What is a Prescreened Credit Offer?

Many credit card and insurance companies take advantage of prescreening, a practice authorized by the Fair Credit Reporting Act (FCRA) used by companies to identify potential customers for the products they offer. Prescreened offers, sometimes called “pre-approved” or "firm" offers, are based on information in your credit report that determines whether you do or do not meet criteria set by the offeror. You may receive prescreened solicitations via mail, phone call, or email.

How They Use Prescreening to Identify Potential Customers

Creditors or insurers use prescreening in two different ways:

Buying Lists
Not just anyone can buy a list from the CRAs. After a creditor or insurer first establishes their credibility they can ask the CRAs for a list of people who meet a certain criteria; these companies usually solicit to consumers who have sufficient credit scores to take advantage of their services.

Supplying Lists; Ask Who Qualifies
The creditor or insurer provides a list of potential customers to the CRA and asks them to identify people on the list who meet certain criteria.

Prescreening Does Not Damage Your Credit Report or Credit Score?

Since prescreening requires that your credit report is viewed, it counts as an inquiry. These “inquiries will show which companies obtained your information for prescreening, but since these inquiries are labeled as "soft inquiries" they will not have a negative effect on your credit report or credit score.

Opting Out

With identity theft on the rise, we understand why some consumers may choose to opt-out of receiving credit card offers in their mail or email inbox. On the other hand, some consumers may simply want less mailbox clutter. If you decide that you don’t want to receive prescreened offers of credit and insurance, the FCRA provides you the right to opt-out, which prevents CRAs from providing your credit file information for prescreened offers. Either call the CRAs toll-free at 1-888-567-8688 or visit www.optoutprescreen.com and click the blue button at the bottom of their screen to get started. Both the phone number and web site ask for certain personal information, including your home telephone number, name, Social Security number, and date of birth to verify your identity. Managed by a separate company called Opt Out Services, the web site allows you to:

• Opt-Out from receiving Firm Offers for Five Years - (electronically through the web site).

• Opt-Out from receiving Firm Offers permanently - (print off, sign, and mail in the "Permanent Opt-Out Election" form which is available through the web site).

• Opt-In and be eligible to receive Firm Offers. This option is for consumers who have previously completed an Opt-Out request - (electronically through the web site).

If you have joint credit relationships, like a mortgage or a car loan with a spouse, partner, or other adult, you must both individually opt-out in order to stop receiving prescreened solicitations. Be aware that some companies send offers that are not based on prescreening, and your federal opt-out right will not stop those kinds of solicitations. For example, opting out won’t end solicitations from local merchants, religious and charitable associations, professional and alumni associations, and companies with which you already conduct business. To stop mail from groups like these — as well as mail addressed to “occupant” or “resident” — you must contact each source directly.

How Long After I Opt-Out Until I Stop Receiving 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.

You Can Always Opt-In

Once you opt-out and you later decide you are in the market for a new credit card or insurance policy, prescreened offers may offer more favorable opportunities than those that are available to the general public. In fact, some credit card or insurance products may be available only through prescreened offers.You can use the same toll-free telephone number or web site to opt back in.

The National Do-Not-Call Registry

The federal government established the National Do Not Call Registry as a free and simple way to reduce the telemarketing calls you get at home. To register your phone number or to get information about the registry, visit www.donotcall.gov or call 1-888-382-1222 from the phone number you want to register. Telemarketing calls will diminish within 31 days of registering your number. If a telemarketer does call you after 31 days, you can file a complaint. Telephone numbers on the registry will only be removed when they are disconnected and reassigned, or when the consumer chooses to remove a number from the registry.

The Direct Marketing Association's (DMA) Mail Preference Service

A Mail Preference Service provided by the Direct Marketing Association (DMA) is an opportunity for consumers to stop receiving mailings from companies that belong to the DMA. This means that you will still receive mailings from companies that do not use the DMA’s Mail Preference Service. When you register with this service (for a $1 fee), your name will be put on a “delete” file and made unavailable to direct-mail marketers for five years. To register with DMA’s Mail Preference Service, go to www.dmachoice.org.

The DMA also has an Email Preference Service to help you reduce unsolicited commercial emails. To opt out of receiving unsolicited commercial email from DMA members, visit www.dmachoice.org/EMPS. Your online request will be effective for five years.

Disclaimer: The information provided in this site is not legal advice. All information is general information, some of which pertains to legal issues involved in the subject matter. Credit Matters Inc. is not a law firm and is not a substitute for an attorney or law firm. Your access to and use of this site is subject to additional terms and conditions.

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