Credit Card Mails

Chase Credit Card Applications Still Come in Abundance

The global market research and mail tracking service firms, Synovate and Mintel, are releasing curious figures concerning new credit card applications offered in mail in 2008. The slash on direct mailing activity was noted in the 4th quarter of 2007 and since then has only been in progress. In 2007 it was a 14% drop as compared to 2006 but in February 2008 the figures were even more frustrating.

Financial analysts and companies refer the decrease in direct credit card mail to the mortgage crisis, turbulence on the credit market and depressed US economy, and in all likelihood households will see even fewer mail offers at short notice. There is a credit card company, however, that seems to have escaped the recession and which credit card you are sure to receive in your mail box.

Chase credit card services company was reported in February 2008 to have issued about 62% more of mail credit card offers than the previous year. At the time when the major companies withdraw their applications, note that Citibank cut its solicitations by 52%, Discover - by 50% and HSBC - by 34 % (2007 figures), Chase aims at taking advantage of the situation.

Rather interesting is why Chase has coped with the stir on the credit card market that most of the other issuers got trapped in. At some point of time the company was wise enough to limit its involvement with subprime credit cardholders and mortgage crisis and this helped the issuer to ramp up its financial results.

Evidently, Chase card company foreknew its success when the competitive issuers ventured on slashing the amount of their credit card mail solicitations. As the competitors have pulled back, an average household now receives two and even more Chase card applications each month.

And customers do not mind switching onto Chase credit cards. Unlike the issuers that have been hurt by the mortgage meltdown and the policy of targeting the subprime customers, Chase has always been selective about its potential clients is staying afloat now.

Apart from its financial stability, Chase has attracted new customers with its promotional programs, such as unrestricted credit rewards generated on Continental Airlines and Clear and Simple Plan, a program catering for current Chase cardholders and teaching them a smart credit use.

So, Chase is increasing its mail offers by more than 50%. But you will agree that the mere increase will not necessarily mean greater revenues. For this, however, the company has a trump - the issuer has promised to no longer increase the rates for its customers based on the credit bureaus information.

With this promise customers may feel protected from the rate hikes due to the so-called universal default practice and just some unfavorable information in their credit reports.

The company offers impartial cooperation, warning, however, that it preserves the right to increase the interest rate in case the cardholder violates the terms of the Chase card member agreement.

Isn't it what most customers want to see from their lenders? In the light of all this, Chase is fairly getting its share.

Doug Nicholas

Doug Nicholas, a financial consultant by profession with a Masters degree in International Business from Brown University, is also an ardent writer. Though he has a full time job at one of the companies listed on Wall Street, he does manage to squeeze in time to follow his passion. He puts his ideas to words in his articles related to finance and business.