You will see different words and letters when you are going through your credit report. A common acronym that appears on credit reports is THD/CBNA. What does THD/CBNA mean?
THD/CBNA stands for “The Home Depot/Citibank North America.” This means that you have applied for a credit account or credit card from Home Depot or Citibank. It is a type of hard inquiry, which happens when the creditor performs a credit check upon your application.
THD/CBNA could also mean that someone added you as an authorized user on an account at The Home Depot.
Read on to learn more about the meaning of THD/CBNA on a credit report.
What Is THD/CBNA on a Credit Report?
Seeing unfamiliar words or acronyms on a credit report makes some people nervous in an instant. For instance, you might shiver after seeing THD/CBNA. You will probably panic even if you do not know what it means.
THD stands for The Home Depot, while CBNA stands for Citibank North America. Seeing THD/CBNA on your credit report means that you applied for a product from The Home Depot, such as a credit card. It could also mean that someone adds you as an authorized user on an account at The Home Depot.
Whether your credit card or loan application has been approved or denied, THD/CBNA will appear on your credit report. More so, it will remain on the report for up to two years. However, it will only affect your credit standing typically for one year. To prevent dragging your score down, do not apply for multiple products from THD/CBNA at once.
Hard Inquiry vs Soft Inquiry on a Credit Report
If there’s THD/CBNA on your credit, it means that there was a hard inquiry. Now, the next thing you’re probably wondering about is what it means to have a hard inquiry and how it affects your credit standing. More so, you might also be curious about how it is different from a soft inquiry.
What Is a Soft Inquiry?
A soft inquiry, soft credit check, or soft pull happens when someone inspects your credit for a background check. These are reasons that have nothing to do with lending. It can be from a potential employer, an auto insurer, or a creditor reviewing your account.
You don’t need to worry when there is a soft inquiry. While it is done without your consent, it will not affect your credit rating. It appears on your credit report, but you are the only one who can see it.
What Is a Hard Inquiry?
This is where THD/CBNA falls under. It is more serious than a soft inquiry. It happens when you are applying for a new credit card or loan. Upon application, the financial institution or lender will go through your credit report to assess your risk.
A hard inquiry lessens your credit score by five points. One to two inquiries will not have a significant negative impact on your rating. However, having too many inquiries within a short time frame is a bad thing. This might be an indication that you’re at risk.
While a hard inquiry affects your credit score, it does so at a small percentage. The one with the highest impact is your payment history. It is up to 35% of your credit score. Next is credit utilization, which is 30%. Hard inquiries like THD/CBNA are usually less than 10% of your credit rating.
The Home Depot Credit Cards from Citibank
Applying for a credit card from The Home Depot? You might have already applied for one if you have already seen THD/CBNA on your credit. The Home Depot offers three main credit cards, including those that we’ll talk about below.:
1. The Home Depot Consumer Credit Card
With more and more people getting into DIY projects, the Consumer Credit Card has been one of the most popular cards from Home Depot. However, you can use this exclusively for purchases at The Home Depot.
One of the highlights of this credit card is that it allows a financing program up to six months for purchases of at least $299. Financing programs can extend up to 24 months during special promotions. The card also entitles the holder to one-year no-hassle returns. More so, there is a $0 liability in case your card has an unauthorized charge.
2. The Home Depot Commercial Revolving Charge Card
This is a card for high-volume spenders, specifically for businesses that often shop at The Home Depot. To get approval for this credit card, you will need a credit score of at least 670.
Aside from the $0 annual fee, another good thing about this credit card is that you can pay up to 60 days late. This is a good thing for businesses without a steady cash flow. You will also have up to one year to make returns.
3. The Home Depot Commercial Account
You can enjoy the flexibility that this credit card offers. It has flexible payment terms of 30 or 60 days. You will also not pay any annual fee, like the two cards above. Plus, you will get access to an online management portal. Here, you can do things like purchase tracking.
Again, what does THD/CBNA on your credit report mean? THD/CBNA, which stands for “The Home Depot/Citibank North America,” may appear on your credit report when you applied for a Home Depot or Citibank credit card. Specifically, this is a hard inquiry wherein a creditor checks your credit during your application.
What to Do after Seeing THD/CBNA on Your Credit Report
Panic is a common reaction for people seeing THD/CBNA appear for the first time on their credit report. There is no reason to be anxious. Instead, be alert and know the best things to do:
1. Get in Touch with the Company
The first thing you must do is get in touch with the company that made the hard inquiry. They must present proof that you authorized such an inquiry. Otherwise, the company should call the three credit reporting bureaus for a correction.
