What exactly is the difference between a SP and a HP

[SwiftTone]

I understand the difference as far as how it impacts your credit creport and score.

But what information do lenders actually see on a SP? It seems like they get  our personal information, but what is it actually??

[haulingthescoreup]

There are two types of soft pulls.

One is done by your current lenders. They have the right to see your reports to see if you're getting in trouble with other lenders and possibly getting ready for default. So they see everything on your reports.

The other is done by potential lenders, potential insurance companies, potential lawn service/ roofing repair/ carpet cleaning services/ etc. It's a promotional pull, and it only gets your name and address. (It can also be done by collection agencies going fishing.)

[RobertEG]

+1

The FCRA never uses the terms "hard" or "soft" inquiry.  Those are purely codings provided by the CRAs to differentiate between permissible purposes.

All permissible puposes under FCRA 604 provide access to your full credit report except for the one mentioned.... so-called "promotional inquiries," under section 604(c), which only authorizes them to receive  your name and address.

While many have reported on this site that debt collectors take advantage of such inquiries, in my opinion, they dont have any authority to do so under section 604(c).  Such inquiries are only authorized in connection with credit or insurance transactions not initiated by the consumer and for which the transaction consists of a firm offer for credit or insurance.  Debt collectors arent offering firm offers for credit or insurance.  And they are usually seeking more than a name and address.

Debt collectors who have recognized collection authority dont need to rely on section 604(c) soft pulls, as they have separate authority under section 604(a)(3)(A), which entitles them to your complete CR. 

The mechansim by which ANY creditor can code an inquiry for which the consumer has inititated a request for credit or insurance, or  the inquiree has a legitimate business purpose for the information, and have it blocked from view of other creditors, still eludes me.  If the inquiry is stated for one of those purposes, it should have a code that reflects that purpose, and thus be shown in the consumer's credit report.  I guess there must be an inquiry code that reads "Permissible purpose is with regard to a consumer-initiated request for new credit, but we dont want it included in their credit report?"

[SwiftTone]

So if a current creditor can see everything on my report with a SP, why do they almost always want to do a HP for a CLI? Not only there may be no point of a HP, a HP will lower your FICO even though it's only slightly.

[Anonymous]

It's just a company policy thing. The explanation I heard is that it relates to how a company interprets the credit laws. Some think that cli is extension of credit and therefore require a hp.

[SwiftTone]

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@Anonymous wrote:
It's just a company policy thing. The explanation I heard is that it relates to how a company interprets the credit laws. Some think that cli is extension of credit and therefore require a hp.

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Actually, this relates to why I'm asking.

Today, I called Chase's executive office to initiate a PC from a Slate to Freedom. I figured while I'm doing this, I might as well ask for a CLI. When I asked, I told the nice woman that I don't want if it's a HP.  Her repliy was "at the executive office, we usually don't do HPs for CLIs."

So company policy maybe sometimes be a factor, but apparently not in this case.

[marty56]

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SwiftTone wrote:

Today, I called Chase's executive office to initiate a PC from a Slate to Freedom. I figured while I'm doing this, I might as well ask for a CLI. When I asked, I told the nice woman that I don't want if it's a HP.  Her repliy was "at the executive office, we usually don't do HPs for CLIs."

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The nice CSR might not no the difference between an HP or SP and usually means everyone but Marty in my book.

So IMHO if you need to ask about a HP before asking for a CLI, you should not do it.

[SwiftTone]

I've dealt with this same person before. She is a higher up at the executive office. The previous time I've dealt with her it was because a regular CSR told me it would be a SP for a CLI, but it ended up being a HP. She ended up recoding the HP as SP. So I know she knows the difference between SP and HP.

Anyways, I'm more interested in why companies do HP for something like CLI when they can already see everything witha SP?? 

[AndySoCal]

A hard pull is used in relation to the persuit of new credit.  Soft pulls are for pulls when a consumer is not persuing new credit  IE new apartment, employment etc acreditor monitering your credit etc

[SwiftTone]

I spoke to Marie at the Chase executive office regarding a CLI on SP. She told me that at the executive office, they can do a SP for CLIs. Looked in the next day and saw my CL is now at $4000, up from $750. Wahooo!

Anyways, still interested to know why CCCs even do HP when they can already see everyone with a SP