Credit Card Offers No Longer Flooding Mail Boxes

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By By Connie Thompson

Summary

The direct mail approach isn't working so well anymore, so credit card companies are changing tactics.

Story Published: Jul 26, 2006 at 3:12 PM PDT

Story Updated: Aug 31, 2006 at 8:31 AM PDT

Credit Card Offers No Longer Flooding Mail Boxes
SEATTLE - You might be noticing fewer credit card offers in your mail. The direct mail approach isn't working so well anymore, so credit card companies are changing tactics.

A least two of the biggest users of direct mail will continue targeting your mailbox, but with fewer people responding, and more of us getting on the "Do Not Mail" lists, all the credit card companies are pushing the envelope to get your attention.

After a sizable jump in mailings last year, the national research firm Synovate says direct mail offers for credit cards are down as much as 25 percent so far in 2006. Most of us don't want the clutter -- and fewer of us are responding.

For every thousand credit card offers mailed last year, only 3 people sent applications. So credit card issuers are looking at other ways of getting your attention.

They're targeting less conventional places like restaurants and night clubs. They're also putting more emphasis on the Internet, partnerships with airlines and hotel chains, and they're even looking at offering credit cards through ATMs to customers who meet their criteria.

Both American Express and Capitol One say their direct mailings will continue because it works for them. But overall, banks and credit card companies are scrambling to find new customers and that can work in your favor.

Many money experts feel the credit card market is saturated and new Federal Reserve study shows more than 46 percent of households carry a credit card balance.

With competition so fierce now, it's a great opportunity to use those offers to negotiate a lower interest rate or negotiate lower credit card fees.

For some time now, credit card companies have been quietly bumping up their interest rates to some pretty outrageous levels. But according to a company called LowCards.com, may card issuers are often willing to sacrifice some of their interest gravy, to make sure they get all of their principal back in a reasonable time.

So check your interest rates. If they're in the high double digits and you've got a high balance and make your payments on time, you could save yourself money right now.

If you don't want to receive pre-screened credit card offers, you can either opt-out with the credit bureaus, or register with the mail preference service. All pre-screened offers include information on how to Opt-Out from their lists, which are based on information on your credit report.

In addition, the Direct Marketing Association has maintains a Mail Preference List which is good for five years.

For More Information:

To get off pre-screened credit lists:
1-888-5-OPT-OUT (1-888-567-8688)

For more information about getting off all mailing lists -- www.opt-out.cdt.org

To register with the Mail Preference Service by mail:
Mail Preference Service
Direct Marketing Association
PO Box 643 Carmel, NY 10512

For more information about getting off direct mailing lists: www.dmaconsumers.org