07:13:20 AM Thursday, February 14, 2008

Credit Card Issuers Dam out Credit Card Deals Mail Flood

Numerous credit card offers that you get by mail could become a perpetuum mobile. They flood your mail box and e-mail. Most credit card holders get irritated by this, as about 90% of those offers can be thrown into a trash can. But in view of the recent subprime mortgage crisis and economic recession the number of credit card applications sent by mail decreased in the fourth quarter of the previous year.

Card users, tired of aggressive credit products advertising, can breathe freely. According to the latest information by Mail Monitor, the overall amount of credit card offers in the mail has reduces by 14%. That is really good news for credit consumers.

Thousands of card offers you find in your mail box are annoying. But it is a necessary evil. Good advertising campaigns are a key to credit cards companies' success. Attracting clients is just their job. And when it comes to promotion and marketing lenders crack all records. But we cannot blame creditors for that. No ads - no clients - no money.

Direct mail is considered to be one of the most effective ways to attract new customers and inform regular ones about new campaigns, credit card deals, and credit programs. You might doubt it, however, people whose credit history allows qualifying for only bad credit card offers, read and consider applying for nearly every offer in their mail.

But due to changes on the credit card market credit card issuers slowed down their advertising activity. A 14% cut, first of all, is an attempt to avoid potential losses that poor credit owners might yield. So, subprime credit card holders are the first to "suffer" from this reduction.

Citibank and Discover incurred great losses after the last year's mortgage crisis. And these two issuers trim down their promotional activity the most. The consequences of the subprime mortgage crisis affected these banks' financial stability. Now that they are straightening out their financial affairs, they are more particular than ever about their clients.

But Chase Bank made a real splash. While all other creditors hold back their direct mailing, Chase boosts it by 62%. The financial forecasting services report that in the next few weeks every fourth letter with pre-approved credit card applications that you will find in your mail will be sent to you by Chase. This way the bank is hoping to scale up their chances for more customers applying for Chase Bank credit cards.

The suspension in the US economy forces lenders to be more cautious approving card holders for a new deal. Creditors roughen credit card application requirements, which now makes it more difficult for credit consumers to get a plastic they need.

However, the Federal Reserve has recently cut the prime rate, and this should encourage credit card holders to keep trying to qualify for the card they are eager to have. Besides, if you have a good credit rating you will not come across any obstacles to getting one of the good or excellent credit cards. You are always a welcome guest at any credit card company.

So, credit card issuers give you, your mail box, and your paper shredder a short break. You can breathe a sigh of relief. But nobody knows what is going to happen tomorrow...