Requesting Credit Reports after CLI denial

[Ghoshida]

Hi,

I understand there's a once-every-12-months limit on the free credit reports from Annualcreditreport.com. 

When I get an unsatisfactory hard pull (straightaway denial or not-so-good limits), I use it to get the latest credit report. Two questions:

1. Can I do that if there is a denial on CLI using a soft pull?

2. Is there any overall limit on how many credit reports I could pull for free as long as I have a valid CLI denial letter from my creditor? 

Edit: Clarification on 2: If I was denied a CLI every month for six months, can I use the denial letters to get six credit reports (one every month)?

[pizzadude]

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@Ghoshida wrote:

Hi,

I understand there's a once-every-12-months limit on the free credit reports from Annualcreditreport.com. 

When I get an unsatisfactory hard pull (straightaway denial or not-so-good limits), I use it to get the latest credit report. Two questions:

1. Can I do that if there is a denial on CLI using a soft pull?

2. Is there any overall limit on how many credit reports I could pull for free as long as I have a valid CLI denial letter from my creditor? 

Edit: Clarification on 2: If I was denied a CLI every month for six months, can I use the denial letters to get six credit reports (one every month)?

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1.  Yep, you are entitled to a free credit report each time you are denied, regardless of whether your creditor did a hard / soft pull.

2.  No limits.  Each denial = free report.

[Ghoshida]

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@pizzadude wrote:

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@Ghoshida wrote:

Hi,

I understand there's a once-every-12-months limit on the free credit reports from Annualcreditreport.com. 

When I get an unsatisfactory hard pull (straightaway denial or not-so-good limits), I use it to get the latest credit report. Two questions:

1. Can I do that if there is a denial on CLI using a soft pull?

2. Is there any overall limit on how many credit reports I could pull for free as long as I have a valid CLI denial letter from my creditor? 

Edit: Clarification on 2: If I was denied a CLI every month for six months, can I use the denial letters to get six credit reports (one every month)?

---

1.  Yep, you are entitled to a free credit report each time you are denied, regardless of whether your creditor did a hard / soft pull.

2.  No limits.  Each denial = free report.

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Thanks pizzadude. 

I guess that's one (and probably the only) silver lining of having not-so-pretty credit rating : free credit reports !

[pizzadude]

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@Ghoshida wrote:

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Thanks pizzadude. 

I guess that's one (and probably the only) silver lining of having not-so-pretty credit rating : free credit reports !

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Yep, that's the glass is half~full perspective

[RobertEG]

Denail of credit is covered under FCRA 615, and is referred to as an "Adverse Action."

If the creditor pullled your CR  and uses that report, in whole or in part, in their decision-making, they must inform you of your right to receive a free copy of your credit report from the CRA they used.

The creditor does not provide you the copy.  You must send a copy of their denial letter to the CRA within 60 days, and request the free copy directly from them.

[Ghoshida]

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@RobertEG wrote:

Denail of credit is covered under FCRA 615, and is referred to as an "Adverse Action."

If the creditor pullled your CR  and uses that report, in whole or in part, in their decision-making, they must inform you of your right to receive a free copy of your credit report from the CRA they used.

The creditor does not provide you the copy.  You must send a copy of their denial letter to the CRA within 60 days, and request the free copy directly from them.

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Thanks Robert.

That's what I've done for hard pulls; I'll do the same for soft pulls as well. 

As per the definition, therefore, any time I ask for any credit (new, increase, better rates) and the creditor does not accept my request, it is "adverse action", correct? This is in addition to when the creditor preemptively reduces my credit or increases my rates. 

Appreciate the clarification.

Off topic: Is it me or does EQ not seem to be too happy about providing me online access to my credit report? It's been twice already that I asked them for a report, provided all kinds of data, and have been asked to send paper copies of the request by mail. TU and EX work fine.

[RobertEG]

It depends upon whether the "denial" also includes a counter-offer for terms less favorable than those you applied for.

There are tthree creditor options in considering a request for credit.

First, obviously, they can simply approve.

Second, they can deny.

Third, they can counter with an offer of terms less favorable than those they generally offer.

The second is an "adverse action" under the FCRA, while the third is what is called "risk-based pricing."

Risk based pricing is when the less-favorable terms offered are based on some perceived risk, and if that information is obtained from your credit report, and such an offer then has its own requirements for a specific Notice under FCRA 615(h). 

The requirements of a Risk-Based Pricing Notice have been separately publixhed in the Federal Regaister, and are set forth in the Code of Federal Regulations.  I will spare the details.....

[avggoal700]

yesUses I just went online and tried to look at EQ for being denied credit, it says my info doesn't match and to send my ssn card copy, etc in mail to verify.  I can't believe a company that deals in credit fraud and identity theft have this policy. of course I just shot off a email to EQ.  

Strange because I just looked at all 3 of my reports since last month, now EQ doesn't recognize me.  If I got a security question wrong, atleast give me 2 tries, nope .

[Ghoshida]

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@RobertEG wrote:

It depends upon whether the "denial" also includes a counter-offer for terms less favorable than those you applied for.

There are tthree creditor options in considering a request for credit.

First, obviously, they can simply approve.

Second, they can deny.

Third, they can counter with an offer of terms less favorable than those they generally offer.

The second is an "adverse action" under the FCRA, while the third is what is called "risk-based pricing."

Risk based pricing is when the less-favorable terms offered are based on some perceived risk, and if that information is obtained from your credit report, and such an offer then has its own requirements for a specific Notice under FCRA 615(h). 

The requirements of a Risk-Based Pricing Notice have been separately publixhed in the Federal Regaister, and are set forth in the Code of Federal Regulations.  I will spare the details.....

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Hi Robert,

Thanks for the detailing of creditor actions.

This is an interesting note. The third option, i.e. risk-based-pricing, seems like something that would be offered to consumers who are not outright getting denied, but do have some (serious?) credit issues. (Ref: http://www.consumerfinance.gov/askcfpb/767/what-risk-based-pricing.html) 

But how does a consumer know that (s)he is not getting the best rates? Is the notice something like shown here? http://www.scoreinfo.org/Disclosure-Notices/Pages/Risk-Based-Pricing-Notice.aspx

Almost all of my current credit approvals came with a notice like this (understandable, since my credit file is relatively new, and the score mediocre at best). These are not outright denials. 

Do I become eligible to claim "denial of credit (or best terms of credit)" when such a notice is attached? 

Also, does it mean that beyond a point (I do not know which point exactly) consumers do not get any such notice from the creditor? That implies that there are no possible negative factors in their report at all.

[Ghoshida]

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@avggoal700 wrote:

yesUses I just went online and tried to look at EQ for being denied credit, it says my info doesn't match and to send my ssn card copy, etc in mail to verify.  I can't believe a company that deals in credit fraud and identity theft have this policy. of course I just shot off a email to EQ.  

Strange because I just looked at all 3 of my reports since last month, now EQ doesn't recognize me.  If I got a security question wrong, atleast give me 2 tries, nope .

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Avggoal,

EQ did not even get to security questions. They asked for DL number. This is the same number I have sent them twice before. The name, address, all details are exactly what they have on the credit reports they have sent me by mail so far. 

I will have to give them a call and check what's happening on my file.