Prescreened Offers of Credit and Insurance

Mail Call: Bills, a letter from your Aunt Mary, a circular from a local 

department store, your monthly bank 

statement, and an offer for a new credit 

card that says you’ve been “prescreened” or 

“prequalified.” 

 

A “prescreened” offer of credit? 

What’s that?

Many companies that solicit new credit 

card accounts and insurance policies 

use prescreening to identify potential 

customers for the products 

they offer. Prescreened 

offers — sometimes called 

“preapproved” offers — are 

based on information in your 

credit report that indicates 

you meet criteria set by the 

offeror. Usually, prescreened 

solicitations come via mail, 

but you also may get them in a 

phone call or in an email.

How does prescreening work?

Prescreening works in one of two ways:

n a creditor or insurer establishes criteria, 

like a minimum credit score, and asks a 

consumer reporting company for a list 

of people in the company’s database who 

meet the criteria; or 

n a creditor or insurer provides a list of 

potential customers to a consumer 

reporting company and asks the 

company to identify people on the list 

who meet certain criteria.

Can prescreening hurt my credit report 

or credit score?

No. There will be “inquiries” 

on your credit report 

showing which companies 

obtained your information 

for prescreening, but those 

inquiries will not have a 

negative effect on your credit 

report or credit score.

Can I reduce the number 

of unsolicited credit and 

insurance offers I get?

If you decide that you don’t want to receive 

prescreened offers of credit and insurance, 

you have two choices: You can opt out of 

receiving them for five years or opt out of 

June 2008

FTC Facts

For Consumers Federal Trade Commission

For The Consumer

www.ftc.gov 1-877-ftc-help
receiving them permanently. Call toll-free 

1-888-5-OPTOUT (1-888-567-8688) or 

visit www.optoutprescreen.com for details. 

The telephone number and website are 

operated by the major consumer reporting 

companies. When you call or visit the 

website, you’ll be asked to provide certain 

personal information, including your home 

telephone number, name, Social Security 

number, and date of birth. The information 

you provide is confidential and will be used 

only to process your 

request to opt out.

Remember that 

if you have joint 

credit relationships, 

like a mortgage or 

a car loan with a 

spouse, partner, or 

other adult, you may 

continue to receive 

some prescreened solicitations until both of 

you exercise your opt-out right.

Why would someone opt out — or not?

Some people prefer not to receive these 

kinds of offers in the mail, especially if 

they are not in the market for a new credit 

card or insurance policy. They may prefer 

to opt out to limit access to their credit 

report information for credit and insurance 

solicitations, or to reduce some mailbox 

“clutter.” However, some companies send 

offers that are not based on prescreening, and 

your federal opt-out right will not stop those 

kinds of solicitations.

As you consider opting out, you should 

know that prescreened offers can provide 

many benefits, especially if you are in 

the market for a credit card or insurance. 

Prescreened offers can help you learn about 

what’s available, compare costs, and find the 

best product for your needs. Because you are 

pre-selected to receive the offer, you can be 

turned down only under 

limited circumstances. 

The terms of prescreened 

offers also may be more 

favorable than those that 

are available to the general 

public. In fact, some 

credit card or insurance 

products may be available 

only through prescreened 

offers. 

Does opting out hurt my credit score?

Removing your name from prescreened lists 

has no effect on your ability to apply for or 

obtain credit or insurance. 

If I decide to opt out, how long will 

it be before I stop getting prescreened 

offers?

Requests to opt out are processed within five 

days, but it may take up to 60 days before 

you stop receiving prescreened offers.

Prescreened offers are based 

on information in your credit 

report that indicates you meet 

criteria set by the offeror.

 FTC Facts For Consumers
What if I opt out and then change my 

mind?

You can use the same toll-free telephone 

number or website to opt back in.

Will calling 1-888-5-OPTOUT or 

visiting www.optoutprescreen.com 

stop all unsolicited offers of credit and 

insurance?

Calling the opt-out line or visiting the 

website will stop the prescreened solicitations 

that are based on lists from the major 

consumer reporting companies. You 

may continue to get 

solicitations for credit 

and insurance based on 

lists from other sources. 

For example, opting out 

won’t end solicitations 

from local merchants, 

religious and charitable 

associations, professional 

and alumni associations, 

and companies with 

which you already conduct business. To stop 

mail from groups like these — as well as mail 

addressed to “occupant” or “resident” — you 

must contact each source directly.

What other opt-out programs should I 

know about?

The federal government has created the 

National Do Not Call Registry — a free, easy 

way to reduce the telemarketing calls you get 

at home. To register your phone number or 

to get information about the registry, visit 

www.donotcall.gov, or call 1-888-382-1222 

from the phone number you want to register. 

You will get fewer telemarketing calls 

within 31 days of registering your number. 

Telephone numbers on the registry will only 

be removed when they are disconnected and 

reassigned, or when the consumer chooses to 

remove a number from the registry.

The Direct Marketing Association’s 

(DMA) Mail Preference Service lets you opt 

out of receiving unsolicited commercial mail 

from many national 

companies for five 

years. When you 

register with this 

service (for a $1 fee), 

your name will be 

put on a “delete” file 

and made available 

to direct-mail 

marketers. However, 

your registration will 

not stop mailings from organizations that do 

not use the DMA’s Mail Preference Service. 

To register with DMA’s Mail Preference 

Service, go to www.dmachoice.org.

The DMA also has an Email Preference 

Service to help you reduce unsolicited 

commercial emails. To opt out of receiving 

unsolicited commercial email from DMA 

members, visit www.dmachoice.org/EMPS. 

Your online request will be effective for five 

years.

Removing your name 

from prescreened lists has 

no effect on your ability 

to apply for or obtain 

credit or insurance.

FTC Facts For Consumers 
The FTC works for the consumer to 

prevent fraudulent, deceptive, and unfair 

business practices in the marketplace and 

to provide information to help consumers 

spot, stop, and avoid them. To file a 

complaint or to get free information on 

consumer issues, visit ftc.gov or call toll-free, 

1-877-FTC-HELP (1-877-382-4357); 

TTY: 1-866-653-4261. The FTC enters 

Internet, telemarketing, identity theft, 

and other fraud-related complaints into 

Consumer Sentinel, a secure online database 

available to hundreds of civil and criminal 

law enforcement agencies in the U.S. and 

abroad.

Federal Trade Commission

Bureau of Consumer Protection

Division of Consumer and Business Education

For The Consumer	 Federal Trade Commission

www.ftc.gov	 1-877-ftc-help

 FTC Facts For Consumers