are required to apply a HP to your credit if you are seeking credit. I think CLI's are a grey area.

[Anonymous]

My understanding - based on my experience with PenFed and Apple FCU - is that credit unions generally require HP's for customer-initiated CLI's, probably because CLI's are often classified by them as "seeking new credit". In fact, there aren't any "luv buttons" on either of those CU's sites, you have to fill out a complete new credit application for a CLI and specify that you're asking for one and how much extra you want.

[ridgebackpilot]

SPs are used for more than just auto-CLIs. This week I received an auto-CLI on my AMEX BCP card, plus approval for a new AMEX Platinum card, all based on only a SP.

AMEX presumably considers this simply investing in and deepending an existing credit relationship, so no HP required.

Few other card issuers would do this without resorting to a HP. Each lender seems to have its own rules.

[pdxmike]

Can anyone who knows the date they got a CLI with a soft pull, from a card servicer that sometimes does hard pulls on first request (like Elan), then go back and look at their annualcreditreport.com report that shows SPs and see if the servicer actually conducted a new SP or, if not, how recent their last one was at the time?