Why do you receive too many loan offers soon after checking the credit score? | Mint

After checking your credit score recently at a credit bureau’s portal, did you receive a barrage of phone calls from bank agents offering you a loan at concessional rates? If this happens to you, do not get surprised. This is quite an ordinary thing to happen.

There could be several reasons for this. Different banks usually have access to the data of customers who carry out an inquiry at a credit bureau.

Several reasons for barrage of phone calls

1. Credit bureaus may share data with lenders: When you check your credit score, it’s typically a soft inquiry, which doesn’t impact your score. However, credit bureaus may record this activity.

Some banks and financial institutions take a track of these inquiries and use them as a signal that you are perhaps looking for a loan or a credit card.

2. Banks buy data: Some credit bureaus sell lists of potential customers to banks and lenders. If you recently checked your credit score, banks may have bought your information and contacted you with an offer.

3. Your data might already be in marketing lists: Some banks maintain marketing databases of prospective customers. If you have applied for a financial product before or checked your score through a third-party application, your data might have been shared with a financial institution that called you.

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4. Pre-approved offers based on recent activity: If you check your credit score and it turns out to be good, banks have a reason to believe that you qualify for new offers (such as pre-approved loans, credit card limit rise). Therefore, they reach out to you to promote their products.

How to reduce such calls?

You can take following step to reduce the frequency of calls:

A. Opt out of marketing lists: You can opt out of promotional offers.

B. Use bank websites: Instead of third-party apps, check your score directly with your bank to avoid data sharing.

C. Block spam calls: You can even opt for Do Not Disturb (DND) service with your telecom provider.