I have noticed over some time that some members wonder which CRA a creditor pulls because one of their reports is better than another ... My thought even if they pull the good report and you are approved isn't anyone concerned that they will pull another report for an AR and increase the interest rate and lower the credit line once you have the card? Example, just a generalization. A potential customer applies for a prime card because this creditor pulls Experian (their good report). Now the Experian report contains no negatives and shows a well established credit history. Their score is 850. On the other two reports their is a unpaid collection for $25000 from ABC Company on one report and a foreclosure on their home on the other. The consumer's scores are 410 and 350. Since the consumer has a high score and an excellent credit history on the Experian report (and that is the report that the creditor pulled) the new customer receives a $75000 credit limit and 0% interest rate. The creditor then pulls an AR from the other two reports six months later and sees that the consumer has a tarnished credit history. The creditor then jacks the rate up to 60% and cuts the credit line to $500. The consumer who has since maxed out the card must pay $75000 back at 60% - including overlimit fees each month. Okay, okay, I went a little overboard in my generalization, but can anyone explain to me their reasoning for picking a creditor that pulls one report when they could possibly (and probably do) pull ARs on their others? I'm not trying to corner anyone or make anyone feel inadequate I just don't understand the rationalization behind it. All opinions are appreciated. Dani
I am trying to re-establish credit. So I need tradelines. My since of survival tells me to apply with a creditor who will pull my better report! If my A report stinks and that's the one ABC will pull, why apply! If I find a creditor who gives me a high limit I would be a moron just like the people that work at the CRA's if I max it out! We're here to re-stablish not destroy ourselves. If your scenario happens then you have customer services issues that can be dealt with. Oh yea we have to search for creditors who pull our ACCURATE report. Notice I said accurate not better! That's the dayum problem. The CRA's are reporting inaccurate information. You see they and you expect us to be victims. Since they have inaccurate information they and you want me to not apply or apply and except bad terms! Why does everyone assume that the comsumer is wrong? How did they mamage to get us feel as though we have sinned if we challenge them?
I don't dispute that the creditors/CRAs report inaccurate information. How is the creditor that pulls your report a year later, after issuing you one of their cards knows its inaccurate? Dani
I don't think Dani was telling you not to apply. She does however make a valid point. If you obtain credit based on your 1 accurate or good report, you do run the risk of having the creditor do an AR with another cra and then jacking up the apr or even closing the account on you. It has happened to people on this board. I don't agree with not applying because this MAY happen, but just be aware that it could happen.
OK thanks for looking out for me. I sounded off because I read the post while I was pissed at Experian. I am still pissed.
Its a risk, but sometimes they are only subscribed to one service. Why would they suddenly subscribe to another unless they were doing an across the board switch? Costs them money. L
Because they will find enough inaccurate reports with bogas low scores to give them an excuse to raise rates.The money they stand to collect by doing this will make what they pay the CRA look like like chicken feed.
actually this was one of my concerns as well too.. I wonder how often it happens. Anyon have this happen and from which creditor?
