Despite bad credit card loans, junk mails continues... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Despite bad credit card loans, junk mails continues to pour in

Despite bad credit card loans, junk mails continues to pour in

Despite bad credit card loans, junk mails continues to pour in

Mailboxes are filled with junk mail invitations from credit card companies. It looks as if the card companies want customers to default over and over again and get into a bad credit rating. How else can one explain the aggressiveness with which they send out fresh invitations to sign up for the additional cards?


One of the most definite ways to run into debts and damage the credit score is by having too many cards and running too much of debts on the card. The simplest ways to fall into these traps are by signing up for too many cards. There are junk mail from all the major credit card companies and their enticing offers of 0% on balance transfers as well as fresh purchases. It is easy to fall prey to such offers and then get into bad credit loans.


Bad credit loans are also called subprime loans and the reason why consumers avoid these are due to the high interest rates they carry. This is due to the fact that lenders feel the need to protect themselves as well as their finances by lending to borrowers who have low credit scores. For someone with good credit scores anywhere above 720 (as per the FICO scores) the interest rates are not as high as they are for subprime auto or mortgage loans. However, if the credit score does slip then one might end up juggling between a whole range of bad offers be it mortgage or auto loans.


Lenders these days have become very cautious especially after the debacle in 2008 – 2009. Mortgage loans as well as auto loans are all not easy to get. The default rates during recession had hit the peak as the lenders had lent money to many people with low credit scores as well as heavy debts. Now most of the conventional lenders are giving out loans to the ones with a flawless credit record, good job histories, and very minimal monthly debt. However, one must move with caution as it is very easy to get into bad credit within a short period of time if one is aware that there is plenty of credit left.


So, the best thing to do with all these offers is to tear them up and toss them in the bin. Always apply for a card only when you need one. Otherwise it is better to ignore these offers.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

New SPG Amex Luxury Card Arrives This Summer

Posted: April 26, 2018

The Starwood Preferred Guest American Express Luxury card is coming this August, along with the new SPG and Marriott combined rewards program. This card offers 6x the points when booking stays at SPG and Marriott Rewards hotels and 3x ... Continue reading
Masterpass Comes to BJ’s Wholesale Club

Posted: April 25, 2018

Have you been wondering when you would be able to use Masterpass, to check out at BJ's Wholesale Club? If you have, you don't have to wonder any more. The pair recently inked a deal, bringing Masterpass, MasterCard's digital wallet, to ... Continue reading
A New Unified Marriott and SPG Rewards Program is Coming

Posted: April 24, 2018

When Marriott acquired SPG, it was unclear what would happen with their rewards programs. But now the cat is out of the bag. SPG, Marriott Rewards and Ritz-Carlton Rewards will all become one loyalty program this August. At that point, all ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!