Which credit report does chase pull
- 1 which credit report does chase pull
- 2 Does a Credit Check Lower Your Credit Score?
- 2.0.1 Checking Your Own Credit Will Not Lower Your Credit Score!
- 2.0.2 Inquiries Shared With Others (Hard)
- 2.0.3 Inquiries Shared Only With You (Soft)
- 2.0.4 The only time your credit score could drop as a result of a credit check is when you apply for new credit.
- 2.0.5 How Long Do Inquiries Stay on Credit Reports?
- 2.0.6 How Credit Inquiries Can Hurt Your Credit Score
- 2.1 5 thoughts on “Does a Credit Check Lower Your Credit Score?”
- 3 Chase 5/24 Rule Explained - Everything You Need to Know (2017)
which credit report does chase pull
A TravelSort reader asks: How many credit inquiries is too many when you're looking to apply for more credit cards? In other words, at what point do you say--I've X amount of credit inquiries, and I should wait before applying for more credit?
Great question, and relevant for anyone looking to open more than just a few credit cards in order to earn miles and points for travel.
If you've frozen the credit bureau the bank usually pulls from (more on that later) then the bank may pull from the two other credit reporting agencies, rather than just one of them!
Whatever you do, avoid Capital One: not only does Capital One pull from all three credit reporting agencies (Experian, Equifax and Transunion) the travel rewards program is among the worst of any major U.S. credit cards, since it's a fixed value program where you can never get more than 1 cent of value per point. I prefer airline award redemptions where I'm getting at least 10 cents or more nominal value per mile or point, which is never going to happen with Capital One.
So Which Factors Are More Important Than the Number of Inquiries for My Credit Score and Credit Card Approvals?
Income: It stands to reason that banks (or anyone extending credit) wants to know how they're going to get repaid. A high and steady income helps considerably.
Also see our discussion of these factors in Understand How Your Credit Score Works to Maximize Credit Card Rewards
How Do I Figure Out Which Credit Bureau A Bank Uses?
Is There a Way To Freeze a Credit Bureau's Credit Report So That Banks Use a Different Credit Bureau?
Freezing means you're less likely to get lucrative targeted offers, or be able to get instant approval for offers such as the recent AMEX Platinum 100K Signup Bonus
Freezing one bureau, such as Experian, may result in two hard pulls from the two other bureaus, rather than the one hard pull from the credit reporting agency you froze.
While the obvious one is to reduce your absolute number of credit card applications, what most credit card churners do is to apply for multiple credit cards from the same issuer as close in time as possible, using different browsers, in order to maximize the chance of the credit pulls merging into one. Note that inquiries do *not* get combined for applications to different banks. Again, some pointers:
While some are successful at applying for 4 cards from a single issuer at once, I'd recommend 2-3, and of course having very good reasons (not just the miles or points bonus) for wanting each of the new cards.
How Many Credit Inquiries or Hard Credit Pulls Is Too Many?
Does a Credit Check Lower Your Credit Score?
Credit QA:#8221;Does a Credit Check Lower Your Credit Score?#8221;
I get this question all the time, and like all things in the credit score realm, it depends. Sigh#8230;
There are a number of different reasons to run a credit check, and thus the confusion, but we#8217;ll get to the bottom of it. I promise.
Checking Your Own Credit Will Not Lower Your Credit Score!
Let’s knock out the easy ones first. If you’re simply checking your own credit via a free credit score website or via the FTC’s free credit report program, your credit score will not be affected in any way. This means it won#8217;t go up or down.
These consumer credit reports (and scores) allow you to see what’s up with your credit history, but pose no harm to you because you’re not actually seeking new credit, at least not right then and there.
Think about it; why would you be penalized just for checking your own credit report and/or score(s)? That wouldn’t make any sense. If anything, you should be commended for keeping an attentive eye on your credit history.
Related to that, you have a right to order a free credit report every 12 months from each of the three major credit bureaus.
When you order one of these free credit reports, it actually breaks up your credit inquiries into two separate buckets.
You may have heard the term #8220;hard pull#8221; and #8220;soft pull.#8221;
A #8220;hard pull#8221; refers to credit inquiries that actually affect your credit score, those which are initiated by the consumer and involve new credit. Try to keep these to a minimum, and definitely avoid them before shopping for a home loan.
A #8220;soft pull,#8221; on the other hand, is innocuous, and includes credit reports you pull yourself, or those pulled by an employer or an insurance company. These are harmless and won#8217;t do anything to hurt you or your credit.
