Opting Out of Credit Offers
Opting out: You may have heard that opting out will help raise your credit scores. While opting out may stop unwanted mail offers of credit or insurance, it does not affect your credit scores whatsoever. To understand why it does not affect your scores you need to understand “inquiries.” There are two kinds of inquiries: “Hard” inquiries and “Soft” inquiries.
A “Hard” inquiry counts towards your credit scores. Anytime you apply for credit – for example a mortgage loan, auto loan, or other credit – you authorize the lender to request a copy of your credit report. This is considered a “Hard” inquiry.
A “Soft” inquiry, also known as a “promotional” inquiry, does not hurt your credit score. These are reported on your credit report for several reasons, such as when a lender evaluates you for a pre-approved offer. These offers of credit or insurance would be considered “Soft” inquiries.
How to Opt-Out
Call 1-888-5-OPTOUT (1-888-567-8688)
You can add or remove your name from receiving firm offers for credit or insurance.
You have the option to remove your name for five years.
You have the option to add your name.
You have the option to permanently remove your name.
You can opt out of all pre-approved credit offers with just one phone call to 1-888-5-OPTOUT. This is an automated service run by the national credit bureaus.
When NOT to Opt-Out
There may be reasons for opting out but there is one good reason not to. If you are trying to rebuild your credit these offers can be a starting point for re-establishing your credit.