There is a way that you can get some idea as to wether or not a company will be willing to do business with you WITHOUT generating an inquiry. With the atmosphere the way it is today I'm sure these companies will understand why you would go about initiating a relationship by "requesting a tentative offer". Furthermore, they will respect you for your professionalism Read the following carefully, it's self explanatory; Date ABC Bank 321 Google Street Anytown, USA 54321 Certified Mail # xxxx xxxx xxxx xxxx xxxx Dear Friends At ABC Bank, This letter is not an application for credit but rather, a request for a tentative offer. I have selected your company as a company I would like to consider doing business with. I would like to submit an application for a XXXX Credit Card/Loan with a credit line of $10,000. Inquiries on ones credit report can be detrimental to ones credit and FICO score. In order to avoid this problem I submit herewith a copy of my most recent credit report as pulled from my online membership at Creditwatch/Experian, with a redacted social security number. Upon reviewing this credit report you should have a good idea as to whether or not your company will approve me for that which I seek. Please advise me in writing if you would consider approving me for your Credit Card/Loan. Obviously I do understand that once I submit an actual application you will need to confirm the information on my CR by pulling your own copy. Naturally, I will at that time grant my permission for you to do so but you may assume the credit report you pull will be exactly the same as the copy herein enclosed. In the meantime please advise as to what your thoughts are based upon the information you now have in hand. Again, this is not a permission to access my credit file but merely a request for a tentative offer. Also, I've enclosed a self addressed, stamped envelope for your convenience. I invite your call if you think that would be helpful. I can be reached at 1.634.234.4958. Most Respectfully, Bob Smith 123 West Main St. Anytown USA, 12345 Enclosure: Copy of Experain Report of xx/xx/2002 SASE
Have you gotten results with this? It seems like a great idea, in fact one I'm tempted to try. But the time I spent working for a non-trivial card issuer forces me to admit that the only response I'd have had to such a letter at the time would have been a nice chuckle as I tossed it into the trash and reached for the next app that was from a person who would actually let me do my job. But then, I was just one of the peons who reviewed and approved/declined all the new apps. I had a big pile to get through. If you had addressed the envelope in such a way that your letter bypassed me and got into my manager's hands, she quite likely would have given it consideration if the CBR was good enough. What I'm saying is it's a good idea, and a worthwhile approach, you just need to put some effort into getting it into the right hands.
I totally agree about it being a great letter!!! The first thing I thought about was, who the heck do you send it to? What if the person who reads it is not the person who makes the credit decisions, but they write you back saying 'yes, blah blah'. I think this would be great for a person with iffy credit seeking a mortgage. I also like the fact that you have a letter from them stating you will get something, depending upon your credit snapshot at that time. Imagine if you really improve your credit by the time you get your return letter. (might take them 30 days to get back to you). All in all, this is a great letter ;-)
Both good points. Since you're both making the same point. Yes I would NOT just send this to "To whom it may concern". You may want to try and find that manager you mentioned and get it into her hands. I think if someone talks to you on the phone first they will be more likely to give you some attention. If I were to hazard a geuss, I'd say that if mailed out COLD you may get 1 response out of 3 letters, and that would probably take 2-3 weeks. Hey, in my opinion it's worth it to avoid those pesky inquiries. Besides there are thousands of credit issuers. It's not like the potential is limited. LOL I've not personally tried this approach but soon will. I do know how business works, and this is not an unreasonable way to do it. Naturally your success will depend upon a cpl things. Getting this into the right hands and what your report and score look like. You're right, if ones CR is a mess it'll get trashed but that's the point, there would be no inquiry. If it does get trashed ... well ... I guess there's your answer. lol
I like the idea presented here. let us know if you have any success. how do you intend to find a " good target" person for this approach? just wondering.
It's a great idea.. I think it might work even better if you presented it in person to a bank manager... Of course, the presupposition there is that the branch manager has the ability to approve you... I do know that... while a bank manager can't always approve credit cards... they can sometimes override (or help you override) declines... and they definintely can help you get better terms and higher credit lines... in relationship banking.. they can often directly add to your credit lines themselves...so knowing your bank manager is a great thing It is interesting how larger banks seem to have moved the approval process to automation... and then to a human review only if pushed... On mortgages it's a great idea esp with a lot of banks using the old software that artificially decrease your scores...
Though it's impossible to second guess the number of responses a thread will get, I'm surprised this idea hasen't received more feedback. ???
I have tried a couple variations of this and did not have any luck. In one instance I met with someone I was sure was the "right person". This person was aware of my decent balances in the bank, perfect payment history for 2 years on a secured card this person set up, etc. This banker's response was that since they are a fed or state chartered bank, they cannot deviate from the written methods for extending credit and no amount of stressing tentative, what if..., etc helped! I later asked someone else for the bank's standards and found that they had various scores for secured and unsecured loans. A certain score gets automatic approval, another gets a review by a human and a third category is a denial that no one can override. This is a small bank too! I think this approach might work In one of 5 attempts.
Great letter. I have tried a similar thing with a cell phone company. I told the CS rep. that I would provide reports but didn't want them to pull because of the inquiry issue. I have to check back with them to see if the manager ok'd the idea. They were very receptive to it and are aware that they are losing potential business due to people not wnating the inquiry.
Butch I think the letter's very professional sounding & is a good idea. I think it would be most useful for potential auto loans or mortgage loans rather than credit card loans though since it's easier to identify the loan officer to send it to at car dealerships & banks. The root of the problem is what we all really need to come together to address though. How about a letter aimed at senators, congressmen, banking execs etc that addresses the fact that today's consumers are better educated and more savvy than the Fair Issacs people think & we're used to shopping for the best credit deals around so why do Fair Issacs still use antiquated rated methods that punish smart consumers for price shopping for credit! Inquiries shouldn't count at all towards the score anymore! Would you agree?
