Dictionary of Banking Terms: prescreening
prescreening
activity in credit approval in which a lender compiles a list of prospective new accounts from credit bureau records. Prescreening normally is done by a direct mail firm that is responsible for handling the institution's new account solicitation. The firm matches the bank's credit criteria against credit bureau data on the prospective new accounts. Prescreening reduces the cost of a new accounts mailing, in that only the accounts considered good credit are solicited. These prospects may receive a preapproved credit offer, inviting them to fill in certain personal information, such as income and credit experience, or they may simply receive an invitation to apply for credit.
