Preventing CAs from collecting close to closing

[youngcreditcarduser]

So I have heard a few people around this forum that have said that once you apply for mortgage and are close to closing some CAs will find old collections to put in your report and ruin you close to closing - how do these companies know when you are close to closing, does the credit report show that or does it just go by hard pulls when applying for the mortgage? So I'm closing in April for a new build home, but I had to get pre-approval so my credit report now shows hard inquries from a couple of mortgage companies so does that mean if no zombie collections get posted in the next few months I'm in the clear?

[Anonymous]

It's called collection/credit triggers. CRA's sell your information to lenders/collection agencies, etc when new information hits your report when you're applying for new credit.  If the collection agency sees you have some kind of money to be spending on something new, they want a piece of that money as well.  You can google "collection triggers" and read all the articles associated with it.  To prevent this from happening, go to Optoutprescreen.com and opt out of prescreen offers. This will help you "stay invisible" during the mortgage process.

[2b2rich]

Actually, I'm not sure that 'opting out' will prevent this 100%.  If you read Experian's description of their 'product' for this, it seems as though it wouldn't matter, anyway.

http://www.experian.com/consumer-information/debt-collection.html

[pizza1]

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@2b2rich wrote:

Actually, I'm not sure that 'opting out' will prevent this 100%.  If you read Experian's description of their 'product' for this, it seems as though it wouldn't matter, anyway.

http://www.experian.com/consumer-information/debt-collection.html

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wow, how is that even legal!! ???

[2b2rich]

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@pizza1 wrote:

wow, how is that even legal!! ???

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eh, there's a difference between selling companies like banks and lenders a list of people who have credit that meets their basic requirements in order for that company to make you an offer to become their customer

and a company such as a collection agency who already has business with you (whether the consumer feels they do or not).  CAs have business relationships with the 3 bureaus and  a CA who has been assigned by a company, to collect on a debt that is yours, can actually view your credit periodically much the same way your OC can on the basis of a need to review.

You know when you apply for a mortgage, they get notifications from the bureaus any time your credit is pulled and you're not even their customer yet.  It's sort of the same deal with CA that have your account.  They can get notified any time you appear to be in a financial situation where you can pay debts.

[edcampbell613]

I registered for Optout Prescreen several years back and have not received 1 single credit offer in the mail. Its like registering your phone number on the national "Do Not Call List" I love it. I wonder if it would work in this instance.