How to Stop Receiving Prescreened Offers of Credit

Prescreened offers of credit are unsolicited mailings from financial institutions, offering credit cards, loans, or other financial products. These offers are sent when a consumer’s credit profile meets specific criteria set by lenders. Many individuals seek to stop these mailings to reduce junk mail or avoid the temptation of new credit.

Using the Official Opt-Out Service

The primary method to stop prescreened credit offers involves using OptOutPrescreen.com, the official website established by the major credit reporting companies: Experian, Equifax, TransUnion, and Innovis. This centralized service allows consumers to manage their inclusion on lists used for these offers. To complete an opt-out request, individuals will need to provide personal details for identity verification, including their full name, current and previous mailing addresses, date of birth, and the last four digits of their Social Security Number.

Consumers have two main choices for opting out: a temporary five-year exclusion or a permanent removal. To initiate an opt-out online, individuals should visit OptOutPrescreen.com, choose their desired opt-out duration, and electronically submit the required personal information. While a five-year opt-out can be completed entirely online, a permanent opt-out requires printing, signing, and mailing a Permanent Opt-Out Election form.

Alternatively, consumers can opt out by calling the toll-free number 1-888-5-OPT-OUT (1-888-567-8688). This phone service allows for a five-year opt-out or initiates the process for a permanent opt-out, which requires mailing a signed form. After submitting a request, it may take several weeks for the changes to take full effect, as some companies might have already received prescreened lists before the opt-out was processed.

Understanding Limitations and Other Actions

Opting out through OptOutPrescreen.com targets offers based on prescreened lists provided by the major credit bureaus. This service does not stop all unwanted solicitations. Offers from companies with whom you have an existing business relationship, such as your current bank or credit card issuer, will likely continue. General marketing mail not based on credit prescreening, and non-credit related solicitations, also fall outside this service’s scope.

Consumers might still receive “invitations to apply” that are not firm offers of credit, as these are based on general marketing data and not governed by the same regulations. If unwanted mail continues from a specific company after opting out, contact that company directly to request removal from their marketing lists. General mail preference services also exist to reduce other types of unsolicited mail, separate from the credit offer opt-out process.

Why You Receive These Offers

The reason consumers receive prescreened offers stems from provisions within the Fair Credit Reporting Act (FCRA). This federal law permits credit bureaus to provide consumer lists to companies for “firm offers of credit” or insurance under specific conditions.

Lenders utilize these prescreened lists to identify potential customers who meet predetermined creditworthiness criteria. These criteria might include factors such as a specific credit score range, geographic location, or other financial characteristics. By making a “firm offer of credit,” the lender is legally obligated to honor the offer if the consumer continues to meet the stated conditions after applying.

The FCRA requires these firm offers to include disclosures informing consumers that information from their credit report was used and that they have the right to opt out of future prescreened offers. From the financial industry’s perspective, these offers streamline the process of extending credit, allowing lenders to target individuals more efficiently and providing consumers with various credit and insurance options.