In conclusion, you shouldn#8217;t worry too much about the effect of credit inquiries. Things like paying bills on time and keeping your existing balances low are much more important, and impact your credit score to a much greater degree. As long as you practice moderation, you should enjoy a solid credit score.
Tip: Review the credit inquiries on your credit report to ensure you recognize them all. If you see anything that doesn’t look familiar, you could be the victim of identity theft. If you suspect anything, contact the creditor you don’t recognize for further information.
These inquiries are the ones that you initiated, typically in order to get some kind of credit, such as a credit card, auto loan/lease, mortgage, cell phone, etc. They appear on your credit report and are visible to other prospective creditors and employers if and when they pull your credit report.
Put simply, they#8217;re visible because they affect your credit in one way or another. And creditors need to see them to make subsequent lending decisions.
The other section you#8217;ll see is the inquiries that do not hurt your credit, and are visible for you only as a record of activities.
For example, if you sign up for Credit Karma or Credit Sesame, which are free credit score providers, inquiries will show up on your credit report each month but won#8217;t count against you in any way. You may also see credit inquiries from insurance companies if you got a few quotes recently. Again, these do not affect your credit score because they do not involve credit of any kind.
Any pre-approved offers you qualify will also be soft inquiries, meaning they don#8217;t count against you. And occasional check-ups from existing creditors also fall into this category, as do background checks from employers.
It should even say explicitly on the credit report that #8220;the following inquiries do not affect your credit score.#8221; They#8217;re just there to let you know that a company is actively pulling your records.
Now suppose you already have a credit card open with a company and they want to keep tabs on you. If they do a credit check just to see how things are going in your life, it won’t lower your credit score. Why? Because you didn#8217;t initiate the request and you#8217;re not actively looking for new credit. They#8217;re simply checking up on you.
The same is true of companies researching your credit profile and subsequently sending you so-called pre-approved or pre-screened offers; it won#8217;t hurt your credit score.
In all these instances, you did nothing to prompt the credit check, so you won’t be penalized in any way.
Similarly, if you apply for a job and your potential employer orders a credit report, it won’t lower your credit score because no new credit is at stake. They simply want to check out your financial background, so again, it won#8217;t affect your credit score.
These types of inquiries do NOT hurt your credit score:
- Requests made by YOU for your credit report and/or credit scores
- Promotional inquiries made by lenders and credit card issuers to send pre-approved offers
- Credit checks initiated by insurance companies
- Credit pulls from prospective employers to check your background
- Existing account reviews (credit card issuers check up on us from time to time)
The only time your credit score could drop as a result of a credit check is when you apply for new credit.
Examples include applying for any type of loan, such as a mortgage, auto loan, auto lease, a new credit card, or an increased credit line with an existing card or loan.
These are the only instances when a credit check will lower your credit score, as new credit or inquiries for new credit pose new risks, regardless of how great of a borrower you’ve proven to be in the past.
In the eyes of creditors, consumers who are actively seeking new credit pose a greater risk of default.
Of course, the stronger your credit profile, the less impact these, dare I say, harmful credit checks will have on your credit score.
As a rule of thumb, the more hard credit inquiries you have in a short period of time, the more your score will drop, so exercise moderation.
How Long Do Inquiries Stay on Credit Reports?
A reader once asked me, #8220;Do credit inquiries ever go away?#8221; Although there seems to be much dispute about this, credit inquiries only remain on your credit report for two years, but FICO scores only factor in inquiries as part of their scoring methodology for the previous 12 months .
In other words, even if they are present on your credit report, they#8217;re only meaningful from a credit-scoring perspective for a single year. The rest of the time they just serve as additional information to you and your creditors.
Additionally, Fair Isaac, the founder of the FICO score, has improved its scoring model to distinguish rate shopping versus a consumer attempting to open a large number of different accounts. The latter borrower would probably see their credit score drop because a series of new credit accounts tends to lead to greater credit risk.
But a consumer with multiple inquiries related to the same type of loan within a 14-45 day shopping period will generally see no adverse effect to their credit score, as only one inquiry should be counted against them.
In fact, auto, mortgage, and student loan inquiries that occur 30 days prior to scoring don#8217;t affect your FICO score, and all such inquiries that occur within a 45-day window are treated as a single inquiry (this isn#8217;t a mix and match deal though#8230;)
For example, think of a person who shops with multiple lenders to obtain a home loan. FICO knows it can be a long process, and doesn#8217;t want to discourage consumers from comparison shopping, so they won#8217;t count all those inquiries against you separately.
