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From creditors perspective, SP v HP

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Super Contributor

From creditors perspective, SP v HP

Whenever you request a CLI, you may get it based on SP, but if it is so big, it may require an HP. What is the difference from the creditors perspective? How much more data and what more data do they receive from HP versus an SP?
-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Nov 2020, Clean/Thick/Mature/No New Account Scorecard (EX9 not updated yet. Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.


RIP:
(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 1 of 11
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Regular Contributor

Re: From creditors perspective, SP v HP


@Birdman7 wrote:
Whenever you request a CLI, you may get it based on SP, but if it is so big, it may require an HP. What is the difference from the creditors perspective? How much more data and what more data do they receive from HP versus an SP?

They get the same information, either way.  the HP signals to other creditors that you're seeking credit, versus a CLI granted by the lender.  it's also possible that the lender is relying on old data (the last account review soft pull, which could be months old) for SP CLI, and they update it by doing a HP. 

Message 2 of 11
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Super Contributor

Re: From creditors perspective, SP v HP

Are you sure? Because I saw some references to the fact that they get much more information on a HP. For example an employer would not need all that information and is therefore restricted to a SP.
-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Nov 2020, Clean/Thick/Mature/No New Account Scorecard (EX9 not updated yet. Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.


RIP:
(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 3 of 11
Super Contributor

Re: From creditors perspective, SP v HP

Nah it’s my understanding that SPs just don’t leave a mark visible by other creditors that you’re seeking credit but the information is otherwise the same — which is why people get ticked when a cable company or employer do a HP. 




Message 4 of 11
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Legendary Contributor

Re: From creditors perspective, SP v HP

They get the same information, with only one exception.

That exception is the so-called promotional inquiry process under FCRA 604(c), wherin a creditor can request a listing of names and addresses of consumers based on screening done by a CRA of consumer files who meet certain, prescribed screenng criteria.

The FCRA bars the listing from including any account specific information, and prevents record of the promotional screening inquiry from being shown in any credit reports provided to parties other than the named consumer.

 

In all other cases, a inquiry receives the same information.

What is or is not shown in a given commercial credit report is based on what the commercial vendor chooses to include, and not upon any statutory or regulatory restrictions.

 

Past CRA practice provides for excluding certain types of inquires from credit reports they provide to third parties, which is the definition of a soft inquiry.  For example, credit reports requesting by existing creditors in order to conduct internal account reviews, and requests by consumers to view their own credit reports, are coded as soft by the CRAs, and are not viewed by others in credit reports they obtain.

Message 5 of 11
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Super Contributor

Re: From creditors perspective, SP v HP

A SP and a HP both provide the exact same information to the lender doing the pull.  The only difference is that the HP leaves behind that inquiry on your CR for everyone else to see for the next 2 years. 

 

Also, a HP doesn't mean a greater CLI than a SP, something that was somewhat suggested in the original post.  For example, I received two CLIs on my Citi DC card since getting it... $5000 and $7000.  The $7000 one was from a SP, where the HP CLI yielded me a lesser result at $5000.

Message 6 of 11
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Super Contributor

Re: From creditors perspective, SP v HP

@BBS: let me clarify, I was not suggesting that an HP indicates a larger CLI. What I was actually stating is they would only give me a CLI to a certain limit based on an SP. To go any higher, they required an HP, which I humbly declined.

So the point is, a lender may require a HP for a higher CLI, depending on the issuer. In my case, I went from 3000 to 15,000 based on SP, but to go to any higher, they wanted a HP.
-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Nov 2020, Clean/Thick/Mature/No New Account Scorecard (EX9 not updated yet. Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.


RIP:
(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 7 of 11
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Super Contributor

Re: From creditors perspective, SP v HP

Yup, that's pretty common... Citi is a good example of that, where you can "take what you get" with a SP, but if you want to try for more it requires a HP.  I say "try" for more, as it's never a sure thing that more will be given.  Some report great results in taking the HP, where others report another $500 or in worst-cases absolutely nothing more at the expense of the HP.

Message 8 of 11
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Super Contributor

Re: From creditors perspective, SP v HP

Sometimes your prescience kills me BBS. LOL! I’ve got an issue going on with citi right now and I couldn’t get any further on the SP‘s so I called EO and gave up an HP and I’m waiting on the results now. I’ll share once I get the results.
-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Nov 2020, Clean/Thick/Mature/No New Account Scorecard (EX9 not updated yet. Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.


RIP:
(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 9 of 11
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Super Contributor

Re: From creditors perspective, SP v HP

Good luck!  Your scores look good, so profile wise I'd say you're in good shape.  Outside of your credit report things I'd consider that will strongly play into their decision are your income, monthly spend and perhaps relationship with Citi.  I mention Citi relationship because many that have had their accounts for a short period of time (say) a year or less seem to find worse HP CLI results relative to those that have a longer established account/relationship with Citi. 

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