why banks pull our credit reports when if they already have our credit report?


why banks pull our credit reports when if they already have our credit report?

In: Economics

Credit reports typically come from the three big credit bureaus (there are actually more than three).

What would make you believe a bank would already have a copy of this report?

I dont think you bank has your credit report. They might have an older copy of it, but your credit score is always changing and is handled by a seperate entity.

Why would your bank already have your credit report?

Former credit union employee! So, there are two types of credit report pulls. Soft and hard(hah). A hard credit report is the kind that gives you complete details of your credit history, and just by doing a hard pull, it can negatively effect your score. A soft pull usually pulls minimal details, but gives you your numeric score. Soft pulls don’t hurt your credit score; apps and websites that advertise they can help with your score without hurting it typically do these. You financial institution will also do a soft pull every so often, usually at least once a year. When you make an account, you probably agreed to it in your terms of service.

But, to open an account, you’ll typically need to agree to a hard pull. Your financial institution needs written permission from you to do these, every time. If you have an account already, and apply for a loan or credit card, you’ll need to give written permission again. This gives your financial institution all the details of your credit history, and you’re giving them permission to use it to help determine your eligibility.