How Pre Screened Credit Card Offers Effect Your Credit

by Thomas Vargo

If you receive an offer in the mail for a new credit card that says you have been pre screened or pre qualified, then you may be wondering how they came across your credit information and whether or not your credit has been effected. Many companies that solicit new credit card accounts use pre screening to identify potential customers for the products they offer. Pre approved offers or otherwise called pre screened offers, are based on information in your credit report that indicates you meet criteria set by the offerer. Normally, pre screened solicitations are delivered to you by mail, but you may also get them by email or by phone.

There are two ways that pre screening works. A insurer or creditor establishes criteria, like a minimum credit score, and they ask for a list of people from the credit reporting agency's database who meet their criteria or the insurer or creditor provides a list of potential customers to a credit reporting agency and asks them to identify the people on the list who meet certain criteria.

Pre screening credit offers cannot hurt your credit score or credit report unless you accept them. There will be inquiries on your credit report showing which companies obtained your information for pre screening, but those inquiries will not have a negative effect on your credit score or credit report.

If you want to reduce the number of unsolicited credit offers you receive and if you decide that you do not want to receive pre screened offers of credit, then you have two choices. You can opt out of receiving them permanently or opt out of receiving them for five years. Call toll-free 1-888-5-OPTOUT (1-888-567-8688) or visit optoutprescreen.com for details. The website and phone number are operated by the major credit reporting agencies. When you visit the website or call, you will be asked to provide certain information that is personal, this includes your name, home phone number, date of birth, and Social Security number. The information you provide to them will only be used to process your request to opt out, and it will remain confidential. Remember that if you have joint credit relationships, like a car loan or mortgage loan with a partner, spouse or other adult, you may continue to receive some pre screened solicitations until both of you exercise your right to opt-out.

Pre screened offers can provide many benefits, especially if you are in the market for a credit card. Pre screened offers can help you compare costs, learn about what is available, and find the best product for your needs. You can be turned down only under limited circumstances because you are pre-selected to receive the offer. The terms of pre screened offers may also be more favorable than those that are available to the general public. In fact, some insurance or credit card products may be only available through pre screened offers.

Removing your name from pre screened lists has no effect on your ability to obtain or apply for credit. Opting out of pre screened credit offers does not hurt your credit score.