Many companies that solicit new credit card accounts and insurance policies use prescreening to identify potential customers for the products they offer.  Prescreened offers–sometimes called “preapproved” offers–are based on information in your credit report that indicates you meet criteria set by the company.  Usually, you receive prescreened solicitations via mail, but you may also get them in a phone call or in an email.

For additional information, go to

http://www.consumer.ftc.gov/articles/0148-prescreened-credit-and-insurance-offers

Teaching Suggestions

You may want to use the information in this article to discuss

• Why some people prefer not to receive prescreened offers in the mail, especially if they are not in the market for a new credit card or insurance policy?
• What might be some advantages of receiving prescreened offers?
• Ask how many students have received prescreened offers and what did they do with them.

Discussion Questions

1. Can prescreening hurt your credit report or credit score?
2. How can you reduce the number of unsolicited credit and insurance offers you receive?