Incomes Growing Faster than Debt in US
If your mailbox is frequently full of preapproved credit card offers, it may be a sign that you have good, or even excellent, credit. These offers often indicate that card issuing companies believe you are a good credit risk. At the same time, many people with bad credit are also targets for the so-called “credit builder” cards that come with hefty fees. Either way, you may be curious about why card companies continue to send you these offers, or maybe you just want to know how to stop getting so much junk mail.
Why You Receive Preapproved Offers
Banks and credit card companies purchase names and data from credit bureaus, including TransUnion, Equifax, and Experian. Selling this information is the primary means for credit bureaus to make money. The data they purchase doesn’t always give your exact credit score, but it usually provides a reasonable estimate of your score. Lenders use these lists to advertise their products to new customers they believe meet their qualification criteria.
By prescreening applications through this process, card issuers can avoid many people who likely do not qualify for their products. Banks and credit card companies can purchase lists of consumers who meet relatively specific criteria. As an example, those who have a credit score of at least 660, or no late payments in the last 24 months, or no reported bankruptcies. When your credit information matches the credit card company’s criteria, you will likely receive a preapproval offer in the mail.
This prescreening process doesn’t hurt your credit. While you may see a promotional inquiry on your credit, these inquiries are “soft” inquiries that do not impact your credit score. You are the only one who can see soft inquiries. When you apply for credit, including responding to a promotional offer in the mail, it will result in a “hard” pull that slightly lowers your credit score.
Can You Stop Promotional Credit Inquiries?
Preapproval offers in the mail can be beneficial, especially if you’re in the market for a new credit card because they often come with targeted signup bonuses. Still, not everyone appreciates a mailbox full of credit offers. For example, identity thieves who steal mail might target these offers. You have the right to keep your credit file from being used for prospecting.
To stop preapproval offers, you will need to visit OptOutPrescreen.com. By filling out a form online, you can opt out of prescreened credit offers for five years. You can also opt back in through the same website.
If a pre-approved credit card with enticing sign up bonuses has led to uncontrollable consumer debt, consider acquiring the services of a seasoned debt relief attorney. Heather Benveniste of Benveniste Law Offices has helped many Illinois residents settle credit card debt issues on the most favorable terms without filing for bankruptcy. Contact us today at 1-800-497-5358 for a free case evaluation and to discuss your debt settlement options.
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