2. Report a Fraudulent Activity
After calling The Home Depot and saying that they did not make any inquiry, you are most probably a victim of fraud. Go to the website of the Federal Tax Commission and fill out an affidavit. Depending on the severity of the situation, you might also need a police report.
3. Call the Credit Reporting Bureaus
After reporting to the Federal Tax Commission, contact the three credit reporting bureaus – Experian, Equifax, and TransUnion. This way, they can freeze any activity or inquiry on your credit report. It will prevent the fraudulent activity from reflecting in your credit standing.
4. Place a Fraud Alert
As you get in touch with the credit reporting companies, you can also request a fraud alert. This is free. With the alert, they will warn creditors and lenders. In turn, the latter will have extra steps to ensure that they are dealing with the right person.
5. Watch Out for Other Fraudulent Activities
Keep an eye on your credit report and look for any other activity you are unaware of. File a report as soon as you spot another fraudulent activity. The longer you wait, the more difficult it will be to remedy the problem.
6. Hire a Credit Report Company
If you do not have the time and energy to go through the process of correcting the issue, your best bet is to work with a credit report company. The latter specializes in disputing inaccuracies in a credit report.
7. Talk to a Credit Counselor
This is like working with a specialist in solving credit report disputes. A credit counselor, however, can also act as a financial advisor. They can advise you on attaining financial stability, not just to correct your credit score.
How to Improve Your Credit Score
Aside from THD/CBNA, other things can bring your credit score down. This will minimize your creditworthiness. Take note of the things we’ll be talking about below to prevent such from happening:
1. Start by Reviewing Your Credit Reports
One of the best things to do is to go over the credit reports that you already have. This way, you can spot an error or item that should not be there, such as THD/CBNA. It can be a fault on the part of the reporting bureau or fraudulent activity. Regardless, correct it immediately.
Most of the errors in a credit report are simple, such as mistakes in your name or address. In such cases, they won’t matter much and will be easy to correct. The more important ones are the wrong or inaccurate reports that could drag your rating down if you do not correct them.
2. Settle Your Bills on Time
Your credit report reflects how responsible you are when it comes to your finances. Paying your bills late will not only incur hefty interest charges but will also affect your credit standing. The creditors and lenders will think that you are a risk.
If you cannot pay the full balance on or before the due date, settle at least the minimum. This will still show as complete payment on your credit report.
3. Limit Applications to New Accounts
Applying for many loans and credit cards may seem like the logical thing to do for most people. You might think that it increases the chances of finding one wherein you will be approved. While such may be the case, it can also be a bad thing. It increases hard inquiries on your report, bringing your credit rating down.
While an inquiry on your account will bring down credit points only by a small amount, they can accumulate. For instance, one THD/CBNA inquiry is worth five points. The more inquires there are, and the more points are deducted from your credit rating.
4. Consolidate Your Debts
It is surprising how fast your debts can accumulate. Before you know it, you already have a lot to pay, and the financial burden becomes more apparent. Debt consolidation is one of the best solutions if you have lots of outstanding debts.
One of the best things you can do is consolidate the balances of all your credit cards. Apply for a balance transfer. Make sure to check the interest rates and other charges to avoid surprise expenses.
5. Take Steps to Rebuild Your Credit Score
Face the reality of a poor credit rating. Be proactive in searching for an effective solution instead of wallowing in sadness and finding things to blame. It pays to be one step ahead in executing the necessary measures to avoid further negative impacts on your credit health.
Think about your financial habits in the past and see what you can improve. Get in touch with credit reporting bureaus to fix any errors. Learn from all the things you have done that have affected your credit score.
When it comes to rebuilding your credit score, patience is a virtue. You won’t see results overnight, but it does not mean that your efforts are not paying off. A long-term plan is a must.
Conclusion – THD CBNA [What is this on a Credit Report]
THD/CBNA means The Home Depot / Citibank North America. When you see it on your credit report, it means that you have applied for a credit card or loan from the latter. Hence, they had to check your credit standing.
It is a type of hard inquiry. Compared to a soft inquiry, it is more serious. It will lessen your credit score by up to five points. The more inquiries there are, the higher the impact is on your credit rating. It can stay on the report for one to two years.
As soon as you see THD/CBNA on your credit report, verify that it is an authorized activity. If it is a fraud, then make sure to notify the credit reporting bureaus. They will issue an alert and will do the necessary steps to correct the issue.