Tired of getting those pre-approved card offers? You may have found that you can opt out of these offers by calling 888-5-OPT-OUT. This works across all 3 main credit bureaus.
Some mortgage brokers say that this has another unintended affect. They claim that it can give you a couple of extra points on your credit score–points that could get you into a lower interest mortgage.I have heard this from numerous mortgage brokers. It has not been proven, but many mortgage brokers advise it nonetheless when you need extra points.
What they say is that, depending on your credit history, you could receive an additional 1 to 5 points on your credit score by opting out of the credit bureau solicitation lists. To be fair, this result has not been proven.
Many mortgage brokers advise it, so there must be some truth to it right? Since Fair Isaac Corporation and the three main credit bureaus would never comment on this subject, all we have is to evaluate why this may or may not be true.
It makes sense that you are less likely to open new credit accounts if you are not receiving the pre-approved solicitations. It would make sense for Fair Isaac to build this into their score.
However, the credit bureaus would likely resist rewarding any activity that might actually reduce their income. They make money by selling your name. Why would they reward opting out of their lists with extra credit score points?
It is true that many mortgage brokers continue to suggest this as a way for squeezing a few extra points out of your credit score. However, there is no evidence to prove or refute it either way. I say, make your own opinion. If there is an advantage to opting out, it is to get rid of tons of junk mail.
