I opened an Umbrella secured and they pulled a hard, no problem. 5 months later I added more to the deposit for a larger credit line. Deposit=credit line $1=$1. They pulled another hard for that 5 months after the account was already open. Does anyone know why they would do that? Would that fall under "request for an increase"? I have never seen anyone post a subject like this on a search so I thought it might help someone if they made deposits to increase a credit line. Has anyone ever heard of this before or does this seem right? Or is it just Umbrella Bank that does this?
THERE IS NO LOGIC TO A "HARD" FOR A SECURED CARD!!! That is as good as a "HARD" for INSURANCE TO "SEE" HOW YOU DRIVE...OR A "HARD" FOR A SAVINGS ACCOUNT OR CD!!!
I agree totaly, I can even understand the first hard inquiry for the Umbrella secured card. But months later adding more to the deposit for a larger credit line getting another hard inquiry on the same account? Does any other secured card do this when adding more money for a deposit? I have never seen this or heard of it and I checked this site in the search section for info after I discovered it. If you added 8 deposits in a two year period to bump up your credit line $1 for a $1 you would get 8 more hards on the same account! Does Orchard, Sky Pass, B of A, Chase, American Pacific Bank, Wells Fargo, or any other secured cards do this? That is my last deposit for Umbrella Bank thats for sure.
Re: Re: Umbrella secured 2 HARD pulls why?? I CAN'T EVEN UNDERSTAND THE FIRST ONE!!! But if you do...that's fine...
Re: Re: Re: Umbrella secured 2 HARD pulls why?? It won't work, because I requested credit to establish the account and the 2nd hard 5 months later on the same account because I "asked for more credit" by depositing more money to back up the credit line. GEORGE I agree with you that it makes no sense for a secured account matching a $1 for a $1 for a credit line. Getting a 2nd hard on the same account from a deposit is what bugs me, I can deal with the first one. Does anyone know if other secured cards pull a hard on additional deposits to the account to increase the credit line?
Re: Re: Re: Re: Umbrella secured 2 HARD pulls why?? You DON'T pull a "HARD" to make a DEPOSIT!!!!! If you can live with it...fine
Re: Re: Re: Re: Umbrella secured 2 HARD pulls why?? I can understand a little why they pull a hard on the account the first time. Match their credit qualifications and etc. I could also understand that if I were to ask for the card to be unsecured at a given point that they would pull a hard. Umbrella pulls a HARD when you make a deposit to increase your credit line even after you already have an account with them. If I made a $100 deposit to increase my credit line right now, they would pull a HARD. I was not aware that any secured credit card did this. Does anyone know if other secured credit cards do this by pulling more hards on further deposits?
Re: Re: Re: Re: Umbrella secured 2 HARD pulls why?? So I guess if you make an original deposit to get a secured card make sure it is large enough to be worth it and do not add any more to it. Is this true with all secured credit cards or just Umbrella? They pull a hard with each additional deposit! ANYONE???
Re: Re: Re: Re: Umbrella secured 2 HARD pulls why?? Legally the savings account that secures the card and the line of credit are two seperate accouints. Thus, it would be a credit line increase when you added to the savings account and asked that your credit card account be raised by a similar amount. Because of the potential for fraud and abuse, the bank could use that purpose to pull another hard to make sure no shenanigans have been going on under your ssn and with you credit, because secured card holders, by their nature are riskier for fraud and misuse than standard customers, that's why they need the secured card in the first place.... Sorry, but I think the bank (and their auditors and regulators) would say that this is a permissible purpose under credit line increase......
Re: Re: Re: Re: Umbrella secured 2 HARD pulls why?? Umbrella pulled a random hard inquiry on my a few months ago. I disputed it with Experian and 30 days later it was gone.
Re: Re: Re: Re: Umbrella secured 2 HARD pulls why?? Umbrella pulled a random hard inquiry on my a few months ago. I disputed it with Experian and 30 days later it was gone.
Re: Re: Re: Re: Umbrella secured 2 HARD pulls why?? If that is true, and I don't know if it is unless I hear it from others. Why would anyone want to add more money to a deposit on a secured credit card for a limit increase? I really do understand the first hard inquiry but additional hards on the same account kind of destroy the purpose of rebuilding credit. I wonder if all secured credit cards that report as unsecured do this or is it just Umbrella on additional deposits. Did anyone know about this before this subject was posted here? I sure did not.
Re: Re: Re: Re: Umbrella secured 2 HARD pulls why?? Bof A pulled a soft on me after 6 months, but that's it. I was told the reason they pull a hard on a new secured is to make sure the info matches and to see your credit. You can easily go over the limit if the merchant doesn't batch daily. I went over the limit recently with an ATM card. I asked the bank how did that happen and they said if you're a good customer they approve it if it's a small amount. They also wanted to charge me a fee for doing it. I closed that account right away.
Re: Re: Re: Re: Re: Umbrella secured 2 HARD pulls why?? THEY "CAN" PULL A HARD...they don't have to!!!!!!!! It is NOT required by LAW!!!!!!!!!!
Re: Re: Re: Re: Re: Umbrella secured 2 HARD pulls why?? GEORGE, I think you are not understanding my question or my point but that could be my fault. This is not about the first HARD that is pulled to establish the secured credit card, their "credit criteria" etc. It is about additional hard inquiry's on further deposits every time a deposit is made to match it $1 for a $1. Lets say someone opened a secured credit card for $500, hard inquiry no problem. Then that individual made 4 deposits within that year to raise their credit limit. That would be 5 hard inquiry's on the same account, within a year OUCH! I would think not many are aware of this when opening a secured credit account that reports as unsecured. My whole point of this subject is to let others know if they are going to open a secured credit card, is that they can get hard inquiry's for each additional deposit. My question was do other secured credit card issuers do this? Or is it just an Umbrella thing. I am just trying to help others who need to open a secured credit card and was looking for more information on how other secured credit cards that report as unsecured deal with this issue.
Re: Re: Re: Re: Re: Re: Umbrella secured 2 HARD pulls why?? NOBODY ELSE PULLS A "HARD" FOR A DEPOSIT... They "CAN" but they don't have to... Every credit card company has the "RIGHT" to pull a "HARD" at any time...BUT THEY DON'T HAVE TO!!! There is NO law that makes them do it!!! EVEN IF YOU "THINK" THEY SHOULD DO A "HARD" FOR A DEPOSIT...I WOULD DISPUTE THEM ANYWAY!!! Find some other card company and close that one...unless they are going to do a "HARD" for account CLOSURE?!?!?!?!?!
Re: Re: Re: Re: Re: Re: Umbrella secured 2 HARD pulls why?? I do agree with George. They can but they don't have to. Their auditors and/or regulators may want to see or Umbrella may think that this practice is good security or part of a compliance plan. I received an audit verifification letter from their accounting firm (a medium sized one from Rockford IL) where it had a copy of my statement and asked if it was indeed my statement. Remember, Umbrella has been very competent at the use of credit inquiries when it wants to be (i.e. use of soft for identity verification on checking account application as a way to offer overdraft and credit cards). I really think they view this as a high risk group that must be watched carefully for fraud. They probably do not want the high default and fraud rates of the major secured issuers such as sterling and orchard.
