opt out?

[llecs]

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@Anonymous wrote:

Will opting out hurt me if my file has been through underwriting already? I know that they will pull my credit one more time before closing which is about 2 weeks away. Will this help or hurt me?

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It wouldn't hurt you, though I wouldn't do it at this point. CAs pay a fee to subscribe to your CR while not opted out. Anytime there's a major inquiry, like for a house or car, the assumption there is that you have the money to pay them. Therefore, once your lender hits your CR with an inquiry, that's a cue for the CA to go ahead and report because they know you'll likely have to pay them per the terms of your lender.

Since your are in underwriting and the inquiry already appeared for all to see, there's no need to opt out. If a CA subscribed, they already know about the initial inquiry from your lender. Opting out won't stop them from reporting if they had the intent to do so. And not every CA subscribes and not every CA will report even if they did subscribe. I would ignore it.

[sr383]

I hate to resurrect a dead thread, but this looks like the best one I've seen that tackles this issue from scratch (rather than as a side note to some other conversation). Frankly, I'm surprised this topic isn't stickied. ...

I also have a question: Couldn't opting out be a red flag, in itself? If junk CAs are data mining, couldn't they observe that a person who was on last month's list is suddenly gone? Could they not infer that a mortgage app is pending and, thus, go ahead and reach out their hands?

[cclee]

From what I understand and it's explained in the above post.  The credit reporting agencies actually notify the CA when an inquiry for a major purchase is reported.  So it's not like the CA is watching your report every month, instead they are being informed by the credit reporting agency.  Nice, right?

[Anonymous]

I opted out in May and still got 2 old junk debts pop up in June, they were just posted to my credit report over the weekend....so there is more to this than we know...something, someone, is reporting even after opting put.

[sr383]

Well, I guess it can't hurt. I have officially opted out. Five days from now (according to the opt-out website), I can offically get this train moving and start the preapproval process. ...