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Opening a PenFed account results in a credit check?
Old 01-06-2007, 07:47 AM   #1
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Opening a PenFed account results in a credit check?


Even though we've probably beaten the Pentagon Federal Credit Union CD issue to death, I have to add one more tid-bit.

Today I got a credit monitoring alert from Equifax because Pen Fed ran a credit check on me - apparently as a result of opening an account for their 6.25% CD.

Anyone have any insight on why they might do this?

Jim
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Re: Opening a PenFed account results in a credit check?
Old 01-06-2007, 09:49 AM   #2
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Re: Opening a PenFed account results in a credit check?

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Prior to opening a new account, Pentagon Federal will obtain a credit report from a consumer reporting agency. If this report indicates adverse credit history, we may not permit you to open a Complete Access checking account, Money Market Savings Account, or obtain a Check Card or ATM Card. Additionally, deposits to your Regular Share account or Money Market Certificates will be subject to a nine (9) day hold.
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Re: Opening a PenFed account results in a credit check?
Old 01-06-2007, 09:54 AM   #3
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Re: Opening a PenFed account results in a credit check?


Thanks for finding that d.

It's not a big deal, but I have CDs with several other banks (all opened online) and none have done this before.

For an account where you can write checks or make ATM withdrawals, it makes perfect sense, but for a CD it seems rather strange to me.

Anyhow, at least it's fully disclosed.

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Re: Opening a PenFed account results in a credit check?
Old 01-06-2007, 01:51 PM   #4
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Re: Opening a PenFed account results in a credit check?

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Originally Posted by magellan
For an account where you can write checks or make ATM withdrawals, it makes perfect sense, but for a CD it seems rather strange to me.
I'll guess that this client screening reduces their losses or lets them set aside less in reserves.
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Re: Opening a PenFed account results in a credit check?
Old 01-06-2007, 03:39 PM   #5
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Re: Opening a PenFed account results in a credit check?

A lot of non-credit accounts now do hard credit pulls including CDs, checking accounts, and brokerage accounts....I think the reason is sometimes given that it is the Patriot Act and verifying identifies....

Here is a running thread off of fat wallet finance with places that are doing this....http://www.fatwallet.com/forums/mess...ord1=hard+pull
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Re: Opening a PenFed account results in a credit check?
Old 01-06-2007, 08:16 PM   #6
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Re: Opening a PenFed account results in a credit check?

When I set up my account they disclosed that to me on the phone.

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Re: Opening a PenFed account results in a credit check?
Old 01-07-2007, 11:47 AM   #7
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Re: Opening a PenFed account results in a credit check?

Quote:
Originally Posted by magellan

For an account where you can write checks or make ATM withdrawals, it makes perfect sense, but for a CD it seems rather strange to me.
Maybe they're contemplating loaning the funds back to you @ 9% on a credit card? Don't be surprised if you get lots of loan offers.
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Re: Opening a PenFed account results in a credit check?
Old 01-07-2007, 11:54 AM   #8
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Re: Opening a PenFed account results in a credit check?

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Originally Posted by jazz4cash
Maybe they're contemplating loaning the funds back to you @ 9% on a credit card? Don't be surprised if you get lots of loan offers.
Heh, look at the fine print on Pen Fed's CDs. They include a right of offset, so if you default on a loan with them they can seize part or all of your deposits to make up for it. Not a huge deal, but word to the wise.
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