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A “prescreened” offer of credit? What’s that?

Many companies that solicit new credit card accounts and insurance policies use pre screening to identify potential customers for the products they offer. Prescreened offers — sometimes called “preapproved” offers — are based on information in your credit report that indicates you meet criteria set by the offeror. Usually, prescreened solicitations come via mail, but you also may get them in a phone call or in an email.

How does pre-screening work?

Pre Screening works in one of two ways:

  • a creditor or insurer establishes criteria, like a minimum credit score, and asks a consumer reporting company for a list of people in the company’s database who meet the criteria; or 
  • a creditor or insurer provides a list of potential customers to a consumer reporting company and asks the company to identify people on the list who meet certain criteria. 

Can pre-screening hurt my credit report or credit score?

No. There will be “inquiries” on your credit report showing which companies obtained your information for pre screening, but those inquiries will not have a negative effect on your credit report or credit score.

Can I reduce the number of unsolicited credit and insurance offers I get?

If you decide that you don’t want to receive prescreened offers of credit and insurance, you have two choices: You can opt out of receiving them for five years or opt out of receiving them permanently. 

To opt out for five years: Call toll-free 1-888-5-OPT-OUT (1-888-567-8688) or visit www.optoutprescreen.com. The phone number and website are operated by the major consumer reporting companies.

To opt out permanently: You may begin the permanent Opt-Out process online at www.optoutprescreen.com. To complete your request, you must return the signed Permanent Opt-Out Election form, which will be provided after you initiate your online request. 

When you call or visit the website, you’ll be asked to provide certain personal information, including your home telephone number, name, Social Security number, and date of birth. The information you provide is confidential and will be used only to process your request to opt out.

Why would someone opt out — or not?

Some people prefer not to receive these kinds of offers in the mail, especially if they are not in the market for a new credit card or insurance policy. They may prefer to opt out to limit access to their credit report information for credit and insurance solicitations, or to reduce some mailbox “clutter.” However, some companies send offers that are not based on prescreening, and your federal opt-out right will not stop those kinds of solicitations.

As you consider opting out, you should know that prescreened offers can provide many benefits, especially if you are in the market for a credit card or insurance. Prescreened offers can help you learn about what’s available, compare costs, and find the best product for your needs. Because you are pre-selected to receive the offer, you can be turned down only under limited circumstances. The terms of prescreened offers also may be more favorable than those that are available to the general public. In fact, some credit card or insurance products may be available only through prescreened offers. 

Does opting out hurt my credit score?

Removing your name from prescreened lists has no effect on your ability to apply for or obtain credit or insurance. 

prescreened credit

If I decide to opt out, how long will it be before I stop getting prescreened offers?

Requests to opt out are processed within five days, but it may take up to 60 days before you stop receiving prescreened offers.

Have you ever found errors on your credit report?

Perhaps you found your credit information mixed with someone else’s or old debts you paid off a long time ago are back on your report. Maybe you applied for a loan or a job only to be denied because of an error on your credit report. Did you reach out to the credit bureaus? Were you able to get your errors resolved? If you’ve found errors on your credit report and/or tried to get errors on your report corrected, we want to hear about it. We can Help You! Call today 718-674-1245 or message here.

 

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