![]() The FCRA does require, however, that you must be notified after the fact if your credit information was accessed by a third party. As mentioned above, the FCRA permits the credit reporting agencies (CRAs) to sell this information without the necessity of your approval or permission. However, the sale of a portion of your credit information for prescreening purposes is neither consumer-initiated nor consumer-approved. you authorize and employer to view your credit). ![]() you check your credit reports, you apply for a loan, you apply for a credit card, you apply for insurance coverage) or at least consumer approved (i.e. Most, though certainly not all, credit checks are either consumer-initiated (i.e. Actual credit reports are not released to the lenders however, if you are on a prescreened list they will have a very good understanding of your credit history based on the search criteria provided. To legally purchase this information from a credit-reporting agency the “catch” is that everyone on these mailing lists must be sent a “firm offer of credit or insurance” by that lender. The card issuer only wants to advertise to consumers who have credit scores over 700, who have no public records present on their credit reports, and who have made zero late payments on any of their credit obligations within the past 24 months. The desired list could, for example, include 2 million people who live within the greater Chicago area. A credit card issuer might notify a credit reporting agency that it wants to advertise new credit card products and desires to purchase a mailing list of consumers who meet a predetermined list of credit selection criteria. Here is how the prescreening process works. The 3 major credit reporting agencies ( Equifax, TransUnion, and Experian) are permitted under the Fair Credit Reporting Act (FCRA) to sell lenders mailing lists of consumers who meet certain credit standards. Have you ever opened your mailbox to discover a pile of “preapproved” credit card letters inside? If so then chances are high that some of your credit information was accessed without your knowledge or permission and, like it or not, that access was most likely completely legal. As a result, one of the most frequent ways in which credit scores and reports are used in the United States is for prescreened credit card offers. If your income and credit can satisfy a card issuer’s qualification standards, they want you as a customer. What you may not have known before this moment, however, is that your credit is often used to evaluate and judge you in many other circumstances as well – sometimes when you have not even initiated the request.Ĭredit card companies are always on the hunt for qualified new customers. ![]() Your insurance company probably even checked your credit report and your insurance risk credit score whenever you initially applied for home or auto insurance coverage. You may already know that your credit reports (not scores) are routinely reviewed by employers whenever you apply for a new job or promotion. Sometimes 1 credit report and score may be checked and other times (such as when you apply for a mortgage loan) a lender may wish to view all 3 of your credit reports and scores at once. Sure, you almost certainly are well aware that lenders generally check your credit reports and scores whenever you apply for a loan or a new credit card account. Your credit reports and scores are probably used for a lot more purposes than you even realize. Prescreened Credit Card Offers and Your Credit
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