How Credit Inquiries Can Hurt Your Credit Score
As alluded to above, a credit inquiry can lower your credit score, but the impact is generally rather inconsequential.
Typically, a single credit inquiry will take less than five points off your credit score , but this can range depending upon the type of inquiry and the overall makeup of your credit profile. If you have a limited credit history, one inquiry will have a greater impact than a consumer with a solid 10-year credit profile.
But a large number of different types of inquiries in a short time period can be a red flag for potential creditors, and could result in a noticeably lower credit score. And even if you do have a good credit score, a large number of inquires in a short time span could cause a creditor to decline your application for fear that you#8217;re getting in over your head.
That said, don’t fret too much about pulling your own credit report every now and then as not all credit inquiries count against you. If you order a credit report online from any of those “free credit report” sites it won’t be factored into your score because it’s not an application for credit.
It’s simply a check-up, and doesn’t signal a greater credit risk for the consumer. Same goes for employee credit pulls and pre-approved credit offers. As a rule of thumb, if the credit pull doesn’t involve new credit or wasn#8217;t initiated by you, it shouldn’t affect your credit score.
Colin created this blog after spending several years in a job that required him to scour credit reports on a daily basis. His goal is to help individuals better understand their credit and get the most out of credit cards. View all posts by Colin Robertson
5 thoughts on “Does a Credit Check Lower Your Credit Score?”
I#8217;ve found that even a new credit application barely lowers my score.
IT IS ABSOLUTELY RIDICULOUS FOR A CREDIT CHECK OF ANY KIND TO LOWER YOUR SCORE. THAT POLICY NEEDS TO CHANGE.
Unfortunately there#8217;s a correlation between lots of applications for new credit and missed payments or default, so it won#8217;t change.
So Credit Karma and those free sites don#8217;t hurt your credit? Are you sure?
It#8217;s a promotional credit score that doesn#8217;t require an application for new credit so doesn#8217;t ding your scores.
Chase 5/24 Rule Explained - Everything You Need to Know (2017)
The Chase 5/24 policy is an unofficial rule limiting the number of cards people can sign up for to 5 cards within a 24 month period, no matter what their credit score is. This rule applies to all new card accounts opened in the past 24 months – not just Chase cards.
In other words, if you've opened 5 or more cards in the past two years, chances of getting approved for a new Chase card are pretty slim until your existing card accounts have matured past 24 months.
Thankfully, there is a silver lining: not all Chase cards are affected by this rule, which we'll get into a little further down.
5/24 Simplified: if you’ve signed up for 5 new accounts in the past 24 months, your chances of being approved for a Chase credit card within that time period are slim to none.
Chase 5/24 = ‘5’ new accounts reported on your credit report in the past ‘24’ months
Is this a new rule?
Nope, not new. Not official either, though. Back in 2015, reports began surfacing that Chase credit card applications were being automatically denied due to applicants having 5 or more new credit card accounts opened over a 24 month period. It seemed to only affect cards that participated in the Ultimate Rewards Program, and while some reported having success despite being over the rumored “magic” number, most applicants over 5/24 were denied.
Again, it was unofficial, but rumors were swirling.
Then, in May 2016, new requirements made it pretty clear that the rule had expanded to include Chase co-branded cards and business credit cards (noted below). At the time of writing, Chase still hasn’t published anything formal about this policy, but it’s interesting following the evolution of it.
What You Should Know About 5/24
Besides the general definition and history of the rule, there’s still a lot to understand about it. We dug a little deeper to find out
- how Chase defines a new account,
Chase counts all new accounts on your report – not just Chase accounts – which is an important distinction. It’s also probably why a lot of the advice you’ve come across encourages you to prioritize signing up for Chase credit cards first.
As an example, let’s say you’ve applied and were approved for 2 Bank of America cards, 1 Discover card, and 2 American Express cards within a 24 month window. Based on how Chase defines a new account, you’d likely be denied if you applied for a Chase card (affected by this rule) because you would be over 5/24.
New accounts are reported to all 3 nationwide credit bureaus, so it doesn’t matter where Chase pulls your credit report from – they’ll find it.
