When determining credit worthiness, CHB needs as much precise information as possible. The ‘Hard’ credit pull not only provides us the exact credit score, but also all the other pertinent information why the applicant’s score is their score. A ‘Soft’ pull only provides an estimate of an applicant’s CBR score and generalities why their score is what it is.
Further, CHB is a storied lender; we include and consider the applicant’s story into our financing decisions. The ‘Hard’ pull provides us part of the story and the ability to establish an accurate story timeline. When CHB sends out an approval/terms, we are prepared at that moment to extend credit. If we were to wait until after the applicant accepts terms and requests docs before making a ‘Hard’ pull, and then discover their CBR score no longer qualifies them for credit extension, we would have a lot of upset brokers, applicants, and sunk costs of time and manpower.
Finally, CHB does not offer pre-qualified credit reviews… which are often based-on ‘Soft’ pulls. The ‘Hard’ pull provides us exactly the info we need to make smart financing decisions with no second guessing and no second inquiries; ‘Soft’ pulls are too indecisive. When you receive a CHB approval it is a solid yes – no doubt, second looks, or indecision.
Common hard inquiries
- Mortgage applications
- Auto loan applications
- Business applications
- Credit card applications
- Student loan applications
- Personal loan applications
- Apartment rental applications
Common soft inquiries
- Checking your credit score on Credit Karma or My Free Credit Report
- “Pre-qualified” credit card offers
- “Pre-qualified” insurance quotes
- Employment verification (i.e., background check)
Keep in mind, there are other types of credit checks that could show up as either a hard or soft inquiry. For example, utility, cable, internet and cell phone providers will often check your credit.
Often a client will ask where the best place is to get an idea of their creditworthiness. The one place that is mandated by federal law to give you a report is www.annualcreditreport.com. Here you will have access to get a report from each of the 3 major credit reporting agencies. There is no cost to use the site, and the information is up to date.
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