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Why is "Opting Out" the First Step to Credit Repair?


Toast73
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I am pretty proactive on MyFico, so I thought I'd come here and get a different perspective on credit repair.

 

I have read through Why Chat's Credit Confusion, and it's pretty robust.

 

But one question I have that I cannot see addressed (other than a vague NYT article) is why "opting-out" is the first step toward credit repair?

 

I understand the dispute process, but can you actually force the creditors to stop reporting information to credit bureaus this way?

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1 hour ago, Toast73 said:

I am pretty proactive on MyFico, so I thought I'd come here and get a different perspective on credit repair.

 

I have read through Why Chat's Credit Confusion, and it's pretty robust.

 

But one question I have that I cannot see addressed (other than a vague NYT article) is why "opting-out" is the first step toward credit repair?

 

I understand the dispute process, but can you actually force the creditors to stop reporting information to credit bureaus this way?

Opting out doesn't stop creditors from reporting, it stops you from appearing on lists given to potential creditors for sending you unsolicited offers for credit products.

 

As for why it is the first step in repair, I believe it is to stop the JDBs and CAs from getting your information, but would want others to validate that.

Edited by CTSoxFan
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1 hour ago, CTSoxFan said:

Opting out doesn't stop creditors from reporting, it stops you from appearing on lists given to potential creditors for sending you unsolicited offers for credit products.

 

As for why it is the first step in repair, I believe it is to stop the JDBs and CAs from getting your information, but would want others to validate that.

JDB's are going to get information from the OC who sold them your account, so what lists they have access to (or the method used to obtain such) doesn't really matter, right?

Edited by Toast73
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This has been debated and there is no universal consensus.  

 

Opting out prevents you from receiving firm offers for credit or insurance based on the contents of your credit reports (https://www.optoutprescreen.com/). 

 

WhyChat is a longtime respected member here and holds an opposite opinion, however I have never seen a detailed, reasoned explanation for how opting out prevents "data miners" from "poisoning your reports," which is the reason most often linked to credit repair benefits. 

 

I have also not seen any firsthand accounts from anyone on the board who fell prey to such activity, which they later made stop by opting out.

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1 hour ago, cv91915 said:

This has been debated and there is no universal consensus.  

 

Opting out prevents you from receiving firm offers for credit or insurance based on the contents of your credit reports (https://www.optoutprescreen.com/). 

 

WhyChat is a longtime respected member here and holds an opposite opinion, however I have never seen a detailed, reasoned explanation for how opting out prevents "data miners" from "poisoning your reports," which is the reason most often linked to credit repair benefits. 

 

I have also not seen any firsthand accounts from anyone on the board who fell prey to such activity, which they later made stop by opting out.

That has long been my thought.

 

Opting out of participation in firm offers of credit or insurance doesn't seem to correlate with stopping a JDB or CA from getting information the OC is going to give them anyway. Even if JDB #1 decides to sell their entire portfolio to JDB #2, your information is going to move with it.

 

I am wondering, however, if the second opt-out option that Why Chat has is the ticket. By stopping OC's from sharing your personal and transaction information with affiliates, it could be an easier means to get unverified items removed since you are prohibiting the sharing of information with third-parties (i.e. JDBs).

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2 hours ago, Toast73 said:

That has long been my thought.

 

Opting out of participation in firm offers of credit or insurance doesn't seem to correlate with stopping a JDB or CA from getting information the OC is going to give them anyway. Even if JDB #1 decides to sell their entire portfolio to JDB #2, your information is going to move with it.

 

I am wondering, however, if the second opt-out option that Why Chat has is the ticket. By stopping OC's from sharing your personal and transaction information with affiliates, it could be an easier means to get unverified items removed since you are prohibiting the sharing of information with third-parties (i.e. JDBs).

Here is an illustration of how well opting out stops CAs, JDBs, skip tracers, etc...

 

Wt0G1d3.jpg

 

 

some advocates of opting out are merely promoting it because it takes money out of the coffers of the four major CRAs.

 

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3 hours ago, Toast73 said:

That has long been my thought.

 

Opting out of participation in firm offers of credit or insurance doesn't seem to correlate with stopping a JDB or CA from getting information the OC is going to give them anyway. Even if JDB #1 decides to sell their entire portfolio to JDB #2, your information is going to move with it.

 

I am wondering, however, if the second opt-out option that Why Chat has is the ticket. By stopping OC's from sharing your personal and transaction information with affiliates, it could be an easier means to get unverified items removed since you are prohibiting the sharing of information with third-parties (i.e. JDBs).

What is the second opt-out option?

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2 hours ago, cv91915 said:

What is the second opt-out option?

I assume opting out of third party sharing under agreements with your bank which has nothing to do with opting out of prescreened offers (i.e., marketing offers).

 

These people who fear mail and advocate opting out should also be advocating opting out with the DMA, etc.

Edited by hegemony
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