Good News If You Need A Credit Increase

[chromebumpers]

Home Depot and Lowe’s new VP are having a credit war competing for your business this summer.
Their holding banks (which one - depends on where you are located) have been asked by corporate to lower acceptable FICO scores and add a seasonal or extenuating circumstances inflation adjustment until late July 2022.
Consumers of these big box stores are being targeted as a big push is on to commit you to their brand. Historically low credit default rates, a personal savings uptick for the 5th consecutive quarter and home improvement are up 7.3% in the 1st quarter of 2012 are a few justifications for the banking partners of the two largest home improvement retailers to offer a credit easing and increasing established lines of credit.
Acceptable FICO scores to open a minimum line of credit at Lowe’s is expected to be adjusted to 625 subject to bankruptcy discharged and exemptions under the Federal law protection established for pandemic relief.
No guide lines have been released addressing increases to initial or established lines of credit.
Information although not guaranteed is deemed reliable from the leaderboard of Investors Business Daily as of 05/20/21 and Baron’s Investment News, AP Network, May 2021.

 

[chromebumpers]

I would expect that this sort of thing is happening elsewhere in the retail world. When was the last time you saw most all the agricultural vehicle and implements suppliers offer Zero percent interest loans?

 

[Night_Stalker]

The wife & I were approached last Friday at Lowes & asked if we wanted a Credit card & save 10% that day & 5% after. I declined & told here it would raise my car insurance. She looked at me bewildered.
I bought a new GE washer on Lowes on line the week before,my Maytag craped out after 10 years. I get cash back on my discover card so no need.I like the cash back & can use it on Amazon or use it when the monthly bill comes in.

 

[chromebumpers]

The only way it could possibly raise your car insurance is if you got the Lowe’s card and defaulted and your scores dropped all under 525. The insurance company would pick up on defaults creating scores to plunge. It’s all extremely unlikely to happen.
Car and casualty insurance can only check your credit when you initially apply for insurance. Companies cannot recheck without cause.

 

[Night_Stalker]

Umpteen years ago I was at the Atlantic City annual car show/auction. I signed up for a bunch of credit cards to get promo items.
I imagine all them "hard" credit checks raised a red flag with Prudential. I called my agent & he advised me to drop the cards.
Lesson learned the "hard" way,theres a pun there/lol!

 

[chromebumpers]

Currently any “Hard check” will cost you 18 to 25 points on a FICO score and the inquiry lasts on your reports for 25 months. If you have more than 2 Hard checks in 24 months you will get additional points deducted, HOWEVER the Hard checks lose their importance rating after 2 or 3 months, and you start to see points added back with no explanation - (just the record of the checks remain to 25 months).

The practice of insurance companies randomly checking your credit ratings is really only used when you have umbrella policies, life insurance policies at $500,000 or more and more than 2 homeowner claims in 2 years. If you have riders on your homeowners policy for special items like expensive paintings, jewelry, tech stuff - if you have a boat, collectable car/s, motorcycle or an RV - if any of these things are reported stolen you can expect some insurance companies to run a credit check on you.

Keep in mind that insurance companies can and do lose tens of millions of dollars in new business once word gets out that ABC insurance is slow to pay claims, or ABC insurance investigates you for claims or looks for reasons to hold up your claim. The internet has lots of reviews from organizations such as JD Powers, Consumers Reports and many others as well as private individuals with complaints about how this one or that one paying out on their claims. So there are only certain situations in which insurance companies pull reports, not something you need to worry about anymore.

 

[Night_Stalker]

Thanks for the info Rich.