Overdraft protection = Hard Inquiry

[FicoMike0]

This just came up on another thread. When applying for a checking account, if you ask for, or allow the bank to grant, overdraft protection there will be a hard inquiry. Even if the amount is small, it's still credit.

[keekers]

This isn't a universal truth; none of my banks have ever pulled a hard inquiry for overdraft protection.

[FicoMike0]

Really? I've avoided them, thinking it was a sure thing! I keep my reports frozen now, I guess I needn't worry.

[Slabenstein]

It's going to depend on the kind of overdraft protection you're talking about.  For an overdraft line of credit--yeah, applying for that is generally going to be an HP like any other credit app.  For what's more generally called overdraft protection (where the bank will allow transactions that overdraft your account to clear), I haven't heard of an institution that requires a seperate HP for that.

[Iusedtolurk]

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@Slabenstein wrote:

It's going to depend on the kind of overdraft protection you're talking about.  For an overdraft line of credit--yeah, applying for that is generally going to be an HP like any other credit app.  For what's more generally called overdraft protection (where the bank will allow transactions that overdraft your account to clear), I haven't heard of an institution that requires a seperate HP for that.

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Good point. Soooo many tiny deviations to watch out for that result in different outcomes.

[TrapLine]

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@Slabenstein wrote:

It's going to depend on the kind of overdraft protection you're talking about.  For an overdraft line of credit--yeah, applying for that is generally going to be an HP like any other credit app.  For what's more generally called overdraft protection (where the bank will allow transactions that overdraft your account to clear), I haven't heard of an institution that requires a seperate HP for that.

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Confirm your answer. One bank US Bank has several versions of a Personal Line of Credit and all require a hard inquiry. Us Bank also offers a Reserve Line of Credit attached only to a checking account and they may not pull an inquiry especially if you are just applying tor a new checking account (I am told by US Bank Personal Bankers if later on after account is open, it is more likely they would do a hard inquiry). Note, the Reserve Line of Credit is run under the Bank and the other Personal Lines of Credit are run under their Credit Bank operations and are considered separately.

As to credit bureau reporting, both types of credit lines report. However, the banking side may actually report a day or two different from the credit side. Always nice to keep things simple ?

[SouthJamaica]

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@FicoMike0 wrote:

This just came up on another thread. When applying for a checking account, if you ask for, or allow the bank to grant, overdraft protection there will be a hard inquiry. Even if the amount is small, it's still credit.

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There are different kinds of overdraft protection. Some, most notably personal overdraft lines of credit, will almost invariably entail a hard pull.

[gingerflower]

What bank are you banking with that pulls hard inquiry for over draft protection? This is the first I have heard of that situation. 

[ptatohed]

I didn't know this either until recently.  Before I opened my Cap One 360 Performance Savings account earlier this week, I was reading on DoC that it is a SP unless you opt for Overdraft Protection in which case you'd get a HP.  I only took the Savings, not the Checking, so the question never came up during my app.    

[RSX]

Yup - i got an HP for the PenFed Overdraft acct i opened

grrr