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What is the obsession with HP'ing for a CLI???

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New Contributor

What is the obsession with HP'ing for a CLI???

Call this a rant a complaint, whatever. 

 

I can not wrap my brain on idea of hardpulling someones credit when they can soft pull at any time and literally have access to the EXACT same info I can see everything I need to and more on Credit Karma and my Free Experian Report. Payment History, Derogs, AAoA, Inqs, Total Accounts, Util. And even down to the nitty gritty your limits on your cards your 24 month payment history. Everything. It just makes no sense to me when you have a customer whos with you already obviously if youre requesting a CLI and they have perfect payment history and their reports that you CAN see from a SP at any time that you "Require" a hard pull. I understand the underwriters dont make the rule. Maybe im totally wrong and someone can school me. Amex and Sync have it figured out!

 

POI I get and think they should be more stringent on im sure alot of others will disagree but to be able to just put a number on on a screen and they take your word for it is nonsense

 

Message 1 of 35
34 REPLIES 34
Established Contributor

Re: What is the obsession with HP'ing for a CLI???

Other lenders never see your soft pulls.  Only you see those.  They have no effect of your credit score.  A HP is a signal to all lenders that you have requested credit and can be used to measure credit seeking behavor.  AmEx does do a HP for your first account with them.  They do SP on subsequent cards evidently viewing them as just extensions of an already established credit relationship.  It would indeed be nice if everyone had that approach, but most do not.

Message 2 of 35
New Contributor

Re: What is the obsession with HP'ing for a CLI???

That’s the only justifiable thing I could think of, if no one is dinged than people would just do 100 CC applications a day without any recourse. But I feel it’s different for a CLI obviously what I feel doesn’t matter just wondering if I’m off the wall.
Message 3 of 35
Moderator

Re: What is the obsession with HP'ing for a CLI???

Simple. Because each bank has their own internal UW policies and they decide how to report such permissible information.

While SYNCB, AmEx, Capital One, etc. may SP to CLI, others like Chase, WF, Barclays, and plenty of CUs tend to HP.

It may not make sense to you or perceive it as obsessive; however, a CLI is considered a credit origination (or modification thereof) in the lenders' eyes. How each lender treats those requests is up to them, whether HP or SP.

By the same token, a variety of lenders benefit from such reporting aspects to assess and/or identify potential risks, mitigate losses, fraud instances, etc. So, items like excessive credit seeking behavior (new accounts and/or reported CLI requests) assist with identifying some flags for some institutions.

This topic tends to come up frequently, but it is what it is OP.
Message 4 of 35
Highlighted
Super Contributor

Re: What is the obsession with HP'ing for a CLI???

I actually think it would be a great thing of all self-initiated CLIs were HPs.  I know that goes against the grain in the community here where SP CLI requests happen almost as regularly as a trip to the restroom, something I myself am guilty of.  If all self-initiated CLIs resulted in a HP, you'd see far less CLI requests and/or people greatly limiting their CLI requests to only the card/cards that they really want/need them on.  It would be a level playing field if all CCCs did this.  Lender-initiated CLIs based on heavy usage of course would not require a HP, as that's not a [customer] request for additional credit.

 

I take no issue with CCCs hitting someone with a HP if they are requesting additional credit, which is what a CLI is.  I think many of us have gotten a bit greedy with all of the creditors out there that hand out CLIs like candy with simple SPs, so when we see a HP required it almost seems "wrong" when in fact it in most cases is really the "right" thing to do when looking at the subject through a neutral lens.

Message 5 of 35
Established Contributor

Re: What is the obsession with HP'ing for a CLI???


@BrutalBodyShots wrote:

I actually think it would be a great thing of all self-initiated CLIs were HPs. 


When I see those boxing gloves pop up on my screen while scrolling on my phone, I get excited and start moving left & right like I’m dodging jabs...Ooops i mean I agree with BBS’s opening statement above.  I feel CLI requests should come with HPs, but only if approved. I know my CLI request behavior would change if I had to take a ding every time I smash the luv button or call UW. 


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Message 6 of 35
Community Leader
Senior Contributor

Re: What is the obsession with HP'ing for a CLI???

I also agree with @BBS. If CLIs were a HP, I know I would never ask for one.

My TCL is truly way more than I need. However, I am going to lay 10% of the blame for my GREED on the forum. Before I joined 2.5 years ago, I didn’t even know you could request a CLI, which we all know that the majority who know nothing of forums like this is as clueless as I was. I had one 9yo Platinum that started at $1K and received auto CLIs to the total of $4K in 2016.

Of course, the other 90% blame is definitely all me. I got addicted to everything. The more I read, the more exciting it got, and the more I wanted to push the button. I just loved those approvals.

Now, I’m not regretting any of this; but last month, I did choose to go to the garden for 2 years in order to REIN MYSELF IN. I don’t need any more credit! I’m just happy I didn’t let the credit go to my head and start spending more than I could afford to pay off.

And with this 2-yr imposed hiatus, I know the CLs I have are there if I need them.
GOALS: Garden til APR 2020 and 800 Club


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Message 7 of 35
Super Contributor

Re: What is the obsession with HP'ing for a CLI???

It really doesn't bother me because realistically, most of us ask for CLIs we don't really need just because it's a SP. Were they always a HP I would have far smaller (but still perfectly useful) limits. So I wouldn't blame the banks if the policy was always HP because you are seeking credit; a HP is fair.

Message 8 of 35
Valued Contributor

Re: What is the obsession with HP'ing for a CLI???

I took HPs for Chase CLIs and I didn't have a problem with that at all. 

 

There is really no reason for them to do a HP because CCC are always SPing your credit monthly as part of their monitoring.  That is why some have AAs done against them.

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Message 9 of 35
Super Contributor

Re: What is the obsession with HP'ing for a CLI???


@redpat wrote:

 

There is really no reason for them to do a HP because CCC are always SPing your credit monthly as part of their monitoring.  That is why some have AAs done against them.


The HP isn't done necessarily for the additional pull when they're already getting monthly SPs, it's simply because they want to leave a mark on your CR stating that you were requesting additional credit.  I'm sure all CCCs would like to see these marks, as they'd rather know (than not know) if and with whom they are requesting additional credit.

Message 10 of 35
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