Some banks and brokerages do a hard credit pull when a new customers opens an account while others do no. The Schwab brokerage is long known to do a hard Equifax pull for new account openings. Strangely, many people are reporting seeing today that Schwab has now removed the hard pull, and it reflects on their credit reports that this hard pull has been removed.
Typically, hard pulls drop off the credit report after two years at which point they are no longer visible to lenders. This Schwab ‘claw back’ appears to be a manual removal that Schwab is doing. Even hard pulls from accounts opened many months ago have been removed.
This could help your credit score a bit as too many hard pulls has a negative affect. It’s not clear to me why Schwab would pull back the hard pulls given that banks have the right to do so.
Presumably this means they won’t do these pulls going forward, but we’ll hold off judgement until we have solid data points confirming that. Update: Multiple reports in the comments indicate they no longer do a hard pull.
I just used a referral link from a friend for a checking account. When you open up a checking account – a brokerage account automatically opens up also. I didn’t get a hard pull on my credit. I want the referral bonus but the referral bonus only applies to the brokerage account and you have to keep the money in there for 1 year.
DP – I opened a brokerage and investor checking account with all of my credit bureaus being frozen. I did already have an IRA with them but mine the less no hard pull.
It seems like some idiots are listening to customer service reps who don’t know what they are talking about, instead of the actual DP of people saying it is a soft pull.
I called and asked. Confirmed Charles Schwab still does a hard pull. Why is this doctorofcredit site saying they do not?
Speaking to an agent on the phone today they are definitely still doing HP on the checking account and the brokerage account will definitely need at least a SP maybe a HP too
I have just chatted with Charles Schwab through their website live chat. They said that this article is not produced by them and they are still doing hard pulls!!
I’m a checking account holder, tried to apply for the savings and they asked me to unfreeze both Chex and Equifax.
I called in to confirm if the Equifax would be just a soft pull and the rep said for deposit products, it would be a hard pull, so I declined for now.
Does anyone know if this applies to the Charles Schwab savings account as well? I asked online they said they may do a soft or hard…
Just contacted CS and was informed they still do HP for checking account not brokerage account any new data point from anyone who recently opened a checking account like by the end of August? At first he also mentioned “We may or may not do a HP” what is going on with CS seems one hand doesn’t know the other doing.
Just opened a high yield checking and brokerage online, no issues. Have all three credit bureaus frozen, and only open whenever necessary. I’ve done this for eight years now. Wasn’t asked to unfreeze.