Schwab Removes Hard Pulls For Checking & Brokerage Accounts
Having a Schwab relationship has several benefits, and to start that relationship you need to open a bank account. Once you have a relationship you can apply for a Schwab Amex Platinum card, cash out points at 1.25 cents a piece and take advantage of the no-fee ATM withdrawals worldwide when using a linked debit card.
But one drawback of opening a Schwab account was the fact that they do a hard pull on your credit report. This is rare for bank accounts, and often people reserve hard pulls for opening new credit cards.
Now Doctor of Credit reports that Schwab is no longer doing a hard pull for new applications. This probably started some time in May of this year. Furthermore, they are proactively removing hard pulls for people who have recently applied for new accounts. Hard pulls often drop off after two years, but Schwab is removing them before that time frame.
Conclusion
This should be good news for those who plan to start a Schwab relationship, or for those who have recently done so. Let us know if you have noticed this recently in your credit report.
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Incorrect – you don’t need to open a bank account to start a Schwab relationship. I’ve had a relationship with them for over 20 years and don’t have a Schwab bank account. The $4 million or so I have in my various Schwab brokerage accounts works just fine!
After Sofi and Aspiration ended their universal ATM fee reimbursement, Schwab was one of the few left. This puts it back on top! Now if they had a sign up bonus offer, that would make it so much sweeter!
Isn’t SoFi’s removal of the ATM fee perk only for NEW customers?
Correct. That’s why I’ll be keeping it for now. I suspect they’ll be coming for “grandfathered” customers in the future.