Consumers find themselves on high alert when it comes to protecting themselves and their credit. How do prescreened offers affect you and what should you do about them?

Understanding that Pesky Pre-Screen Junk Mail

I don’t know how many times I’ve checked the mail this week only to be disappointed that all I have waiting in the box is one of those preapproved or prescreened credit card offers. I’ll admit that I automatically place them in the shredder but I have wondered how they get the information, why they prescreen me and if this affects my credit in any way.

How do they do that?

Similar to instant prescreen offers that can happen on the spot when you are waiting in a bank for an answer or shopping in a store, creditors can basically establish a certain set of data and then use that data in order to sift through a consumer reporting company and choose those people that they are going to prescreen. For example, they might choose to target people that make a certain amount of money or have a certain credit score. Second, a company might just send a list of customers they already have in their database to the consumer reporting agency and that agency will identify people who meet that same or a different set of criteria. So, now you know that the special envelope you thought was meant just for you was actually only sent to you because you met a certain criteria.

Can I Opt Out?

At one point in our lives, my husband and I were receiving three of four of these offers in the mail per day. Finally one day we decided that enough was enough and we decided to opt out. Other people may prefer to opt out because they don’t like the idea that companies are accessing their credit report information. One thing to consider is that you really can get some benefits from those offers. Often times if you are in the market for a new credit card or are shopping around for insurance than it is great place start because it will allow you to easily compare costs.

What about my credit score?

You will be happy to know that opting out does not hurt your credit score. Also, staying in does not hurt your credit score either. If you do check your credit report you will be able to tell which companies have accessed the information. However, it will not affect your score at all.

Junk Mail vs. Store Offers

So, you are not only bombarded with junk mail from companies wanting your attention and money. But, you are also sucked into the instant offers in the store too. Many stores now have the ability to do instant prescreens on the spot in order to approve you for a specific service. This can be a tremendous asset for companies because they can quickly and easily offer you something. It also plays into our sense of wanting immediate gratification and can be dangerous if you don’’ weigh your options before you have the prescreen done. Sometimes having a moment to mull the information over is a good idea.

We are in the age of instant answers; we don’t have to look far to find what we need. However, those prescreen offers can get irritating if we don’t keep them under control. Understanding the benefits and drawbacks can keep you balanced when making decisions about all that junk mail and whether or not you will opt out. Good luck as you make your next trip to the mailbox.

About the Author: Rebecca Beckett is a freelance writer for Innuity. If you would like more information about Prescreen or instant prescreen go to Zoot Enterprises.