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Be Careful Of Pre-Approved Credit Card Offers Surely you have received countless pre approved credit card offers show up in your mailbox, but what are they exactly and why were they sent to you? The credit card companies pay the credit reporting agencies to soft check their database and pull a list of potential cardholders based on certain criteria that they specify. They then take this list containing millions of consumers and send them an invitation to apply for the specified card and product. It is important that it is only an open invitation to apply for the card, and NOT a pre approval as the mailer might indicate. You must always read the fine print, and you will often find that it states you were selected for the offer based on some matching criteria, but it is not an approval. They will still need to perform a credit check when you do apply and the decision will be based on that. The mail pieces that they send out these days are more customized and the receiver will assume that it has been sent exclusively to them and they are already credit qualified for the card. With the amount of solicitations that are sent out it is very easy to get caught up in application sprees, which will do nothing but flood your credit reports with inquiries, leading to a lower credit score. You might not be aware of this, but the credit bureaus sell your data to any company willing to pay. There is a way that you can opt out of receiving offers for credit cards, insurance and any other credit score driven product. By visiting you can select to opt out of preselected offers for a time of five years. It takes under a minute to complete the online request and at the end you will be presented with a confirmation that you can print and save for your records. This will remove your name from the purchasable database that companies draw from. For responsible credit use, it is best to only seek out and apply for new credit only when you need it. Many people get these fancy offers in the mail with incentive offers such as bonus points or airline miles just for signing up. Now, if you are in the market for a new card then it doesn’t hurt to take advantage of such incentives, but to apply for a card simply to get the bonus is foolish and demonstrates poor credit management. Adding too much credit in a short period of time can actually harm your credit scores, so it is important to know how the credit scoring model works prior to taking any action. Understanding the in’s and out’s of credit will help you make better decisions. The first step is to visit and remove yourself from receiving selected offers in the mail. This prevents companies from accessing your credit report for promotional purposes, something that could also be considered an invasion of privacy. We suggest that if you are in the market for new credit that you seek out the best solution for yourself and do not rely on promotional advertisements.

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