What Really Happens When Your Credit is Pulled – And How OptOutPrescreen Can Protect Your Privacy

What Happens When Your Credit is Pulled?

When a lender checks your credit, it’s called an inquiry. There are two types:

✅ Soft Inquiry: This happens when you check your own credit or when companies pre-screen you for promotional offers. It does not impact your credit score.

✅ Hard Inquiry: This happens when you apply for a mortgage, auto loan, or credit card. It can slightly lower your credit score (usually by just a few points) and stays on your report for up to two years.

When you apply for a loan or credit card, the lender pulls a hard inquiry to evaluate your:

• Credit score

• Payment history

• Debt-to-income ratio

• Public records (bankruptcies, judgments, etc.)

This helps lenders determine whether you qualify, what interest rate you’ll get, and how much they can lend you.

Why Do You Get Pre-Approved Offers After Your Credit is Pulled?

Once your credit is pulled, your information may be included on lists that credit bureaus sell to lenders and insurance companies. These companies use the lists to send you pre-approved credit cards, personal loans, or insurance offers in the mail.

While it might feel like a coincidence, it’s actually a result of your credit data being included in prescreened marketing lists.

The Problem with Pre-Approved Offers

Many borrowers find these offers:

❌ Annoying – They clutter your mailbox.
❌ Tempting – They can lead to unnecessary debt if you’re not careful.
❌ Risky – They can be used for identity theft if someone steals your mail.

How Can You Stop Unwanted Offers?

That’s where OptOutPrescreen comes in.

What is OptOutPrescreen?

OptOutPrescreen is a free service authorized by the major credit bureaus (Equifax, Experian, TransUnion, and Innovis). It allows you to:

✅ Opt out for five years online or by phone.
✅ Opt out permanently by mailing in a form.
✅ Opt back in anytime if you change your mind.

When you opt out, your name is removed from lists used for pre-approved credit and insurance offers.

How to Opt Out

1. Go to www.optoutprescreen.com – the official website.

2. Select either a five-year opt-out or permanent opt-out option.

3. Confirm your identity and follow instructions.

You can also call 1-888-5-OPT-OUT (1-888-567-8688) to begin the process.

Will Opting Out Affect Your Credit?

No. Opting out will not impact your credit score or your ability to apply for loans. It simply prevents your information from being used for unsolicited marketing offers.

Final Thoughts

Understanding what happens when your credit is pulled empowers you to manage your financial life with confidence. If you’re applying for a mortgage or any major credit, knowing how inquiries work – and protecting yourself from unwanted offers with OptOutPrescreen – is a smart move.

Have questions about your credit or getting pre-approved for a home loan? Reach out today. I’m here to guide you through every step of your home buying journey with clarity and confidence.

Frequently Asked Questions (FAQ)

Q: Does opting out with OptOutPrescreen hurt my credit score?

A: No, opting out does not affect your credit score or your ability to apply for credit. It only stops pre-approved credit and insurance offers from being sent to you.

Q: Can I still apply for loans or credit cards if I opt out?

A: Yes. Opting out only stops unsolicited pre-approved offers. You can still apply for any loan or credit card you choose, and lenders will process your application as normal.

Q: How long does it take for OptOutPrescreen to take effect?

A: It typically takes about five business days for your opt-out request to be processed and for pre-approved offers to stop coming in the mail.

Q: What’s the difference between a hard and soft credit inquiry?

A:

• Soft Inquiry: Does not affect your credit score. Examples include checking your own credit or pre-approval checks.
• Hard Inquiry: Can slightly lower your score and occurs when you apply for a mortgage, car loan, or credit card.

Q: Why do pre-approved offers increase after my credit is pulled?

A: When your credit is pulled, your information can be included on marketing lists provided by credit bureaus to lenders and insurance companies, who then send you pre-screened offers by mail.

Q: Can I opt back in to receive pre-approved offers later?

A: Yes. You can opt back in anytime by visiting www.optoutprescreen.com and selecting the opt-in option.

Q: Is OptOutPrescreen safe to use?

A: Yes. It’s the official consumer credit reporting industry opt-out website authorized by Equifax, Experian, TransUnion, and Innovis.