What are Trigger Leads?
Trigger leads are created by national credit bureaus when you apply for a personal loan or mortgage. The credit bureaus can sell your information to other lenders, who then reach out to you with different offers. This can result in a slew of unprompted calls, texts, and emails, which can feel overwhelming.
How Do Trigger Leads Work?
When you apply for a mortgage loan and a mortgage credit pull is done, the credit bureaus can sell your personal information to other lenders. These lenders then contact you to offer their loan products. This practice is legal under the Fair Credit Reporting Act (FCRA) as long as the offers are "firm offers of credit".
What Should You Watch For?
While trigger leads can provide you with different lending options, it's important to ask a lot of questions if you choose to look into these offers. Make sure you understand the terms of the offering, such as whether it's a fixed or adjustable-rate mortgage, and the length of the loan term.
How to Opt Out of Trigger Leads
You can opt out of trigger leads by contacting the credit reporting agencies directly. Visit www.optoutprescreen.com/ or call 1-888-567-8688 to opt out of these lists. It's important to do this before applying for a loan to prevent your information from being shared.