Why do some banks and credit unions do a hard pull?

[folks19]

Why do some banks and credit unions do a hard pull on one's credit report even if they are not applying for any sort of credit (loan or credit card)? Shouldn't credit reports be just for credit inromation? By doing a hard pull, other lenders think that one is seeking credit while really he or she is only applying for a bank account?

Besides, why are banks even interested in one's cerdit report if they are not applying for credit?

[RadioRob]

Even with a debit card, there is a chance of transactions being run that don’t have sufficient funds. For example if the CU is doing maintenance on their systems, and you make a purchase, it will auto approve certain transactions.

If they allow you to OD your checking account and pay a charge without sufficient funds, they’re loaning you money.

Like most anything else, there’s no hard and fast rules. It’s more of a general framework that is implemented differently by each organization.

[folks19]

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@RadioRob wrote:
Even with a debit card, there is a chance of transactions being run that don’t have sufficient funds. For example if the CU is doing maintenance on their systems, and you make a purchase, it will auto approve certain transactions.

If they allow you to OD your checking account and pay a charge without sufficient funds, they’re loaning you money.

Like most anything else, there’s no hard and fast rules. It’s more of a general framework that is implemented differently by each organization.

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But most Hanks don't, so why do those few banks have to do a hard pull?

And besides, they can get the same information with a soft pull, so what's the point of reporting the inquiry as "seeking credit" when the person isn't actually seeking credit?

(The purpose of a hard pull is to report that the person is seeking credit. If the inquiry is done for another reason, for example, account reviews, then the reason for the inquiry is NOT "seeking credit", but rather it is for account reviews.)

[Anonymous]

Read the Scoring Primer.

[Anonymous]

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@folks19 wrote:

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@RadioRob wrote:
Even with a debit card, there is a chance of transactions being run that don’t have sufficient funds. For example if the CU is doing maintenance on their systems, and you make a purchase, it will auto approve certain transactions.

If they allow you to OD your checking account and pay a charge without sufficient funds, they’re loaning you money.

Like most anything else, there’s no hard and fast rules. It’s more of a general framework that is implemented differently by each organization.

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But most Hanks don't, so why do those few banks have to do a hard pull?

And besides, they can get the same information with a soft pull, so what's the point of reporting the inquiry as "seeking credit" when the person isn't actually seeking credit?

(The purpose of a hard pull is to report that the person is seeking credit. If the inquiry is done for another reason, for example, account reviews, then the reason for the inquiry is NOT "seeking credit", but rather it is for account reviews.)

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Checking/savings accounts can pose quite a bit of exposure risk in the case of OD/fraud/bounced checks; HPs and inquiries, along with other info from Chex/EWS, can reduce that risk, but it only works when the majority reports that info.

[Brian_Earl_Spilner]

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@Anonymous wrote:
Read the Scoring Primer.

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Bro, I feel like I'm studying for a test when I try to read that thing.

[Anonymous]

😂😂😂😊

[randomguy1]

Just a note, some of these financial institutions only do a hard pull when you do not decline overdraft protection.

[folks19]

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@Anonymous wrote:

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@folks19 wrote:

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@RadioRob wrote:
Even with a debit card, there is a chance of transactions being run that don’t have sufficient funds. For example if the CU is doing maintenance on their systems, and you make a purchase, it will auto approve certain transactions.

If they allow you to OD your checking account and pay a charge without sufficient funds, they’re loaning you money.

Like most anything else, there’s no hard and fast rules. It’s more of a general framework that is implemented differently by each organization.

---

But most Hanks don't, so why do those few banks have to do a hard pull?

And besides, they can get the same information with a soft pull, so what's the point of reporting the inquiry as "seeking credit" when the person isn't actually seeking credit?

(The purpose of a hard pull is to report that the person is seeking credit. If the inquiry is done for another reason, for example, account reviews, then the reason for the inquiry is NOT "seeking credit", but rather it is for account reviews.)

---

Checking/savings accounts can pose quite a bit of exposure risk in the case of OD/fraud/bounced checks; HPs and inquiries, along with other info from Chex/EWS, can reduce that risk, but it only works when the majority reports that info.

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But again, they can get the SAME information via a soft pull, so why do a hard pull?

[Anonymous]

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Inquiry-Master-Thread-understanding-inqu...