Dishonest Banker?

10 Replies

Today I went with my girlfriend to a bank to talk to them about a mortgage. They asked about our credit and we said we've been working hard to keep it perfect, and they asked if they could look at it.

I specifically asked them whether or not it would appear as a soft inquiry or as a hard inquiry because we're watching our credit numbers like crazy, and hard inquiries have a negative impact.

He assured us that it was a soft inquiry and that there would be no effect.

As soon as we arrived home, both of us received notifications via email that our credit had dropped 6 points, and that a new hard inquiry had been added.

Is this kind of dishonesty just accepted? Is there legal action to be taken? I've been told disputing it is out of the question with the credit beareaus

Call the credit bureau and discuss the situation with them. This could be a fraudulent act from an outside party so best to confirm the cause of the point drop.  However it is my understanding pulling your credit can effect your score and I think most lenders say not to worry about it because it is a minuscule amount and it will rebound.  

I understand that it'll rebound. It's just that I'm working on buying now/soon, and I would prefer that I not have to put a bunch of hard inquiries on my report. Also, there is a variance in what percentage rate you get based on your score.

Anybody who thinks 6 points doesn't matter doesn't realize that a score of 723 gets you a better APR than 716.

I think you're making something out of nothing.    If 6 points is going to affect your ability to buy something that much, then you aren't ready to buy anything.   It's too much work and hassle to argue with anybody about it or spend anymore time than you already have worrying about it.  

It's not about the "ability to buy something"... it's about the dishonesty.

Is this going to be like car dealers who will run you through 5 hard inquiries in 5 minutes? I like to assume people are there to help me but sometimes, its tough.

Lots of people lie to you and are dishonest.   Nothing you can do about it.   You can make a big deal out of it and nothing will happen other than you feel good that you made a big deal out of it.   Nothing will happen to the banker, your score won't go up that 6 points again, you'll buy a house or whatever you're looking at and move on in life and forget about it in a few weeks.   Life is too short to worry about the little stuff.   Remember the old saying.   Don't sweat the petty stuff and don't pet the sweaty stuff. 

Yes if the banker told you that pulling you credit will not effect your score he is wrong, when pulling credit for intentions of a loan it is considered  a hard inquire that will most likely effect your credit.

You do not have to put a bunch of hard inquiries on your score.  Do a soft pull yourself and speak to lenders to see what rates they will give under your circumstances. You will eventually have to do a hard pull but avoid it till you find the lender that fits your needs. 

The banker clearly did something wrong. If I have to obey nit picky rules I resent it when other dishonest people do not. I would not hesitate to fry the bankers rear end.

The problem is from a practical standpoint there is not much you can do. At this point there is no financial harm. I think you would actually have to apply for a loan and show harm from the lower score to have a case. That said I wouldn't hesitate to make a few phone calls to see how to address this.

Hello,

I did some research on this subject.  As an individual, no points will be taken off when you search for your credit scores yourself, but every time a business searches your credit, points will be taken off.  Is their any way you can get a copy of your scores? If so, bring it with you next time you feel you will be in a situation where they may ask.  

Thank you for sharing that information.  It is a warning to some of us that care about keeping our credit scores high.

Does that person have a boss?  I would go into your bank and tell your situation to the person you dealt withs boss.  If they want to keep your business, they most likely will try and help.

Good luck.

Melissa

File a dispute with all 3 agencies.  It can all be done online.

@Christopher Johanson  I'm guessing that you signed paperwork authorizing the hard pull.  If you didn't you can dispute the inquiry with the bureau that was pulled. 

Looking at the bigger picture, you are overreacting on this.  Credit scores are not a winner's game.  Once your score reaches a certain level it doesn't really matter if it moves up or down 50 points. 

The smart investor will max out a zero percent balance transfer for 12 months versus hard money at 12% or more.  I use the word "smart" because you are basically renting your credit score to the bank.  And they are paying you large sums of money to do it.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.