We often receive pre-approved credit cards. That is relatively common with both insurance and credit companies. However, they are not always of interest to us. It is important to know how to refuse a credit card offer without getting into trouble.
When we are not interested in receiving a credit card (or insurance), it is best to choose the option not to receive them. There are different possibilities for this. The most usual is to request a pause for some time or to request a permanent opt-out.
It should be noted that in both cases, what will happen is that the credit agencies will remove you from their pre-screening lists. You will not be listed as eligible to receive a pre-approved offer.
The main advantage of these exclusions is that you will no longer receive marketing communication about cards. The main disadvantage is that you may miss out on some really important offers.
Why do you get pre-approved credit cards?
To understand the reasons for receiving these cards, it is important to know how credit reporting agencies work.
A credit reporting agency may include our names on lists to be used by creditors or insurers. These lists can be used as a targeting tool.
For example, imagine a credit company wants to run a specific campaign for a certain age profile in a certain geographic area. Can use these lists to determine which users fit that profile and assess their credit rating.
In this way, they can send us a pre-approved card communication. The customer must ratify these cards, but they come with a pre-approval that allows them to be activated quickly.
For companies, this is an important help. Thanks to these lists, they can avoid sending offers to users who do not match the profiles or who do not qualify in terms of credit history.
Generally, if you receive these offers, it is because you will be able to access them. It is rare to receive a pre-approved credit card proposal that is not granted.
Pre-approved credit card offers can be avoided?
According to the FCRA, it is possible to request to opt-out of these pre-approved card offers. However, there may be different ways to make this request.
We must request the agencies that issue these reports. Generally, we can do this through Opt Out Prescreen, which the major consumer credit bureaus run.
The important thing to know is that when applying for this type of exemption can do it in two ways:
- Temporary: usually with a five-year exemption period.
- Permanent: eliminating the option to receive these communications in the future.
If you subsequently wish to reactivate the possibility of receiving these proposals, you should communicate again with the same channel through which you unsubscribed. And, in that channel, request the subscription again.
Advantages and drawbacks of pre-approved cards
A pre-approved card offers advantages and disadvantages that you should consider before turning down the possibility of receiving offers.
The first advantage is that you will usually receive offers tailored to your profile. These offers will have taken your credit history, credit score, and situation into account. Therefore, they will usually be cards that you can sign up for without any problems and really fit your financial situation.
Other advantages you should consider are:
- The communication comes directly to you. You don’t have to search for the offers.
- You can usually activate the card quickly.
A disadvantage of these cards is often considered the large amount of communication they generate. It is common to receive a lot of mail, many e-mails, phone calls, etc. This is not a good idea for people who do not want to have a lot of contact with marketing.
Other disadvantages often cited are:
- They do not have special conditions, and in fact, they will not always be the most competitive.
- You miss out on opportunities for other products that do not use these marketing techniques.
In general, for many people, receiving pre-approved offers is a good idea. But, if not, you have the opportunity to refuse or to accept them either temporarily or permanently.