Pre Approved Offers

Anonymous · ‎06-12-2009

Not quite sure how the pre-approval process works. I guess what I'm asking is, how does it affect my FICO as far as inquiries? I'm getting quite a few offers and I'd like to know if they have actually been snooping in my CR. I would not want to be dinged for offers I did not initiate. How do I make the offers stop coming?

Thanks in advance

Anonymous · ‎06-12-2009

To give you a preapproved offer they are just doing a soft enquiry (if anything) and therefore it does not affect your score, if you actually replied to all of (or any) of them then it would be a hard enquiry and you may or may not be actually approved.

You can opt out if you want to stop the pre approvals from coming

RobertEG · ‎06-15-2009

A credtor with whom you dont have an account can only receive, under FCRA 604(c), your name and address.

A "soft pull."

So-called "pre-approval" offers to you are just a marketing ploy to entice you to respond. They dont "approve" anything. If you read the fine print, it always says, "subject to review of our credit report," or words to that affect.

What they are doing is getting you to apply for credit.
This then becomes a credit transaction "initiated by the consumer," and thus permits them under FCRA 604 to do a full, "hard pull" of your credit report.

So your "pre-approval" turns into a hard inquiry against your CR, and possibly a denial.

Under the Fair Credit Reporting Act (FCRA), the Consumer Credit Reporting Companies are permitted to include your name on lists used by creditors or insurers to make firm offers of credit or insurance that are not initiated by you ("Firm Offers"). The FCRA also provides you the right to "Opt-Out", which prevents Consumer Credit Reporting Companies from providing your credit file information for Firm Offers.http://www.ftc.gov/opa/2008/04/dncfyi.shtmThrough this website, you may request to:· Opt-Out from receiving Firm Offers for Five Years - (electronically through this website).· Opt-Out from receiving Firm Offers permanently - (mail Permanent Opt-Out Election form available through this website).· Opt-In and be eligible to receive Firm Offers. This option is for consumers who have previously completed an Opt-Out request - (electronically through this website).If you choose to Opt-Out, you will no longer be included in firm offer lists provided by these four consumer credit reporting companies. If you are not receiving firm offers because you have previously completed a request to Opt-Out, you can request to Opt-In. In doing so, you will soon be among the many consumers who can significantly benefit from having ready access to product information on credit and insurance products that may not be available to the general public.

Message Edited by RobertEG on 06-15-2009 10:12 PM

Anonymous · ‎06-16-2009

Thank you,I appreciate you giving me an in-depth look into the pre approval process. I am going to opt-out,I have more cc's and mail than I can handle.

RobertEG · ‎06-16-2009

Creditfreeze, with your FICO score, the car dealers will salivate over you!

There has never been a better time to buy a new car!

Enjoy the moment!