Learn how prescreened offers can impact your credit health and home buying journey.
Understanding prescreened offers can empower you to make informed financial decisions that support your homeownership goals.
As a mortgage broker, we know that your credit health is a key factor in securing the best loan for your home. You might be surprised to learn that those “pre-approved” offers you receive in the mail for credit cards or loans can actually play a role in your financial strategy. At BurkeMortgage, we believe in empowering our clients with knowledge, and that includes understanding all aspects of your credit profile. That’s why we want to shed some light on what these prescreened offers are and how you can manage them to your advantage.
What is a “Firm Offer”?
A firm offer of credit or insurance is an offer that will be honored if you meet the specific criteria used to select you for the offer. This is based on information from your credit report. These offers are not available to the general public and can provide you with exclusive access to products and rates.
The Benefits of Receiving Firm Offers
- Product Choices: Firm offers provide you with a variety of product options, allowing you to choose the one that best suits your financial needs.
- Exclusive Opportunities: These offers are often not available to the general public, giving you access to unique products and potentially better terms.
- Comparison Shopping: Receiving multiple firm offers allows you to easily comparison shop, which can help you find the best deal and potentially increase your buying power.
Managing Your Prescreened Offers
The Fair Credit Reporting Act (FCRA) gives you the right to control whether you receive these offers. The four major credit reporting companies—Equifax, Experian, Innovis, and TransUnion—are permitted to include your name on lists used to make these offers.
If you want to stop receiving these offers, you can “Opt-Out.” If you’ve previously opted out and want to start receiving them again, you can “Opt-In.” The official website for managing these requests is www.OptOutPrescreen.com.
On this website, you can:
- Opt-Out for Five Years: You can submit an electronic request to stop receiving offers for five years.
- Opt-Out Permanently: You can mail in a form to permanently opt out.
- Opt-In: If you have previously opted out, you can choose to start receiving offers again.
Whether you choose to opt in or out, remember that you have control over your credit information. By understanding what these firm offers are and how to manage them, you can make informed decisions that benefit your financial health and, by extension, your homeownership goals.
Want to learn more about credit privacy? The new federal law, the Homebuyers Privacy Protection Act, has changed the game by putting an end to abusive “trigger leads.” This is another important way your financial information is being protected. To learn more about how this new law impacts you as a Connecticut borrower, read our full article “New Law Protects Homebuyers’ Privacy: What It Means for Connecticut Borrowers“.
For more personalized advice on how prescreened offers might impact your mortgage application, contact a Burke Mortgage broker today.