Offers for credit cards sent through snail mail increase in 4Q of last year

February 15th, 2010 | by admin |

Though some consumers may be trying to avoid using their credit cards, a recent report indicates they may have also been more likely to get an offer for an account at the end of last year.

According to Synovate, a market research firm, providers of credit cards increased mailings by 46 percent in the fourth quarter of 2009. In all, mailings amounted to 398.5 million offers, an increase from the 272.5 million seen the quarter prior.

Though the numbers of mailings were up in the last quarter of 2009, they are still lower when compared to the year before. During the fourth quarter of 2008, lenders sent out 668.1 million offers for credit cards.

One of the reasons that lenders have cut back on making card offers is because of the tightened credit market during the most recent recession. As consumers found it more difficult to pay off already-existing accounts, lenders became more skittish about giving accounts to risky borrowers.

As a result, credit score requirements for such accounts increased for many lenders so that they could reduce their financial vulnerability. Card companies also changed accounts because of new rules issued by the government regarding how lenders deal with credit cards.

The Credit Card Accountability, Responsibility and Disclosure Act will limit the ability of card companies to raise interest rates. Before the new rules were made clear to companies, many card holders were reticent to send out credit card offers.

“The rules of the game were changing and, until the industry knew what the new rules were, none were keen on playing a blind game,” said Anuj Shahani, director of competitive tracking services for Synovates Financial Services Group.

Along with holding back on issuing offers, the new rules from the Credit CARD Act caused many companies to switch consumers to accounts with variable rates. However, consumers have made their own push back by reducing the amount of credit card debt they have.

More Credit & Debt Articles | News Home | Discuss in our Forum

People may have seen more offers for credit cards come in the mail at the end of last year.

Experts disagree over security breach cause, solutions &nbsp&nbsp02.12.10
Consumers will pay a price for rapid refunds on taxes &nbsp&nbsp02.10.10
Consumers also responsible for credit card security &nbsp&nbsp02.09.10
There are options for young people looking for access to credit cards &nbsp&nbsp02.08.10
Credit cards dropping balances as people continue to work on paying off revolving debt &nbsp&nbsp02.06.10
Some consumers feeling confident about their own debt management abilities despite their feelings on the state of the economy &nbsp&nbsp02.05.10
Payment hierarchy ‘flips’ among consumers &nbsp&nbsp02.03.10
Consumers should educate themselves about credit cards &nbsp&nbsp02.02.10

Insight and Guidance for Smart Choices^®

Cards by Credit Score
— Excellent Credit
— Good Credit
— Fair Credit
— Bad Credit
— No Credit
Credit Card Rewards
— Airline Miles
— Cash Cards
— Reward Points
— Gas Cards
Low APR
Balance Transfer
PrePaid Cards
Secured Cards
Business Cards
Student Cards

Free Trial Credit Reports
3 Credit Scores & 3 Reports
3 in 1 Credit Report
FICO Scores
Credit Monitoring
Identity Theft
Credit Report Comparison Chart

Personal Loans
Home Loans
Student Loans
Loan Status
Loan Comparison Chart

Free Debt Consultation
Debt Consolidation Loan
Debt Help Product Comparison

Business & Finance World News