What is a trigger lead?

Whenever you formally apply for credit or financing, your lender pulls your credit report. This is known as a hard inquiry.

That inquiry automatically “triggers” to lenders that you’re looking for new credit. Those lenders purchase inquiry data from the major credit bureaus: Equifax, Experian, and Transunion.

Many types of companies buy trigger leads, including:

• Mortgage lenders
• Auto lenders and car dealerships
• Credit card providers
• Insurance companies
• Personal loan providers

These companies use the information in trigger leads to market their own credit cards, various types of insurance and loan products to you, with the goal of winning your business for themselves.

Trigger leads enable companies to see when you’re in the market for credit so they can market their own services to you. The upside is that you may find a better deal because of their marketing. But the downside is that receiving unsolicited offers can feel annoying and invasive. You have some say, though. You can opt out of solicitations from credit and insurance companies, as well as sign up for the national Do Not Call registry.