There is a slang credit bureau report expression known as a “hit”, which refers to the action that occurs when a copy of your credit Bureau report is requested by a computer.
Many people believe (and some not so smart so-called experts) that no one will know where or how many times they have applied for credit. Just as naïvely, they also believe that it doesn’t matter. Why not apply and see if you get that new department store credit card? Who cares? You get a free plastic container or a rental movie coupon just for completing a quick application – right?
Each time you apply for funds, another credit agency report is pulled into your application electronically. This happens regardless if you apply numerous times at the same bank, or several other banks. Each time your credit report is pulled, it negatively impacts your credit rating, as each bank that requests your report counts as a Hit. If this applies to you – surprise – you’ve just been identified as a credit seeker. It’s very easy to see how many times a person or applicant has applied for credit, where they have applied, and then assumptions can be made whether you were approved or not, simply by seeing if a new “Trade Line” has opened up on your report (we will discuss what a Trade Line is later).
Credit Agency Hits
If you complete a department store credit card application for furniture or appliances it also counts as applying for credit and is reported to the credit bureau agencies. The paper application you completed is faxed to a centralized adjudication center (similar to the department store’s applications), where the information you provided is keyed into a software scoring model and reviewed. And as you guessed it by now, I’m sure, this scoring model pulls a copy of your most recent credit bureau report into the application for analysis.
The last thing shown on a report (aside from collection items and bankruptcy information), is information on everyone who has requested your report, including the date they requested it.
Preserve the quality of your credit bureau information by minimizing the number of people who request your personal data. Remember, you’re free to request a copy of your credit file at any time, and it is never reported on your credit bureau records that you received a copy. This assists you in maintaining the quality of the information contained in it (we will discuss the ins and outs of your credit bureau data later in this series).
When you feel that your application has been reviewed with prejudice, ask for the phone number and contact information of the superior to whom you are speaking with. Literally light a fire under their backside. Their superiors are forced to listen to your needs and complaints and this will alter any decisions for any possible courses of action regarding your credit reports. These are negotiations and you never want to forget this. This is why some individuals higher third-party legal eagles to come in and negotiate with a firm hand on your behalf. Sometimes it is worth it to higher a legal firm to smack down any of the credit bureaus who have garnished false information on your credit rating. Don’t be afraid to get tough.
Usually most misunderstandings are nothing more than that, a simple misunderstanding. Bringing in a third party to reflect on your file often adds clarity to all parties involved. Major banking institutions of today have no tolerance for prejudices or diversity conflicts that determine a credit decision. Their centralized adjudication or credit review facilities are often referred to as a benefit in this regard, because the people reviewing your application only review a compilation of facts and comments, unable to respond to ethic, religious or diversity issues, as these topics are not to be addressed nor commented on. Also, they do not see the client to draw any conclusions themselves with their own possible personal prejudices affecting outcome(s).
Every major bank in the United States has procedures and policies which they have to adhere to to protect themselves and their customers. Never feel squeamish about making complaints on your behalf, and following through until you have got satisfaction – complete and absolute satisfaction that is.
Continued in the Carol’s Borrowing Series Category of Clf.
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