Information gained from a soft pull

[Anonymous]

I'm not sure if this is the right place, as there's several questions involved here, all stemming from a credit card application I recently attempted. I was told my online application for the Ducks card went pending, so after I while I checked my status online. There it said rejected. I called up customer service the following day, and was told that I was rejected due to a "thin credit file". However, no inquiries have shown on my TU or Experian credit reports. I haven't received the written rejection yet.

So, I was wondering if people could help with these questions:

- How much information can be gained from a soft pull? Can they determine a thin file from that?

- What constitutes a thin file?

- What can I do to thicken it?

Thanks, and apologies to mods if this needs to be moved!

[Revelate]

Basically everything on HP can be seen on a SP.

Thin file simply means you have too few tradelines for their underwriting requirements... the way to fix that is simply get more tradelines. How many do you have currently?

That said OCCU at least used to be an Equifax puller so I wouldn’t rule out a HP there yet.

[Anonymous]

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@Anonymous wrote:

- How much information can be gained from a soft pull? Can they determine a thin file from that?

- What constitutes a thin file?

- What can I do to thicken it?

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1 - They can see your entire CR from a SP, just like a HP, so yes they'd see your total number of accounts and whether your file is thin.

2 - 3 accounts or less is generally considered thin.  Once you reach 4+, while your file definitely wouldn't be considered "thick" it likely wouldn't be considered thin any longer.

3 - Adding more accounts to your CR is the only way to thicken your file.

[SBR249]

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@Anonymous wrote:

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3 - Adding more accounts to your CR is the only way to thicken your file.

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I would say more accounts and time. 

[BallBounces]

Sorry if it is already well known, but if the data culled from an SP and an HP is effectively the same, why is there a distinction?   There has to be something that distinguishes an HP and leads lenders to performing one in addition to an SP.

[Anonymous]

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@SBR249 wrote:

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@Anonymous wrote:

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3 - Adding more accounts to your CR is the only way to thicken your file.

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I would say more accounts and time. 

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Time doesn't thicken your file, it ages your file.  Aging a file is extremely important, so great job bringing up that factor.  Aging however won't thicken a file, as it doesn't add any additional accounts... which is what is needed to take a thin file to a non-thin file.  It's possible to have a thin/aged file, the same way it's possible to have a thick/young file.  The goal of course is to obtain a thick/aged file, as for score segmentation purposes that's what's ideal.

[Anonymous]

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@BallBounces wrote:

Sorry if it is already well known, but if the data culled from an SP and an HP is effectively the same, why is there a distinction?   There has to be something that distinguishes an HP and leads lenders to performing one in addition to an SP.

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The difference is that a HP leaves a mark on one's credit report showing that they were applying for credit.  This mark can then be seen by other lenders that someone was applying for credit at that time.  A SP can be used for many other things such as someone checking their own credit, current creditors performing account maintenance (checking up), potential creditors checking out your profile in order to possibly send you targeted offers, etc.  Those things among others aren't applications for credit, so no need for a HP to be placed on your CR. 

Where one of the slightly controversial topics comes into play would be SPs being used for CLIs.  While [self-initiated] SP CLIs aren't applications for new credit, they are applications for additional credit.  Some lenders such as Chase don't believe in SP CLIs and will get you for a HP if you want a CLI.  Plenty of others (in fact the majority) do allow SP CLIs on occasion, meaning the customer can obtain additional credit without it being made known to everyone that they requested it.

[BallBounces]

BBS.  I of course know that an HP leaves a mark.   

You are implying then, the only reason to use an HP then is to concretely flag a consumer's discrete attempt at seeking credit. That's interesting.

If the data received is the same, the only reason to use an HP is to PLACE a condition on a consumer's CR.  That's interesting, and a potential differentiator in the lending marketplace .......

[Anonymous]

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@BallBounces wrote:

You are implying then, the only reason to use an HP then is to concretely flag a consumer's discrete attempt at seeking credit. That's interesting.

If the data received is the same, the only reason to use an HP is to PLACE a condition on a consumer's CR.  That's interesting, and a potential differentiator in the lending marketplace .......

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That is correct.  The information obtained from a HP and SP is the same.  The reason that lenders leave the HP is in order for other lenders to see it and in turn their [silent] agreement/expectation is that those other lenders will do the same thing and leave a HP if credit is requested from them.  I think this is a great thing, but it would be better if it was a hard and fast rule that had to be followed.  Getting back to my SP CLI example, it sort of gets watered down when some (in fact the majority) of lenders do extend additional credit without taking a HP. 

I've long said that it would be "better" overall if all lenders used HPs for all CLIs, meaning SP CLIs would go away.  I know that's a bold statement to make on a forum where SP CLIs are one of the most commonly talked about topics and sought after things credit-related, especially coming from a guy that's pounded the pavement for SP CLIs as much as the next guy.  But, I simply play by the rules as they're currently presented.  I would have zero problem though of all CLIs required HPs.  It would create a level playing field and would make people think twice about going for CLIs, cause them to go for only the ones they "need" in many cases, etc.

[BallBounces]

BBS, if what you are saying is accurate (SP and HP provide the same data), then there really should be no such thing as an SP ...