Have you ever applied for a loan, only to suddenly be flooded with calls and emails from other lenders? You might think that it’s the result of putting your info into a shady site, but the reality is that the credit bureaus are sharing your information with others.
So how does your information suddenly manage to spread around dozens of businesses, and how can you keep it from happening?
The Reality of Trigger Leads
When you apply for a mortgage or a loan, you go through something called a “hard credit check.” That’s when one, two or even all three credit bureaus perform an inquiry into your credit score.
When the bureaus check your credit, your record is flagged and added to a list of other flagged records. The credit bureaus go through all flagged records and gather the information from them. Once they’re finished, they’ll sell the information as a “trigger lead” to paying marketers within 24-48 hours of the original application or credit pull.
Much like the pre-approved credit cards you get in the mail, any offer you’ll get as a trigger lead is essentially a prescreened offer of credit for a mortgage or other loan.
Before you ask- yes, it is legal. Some people even consider it ethical, since it offers borrowers the chance to hear from other companies and potentially get a better price on the loan they’re applying for.
How Did I Become a Trigger Lead?
A simple credit check is enough to make someone into a trigger lead, but before someone is considered a “Prime Lead” – one that mortgage companies will pay top dollar to obtain –more information is needed, ideally phone numbers.
When your information is given to the bureaus during your credit check, it’s filed away as data and kept on record for future use–including use by other companies. If these other companies manage to obtain your phone number, then they are able to use it to call you and promote their own services.
While passing information along is legal and could even be seen as beneficial for borrowers, not everyone wants to be inundated with calls—especially if they already have a financial plan they want to follow. Fortunately, you’re able to opt out of pre-screened offers of credit on your own.
Opting Out
There are ways to deter calls from credit companies from reaching you, such as blocking numbers or adding yourself to the Do Not Call Registry. But even with those measures, your info is still on file with the bureaus. If you want to truly avoid being a trigger lead, opting out is the only way to get away from them.
That said, be sure to opt out BEFORE you apply for a loan. While you can still opt out after, it can take up to five days for your name to be pulled from the system, meaning five more days of nonstop calls from lenders.
If you don’t want floods of calls from hopeful lenders, now is the time to opt out! The process is fairly simple: either visit www.optoutprescreen.com/ or call toll-free at 1-888-5-OPT OUT (888–567–8688).
Once that’s done, you can resume your loan search without fear of nonstop phone ringing. Mortgage and loan hunting is stressful enough as is, and if you’ve found a lending company you can trust, like Gulf Coast Bank Home Loans, then there’s no need for endless offers you don’t want.
