I understand the difference between hard and soft inquiries and their effect on scores. What I don't understand is why the creditors sometimes insist on pulling a hard inquiry when you request a credit line increase or a better interest rate. I know they do soft inquiries all the time for reviews. Why not do them for credit line increases? Are there time when they are required to do hard inquiries? Also, when someone is boarderline and goes in for a mortgage, asking only can you get me approved?, why do they have to add to the problem by pulling a hard inquiry? Can't they do a soft one just to see if they can even help? I know CA's pull hard inquiries just to screw up your report but that is because they are evil.
Sometimes it's just user error. I have heard of cases asking for better credit limits or lower interest where they have to apply for a new product which would have a new account number and that it why the hard inquiry. It's like when you walk into the bank and ask for the free checking. If you ever switch to the upgraded service, they have to change the account number. 95+% of any request for loans with a mortgage company will draw a hard inquiry. If you want to keep them off your records, pull disclosure reports yourself and hand deliver copies to the mortgage company. Tell them you'll looking only for pre-approval and do not want any additional inquiries into your credit history at this time. Many understand your request and will work with you .....
Why do they have to do it if they give you a new account? Is it a CRA requirement or lender requirement or what? Who is it that requires the hard inquiry over the soft one? The reason I asked is that I have seen numerous posts indicating people have applied for increases in their credit line but only if the creditor pulls a soft inquiry. Some creditors will, some won't.
If the notion that inquiries are, at least, partially, indicative of a consumer's credit standing, then they are legitimate factors in scoring as requests for increases in credit lines. An increase in a credit line is a request for credit; more credit on the same account, yes, but credit, nonetheless.
They are not Indicative. Scoring is an intentional rip off. There are no legitimate factors in a ripp-off!
Some people have got "HARD" inquires to COMBINE two or three accounts with the same bank... CARD A $ 8,000 CARD B $10,000 CARD C $12,000 They want CARD A to be $30,000 they PULL A "HARD"...WHY, THEY ALREADY HAVE $30,000 AND ASKED FOR NO ADDITIONAL CREDIT LIMIT??? I personally say "HOW MUCH INCREASE CAN I GET ON MY CREDIT LIMIT WITH-OUT A CREDIT REPORT BEING PULLED? If they say "a credit report MUST be pulled, I say FORGET IT!!!
