Schwab: No more hard pull for bank / brokerage accounts

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Schwab has long been a favorite bank for travelers and credit card enthusiasts thanks to worldwide ATM reimbursements on the debit card and the ability to cash out Amex Membership Rewards points for 1.25c each with the Schwab Platinum card. There’s a bit of good news for those who are interested in a Schwab account but do not currently have one: According to Doctor of Credit, they are no longer doing a hard credit pull for a bank or brokerage account.

You should still expect a hard pull for a credit / charge card (YMMV here as Amex doesn’t always do one for existing cardholders) — the change reported in this post is regarding bank and brokerage accounts.

Most bank accounts and brokerage accounts do not do a hard credit pull these days but rather a soft pull to verify identity information. Schwab has long been an exception to this as they have long done a hard pull for a bank or brokerage account.

Fortunately, according to Doctor of Credit, Schwab is no longer doing the hard pull. Adding on to that, they are also apparently removing hard pull for some people who have recently opened accounts. Personally, I think the influence of hard pulls is a bit overblown — especially in an era of rules like the 5/24 rule, the 2/3/4 rule, etc. That said, in an era when most banks don’t do them for bank or brokerage accounts, it’s nice to see Schwab match the standard and makes them that little bit more attractive for those who do not yet have a bank or brokerage account with them.

H/T: Doctor of Credit

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