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View Poll Results: If you earn under $20,000 a year, and got a $10,000 credit line from credit card company...what woul
Use it for education, college, tech school? 0 0%
Buy a decent used vehicle? or Motorcycle, transportation? 0 0%
Just use it for groceries and other essentials? 1 10.00%
Use it to pay off other debt...debt consolidation? 0 0%
Emergencies only? 6 60.00%
Use it to start a business you've always wanted to open? 0 0%
Just a one time splurge on fun electronic toys you've always wanted? 0 0%
Set it aside and don't touch it? 3 30.00%
Voters: 10. You may not vote on this poll

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Old 01-19-2012, 06:40 PM
 
Location: Florida
3,360 posts, read 3,212,942 times
Reputation: 1792
Default Why do credit card companies send you offers in the mail, without first checking your score??

Why do credit card companies send you offers in the mail, without first checking your credit report??

I mean why do they get your hopes up like that?
And make it all but seem like your garunteed to get approved, just to turn you down after you apply?

I mean obviously they have to know something about you to keep sending you offers, expecially if it's the same credit card company...

Do they just like messing with people?
Getting your hopes up, just to say 'Sorry, we cannot approve you'...after flirting with you for months...

And also...will such companies approve you for credit, if they see you have other outstanding debt?

I other words, can you have flawed credit, and still get approved for a credit card?
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Old 01-19-2012, 06:46 PM
 
Location: southwestern PA... where the nest is now empty!
10,972 posts, read 12,444,281 times
Reputation: 16100
"Why do credit card companies send you offers in the mail, without first checking your score??"

I got those offers blocked... I don't need any more credit cards.
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Old 01-19-2012, 06:52 PM
 
Location: Florida
3,360 posts, read 3,212,942 times
Reputation: 1792
Quote:
Originally Posted by Pitt Chick View Post
"Why do credit card companies send you offers in the mail, without first checking your score??"

I got those offers blocked... I don't need any more credit cards.
I think the most vunerable people are those earning from $5-$25,000 a year...

In other words, the working poor...
If one earned over $50,000 a year...I'm sure credit cards would have little appeal...as one would have enough cash on hand to do whatever...

But the main thing that keeps the working poor down, or from persuing other things like school or opening a business, is lack of cash, capitol...

So when these cards offer you like $10,000 in credit...it can be very tempting...cause no bank certainly would...
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Old 01-20-2012, 06:09 AM
 
793 posts, read 606,232 times
Reputation: 683
Credit card companies DO check your credit before sending pre-approved offers. They pull a PR (promotional) inquiry which is a soft pull (doesn't hurt your credit). You can verify this by looking for "opt out" language on the offer. Opting out prevent companies from doing these soft pulls and doing this for just one credit bureau will cause the other two to opt you out as well.

What these PR pulls don't tell the creditors is anything about your income. This is usually why you get denied when you apply. They ask about income and take that into consideration with the info they already have.
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Old 01-20-2012, 08:23 AM
 
Location: Censorshipville...
2,439 posts, read 3,614,263 times
Reputation: 1196
You can opt-out for the prescreened offers: Prescreened Offers of Credit and Insurance You can do it for 5yrs, or permanently.

After I did that, my mail was cut dramatically. I'm so glad I did it.
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Old 01-20-2012, 08:28 AM
 
Location: San Antonio/Houston
20,680 posts, read 21,490,663 times
Reputation: 48065
Oh, they don't check it, but hope that when you apply, and have a bad credit or low earnings, they give you a card with very high interest rate.
They make most money on interest.
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Last edited by elnina; 01-20-2012 at 12:43 PM..
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Old 01-20-2012, 12:03 PM
 
297 posts, read 345,840 times
Reputation: 286
It costs money to check credit ratings. It would be silly to check credit ratings, then send applications to those with the best credit ratings, then get no applications returned.
(I imagine people with good credit ratings would throw the applications in the trash!)

Rather it would be better to send applications based on demographics. To those who are likely to be working and have money to pay monthly bills.

Then when they receive a bunch of applications, run the credit checks. Then give credit cards to those with the better credit ratings from that pool.

And they would only have X amount of dollars to loan people via credit cards. They could not issue more credit cards than the amount of money they have to loan. So that would cause a certain cut-off point.

Sort of same thing with hiring people for a job. If you place a really picky ad that you want a "perfect" person for the job, you might not get any applicants. If instead you just mention the job, then you will get a lot of applicants. Then can choose the best from those applicants. And that person may be far from "perfect".
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Old 01-20-2012, 12:28 PM
 
793 posts, read 606,232 times
Reputation: 683
Quote:
Originally Posted by yellow4yield View Post
It costs money to check credit ratings. It would be silly to check credit ratings, then send applications to those with the best credit ratings, then get no applications returned.
(I imagine people with good credit ratings would throw the applications in the trash!)

Rather it would be better to send applications based on demographics. To those who are likely to be working and have money to pay monthly bills.

Then when they receive a bunch of applications, run the credit checks. Then give credit cards to those with the better credit ratings from that pool.

And they would only have X amount of dollars to loan people via credit cards. They could not issue more credit cards than the amount of money they have to loan. So that would cause a certain cut-off point.

Sort of same thing with hiring people for a job. If you place a really picky ad that you want a "perfect" person for the job, you might not get any applicants. If instead you just mention the job, then you will get a lot of applicants. Then can choose the best from those applicants. And that person may be far from "perfect".
Except that's not how it works. They subscribe to a service at the credit bureaus that keeps them informed of people who falls into whatever criteria they choose. Then they decide who to PR softpull from those lists. Opting out removes you from those lists.

And as far as not giving out credit lines larger then the amount they have to loan... Look up how fractional banking works.
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Old 01-20-2012, 12:30 PM
 
Location: Austin
2,173 posts, read 1,336,212 times
Reputation: 2081
They do not have the time, manpower, etc. Your name was sold to them in a list along with hundreds of thousands of others.
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Old 01-20-2012, 12:56 PM
 
Location: Wake Forest, NC
834 posts, read 2,260,787 times
Reputation: 615
They buy lists filtered to specific criteria that they set. For example: minimum credit score, length of credit history, types of credit etc.
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