It's not well known, but if you have recently applied for mortgage credit, the information you shared was probably sold within twenty-four hours of your mortgage application. Credit reporting agencies commonly sell what they term "trigger lists" of folks who have recently contacted mortgage lenders for rates or loan preapproval and have given loan officers permission to check into their credit.
These leads are being bought by data marketing companies who then resell the information to lenders who are interested in trying to entice you to use their lending services. The information the data marketing companies provide is valuable, because it tells lenders everything about your creditworthiness before lenders pitch you their offers.
One such company is Mortgage Inquiry Data, which tells lenders that they can provide access to every potential borrower who applies for a mortgage loan within twenty-four hours of the original request, making them prime candidates for lending services in the immediate future. Another company, Intellidyn, offers what it calls IntelliAlert, which provides similar valuable information to prospective lenders.
The data is worth a great deal to lenders, and comes with a hefty price tag. For instance, Intellidyn charges $31,395/month for its "platinum" level information, for which Intellidyn promises to let lenders know about every mortgage inquiry or application in any designated area in the U.S.
Just what other sort of information is being sold?
Mortgage Inquiry Data also sells:
credit scores
open mortgage balances
monthly payments
loan-to-value rations
revolving credit card balances
personal credit information besides just marketing application information.
All this leads to ethics questions in the minds of many bankers, who generally have to pay to get the information, only to then see it sold to other lenders who may be in direct competition with them for home loans.
Of the three major credit reporting firms, Equifax and Experian have publicly confirmed that they sell trigger lists within twenty-four hours, but TransUnion has yet to comment. However, Equifax and Experian both state that such lists aren't in violation of any laws. Instead, they view them as simply fresher versions of preapproved credit lists they have routinely sold to lenders for many years.
One of the most disturbing things about this process is that even if you don't want your credit information shared, there's currently no option available for refusing to allow it to be sold. However, consumer protection agencies in several states are looking into the practice, and you can personally express your disapproval by contacting the Federal Trade Commission.
Too many people don't think enough about their personal credit. They end up destroying their credibility in this area due to poor choices. In order to have good credit you may have to sacrifice just running out and charging everything you want. However, this is going to benefit you in the long run so don't let it get you down.
From the moment you get your first type of credit on your own you owe it to yourself to build a solid history of keeping your end of the obligations. The first initial types of credit you get will have high interest rates. This is due to the risk associated with you since you have no real history for the creditor to reflect on. Show them you are responsible and those interest rates will continue to drop.
When you establish new credit you do want to use it occasionally so that you can have a payment history with the company. Place the ball into your court though by making sure you make small charges and pay them immediately. You won't have to pay high rates of interest when you do this and you will be building your personal credit in a very positive way.
As time goes buy your credit will become even more important. It may not be the end of the world if you don't get a new credit card. However, not being able to buy a vehicle or a home can be devastating. If your credit is poor but not ruined you may be able to buy these things but the dollar amount they are going to cost you in the long run is ridiculous.
An issue you really need to consider when it comes to personal credit though is being able to prepare for what is taking place in the future. Since you don't know what that will be you simply have to prepare for it. Don't have all of your disposable income tied up in paying for things because it isn't going to benefit you in the long run.
Even if you are good about paying your bills on time, your personal credit can still suffer. Identity theft is a huge issue in our society. It has gotten worse with the use of the internet as criminals have less risk of getting caught when they steal your information this way. They can use your information to open new accounts and then creditors will be looking for you.
This involves someone taking your information and using it for their own benefit. With identity theft you can end up in financial ruin due to the acts of others. Most of these criminals are never caught. The legal process of clearing this up is very expensive and it can take years to get done.
It is important to know what a huge impact your personal credit has on you. There are adults that struggle to buy a car or to buy a home because of the negative marks on their credit reports. If they do get approved for loans they pay too much in interest. This creates more issues as this eats away at their disposable income that they could be saving for their future.
Both Jeanette Joy Fisher & Robert Bain are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Jeanette Joy Fisher has sinced written about articles on various topics from Real Estate, Network Marketing and Real Estate. Jeanette Fisher teaches home buyers and investors the 5 requirements beyond credit scores. Info http://worryfreecredit.com/articles.htm FREE Credit Help eboo. Jeanette Joy Fisher's top article generates over 135000 views. Bookmark Jeanette Joy Fisher to your Favourites.
Robert Bain has sinced written about articles on various topics from Credit Cards, Finances and Sales and Negotiation. Robert Bain is fascinated by the secret credit industry. He follows personal credit related issues such as credit cards, debt relief, home owners loans, debt relief services and scams and. Robert Bain's top article generates over 246000 views. Bookmark Robert Bain to your Favourites.
