One Common Credit Myth
The media and internet are full of information, but sadly, much of the information concerning credit is inaccurate. Let’s check out a common credit myth:
Credit Myth: “Opting Out will Increase your Credit Score.” This is something that goes back a long time, and let's discuss what opting out is. “Opting out” refers to a method where a consumer chooses to not have their information sold for pre-screened offers. You’re familiar, of course, with pre-screened offers – that’s when you get something in the mail that says, 'You're approved for this credit card!' We all get them, and I would imagine you generally respond by rolling your eyes and throwing them away, like most people do.
The credit bureaus sell information in bulk to credit card providers. This system allows credit card providers to make offers in the mail to multiple people. Keep in mind, these credit card providers don't get to actually see your individual files. The credit card companies will give a generic example of what they want. They want people with an average score of 'X' and have a set amount of existing credit cards etc. Then the credit bureaus will actually send the data to a third party on behalf of the credit card company for mail distribution, so the credit card company never actually sees your data. They only know that you fit a certain demographic profile they’re targeting with that particular offer.
If you opt out of pre-screened offers, it has wide-reaching effects. It ultimately means that the credit bureaus cannot sell your data. If they can't sell your data, well, your data is really not worth anything to them. So many people in the past thought they saw an increase in their credit score after an opt-out. I’ve heard mortgage loan officers swear that they had their client opt out and within 2 week the score jumped 10 points. As someone who’s been in the middle of this industry for many years, there's been nothing to prove that that's ever actually taken place.
Blog Archive2018-07-23 14:09:15
Your Home's First Impressions
House Hunting Checklist
What do you need to know about closing?
House Hunting Checklist
Why Parks are Important to Neighborhoods
Vacuum Tips to Get Your Carpet Cleaner
What regrets do you have after you move?
Creating a Serene Environment in Your Home
The Advantage of Buying over Renting
Things you forget to Clean
How to Decorate your Backyard for Entertaining
Things you should know before you buy your First Home
7 Kitchen Remodel Ideas for Families
4 Reasons to Consider a Refinance
How to Welcome Spring to Your Home
Creating Sports Themed Spaces
Things Homeowners overlook when selling a home
Reasons You Might Not Get Top Dollar for your Home
Organizing Your Closet
Ways to save on Heat this Winter
Get a Home Energy Audit
Finding the Best Realtor
Save Money at the Grocery Store with These 5 Tips (and No Cutting Coupons)
Click here to see ALL articles.