I posted recently on how amazed I was that my bank, after doing business w/them for 10 years, pulled a CR on me for a 2nd checking account w/NO overdraft or CC attached to the account. No notice, I didn't ask because I figured at worst they'd pull ChexSystems, which is clean. There's a thread on what insurance company does not pull your CR. Regardless of whether or not they should, the bottom line is this: inquiries hurt your FICO score and so those of us who understand this - and most consumers to not - have a responsibility to change this absurd logic. The reasoning behind FICO lowering your score on inquiries appears to me to be - you're shopping for more credit, danger Will Robinson. Well, that's just NOT true for insurance, checking accounts, job applications, utilities, wireless phones and many other absurd reasons to have your CR pulled these days. Enough. Let's do something. There should be Yet Another Category of "soft inquiry" - or if they like, a NON-FICO hard inquiry, where the intention is not to grant credit but to establish a background. How do we get this started?
Good question. I guess we could start a letter writing campaign. Start with your Congressman, they're local. Then add in your Senators, then all the members of both banking committees. But a few aren't going to make a dent--we need to organize a massive campaign somehow. How about one of those local TV shows that deals with consumer issues. Anyone have one near them they could contact?
I am with you on this. My most recent inquiry is from a bank also. My niece opened a savings account for my daughter and that bank ran a check on both myself and my husband. It is absolutely maddening. Of course now I will have to write to them to try and have that removed. Maybe a web site could be established where we could begin to collect signatures in an effort to start some type of protest. I currently have 8 inquiries and only one did I authorize. All the rest are simply from ca's, long standing accounts who just check periodically or things such as this most recent bank.
The long standing accounts which check periodically should be soft inquiries, not hard. If they are, they don't count against your FICO score. Were either your or your husband's names on the account? If so, they may be able to come up with PP.
I see this as a three step process. The first is raising awareness so that more people understand how it dings their credit. The second is making it mandatory to let people know their credit will be checked and that it hurts their score. Finally, when enough people are aware and businesses feel the effects of telling people this, another form of inquiry will make sense to all involved. For raising awareness, what are the most efficient first steps? Contacting congress, FTC, Oprah?
Whatever steps are needed, I'd be willing to put my name on the list! I've been with my insurance co. a long time, but inquiries from new companies are what keep me from shopping around for a better rate.
Since this came up in another thread today, I thought I'd bump it back up. I think we need to do something, just not sure what. Too bad we couldn't have gotten this in the new FCRA. I still think Congress is the place to start.
Something has to change. Most people are not aware of how their credit gets dinged by these credit checks. Perhaps the first step is a cool name and a website to generate awareness and raise the profile.
You have the USA PATRIOT act to thank for this. Recently (October 1) a new provision of the USA PATRIOT act was put in place that makes banks form a Customer Identification Program. (CIP) The CIP makes it LAW that banks MUST know who their customer is. 1. If you open an account face to face, most banks will ask for 1-2 forms of identifcation. if you cannot provide a valid (non expired ID) or if they are concerned about the validity of the identification the bank AT THEIR CHOICE can use non-docuematary ways to verify your identity. Unfortantely, the only way to do this is a CREDIT REPORT. Chexsystems is NOT a way to confirm an identity, it only provides banks with a background of your checking history. 2. If you open an account over the phone, or via www, banks will almost ALWAYS pull a credit report on you. Again, banks MUST verify your identity. If they are found in violation they can be assessed penalties. It does not matter if you aren't openning an account with no overdraft or credit attributes. For example, Wachovia WILL pull a credit check on you if you open an accont over the phone. Good news: IT IS LAW that banks MUST notify customers of the identifcation requirments BEFORE AN ACCOUNT IS OPENNED. It does not say they will check your credit, but it states that they will verify your identity. When you apply for a credit card the language is in there. I know Citibank actually makes you confirm you read it. Banks may have it on their website, in their lobby, or on the application itself.
