Spending and Saving

Be Wary of Credit Card Offers in the Mail

The recession hasn’t only lightened our wallets but our pile of mail, as well.  Credit card deals offered through the mail are quickly drying up. Because of the economy, credit card companies have made cutbacks in direct marketing, which has decreased the number of new credit card offers mailed to consumers by 71%.  Not only are people receiving fewer credit card offers in the mail, but the ones still going out are becoming less and less desirable and legitimate. As a result, chances are that the offers mailed to your house aren’t the best.

The marketing agencies that send the deals choose to make offers that you are most likely to accept, not the ones that are best for you. The perks in unsolicited offers—cash back, awards points, free flights—often obscure the hazards, tricking you into accepting credit that could seriously threaten your financial health.

Get out your magnifying glass: Read the fine print detailing the card’s terms. When you see anything that you don’t understand, contact the company and ask for an explanation before signing or verbally agreeing to anything. Scrutinize late fees and APR schedules—this is how credit card companies get more money out of you. If you don’t like the card’s terms, move on.

Be wary: Identity thieves can use the information in credit card offers to steal your identity and open fraudulent accounts. Always destroy and dispose of unwanted offers. To reduce the number of offers you receive in the first place, register at OptOutPrescreen.com, a joint venture between Experian, Equifax, TransUnion, and Innovis, which are big consumer credit reporting companies. Through this Website, you may choose to opt out of credit card offers for five years, or permanently…

Read the rest of this article on the LearnVest blog.

Tags: budget, credit cards, spending money