Understanding and Managing Trigger Leads When Applying for Loans

If you're applying for any type of loan, whether it's a mortgage, home equity line of credit, credit card, or auto loan, you might encounter unsolicited credit offers, also known as trigger leads.

What are trigger leads?

After you submit a loan application, a standard credit check is conducted. This routine procedure is essential for assessing your financial eligibility for the loan, and it can trigger what is known as a "trigger lead." When certain triggers occur, credit bureaus collect and compile the relevant information and then sell the borrower information to data brokers (including other lenders) without the member or the Credit Union’s knowledge or approval. Within 24-48 hours of running a credit check, members are often bombarded with hundreds of calls, texts or emails. It's important to note that these solicitors have no affiliation with our Credit Union, and your personal information is not being sold or shared by us.

What information are the credit bureaus selling?

A trigger lead isn’t just a note that you’re looking for financing. It includes specific details about you, such as your contact information. This can include your name, phone number, address, and possibly other personal data. While this might seem like an opportunity to receive better mortgage deals, it often leads to a deluge of unsolicited calls and emails from lenders you’ve never heard of.

What should I do if I am contacted?

Not all offers stemming from trigger leads are created equal. Some might not be as competitive as they appear, featuring hidden fees or unfavorable terms. Additionally, the legitimacy and reputability of the lenders reaching out can vary, requiring you to conduct thorough research to ensure they are trustworthy. If you're considering an offer from an unfamiliar institution, it's essential to ask the right questions. Important inquiries include understanding the loan terms such as fixed or adjustable-rate (or the interest rate and rewards for credit cards), closing costs, prepayment penalties, and balloon payments. These offers often include some kind of reason for urgency in decision making, pressuring you to make hasty decisions without proper consideration or research. Unfortunately, trigger leads can also be exploited by less honorable entities and can make you vulnerable to identity theft. It's crucial to be cautious about who you're communicating with and what information you’re divulging. Be skeptical of offers that seem too good to be true and make sure any offer you receive is from a trusted lender.

How can I stop these calls and opt out of Trigger Leads?

• Call 1-888-5-OPTOUT (1-888-567-8688) or sign up at www.optoutprescreen.com. You can choose to opt out for five years or permanently. This free service is the ONLY website authorized by the nationwide credit bureaus. OptOut Prescreen will not reach out to consumers, so any phone call or email from anyone claiming to be from OptOut Prescreen is fraudulent.
• Go to https://www.donotcall.gov/register.html to register for the National Do Not Call Registry. There is no cost and this can help protect you from unwanted phone calls of all kinds. 
• DMA Choice is another website where you can sign up to opt out of trigger leads and avoid unsolicited postal mail or email from marketers by signing up at https://www.dmachoice.org/. There is a fee for this service.