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Mail Call: Bills, a page from your Aunt Mary, a circular from the regional department store, your month-to-month bank statement, as well as an offer for a fresh bank card that says you have been “prescreened” or “prequalified.”
A “prescreened” offer of credit? What is that?
A lot of companies that solicit credit that is new reports and insurance plans utilize prescreening to determine prospective customers when it comes to items they provide. Prescreened offers â€” sometimes called “preapproved” offers â€” are considering information in your credit file that indicates you meet criteria set because of the offeror. Usually, prescreened solicitations come via mail, you additionally could get them in a telephone call or in a contact.
So how exactly does work that is prescreening?
Prescreening works in another of two means:
- a creditor or insurer establishes requirements, like a minimal credit rating, and asks a customer reporting company for a listing of individuals when you look at the business’s database whom qualify; or
- a creditor or insurer provides a summary of prospective customers to a customer company that is reporting asks the business to recognize individuals in the list whom meet specific requirements.