Why is a request for a CL increase resulting in a hard pull?

[Anonymous]

On Equifax report, I have two inquiries appearing from First USA (now owned by Chase) that myfico indicates could be negatively impacting my credit score (i.e. hard pulls). I contacted Chase as I believed these inquiries to have been related to two seperate requests for an increase in my credit line for a Chase credit card (one in Feb and another in April).

I explained that when the requests were made that I was assurred that the inquiries would appear as soft pulls and not impact my credit scores negatively. The representative I spoke with confirmed that these requests would have appeared as soft pulls. So why is myfico reporting these and stating that they are negatively impacting my credit score.

[wmarat]

Chase always pull hard for customer initiated CLI requests.

[JoeBJay20]

As you'll learn, most CSRs don't understand the difference between hard and soft pulls.  That being said, I've always felt that the impact of inquiries has been overblown in these forums.  Inquiries only account for a small percentage of your score, I've yet to see anyone have a major score drop due to them. 

[Underh20]

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@JoeBJay20 wrote:
As you'll learn, most CSRs don't understand the difference between hard and soft pulls.  That being said, I've always felt that the impact of inquiries has been overblown in these forums.  Inquiries only account for a small percentage of your score, I've yet to see anyone have a major score drop due to them. 

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It depends on how many inqueries one has, but if there are more than a couple it is not at all uncommon for a score to drop 10 - 30 points.  Also, more than a couple of inquiries can mean the difference between success or being declined on a credit application.

[llecs]

Under a manual review, yes, having that one extra could make a difference if pressed with not-so-perfect credit. IMO, score impact of an inquiry is overrated. I just went from 2 to 3 and 3 to 4 on TU without any score change. The difference in time between #2 and #3 was about 7 months. I also went from 10 to 11 inquiries on EQ with 7 months between the two and saw no score change (didn't expect there to be any with the number of inquiries). DW just had her only two inquiries on TU drop. Those were about 7 months old and that resulted in no change. In the past I've gone from 0 to 1 and 1 to 2 without any impact to the FICO scores. I'm not saying it couldn't happen. It does, but only by a few points at best. The damage occurs when the new TL reports due to an inquiry. I've experienced 20-25 pt drops per new TL being reported.

[Underh20]

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@llecs wrote:
Under a manual review, yes, having that one extra could make a difference if pressed with not-so-perfect credit. IMO, score impact of an inquiry is overrated. I just went from 2 to 3 and 3 to 4 on TU without any score change. The difference in time between #2 and #3 was about 7 months. I also went from 10 to 11 inquiries on EQ with 7 months between the two and saw no score change (didn't expect there to be any with the number of inquiries). DW just had her only two inquiries on TU drop. Those were about 7 months old and that resulted in no change. In the past I've gone from 0 to 1 and 1 to 2 without any impact to the FICO scores. I'm not saying it couldn't happen. It does, but only by a few points at best. The damage occurs when the new TL reports due to an inquiry. I've experienced 20-25 pt drops per new TL being reported.

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Even under automated processing, virtually everybody here at one time or another has discovered a CC application declined for too many recent inquiries. 

The question is, what is considered recent?  Although the inquiries stay on your credit report for two years, after 6 months they have minimal, if any, impact for the vast majority of creditors. 

[smallfry]

Could be a year maybe even two years.

[Anonymous]

I guess you all have been lucky, because I have had more score drop 30pts with one unauthorized inquiry.  I know it was from that inquiry because I disputed it and when it was taken off my score went right back up again.

Message Edited by mbush12 on 06-30-2009 02:13 PM

[jsgree02]

A couple of days ago my EQ Fico dropped from 638 to 592 because of an unauthorized Hard Pull from DirectTV.  The funny thing is that the day before, my EQ went from 590 to 638 with no changes reported from Scorewatch.  I'm currently disputing the DirectTV inquiry and hopefully they will not verify it.