Vision Credit Education, Inc.

Several mortgage brokers have advised applicants that need a few extra points on their credit scores to opt out of credit bureau lists. They claim that up to 5 extra points can be gained by opting out, which could make the difference between being approved or not, as well as to slide into a preferred interest rate category. So is this really true?

The Claim

Specifically what is being told to applicants is that they may be able to gain up to 5 additional points on their credit score simply by opting out of credit bureau marketing lists. Some representatives have said that it could increase by as much as 20 to 30 points.

The Truth

This rumor is false and for good reason. This is the proof:

1. First of all, credit scoring formulas ignore whether a person has opted out or not. It simply is not an input in the formula. If you review the long list of credit scoring inputs provided by credit bureaus, it is not listed.
2. Secondly, it would not make good sense for credit bureaus to provide the incentive of a boosted credit score to consumers that removed their names from profitable marketing lists. No credit bureau wants to allow you to opt out. They allow it because it is mandated by federal regulations.
3. Finally, Fair Isaac spokesperson Craig Watts confirmed that opting out has zero impact on your credit score.

Therefore, opting out does not affect your credit score. Only your credit history can affect your scores. If you do want to reduce your solicitations, then you may opt out of prescreened offers. Just understand that it does not affect your credit!