From my understanding, a soft pull and a hard pull show pretty much the same information. So what leads to a HP denial after a SP pre-approval? I am assuming they don't actually show the same EXACT thing, other than one oficially declaring an application for credit?
@SDMarik wrote:From my understanding, a soft pull and a hard pull show pretty much the same information. So what leads to a HP denial after a SP pre-approval? I am assuming they don't actually show the same EXACT thing, other than one oficially declaring an application for credit?
1. The data is not always the same because they're often far apart in time.
2. The SP is based on a search for certain narrow criteria; the actual credit application with HP takes into account the whole panorama of one's profile.
As I said, the data is different.
In 2 ways.
1. It's taken at a different point in time.
2. The data used to do the prequalification is a limited data set, while the data used to grant or deny the application is broader.
I didn't say anything about algorithms, nor are the algorithms relevant to the question.
Don't forget the CR is only a part of the equation, there are other important factors that are reviewed after the SP such as Income, employment stability, residence stability, home owner/renter. The only thing that I think is mainly different with the HP vrs SP is that the finacial company puts a HP to show other financial institutions that you applied for is to safe guard risk. I am pretty sure they can see everything with a SP that they see with a HP.
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@Anonymalous wrote:
@RobynJ wrote:Don't forget the CR is only a part of the equation, there are other important factors that are reviewed after the SP such as Income, employment stability, residence stability, home owner/renter. The only thing that I think is mainly different with the HP vrs SP is that the finacial company puts a HP to show other financial institutions that you applied for is to safe guard risk. I am pretty sure they can see everything with a SP that they see with a HP.
That's my guess, though it's just a guess. Despite the somewhat misleading name, it's very clear that the primary purpose of a hard pull is to alert other lenders about credit seeking, rather than anything about the nature of the data collected. Though there might be a financial element involved that limits the overall data set -- they might not fork out the money to pull all the secondary bureaus for a mere prequal, for instance.
I'd be really interested to know more about how this works, though.
I think it's the same only because there are lenders like AMEX and Goldman Sachs that uses a SP for approval so they must see what is needed
@Anonymalous wrote:
@SouthJamaica wrote:As I said, the data is different.
In 2 ways.
1. It's taken at a different point in time.
2. The data used to do the prequalification is a limited data set, while the data used to grant or deny the application is broader.
I didn't say anything about algorithms, nor are the algorithms relevant to the question.
If they have access to the same data, but the prequals only look at a limited part of the data set, and the full application looks at a much broader range of the available data, that's two different algorithms.
No it's not. One comes from a search for certain data points. The other looks at the big picture. A search is not an algorithm.
E.g., one might do a soft pull: "FICO 8 score 700-740, no lates, no more than 2 inquiries in 6 months" and get a prospect. But when that prospect applies, it turns out that in addition to the prequal criteria, he has utilization of 40%, owes 90% on several installment loans, and has too little income to support the monthly payments, causing his application to be denied.
@SouthJamaica wrote:
@Anonymalous wrote:
@SouthJamaica wrote:As I said, the data is different.
In 2 ways.
1. It's taken at a different point in time.
2. The data used to do the prequalification is a limited data set, while the data used to grant or deny the application is broader.
I didn't say anything about algorithms, nor are the algorithms relevant to the question.
If they have access to the same data, but the prequals only look at a limited part of the data set, and the full application looks at a much broader range of the available data, that's two different algorithms.
No it's not. One comes from a search for certain data points. The other looks at the big picture. A search is not an algorithm.
E.g., one might do a soft pull: "FICO 8 score 700-740, no lates, no more than 2 inquiries in 6 months" and get a prospect. But when that prospect applies, it turns out that in addition to the prequal criteria, he has utilization of 40%, owes 90% on several installment loans, and has too little income to support the monthly payments, causing his application to be denied.
Sorry, I have to disagree with you. I know that they can see utilization from a SP. This is how Discover graduates your secured card. They state in the email that that is one of the exact things they check for along with score, recent inquiries, new accounts, derogatory, CO, BK. Judgements. They see all of this with a SP per their email. If I'm wrong it's because I am trusting discovers discloser. As for income that isn't in your report and I agree if you look at the above post of mine I stated the CR is only one factor to approve.