@micvite wrote:
@Mr_Mojo_Risin wrote:
@micvite wrote:Is there any difference in what a bank or lender has access to via SP or HP? If not, why do banks insist on mainly doing HP, even for a CLI in some cases? What's the point?
A bank or lender can see the same whether its SP or HP.
The reason/a reason for HP is to let other banks/lenders know you applied for credit.
So when a bank wants a HP for a CLI it's just because they're being (Mod cut - not here please @micvite - please familiarize yourself with the TOS)? Like oh we need to do a hard pull to get more info to continue processing your CLI request is just them wanting to ding your report for no reason when they could do a SP and get the same info?
No. The reason some banks do a HP for a CLI is because you initiated a request for more credit from them. They have every right to check your credit report(s) in whatever manner they see fit, as it was you who asked for more. Just because some FIs extend the courtesy of granting most CLIs via SP, they are in no way obligated to do so.
@micvite wrote:
@Ficoproblems247 wrote:
@micvite wrote:
@Mr_Mojo_Risin wrote:
@micvite wrote:Is there any difference in what a bank or lender has access to via SP or HP? If not, why do banks insist on mainly doing HP, even for a CLI in some cases? What's the point?
A bank or lender can see the same whether its SP or HP.
The reason/a reason for HP is to let other banks/lenders know you applied for credit.
So when a bank wants a HP for a CLI it's just because they're being (Mod cut - not here please @micvite - please familiarize yourself with the TOS)? Like oh we need to do a hard pull to get more info to continue processing your CLI request is just them wanting to ding your report for no reason when they could do a SP and get the same info?
No. The reason some banks do a HP for a CLI is because you initiated a request for more credit from them. They have every right to check your credit report(s) in whatever manner they see fit, as it was you who asked for more. Just because some FIs extend the courtesy of granting most CLIs via SP, they are in no way obligated to do so.
Sorry let me rephrase: if they do a soft pull cli, and say it needs a manual review that will require a hard pull. Like why does it REQUIRE a hard pull if it's the same info?
Because just like applying for a new account, requesting a CLI is still asking that lender to extend you more credit. Different lenders do things differently, and unfortunately we do not have specific incite as to their internal policies and what prompts those decisions. Citi is a great example to use for this: They will grant you typically modest CLIs via SP. It's them saying "Here, we feel comfortable increasing your cushion by this amount just because you've been a responsible customer so far." After they give you that amount, you have the option to take a HP if you want more than that. "Oh, you need a higher increase? That may or may not be ok, let us send it to a human to look over. BTW, because you are asking for a larger increase to your line of credit with us, your other lenders have the right to know you are seeking more credit." Again, different from every lender, but that is kind of the gist of it. Basically the point of it is that while you may not agree with it, the design of the HP is so other banks know when you are seeking credit so they are able to make informed decisions about your profile as they see fit.
@micvite wrote:
@Ficoproblems247 wrote:
@micvite wrote:
@Ficoproblems247 wrote:
@micvite wrote:
@Mr_Mojo_Risin wrote:
@micvite wrote:Is there any difference in what a bank or lender has access to via SP or HP? If not, why do banks insist on mainly doing HP, even for a CLI in some cases? What's the point?
A bank or lender can see the same whether its SP or HP.
The reason/a reason for HP is to let other banks/lenders know you applied for credit.
So when a bank wants a HP for a CLI it's just because they're being (Mod cut - not here please @micvite - please familiarize yourself with the TOS)? Like oh we need to do a hard pull to get more info to continue processing your CLI request is just them wanting to ding your report for no reason when they could do a SP and get the same info?
No. The reason some banks do a HP for a CLI is because you initiated a request for more credit from them. They have every right to check your credit report(s) in whatever manner they see fit, as it was you who asked for more. Just because some FIs extend the courtesy of granting most CLIs via SP, they are in no way obligated to do so.
Sorry let me rephrase: if they do a soft pull cli, and say it needs a manual review that will require a hard pull. Like why does it REQUIRE a hard pull if it's the same info?
Because just like applying for a new account, requesting a CLI is still asking that lender to extend you more credit. Different lenders do things differently, and unfortunately we do not have specific incite as to their internal policies and what prompts those decisions. Citi is a great example to use for this: They will grant you typically modest CLIs via SP. It's them saying "Here, we feel comfortable increasing your cushion by this amount just because you've been a responsible customer so far." After they give you that amount, you have the option to take a HP if you want more than that. "Oh, you need a higher increase? That may or may not be ok, let us send it to a human to look over. BTW, because you are asking for a larger increase to your line of credit with us, your other lenders have the right to know you are seeking more credit." Again, different from every lender, but that is kind of the gist of it. Basically the point of it is that while you may not agree with it, the design of the HP is so other banks know when you are seeking credit so they are able to make informed decisions about your profile as they see fit.
When you put it that way it makes a lot more sense. I guess I never thought of a CLI as seeking credit so I never understood the reason why it would ever require a HP.
Oh I get it for sure, and I wish they were all SPs, too. The unfortunate truth of the matter is that technically they should all probably be HPs, and we are just fortunate that a lot of lenders now have losened up on that policy.
