If you have purchased or are in the process of purchasing a home, you may have heard about unsolicited credit offerings, or trigger leads. In this article, we’ll walk through what these are, what you should watch for and how you can avoid them.
What are trigger leads and how do they happen?
Trigger leads are created by national credit bureaus. Once you apply for a personal loan or mortgage, your information can be sold by the credit bureaus to other lenders. These lenders typically will then reach out to you with different offers. Unfortunately, this outreach leads to a slew of unprompted calls, texts, emails, etc., which can feel overwhelming.
What you should watch for
Even though they are often seen as irritating, others see this solicitation as ethical. While trigger leads could potentially provide you with different lending options, you’ll want to make sure you ask a lot of questions of the solicitors, should you choose to look into their offerings. For example, some of the important questions you’ll want to ask may include understanding the terms of the offering (fixed or ARM, 30-year or 15-year, etc.), closing costs, prepayment penalties, and balloon payments.
When it comes to solicitations you receive as a result of a trigger lead, it is important to know who you’re talking to. It’s easy for trigger leads to open you up to identity theft from bad actors looking to take advantage of consumers looking for loans.
When applying for a loan we encourage you to opt out of trigger leads in advance. This will prevent credit bureaus from collecting your information and reaching out after.
How to avoid trigger leads
Trigger leads are prompted by a pull of your credit score, but fortunately, you can take steps to avoid them. If you wish to avoid trigger leads you can choose to opt out of these prescreened trigger lead lists, using the options below.
- Call the toll-free number, 1-888-5-OPTOUT (1-888-567-8688)
- Sign up for www.optoutprescreen.com. This is the official Consumer Credit Reporting Industry website. You can choose to opt out for five years or permanently.
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