I got a preapproval loan app from World Finance Corporation. Has anyone ever heard of this company. Apparently they have a local office in my city. I'm not interested in the loan, but since this is the first time I've ever gotten a preapproval for a loan in the mail, thought I'd check it out.
IMO, stay away from them, very high interest rates.
Also this is a company, where people go to when they can't get credit anywhere else.
I agree. Stay away. They're loansharks.
Pre-approval is not approval, but rather a way to offer credit, pull your file, and see if they like it. They want to get the consumer to apply, this giving them a permissible purpose to pull your entire credit report.
In making their unsolicited offer for credit, they only received your name and address from the CRA. They cant get more without enticing you to give them a permissible purpose. Its why many opt-out.