Apple's IUP: Another Hard Hit Credit Inquiry??

You people need to seriously calm down on the new posts and topics. I can't keep up.

 

Just a guess but I would think if you are already on it and satisfied the 12 months of payments without issue I can't imagine another hard hit.

Of course who knows.

 

What's a "hard hit"?

 

It will be a "new hard pull" on your credit no matter what.

 

This has already been answered. If you participated in the upgrade program last year and you have made 12 payments then all it is is a soft pull.

 

as far as im aware the carrier payment plans dont do a new hard pull when you upgrade, why does apple need to?

 

I made a post about this a week or so ago, and it is my understanding that since getting a new phone would be under a new loan, it would be a hard credit pull.

EDIT: most people here seem to say its a soft. I truly hope that is the case.

 

A credit check that affects (lowers) your credit score.

 

I had that confirmed yesterday at the Apple Store in Delaware. If you got 12 payments but less than 24 payments, you trade the phone in and a new contract is written up, and it is a soft pull on your credit.

 

It "can" affect your credit if you have multiple hard pulls with in a time period.

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My brother called the carrier and said that there is a hard pull each time you start a new contract. Does not matter to me as I buy outright but a call to the carrier or Apple should have an answer.

--- Post Merged, Sep 7, 2016 ---

Why would they not need too? People credit changes and a year can make a big difference for some.

 

That time period is two years, though. If it's the only pull you have on your report, it's not a big deal, but it can hurt some people.

I don't think that's true. I don't think carriers run a credit check when you renew a contract.

 

Sounds like the question is for Apple and the carrier as none of us know for sure.

 

Oh damn, will this affect 5/24??

EDIT: That's fine, i have no intention of applying for any more credit from Chase or any other bank for a good long while.

--- Post Merged, Sep 7, 2016 ---

Also, what bureau does Citizens One pull?

 

Experian.

What sucks is that you get a hard pull which is reported but the actual installment payments aren't reported so you're not building up your credit

 

I would probably bet it will be another hard pull. Don't rely on Apple employees knowing anything about this. Last year we had the same conflicting information and it turned out to be a hard pull (although some people still debate it)l. We will know for sure in 8 days

 

Really shouldn't make any difference if you have very good credit. Are you saying some of you have bad credit already or just average credit and are worried about your scores. I got three pulls in the last four months and my credit is still very high around 800. I don't see what the problem is if you have very good credit

 

According to the actual terms: http://www.apple.com/legal/sales-support/iphoneupgrade_us/ it's a new loan, with a new credit check. Since it's a new loan like the original, I assume it's a hard pull. What's more interesting is that it states we have 14 days to return the current phone, so, all of this could (have) been done the old way 'over the air' and the new phones shipped to us.

I wonder if that will happen next year, since NEW IUP people are enrolling online.

(OT: Is there no way to include hyperlinks cleanly with the new software?!)

 

Wow great find of that 14 day return of financed phone window! So technically we can have the phones shipped to us and return the old phone at our leisure within 14 days. That would be so much more convenient. I'm hoping it still may be an option at checkout tonight. I'll find out at midnight!

 

I do NOT think they are doing that this time, unfortunately, as everything talks about coming into the store and bringing your old phone. I'd love to have 14 days to roll everything over, too, and not trust to backups. I bet we can do it all online next year. But that's just my wishful thinking.

Note it doesn't state you HAVE that option, it states IF you have that option, you have 14 days to send it back. Not the same thing.

 

The 5/24 rule (chase) is for new credit card accounts, not new inquiries. For example, car loans or other agencies running your credit does not affect 5/24. It is for new credit card accounts.

 

Credit scores are gathered by either soft inquiries or hard inquiries from a credit check. Soft inquiries are what you get at places like Credit Karma, they do not affect your credit score. Hard inquiries are much more extensive and performing a hard inquiry decreases (hits) your credit score. People who are (and everyone should) concerned about their credit score, especially those in the upper 600s trying to get to 700+, try to prevent too many hard inquiries on their score.

A hard inquiry can take about 3 points off of a credit score and take 2 years to come off, which means if Apple performs a hard inquiry every year, then someone will always have 2 hard inquiries on their credit report, which in some cases, might prevent a lender from saying yes to your loan.

 

Just FYI the 5/24 is only for credit accounts, and this "loan" won't count against that.

A lot of people are saying it will be a soft pull. I'll believe that when I see it. A lot of people were getting "insider information" last year saying it would be a soft pull, and it was a hard inquiry.

Everyone should expect a hard pull, regardless of whether or not they're already in the program. It's a new loan each year, according to Apple. This is the only real downside to the AUP, an otherwise awesome program. I'll be doing it again, and if it is only a soft pull, I'll be very pleasantly surprised.

 

just wishful thinking on my part.

Regardless I don't think it will matter this time around since the anticipated demand shouldn't be very high and stores won't be as crowded. Hopefully they will have the shipping option next year for the 8 (or 7s) since that one is going to be much more in demand. I love this time of year!