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An explicit "soft credit inquiry" turned out to be a hard inquiry.

I recently signed up for a VW account with 2 phones. The salesperson explicitly assured me that Verizon needed to run a soft inquiry on me credit. Today my credit dropped due to a hard inquiry and sure enough...

Can someone please explain how such an enormous mistake can happen from the most simple part of a sales person's job?

Comments

chris1060

In my experience as a creditor, a 'soft inquiry' is used to verify identity. To verify actual credit worthiness, a hard inquiry is used to access the actual credit history. Your credit cannot be ran without a hard inquiry. The latter remains on your CR for 2 years.

AnonymousClient

Thanks Chris,

It is my understanding that lines of credit require a hard inquiry while soft inquiries are for verifying identity as well as opening up accounts and credit scores. Also a soft enquiry can be ran by anyone on anyone. No line of credit was every discussed and therefore a hard inquiry shouldn't be needed...

In fact I'd like specific information about why Verizon would need my full financial background for a monthly paid phone plan.

And either way another individual can serve as a second witness as to the emphasis that the Verizon professional put on SOFT credit inquiry. This is where the issue lies.

Tidbits

Because it is paid after the fact not before the fact. You can't compare something like Netflix where you pay in advance and no overages over something you use first then pay.

rcschnoor

AnonymousClient wrote:

Thanks Chris,

It is my understanding that lines of credit require a hard inquiry while soft inquiries are for verifying identity as well as opening up accounts and credit scores. Also a soft enquiry can be ran by anyone on anyone. No line of credit was every discussed and therefore a hard inquiry shouldn't be needed...

Actually, to some extent a VZW post paid account IS a line of credit. You pay for your basic service in advance, but any overages you may incur are paid after the fact, therefore Verizon is giving you the line of credit for that amount for a period of 1 month. Additionally, in most cases you can bill purchases in the store to your account, i.e. on credit. It may only be credit for 1 month, but it is credit which is supposed to be paid upon receipt of the bill.

Verizon pre-paid accounts do not require a credit inquiry, but you must pay for ALL service in advance. Without money in your account to cover the service you would not be able to perform the task.

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