Credit Cards Promotion

Mail Credit Card Applications Receding - Are People Being Wiser?

The fact that mail credit card solicitations can often become the reason for personal and financial information leakage is not a secret to us any more. But that is not the only trouble about un-asked-for credit card application forms vigorously pushed forward by the lenders.

A big trap hides in the very interest of the credit card issuer - that is having you apply for any credit card, even if it doesn't in the slightest fit your credit card history.

Once you consent to apply for the credit card, you start amassing fees and rates that you cannot actually afford but the creditor makes their earnings.

People are no fools, however. They are thinking. And on combining these two kinds of risk - ID and credit card fraud together with the heaps of unpaid monthly credit card bills - they learn to resist mail credit card offers, no matter how enticing they are.

Potential customers' response rates have subsided and it has led to deplorable results as to the creditor's revenues. Some ten years ago out of 1,000 credit card solicitations by mail 12 pieces would be signed up for. Things are changing and credit issuers have to play a fairer game now.

Banks and credit companies will have to provide for better transparency of fees and interest rates as well as credit card bills. They will have to give cardholders more time before changing the terms of your credit card application.

With all this, creditors are not likely to give up sending out credit card solicitations. Despite the recent studies' findings that most customers are displeased to be snowed under the unexpected and unwanted credit card offers, banks are still sticking to the opinion that the direct mail policy is evidently effective.

According to their research, almost half of current credit card users made their first credit card application exactly through the mail. This tendency will obviously continue for as long as young and inexperienced or credit illiterate customers are the target.

More people, however, are reading about credit and so are good judges of credit cards terms and their pitfalls. We begin to realize that far not all mail credit card offers are designed specially for our credit rating. Some of them are not only vain for our finances but are sometimes ruining for our credit scores and eligibility.

So how do wiser of us cope with the temptation to accept the credit card offer and avoid the trap? Half of the receivers simply ignore the mail credit card solicitations and do not open the envelopes, tossing them straight off into the trash.

About 30% of customers do open credit card solicitations but reject the offer which terms they think are unacceptable. What's more, refusing from the deal, they do not forget to toss the application form into little pieces to protect personal and credit information from fraudsters.

Isn't it a good sign that American credit consumers are growing more fastidious and careful about credit cards and their use? Certainly they are.

Nevertheless you cannot argue with the fact that people by their nature are more inclined to make use of a mail offer than go for a deal to the Internet or make an order for an advertised product on TV. Even more unlikely will they address directly the bank for information or a product.

Anyway, if you wish to rid yourself from the annoying solicitations, you only need to dial the number of any OPTOUT service which is called to protect your credit consumer rights.

Be a wise credit card user and the creditor will play your rules.

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.