Prescreen Opt Out

Each year American consumers receive billions of written offers of credit they did not request. In many cases, the senders have prescreened the recipients for creditworthiness using consumer credit records held by consumer reporting agencies.

For some consumers, prescreened solicitations are a valued service – providing them with product availability and pricing tailored to their financial situation and needs. Others view prescreened solicitations at best an inconvenience in the form of junk mail, and in the worst case, a vehicle for fraudulent activity, identity theft and impaired credit scores. These people prefer to opt-out.

Opting-Out refers to the process for removing your name from lists supplied by the consumer credit reporting agencies, Equifax, Experian, Innovis and TransUnion, to be used for firm (preapproved / prescreened) offers of credit or insurance. Your rights as a consumer under the Fair Credit Reporting Act (FCRA) include the right to "Opt-Out" for 5 years or permanently. While currently documented by consumer credit reporting agencies, a growing number of professionals believe opting-out can improve a person’s credit score by as many as 40 points.

Regardless, there are a certain things people must do to protect their credit:

1. Buy a shredder! Shredders are inexpensive these days; about $25 in most office supply stores. Buy one. Use it religiously. It is the cheapest and easiest way to protect your privacy.

Shred any paperwork containing personal information before it hits the trashcan. Dumpster-diving, the practice of looking through trash for personal information, is the most common method that identity thieves use to get personal information. Therefore, shred:

  • All of those credit card applications you get in the mail
  • Any credit card receipts
  • Paystubs
  • Bank statements, deposit receipts
  • Utility bill stubs
  • Old tax returns
  • Anything containing your SSN number
2. Pull your credit report at least once a year. It will cost you about $20 to pull your credit from all three credit reporting agencies through a credit monitoring agency. Or, your can contact Builders Resource Group of First Horizon Home Loans for a free credit report.

What to look for on your report which may indicate identity theft has occurred.

  • Are all of the credit lines on the report yours? Make note of each one.
  • Inquiries - were there excessive inquiries made on your report? Can you account for all of them? Excessive inquiries could mean that someone is trying to get credit in your name. Use our methods of challenging these inquiries if you want to find out more information.
Other items to look for just to keep your credit in the best possible shape for when you get the sudden urge to apply for new credit. Don't wait to clean up your report, do it now. Cleaning up your credit can take 30-90 days. You should also note that it is becoming an new industry practice to raise rates on existing credit card rates if other credit lines go delinquent. Once a credit card company raises your rate, it is difficult to get them to lower it again, even if your credit report has been corrected.
  • Is old credit (like closed accounts, old delinquent marks) on your report that should come off? Credit lines which have been closed or had no activity for 7 years should not be on your report, including derogatory credit.
  • Look for any late pays - Are they accurate?
  • If you have joint credit, pay attention to the current balances on these accounts. Were you aware of any high balances?
3. Secure your paperwork, especially if you have roommates. The saddest tales of all are when people you know steal your identity. Buy a file cabinet and LOCK it or rent a safety deposit box. Obviously, a safety deposit box is not as convenient as a file cabinet, but if you don't trust the people around, it is a great option. What kind of paperwork should you lock away from prying eyes?
  • Any credit card receipts
  • Paystubs
  • Bank statements, deposit receipts
  • Utility bill stubs
  • Old tax returns
  • Anything containing your SSN number
4. Take your name off mailing lists. The less paperwork being sent to your house with "preapproved" credit cards, the better. Some identity thieves don't wait for those applications to get into the trash, they steal them right out of your mailbox. "Opt-Out" for 5 years or permanently.


For more information, email Mitch Roberts of Andy Thiel!