Soft pull

[casmith1980]

I'm sure this has been asked before but I'm feeling lazy tonight and my Tylenol pm is starting to kick in:

What can a creditor see by performing a soft pull inquiry vs hard pull?

Thanks!!!!

[cdtotten]

I'm going to quote RobertEG on this to save time (and he is always spot on):

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The terms "hard" and "soft" inquiries are never mentioned in those or any other terms in the FCRA.  Any credit inquiry that entitles the requestor to your full credit report is, in the eyes of the FCRA, the same.  It has a permissible pull authority.  The only statutory provision that restricts a permissible putl without full access to your credit report are so-called promotional inquiries under FCRA 604(c) (1-3).  Those are defined as requests for your credit report in connection with any credit or insurance transaction not initiated by the consumer, and limit the inquiree to only your name and address.   Additionally, FCRA 604(c)(3) stipulates that inquires in connection with a credit or insurance transaction not initiated by the consumer may not be included in any credit report the CRA issues.  That is the extent of FCRA regulation.

The distinction between "hard" and "soft" inquiries is an invention of the credit reporting industry to record useful information in your credit file related to inquires that you have initiated.  Creditors want to see this additional information, and FICO has chosen not to score certain types of inquiries.  So a coding system was needed, and was developed to differentiate between different types of inquiries made by a consumer.  That reporting is not regulated by the FCRA.  So you are often at the mercy of the inquiree as to how they choose to code their inquiries.  If they select a code that FICO scores, it becomes what is called a "hard" inquiry.  They can, if they choose, even report inquires based on requests for new credit under a code that FICO does not score,thus making it a "soft" inquiry in your credit scoring.

Recordation of an inquiry as either hard or soft has no effect on the level of information the inquiree receives in the CR supplied to them.  So, for their purposes, they have no real incentive or disincentive to use a code that FICO does not score.

[casmith1980]

So...to sum it all up:

CCCs that pull hard for CLIs are jerks because it's just a coding difference. They don't see anymore or any less information than a soft pull.

[GregB]

There might be a tiny bit of truth to that but and inquiry on your credit report is supposed to be there when you are looking for new or increased credit.

I think you will generally find that if you request a CLI, they will do a normal (hard) pull. They will do a AR, which is coded to be a "soft", to review your account. If they are reviewing your account they may decide to increase, decrease, or leave your credit alone.

I have only heard rumors of a customer initiated CLI that resulted in a soft inquiry.

[cdtotten]

Certain companies will almost always use soft inquiries for credit increases. AMEX is an example of this.

Others, such as Chase, will always do hard pulls.

Technically, a CLI initiated by the customer is a request for credit, so a hard pull seems more appropriate, but it is always nice when a lender only codes it a soft.

[LS2982]

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@cdtotten wrote:

Certain companies will almost always use soft inquiries for credit increases. AMEX is an example of this.

Others, such as Chase, will always do hard pulls.

Technically, a CLI initiated by the customer is a request for credit, so a hard pull seems more appropriate, but it is always nice when a lender only codes it a soft.

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GECRB also softs for CLI's.

[RobertEG]

I would not go so far as to categorize a creditor who reports their inquiry under a hard-pull code as being a "jerk."

The integrity of the entire credit reporting system is dependent upon accurate reporting.  If the type of inquiry they are seeking fits into a code that results in FICO scoring, I dont think they are being a "jerk" by accurately coding it as such.

I would be interested in seeing a list of optional inquiry codes available to a creditor that, for example, is accessing your CR to consider the grant of new credit intitiated by the consumer.  I know that this permits coding as a hard-pull, but dont know what other legitimate codes are available to them for coding such an inquiry in a way to avid FICO scoring.

If the only other availble code for avoiding FICO scoring does not accurately reflect the purpose of their inquiry, it would be inaccurate to code it as such.

[casmith1980]

I suppose I should start putting *sarcasm* prior to posts =\

[llecs]

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@casmith1980 wrote:
I suppose I should start putting *sarcasm* prior to posts =\

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It's diifficult to include sarcasm in a forum. When posters don't know you well enough, they have to take the comment at face-value.

[Anonymous]

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@LS2982 wrote:

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@cdtotten wrote:

Certain companies will almost always use soft inquiries for credit increases. AMEX is an example of this.

Others, such as Chase, will always do hard pulls.

Technically, a CLI initiated by the customer is a request for credit, so a hard pull seems more appropriate, but it is always nice when a lender only codes it a soft.

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GECRB also softs for CLI's.

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BoA has only softed me for a CLI request as well.