If your credit is in good standing, you more than likely receive numerous pre-approved credit card invitations. Credit companies look for potential customers by accessing your personal financial history. This information is readily available to these companies. Those having good credit histories are sent numerous offers for new credit card accounts.
Some of these offers have very good terms while others do not. Before accepting new credit card offers, make sure you read the entire document - especially the fine print. This is where you’ll find the annual percentage rate, grace period information, possible penalties, annual fee information, and other pertinent facts regarding the offer. Some of the language used can be confusing; so make sure you fully understand the terms before agreeing to the offer.
Some credit card companies will go so far as to send out actual cards that you didn’t request. These often come in the mail after applying for other cards. People often make the mistake of accepting these cards because they confuse them with the cards they actually applied for. Read over all offers carefully before confirming new cards – even if you think you requested them. They may not be the cards you actually accepted. These unscrupulous companies are trying to pull the wool over your eyes, and their rates and terms are often undesirable to say the least. Some of these credit card companies offer balances just above the amount you owe on a current credit card account. When you agree to take the new card, they automatically transfer the balance from your old card to their card. Without reading the fine print you may have agreed to a much higher rate of interest as well as other exorbitant fees. This may seem like a dishonest act, but it’s perfectly legal since you unknowingly agree to the terms and conditions when you confirm receipt of the card in question.
Be sure to shred all credit card offers you don’t intend on accepting. These unsolicited documents often contain personal information that will allow someone to assume your identity. Pre-approved offers are often the means by which criminals commit identity fraud. They accept the offer made to you, and they have the cards sent to a bogus address. When the cards arrive, these dishonest individuals take cash advances as well as goods and services. These matters can be very difficult to correct and have caused extensive damage to the credit of countless individuals. Don’t let this happen to you. Always destroy any documents you are discarding – especially those containing your social security number.
With pre-approved credit cards being so easy to obtain, it’s easy to let your credit card balance get out of control. It’s real tempting to charge goods and services when you don’t have cash. Don’t let yourself fall into the trap of using a credit card to pay for the luxuries of life. It’s wise to have a credit card to establish good credit and for emergency use, but people often begin using them for things that aren’t necessary. When the bills arrive, often they are only able to pay the minimum balance. Sometimes minimum payments become difficult to make. Keep in mind that a good credit record is extremely important. Without a good credit score you may not be able to buy a home or the vehicle you desire.
Pre-approved credit card offers can be a good thing when used wisely, but for some they are the first step down the road to bankruptcy. Don’t let pre-approved credit card offers ruin your good credit record. Protect your credit by staying in control.
