What are Trigger Leads and What You Need to Know About Them

Jason Hunt
January 23, 2024

In the world of finance, the word “Trigger Leads” has earned popularity and caused a discussion between industry specialists and consumers. But what are trigger leads, and why should people know about them?

This guide will help you understand the concept of trigger leads, what they are, how they work, and why understanding trigger leads is important for everyone in the loans and credit industry.

What Are Trigger Leads?

a man using laptop

In the finance industry, trigger leads refer to a specific type of marketing list. They originated according to particular events or triggers in a person’s financial life that indicate that they are possibly thinking about loans or credit products.

Examples of these trigger leads are auto loans, credit cards, or applying for a mortgage. Credit bureaus access a customer’s details once they apply for credit.

In addition, credit bureaus collect and sell lists of people who recently applied for credit. These trigger lists are then sold to lenders and other financial companies who are interested in developing relationships with new customers.

How Do Trigger Leads Work?

The process of trigger leads is simple-

  • A customer asks for a credit inquiry. Example- applying for a home loan.
  • The credit bureaus acknowledge these inquiries
  • Make a list of people who have applied for credit recently.
  • Lastly, this is sold to lenders who want to increase their customer base.

Trigger leads consumers utilize these lists as a marketing tool to contact potential customers. The goal is to offer them more attractive loans or credit choices than compared to their first lender offered. The objective of this marketing plan is to target clients who are actively seeking credit.

Why Should You Be Aware of Trigger Leads?

When a customer expresses their interest in loans, this involves sharing their financial information with the lenders.

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○ Privacy Concerns

As trigger leads share customers financial data with lenders without their permission, certain customers find this concept disruptive.

It is necessary to understand that customer’s credit activities can end up disclosing their financial data to several lenders.

○ Comparison Shopping

Trigger leads can be viewed as disturbing, but they also benefit customers through increasing competition between lenders.

Customers may receive better rates or offers from different lenders compared to the initial offer by a potential lender, and this could help customers save money.

○ Opting Out

In case a customer wishes to reduce and receive unwanted credit offers from lenders, then there is an opt-out option for the customers.

To do this, customers must contact the credit bureaus and ask them to exclude their information from that list.

○ Potential for Confusion

Consumers receive multiple loan offers, and as a consumer, it’s necessary to be aware that not all offers suit their specific financial situation. Before making a decision, consumers should evaluate each offer they receive.

Conclusion

Trigger leads build the link between those seeking credit and lenders ready to assist. While trigger leads may raise privacy concerns, they also remind of the importance of actively managing and monitoring one’s credit profile.

Knowing about trigger leads can help you to make informed financial decisions, giving you control over your privacy and loan choices.

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Jason Hunt

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