Why Your Mail is Full of Credit Card Offers
Although it may not appear so as you dump another stack of junk mail into the “to shred” pile, a mailbox swamped with preapproved credit card offers can be a good indication.
Consumers with good to exceptional credit receive enticing card offers on a regular basis from credit card providers. When you get these kinds of offers in the mail, it usually signifies that credit card companies think you’re an acceptable credit risk and want to do business with you.
Why Do Card Issuers Send Preapproved Offers?
You are not alone if you receive preapproved offers in the mail. Credit card companies are continuously on the lookout for new consumers who meet their qualifications. Every year, credit card issuers send out billions of promotional mailings, often known as preapproved credit offers.
Why do credit card companies send out so many preapproved credit offers? Because it is effective. Card issuers can avoid advertising to persons who are likely to be turned down for their product by prescreening applicants. As a result, a considerably more intelligent, cost-effective, and targeted advertising campaign has emerged.
What is the Process of Prescreening?
The three credit bureaus make their money primarily by selling your information. Credit reports are probably the most well-known “product” sold by credit agencies. However, the credit bureaus can make money from the selling of your information in a variety of ways.
The credit bureaus get money from prescreened lists as well. So, what is prescreening and how does it work? When a credit card company wants to buy a prescreened list of customers for prospecting, they start by giving one of the credit bureaus what’s known as “selection criteria.” For example, the card issuer might seek to buy a list of customers (names and addresses) that satisfy certain criteria, such as:
- Being a resident of a given state.
- A credit score of 720 or better is required.
- In the last 24 months, there have been no late payments on file.
- There is no evidence of bankruptcy on credit reports.
If your credit information meets the card issuer’s criteria, a preapproved credit offer could arrive in your inbox in the not-too-distant future.
Does Credit Prescreening Affect Your Scores?
This prescreening process has no effect on your credit ratings. Yes, during the prescreening process, a portion of your credit information may be accessed, and yes, a promotional inquiry may be placed on your credit reports.
Such questions, on the other hand, are referred to as “soft enquiries.” They have no bearing on your credit scores. In reality, you are the only one who can see them… There are no credit scoring systems or lenders.
How to Get Rid of Promotional Requests
Preapproved credit card offers might be an indication that your credit is in good shape, as well as a source of lucrative signup incentives. However, this does not imply that they are welcome in your inbox. Nobody enjoys receiving junk mail.
Despite the fact that prescreening has no negative impact on your credit scores, you have the right to prevent your credit information from being used for prospecting purposes. You can avoid junk mail from building up or creating environmental trash, if you don’t like the thought of credit card issuers (or others) having access to your information without your permission.
By visiting OptOutPrescreen.com, you can opt out of getting future preapproved offers. You can opt out for five years by filling out a simple online form. If you want to opt out for good, you can print and mail a request. You can change your mind, and simply return to the same page and opt back in.
If you choose to opt out, there is an extra benefit: fewer credit card offers in your mailbox means fewer credit card offers that can be stolen by thieves. While opting out will not protect you from becoming a victim of identity theft, it will lower your risk.