Pre-approval Offers – How Credit Bureaus Sell Your Information

Have you ever received a letter in the mail saying you have been pre-approved for a fantastic credit card offer? Did you know that Credit Bureaus Sell Your Information? They are making profit by selling your information to Banks who mail you these Pre-approvel offers.

They may have even sent you the application to fill out and send back to make it convenient. As exciting as that offer may look, those “invitations” leave consumers confused and mislead, because truth is there is no such thing as “pre-approved”.

Credit card companies have come up with strategical marketing techniques to get consumers to apply for their credit whether you qualify or not. In fact, those banks PURCHASED your information from the bureaus in a batch with many others who met within their marketing criteria. In simpler terms, the credit card company bought your information with a bunch of others because they thought you may be interested to apply and had fit within their marketing criteria (i.e. credit scores, income levels, demographics, etc). So when you receive these offers, remember you have not been approved quite yet.

A thorough investigation of your credit report will still be evaluated (hard inquiry) and will still count against your scores if you have been denied. It is not uncommon for consumers to receive these offers when they do not meet a satisfactory status in order to be approved and find themselves denied (remember, banks a bureaus profit off of bad credit). It is important to opt out from these offers so the banks and bureaus can no longer profit from your applications. (If you are already an existing client of Cobalt Credit Services, we automatically opt you out from these offers.)

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