03-01-2013 07:00 AM
I used to think that receiving pre-qualified or pre-approved credit card offers was a badge of honor, especially as my credit score increased over the past couple years and prime banks offered excellent sign-up bonuses with their best cards.
But in recent months, I've completely changed my opinion of such practices. First, its completely junked my mailbox. Not one day goes by in which I don't receive at least 2 offers. Second, and a bit more controversial, I consider it borderline predatory. Now don't get me wrong, I'm all about personal responsibility and managing finances effectively, but I can't help but think that it's significantly contributed to the indebtedness average American's are in.
The nail in the coffin for me was when I pulled my free annual credit reports and saw a ridiculous amount of soft pulls across all the 3 CR's. It was quite scary. I was googling some of the companies listed, and was shocked. I had a random collection agency looking [I haven't had a baddie in 6 years and owe no money], a hospital was listed a few months ago [the last time I was in a hospital was 4 years ago and all bills were paid in full].
I was doing a bit more research and found this article from 2010 http://www.nytimes.com/2008/10/22/business/22targe
So long story short, I just recently opted out of prescreens. It should at the very least stop the junk mail and prevent illegitimate zombie CA's from purchasing bulk data and checking against their database. It should be especially effective when I start looking for a mortgage in the next couple years.
What do you guys think? Have you opted-out?
03-01-2013 07:14 AM
Good post! I've been opted out for years, mainly because I despise junk mail of any type. I was thinking about opting in for a few months later this year because I might be interested in acquiring new cards. But given what you just said about all those SPs from the strangest sources, I think I'll stay OUT.
03-01-2013 07:17 AM
I had similar thoughts too. At the beginning of my credit repair journey, I was excited to get offers in the mail. Shortly after, I got tired of the junk and really wanted to minimize my temptation to app.
I've been opted out for probably about nine months now. Don't miss the junk and I'm not sure if I would ever opt back in. I'm pretty sure of what cards I want in the future and I just don't really think I want the invitation to apply for others
03-01-2013 07:36 AM
Opted out years ago, I go back periodlcally and re-submit, just to make sure I don't get back on lists.
Also was on the "do not call" list when I had a hardwired telephone, since I went to cell, it's not needed (I know, some people think there's a directory of cell phones -- there's not!).
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.