Many buyers know that having their credit pulled is a required part of the home loan application process. Many don’t know that it can lead to offers from unsolicited creditors and lenders.
Did you receive a flood of unwanted calls and mail after you applied for a new home loan, auto loan, or credit card in the past?
You’re not alone. But you can protect your privacy the next time you apply for a new home loan, auto loan, or credit card.
While the unsolicited offers you may have received were from companies other than Fremont Bank (we do not sell any aspect of your credit file to other companies, nor allow them access to it), we know the sheer volume of such offers can be frustrating and confusing.
You look to us for trusted advice, so we wanted to explain why those offers happen — and what you can do to stop them.
Why unsolicited loan offers happen
As part of the process of deciding whether to extend new credit or renew existing credit, lenders obtain your credit report from one or more of the national customer credit bureaus.
That process automatically generates an inquiry on your credit report.
Once that happens, the major credit bureaus are legally able to sell your information through what are called “Trigger Lead” lists — that is, lists of prescreened consumers — to other lenders and brokers, as well as to credit card companies and marketing firms. These lists can include your contact info and can be legally used for marketing purposes.
Because your data is often sold to numerous parties, the number of solicitation calls and mail you then receive is multiplied.
Over the next few days and weeks, you may see a flurry of phone calls — creating more stress during what can be an already stressful homebuying process. It can also be confusing, as such solicitors may say they are affiliated with the home loan lender. They’re not.
If we could stop the assault of unsolicited (and often unwanted) offers, we would! Unfortunately, the lender has no say in this practice. Fremont Bank doesn’t have the ability to stop the sale of your information by the major credit bureaus once the process has been set into motion by the inquiry at the national credit bureau level.
How to stop unsolicited loan offers
There is good news, however! You can take control of your information and privacy by opting out of prescreened lists.
- Before your credit is pulled, opt out by visiting www.DoNotCall.gov or calling (888) 382-1222.
- Permanently opt out of solicitations by visiting www.optoutprescreen.com. Please note that the major credit bureaus operate this website.
Keep in mind
To submit your opt-out request, you'll need to share some personal information, such as your name, Social Security number, and date of birth. That information is kept private.
Once you’ve formally opted out, it may take several weeks before you stop receiving prescreened offers. Even though requests to opt out are processed within five days, some companies may receive your information and begin reaching out before the opt-out request has been processed.
Opting out does not hurt your credit score
For many consumers, credit inquiries and reports spark concerns about possible impacts on credit scores.
Rest assured that removing your name from prescreened lists has no effect on your credit score, or on your ability to apply for or receive credit or insurance.
More information
Remember, the practice by the major credit bureaus of selling your information through prescreened lists, as well as the types of offers you may receive as a result, is permitted under the federal Fair Credit Reporting Act, 15 U.S.C. 1681 et seq.