Another silver lining: new accounts do not include applications that are denied since they aren’t reported. No one wants to be denied for a card, but if it happens, it’s good to know it won’t show up on your credit report.
Authorized users: If you’re an authorized user on an account, it will show on your credit report and Chase will count it towards the 5/24 rule. You may, however, be able to get an exemption by calling the reconsideration line and convincing one of the representatives to let it slide. More on that later.
Cards affected by the 5/24 rule
While there’s no official list of cards subject to 5/24 (it’s an “unofficial” policy after all) the following cards are affected based on data from the travel rewards community.
Cards NOT affected by the 5/24 rule
Again, not an official list, but the following cards are not currently affected by the Chase 5/24 rule. From the research we’ve done, our guess is it could be because these cards don’t have business versions available, but even that is uncertain since Marriott does, in fact, have a business credit card that isn’t affected.
- IHG® Rewards Club Select Credit Card
If you’re over 5/24 and looking for a way around to get around this rule, you’re in luck – here are a few known exemptions. Note: there are no guarantees that any of these exemptions will work (but it could be worth a try).
‘Selected For You Offers’
Log into your Chase account and expand the menu in the top left corner to see ‘Your Offers.’
In Branch Offers
If you’re at a Chase branch and told (without prompting) that you’ve been pre-approved for a credit card, you may be able to get approved in branch, thus getting around 5/24.
In Branch BRM Paper Offers
‘BRM’ stands for Business Relationship Manager and not every branch has one. If a BRM submits a paper application for a business credit card on your behalf, you may be able to get approved since the application will be handled by a department that doesn’t deny applications based on the 5/24 rule.
Targeted Offers in the Mail
Don’t throw away that “junk” mail! If you receive an invitation offer in the mail (with your own unique invitation code), you may be able to bypass the 5/24 rule.
Taking a Chance
Even with the odds stacked against you, there’s technically nothing stopping you from applying. As you can probably guess, chances of being approved are slim, but some people have had success with it. For example, those at 4/24 who applied for 2 cards on the same day, one right after the other.
If you’re over 5/24 due to being an authorized user on 1 of your 5 new accounts, you may be able to speak with a credit analyst to plead your case by calling the reconsideration line. As a heads up, you’ll likely need to close the authorized user card and request it be removed from your report. This process can take anywhere between 60-90 days and you’ll want to follow up with the creditor once they have updated their records.
What if I’m a Chase Private Client (CPC)?
As of late 2016, being a CPC doesn’t allow you to bypass the 5/24 rule.
How do I know if I’m under 5/24?
The best way to know for sure if to review your credit report. Credit Sesame provides it for free.
Otherwise, by doing a little simple math.
Ex 1. If today is 5/31/17 and you literally count back 24 months, your 5/24 start date would be 6/1/15
Ex 2. If today is 9/18/17 and you count back 24 months, your 5/24 start date would be 9/18/15
Will closing an account help if I’m over Chase 5/24?
No – the account will still have been opened in the past 24 months, so it counts.
Possible workaround: Some have reported being granted an exemption if the account closed was an authorized user account that pushed them over 5/24. Again, no guarantees, but it may be worth calling the reconsideration line to discuss with a Chase representative.
What is the contact information for the Chase Reconsideration line?
For personal cards: 1-888-270-2127
For business cards: 1-800-453-9719
What if Chase shows me a banner offer in the Chase app – can that bypass the rule?
Good looking out(!), but no.
If I’m at 4/24 and apply for two new cards on the same day, one right after the other, can I get approved?
It’s possible, but there are no guarantees.
Does Chase count store cards?
Depends. If the card can be used outside that specific store, Chase will count it (since it uses a payment network like Visa, Mastercard, Discover, or American Express). Otherwise, it probably won’t be counted.
Does Chase count auto loans?
No definitive answer, but we assume no since auto loans aren’t bank cards.
Does Chase count home loans and/or mortgages?
No definitive answer, but we assume no since home loans and/or mortgages aren’t bank cards.
Does Chase count student loans?
Maybe. Similar to the loans above, student loans aren’t bank cards (I hear you) but some have reported being denied due to their student loans being counted as part of the 5 new accounts.
Does Chase count charge cards?
Yes – If it’s affiliated with a bank, Chase will count it.
If I’m over 5/24 and none of the exemptions (above) are applicable to me, what can I do?
1) Wait until your accounts have been opened for longer than 24 months, 2) apply for a card that isn’t affected by 5/24 (see list above).
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