[Chambo]

"Remember, not all inquiries are created equal; only a hard inquiry will impact your credit score. A hard inquiry is when a mortgage lender, landlord, bank, or other creditor accesses your credit report because of a transaction you initiated. The key here is that you initiated this inquiry by asking for a line of credit from a lender.

The other two types of inquiries generally do not have any effect on your score. A soft inquiry is initiated by someone other than you, such as a lender or creditor. Think of the promotional offers you get in the mail. You didn’t ask for that pre-approved credit offer, but someone at the company pulled your information."

So all you junior brokers out there who tell the merchant it is a soft credit pull are lying.

[JSL23]

My experience is that really only higher risk lender do that. They'll approve a file pending credit check and bank login. I think the reason for that is because for the most part factor rates won't change much, they will be high whether it's a 540 fico or 620 fico. The A lenders will typically pull credit right away because personal and biz credit will play a big difference in there potential factor rate and term. So it's part of seeing the whole picture upfront for them.

I understand that, which is why my idea is to pull BEFORE sending it out so the Lenders can see the score and the date. When an offer is made and accepted, they can do another pull. This is, in my opinion, in everyone's best interest. The Lender knows the Credit score immediately, the Merchant pretty much keeps their credit score as is and it should expedite things a little bit. It is also a good selling point. I would just like to get an idea from some Direct Lenders how feasible this is......

[CreditGuy]

So all you junior brokers out there who tell the merchant it is a soft credit pull are lying.

Unless they are only sending deals to lenders that have agreements with bureaus that let the inquiry count as a soft pull. I see credit reports all the time where the borrower has a balance with another lender, but there is no inquiry from said lender (or any inquiries at all) around the time they got funded initially.

[J.Celifarco]

I understand that, which is why my idea is to pull BEFORE sending it out so the Lenders can see the score and the date. When an offer is made and accepted, they can do another pull. This is, in my opinion, in everyone's best interest. The Lender knows the Credit score immediately, the Merchant pretty much keeps their credit score as is and it should expedite things a little bit. It is also a good selling point. I would just like to get an idea from some Direct Lenders how feasible this is......

I dont think all lenders would go for it but I believe some definitely would. Banks that you do the most business with would be most likely to agree to something like this. That said I doubt you would be able to get a consensus across the board from all the banks you work with to agree to it

[CreditGuy]

my idea is to pull BEFORE sending it out so the Lenders can see the score and the date.

This would (arguably) make people doing this a consumer reporting agency under FCRA. A consumer reporting agency is defined by FCRA as follows:

"(f) The term “consumer reporting agency” means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.

[JSL23]

This would (arguably) make people doing this a consumer reporting agency under FCRA. A consumer reporting agency is defined by FCRA as follows:

"(f) The term “consumer reporting agency” means any person which, for monetary fees, dues, or on a cooperative nonprofit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.

Do you have to get any type of license for that? Technically, can't anyone check someone's credit score out....like an Employer doing their Due Dilligence before hiring?

[CreditGuy]

Pulling someones credit report to use for a private, consumer or business transaction doesn't require any licensing. Pulling someone's credit and then furnishing that information to a third party, especially when also accompanied by bank statements and other financial documents to be used in making a credit decision, is where the Feds might say that you are a CRA as defined by FCRA.

"regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties"

[JSL23]

Pulling someones credit report to use for a private, consumer or business transaction doesn't require any licensing. Pulling someone's credit and then furnishing that information to a third party, especially when also accompanied by bank statements and other financial documents to be used in making a credit decision, is where the Feds might say that you are a CRA as defined by FCRA.

"regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties"

I see. What if you were to just send the score and not an actual report? Or a screenshot/pic of the score and date it was pulled?

[JSL23]

I dont think all lenders would go for it but I believe some definitely would. Banks that you do the most business with would be most likely to agree to something like this. That said I doubt you would be able to get a consensus across the board from all the banks you work with to agree to it

I'm sure you're right, I'm not looking for an absolute consensus, more like a general feel....if I felt that 65%-70% of the Lenders would go for it that would probably make it worth doing.

[J.Celifarco]

I'm sure you're right, I'm not looking for an absolute consensus, more like a general feel....if I felt that 65%-70% of the Lenders would go for it that would probably make it worth doing.

there is no harm in asking, give you lenders a call and see what they say