A little known fact is that the credit bureaus are selling your information as soon as you inquire about new credit. When you fill out an application for a new loan, be it a new car, credit card or mortgage, there are companies that are paying to get access to that information. Why? Because you have just become a Hot Lead. You have expressed the ultimate criteria that marketers are looking for. You have expressed the desire to purchase AND have taken it to the extent of allowing someone to pull your credit to see if you qualify. It doesn't get any hotter then that!!
I have been contacted by several companies that sell these leads. I haven't inquired about the cost, but they probably are not cheap. My reason for not inquiring is for ethical reasons. I just plain don't like it! I feel that it is an invasion of privacy.
In addition, I feel that I am a professional and that there is much more to what I do than just quote a rate. My task is to make the deal work. Sometimes this is easy and sometimes it is a minor miracle. I often feel like a conductor in an orchestra trying to hold everything together. I care to much about my clients and my referral partners to not charge enough to stay in business. I'm not afraid of competition, I just don't believe that the mortgage loan is a commodity. The lowest rate/cheapest fees don't mean a thing if the deal doesn't get done.
Anyway, off my soap box.
For some, this isn't a problem. It gives you the ability to go to one lender (car, credit card,mortgage, etc.), have them pull your credit and then sit back for a few weeks and watch the vultures fight for your business. This is kind of like placing an RFP (Request for Proposal) with the credit bureaus and letting interested businesses contact you.
In that sense, I really don't have a problem. I just wish it was an "Opt in" situation. By default you have opted in.
There is a solution for those who do not welcome the barrage of mailers and phone calls soliciting your business. You can opt out by calling 1-888-567-8688 or going to http://optoutprescreen.com/faq.htm .
Your rights as a consumer under the Fair Credit Reporting Act include the right to opt out for five years or permanently. This will allow you to stop receiving credit solicitations period. It takes approximately five days for it to go into effect for the five year option and slightly longer for the permanent option.
For those who are tempted to use the lowest rate/fees remember that there is no such thing as a free lunch. There will either be hidden fees or service will be horrible. If you are buying a VCR take a chance, but if you are buying, or refinancing a home, is it really worth it?
