You cannot opt out of having a credit history compiled by TransUnion, Experian, Equifax and Innovis, but you can stop them from selling your information to certain companies. They sell information about you to lenders, credit card companies and insurance firms, which then solicit your business. You can stop this by opting out, either temporarily or permanently.
Benefits
The Federal Trade Commission (FTC) says there are some benefits from having your information sold to solicitors by the credit reporting agencies. It says you may get good offers if you are looking for a new credit card account or an insurance policy. You don't have to search as hard because the deals come to you. Many are pre-approved, which means you don't have to go through a lengthy application process with an uncertain outcome.
Drawbacks
You expose yourself to identity theft if you don't opt out of the credit reporting agency marketing program. Criminals can steal pre-approved applications from your mail box or trash if you do not shred them, the Missouri Attorney General's office warns. They will accept the offer in your name, then change your address on the acceptance form or steal the new card from your mailbox. You won't even know there is a fraudulent account in your name until you check your credit reports or get bills or debt collection letters and calls.
Process
You can opt out of the credit reporting agency marketing programs online, through the mail or over the phone. TransUnion, Equifax, Experian and Innovis run the Opt Out Pre-Screen website, which has an online form that opts you out for five years. You fill in your name, personal information and Social Security number. The Federal Trade Commission says you and your partner must opt out if you are married or you may continue to receive some offers based on your spouse's credit.
Time Frame
According to the Federal Trade Commission, it will take about 60 days for offers to stop arriving once you have opted out. Your credit reporting agency opt out can be renewed as many times as you wish. You can opt out permanently through the mail, and the phone line gives you a choice between a five year opt out or permanent removal from all solicitations. You can opt back in at any time if you decide you want to get offers.
Warning
You will not stop all credit card solicitations by opting out with the credit reporting agencies. You may still get offers from the banks, credit unions and financial institutions with which you do business. They have an existing relationship with you, so they will continue to send offers unless you ask each company to specifically opt you out. This can usually be done online if you have account access over the Internet by changing your customer preference or by calling the company or writing a letter asking to be opted out of all marketing.
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