That notorious junk mail. The Credit Card offers. The PRE-APPROVAL letters. It does have it's place. We've all seen one that generated genuine interest; ESPECIALLY for those that have been denied the past few times they applied for a credit card or a loan. A Pre-Approval is NOT an approval...it's simply a direct mail advertisement. Period.
The company that sent you that pre-approved letter may have a "special code" generated for your "approval." They may have included an application to fill out or a website to visit to more quickly generate your approval status. No matter how official these may look, these are misleading and confusing.
These companies have massive marketing budgets and departments designed solely to get consumers to apply for credit regardless whether they qualify or not. The truth is, these companies PURCHASED your information from the credit bureaus along with hundreds, thousands, and possibly millions of others that possibly fit their marketing criteria (credit scores, income levels, demographics, etc).
The credit bureaus are not on your side. They LOVE it when these companies purchase this information as it will generate FURTHER revenue for them. They generate revenue when they sell your information to be marketed to and then sell it again in the form of your credit report when you apply for these offers. Just remember, these are simply advertisements and you're receiving them because you fit the model to be a lead for this ad.
A hard inquiry into your credit report will still be required and can count against your scores when. Too many of these inquiries WILL hinder your scores. Be careful and selective; pre-approval letters are simply ads to get you to apply. It is very common for consumers to receive these letters and still be denied. It will NEVER hurt your credit to receive these offers. It CAN hurt your credit if you apply for too many of them.
If you'd like to be removed COMPLETELY from these go to: www.optoutprescreen.com
Be careful, be educated, be informed!
Your friends at Credit Management Solutions