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Here is what every consumer needs to know.

Your Personal Information is a Hot Commodity

It is common knowledge that when you apply for any loan your credit will be pulled as part of the loan application process.  What you may not know is that each time your credit is checked the information used to "inquire" about your credit becomes a commodity.  The fact that you are looking for a certain type of loan along with your contact information is sold to other lenders as well as to companies that resell your information over and over again.

What exactly is being sold?

These "inquiry" leads include name, address, phone numbers (yes even unlisted ones if you gave that to your lender), credit scores, current debt and debt history, property information, age, gender, and estimated income. 

What are they doing with your information?

The company that purchases the leads will do what ever it takes to recover the cost to their company for obtaining the lead.  Often times that means you will begin to receive tele-marketing calls and advertisements in the mail offering to help you at a "reduced price".  Their object is to convert your information into a file that makes them money.  They will often use "bait and switch" tactics that lure borrower's away from reputable companies into situations that cost the consumer thousands of dollars over time.  A recent tactic I heard about included a lender who has been calling consumers claiming that the company they were working with had passed on the consumers information and that they would now be taking over the processing of their file.

What can you do to protect yourself?

There is a way for you to "opt out" or remove your name from these lists.  You have to call 888-567-8688 or go online to www.optoutprescreen.com.  Please note that you have to do this at least 48 hours before you apply for credit so you request has time to post.  You can choose either a five year or lifetime option, however, the lifetime option does require a signed form.  If a credit report has already been pulled or has to be pulled before the 48 hour period of time, just be aware you may see an increase in offers to help you in your credit situation. 

Something to remember - even though the sale of your information is often a nuisance and intrusive, it is also legal.  You best bet is to take the steps necessary to stop it from happening to you and your friends and family.

You certainly have the right to shop for the best professional to help you with your lending needs, but this should be done on your terms, never without your permission or consent.  If you are interested, please visit our website at www.vanguardwy.com and print out our "Shopping Around" guide.  This will give you some tools to use while looking for someone to help with your lending needs.