Your Credit History is For Sale

Have you ever wondered why you receive hundreds of unsolicited junk mail pieces and phone calls from credit card, insurance or mortgage companies? There is a simple explanation for it! Credit bureaus sell your credit profile not just to those who you have authorized to check into your credit history, but also to make additional money selling your information to those companies out trolling for new customers.

For example, you recently applied for a new mortgage and authorized your lender to pull a credit report. Within 24 hours you receive several phone calls from mortgage brokers who have noticed that you have applied for a mortgage loan. Coincidence? Hardly. The credit bureau sold a list of all individuals who have recently had their credit report pulled to another competitor for business. This is known as a trigger lead; the pulling of your credit report triggers your name being added to a list to be sold to various competitors offering the same type of product that you are applying for. Trigger leads are often categorized by certain searchable attributes such as annual income, monthly mortgage payment, loan balance, credit score, etc., and your information can be sold to a third party if you meet their search requirements. Trigger leads can be sold 24 hours after your credit report was pulled. Similarly, a major credit card company can buy a list on any type of criteria such as credit score, how many cards you carry, etc., and send you offers to transfer or open a new account with them.

It is perfectly legal for the credit bureaus to sell your information unless you “opt out” choosing not to receive such solicitations.

To opt out from having your data “sold” call the
Pre-screened & OPT-out Hotline at 888-567-8688 or visit www.optoutprescreen.com.

You will be asked a series of questions and you have the option to opt out for either five years or permanently. The three major credit bureaus will be contacted and your name added to the “do not solicit” list. Either of the opt-out methods takes at least five days to become effective.

Some people like the idea of being contacted by multiple lenders so that they can comparison shop, however, credit bureaus do not limit the amount of times a trigger lead can be sold, so one credit inquiry could result in a lot of contacts. Also there is no guarantee that the caller is a reputable professional and you should always know who you are dealing with.

Related Links:
Your Credit
Manage and Improve your Credit Score
Disputing Items on Credit History
Obtaining Your Credit Report