Trigger Leads: Why You Get So Many Offers After Applying for a Loan (and How to Stop Them)

What are Trigger Leads?

Congratulations—you’re applying for a loan! This exciting step also has an unexpected side effect caused by pulling your credit: Trigger Leads.

Whenever you apply for a loan, your credit is pulled by the lender. The three major national credit bureaus (Equifax, TransUnion, and Experian) consider this a “hard inquiry,” which shows up on your credit. After the hard inquiry hits your credit, your information can be sold by the credit bureaus to other lenders, who then use your information to reach out to you with various loan offers.

This practice, where credit bureaus sell your information, is called “trigger leads.” Redwood Credit Union carefully safeguards your information, but unfortunately, there is nothing we, or any other lender, can do to prevent trigger leads.

However, there are steps you as a consumer can take to avoid a flood of unexpected calls, texts, and emails.

How to Avoid Trigger Leads

If these calls, emails, or letters are too much – you can stop them before they start. Opting out is possible, which will stop trigger leads and pre-screened offers. This process can take up to 5 business days, so if your credit report has already been pulled it won’t block offers immediately.

• Opt-Out Online
  Opt Out Pre-Screen is a joint venture among the three national credit bureaus to allow consumers to control pre-screened offers. You can also opt out by phone: 1-888-5-OPT-OUT.
• Add your number to the Do Not Call List Trigger leads are scrubbed against the National Do Not Call list. You can add your name to the list by phone or online to opt out of receiving telemarking calls, which will stop pre-screened offers for 5 years, or permanently.
  • Online: www.donotcall.gov
  • By phone: 1-888-382-1222

Frequently Asked Questions

Are the credit bureaus allowed to release my credit information without my authorization?

Yes, the three major national credit bureaus (Equifax, TransUnion, and Experian) are legally allowed to sell your credit information, mailing address, phone numbers and other sensitive information to any of their members who request and pay for the information.

Why would a credit bureau want to release my information?

The credit bureaus have a business model that is based on providing credit reporting services to lenders for a fee. They also sell your credit and inquiry information to companies looking to extend credit to individuals. The credit bureaus sell these lead lists, called “trigger lists”, based on criteria such as inquiry activity, credit rating, credit card and loan balances, total debt, credit usage and the credit mix of the individual. The more defined the trigger list, the more credit bureaus charge for that information.

How does it affect me when the credit bureaus sell my information to these companies?

Companies purchase these trigger lists from the credit bureaus to create their own marketing lists for their credit or loan services. This is why you receive unsolicited credit and loan offers from these companies. You will see a significant increase in this activity after you apply for a loan or credit card.

Can I exclude myself from the unauthorized release of my information by the credit bureaus?

Yes. You can opt-out of having your information released by the credit bureaus, by phone or online.