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Mail Call: Bills, a page from your Aunt Mary, a circular from a regional emporium, your month-to-month bank declaration, and an offer for a unique charge card that states you have been “prescreened” or “prequalified.”
A” that is”prescreened of credit? What exactly is that?
Many companies that solicit new credit card records and plans utilize prescreening to spot potential prospects when it comes to services and products they feature. Prescreened offers â€” often called “preapproved” offers â€” are predicated on information in your credit file that indicates you meet requirements set by the offeror. Usually, prescreened solicitations come via mail, you additionally could get them in a telephone call or in a message.
So how exactly does work that is prescreening?
Prescreening works in another of two methods:
- a creditor or insurer establishes requirements, just like a credit that is minimum, and asks a consumer reporting company for a summary of individuals within the organization’s database whom meet the requirements; or
- a creditor or insurer provides a summary of prospective customers to a customer company that is reporting asks the organization to determine individuals in the list whom meet specific requirements.
Can prescreening harm my credit rating?
No. You will have “inquiries” in your credit history showing which businesses obtained your data for prescreening, but those inquiries won’t have a negative impact on your credit file or credit history.