Credit Card Offers

We often receive unsolicited credit card offers for our consideration. Although I have to admit that I receive much less credit offers now that I ever received before the government scrutiny was placed on the banking credit system.

Two of the major drivers for banks bombarding us with credit card products is the interest they collect from credit card owners on balances not paid in full when due and the commission they collect from the merchants based on the transaction amounts. Just the interest and commission provide a huge revenue stream for credit card issuing banks. Other credit card revenue generators include late fees and over the credit limit charges but you now understand why we get so many offers in the mail.

Sometimes, consumers who receive these offers blindly accept the card offers without analyzing their needs or the credit card features. Not only we have to own the right number of credit cards, but we also have the right kind of credit card for our needs. Maybe you want to collect miles for your travel needs, save money on gas expenses or pay less interest on your revolving balances. The worse thing to do would be to accept all credit card offers because they all provide some incentive for using them.

You need to think before you accept a credit offer because by blindly accepting all credit card offers, not only you do not carefully asses your credit needs and the best credit card to satisfy your needs whether it’s low rates, high reward points and credit limits, but you also increase your risk of identity theft and credit card fraud by owning one additional card and sharing your personal information with the issuing bank. Many people are identity obese in this area where the average person owns 8 credit cards. This area is a very high concern from an identity fraud standpoint because not only credit cards present great opportunities for credit fraud, but also the consumer carelessness in this area provides the opportunity the fraudsters need to easily commit fraud and steal cash or buy things. Therefore, you should have fewer cards and select the best credit card that’s right for you. I suggest owning 2 credit cards with the right credit limits for our needs and lifestyle. One of them can be used for daily usage and the second one can be kept in a secured location to be used as backup when our first card can no longer be used because it expired, is being replaced due to loss or theft, or any other plastic problems.

Learn more about credit card fraud after reading about credit card offers.