Why does it seem like you're getting more credit card offers than ever before? It may be because your credit score is improving but, more than likely, it's due to an application you recently submitted for a credit card or a personal loan to consolidate credit card debt. This article talks about both of those scenarios.
Another reason for all those offers is that credit card companies are getting more aggressive with their marketing efforts. In November 2020, Experian reported that consumer credit card debt in the United States dropped nine percent during the pandemic, from $829 billion in 2019 to $756 billion in 2020. That's good for the consumer but bad for the credit card companies.
Every Credit Application Triggers an Email Marketing Cycle
Submitting an online credit application puts you on an email marketing list. If you go through a marketplace that shops your information to multiple lenders, expect your inbox to fill up with multiple offers for credit cards and loans. The hard copies of those offers should show up in your physical mailbox sometime in the next few weeks, and they won't stop.
The lending sector is highly competitive, so they deluge prospects with electronic and physical offers to keep themselves top of mind with consumers. Statistically, most consumers will apply for a second credit card after they're approved for the first. That could happen right away or several months later. Either way, the credit card companies want you to come to them.
To eliminate electronic communication, look for opt-out links on the emails you receive. Physical mailers should have them also. It's a lot of work to go through each communication and opt out but, by doing it consistently, you should limit the number of offers you get. If you're getting phone calls, you can verbally request that the caller put you on a "do not call" list.
Credit Score Matching and Pre-Approvals
Credit card companies produce marketing materials designed for consumers in specific credit score ranges. Those with credit scores under 580 will receive some offers, but potential prospects with credit scores over 700 can expect to get more. Many of these offers tell the consumer they are "pre-approved." That doesn't mean what you think it does.
A pre-approval from a lender or credit card company simply indicates that you meet their criteria for approval. You'll still need to apply and go through a hard inquiry of your credit report before receiving any funds or a credit card. Each of those hard inquiries knocks a few points off your credit score, so try not to do this too often.
Protect Your Personal Information
Assume that your personal information will be acquired by another lender at some point, so be careful when you fill out online applications. Make sure the site is secure, read all the disclaimers, and don't agree to share your data if they give you that option. This combination of actions should help limit the number of credit card offers you receive.
Another danger to be aware of is identity theft. Always use a personal computer with a secure, private internet connection when applying for a loan or credit card. If you receive emails, don't click the link in the email. Log in directly and navigate to the page you need. These are basic security techniques that will help keep your information safe.
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