Mintel Comperemedia estimates in a new report that 1.34 billion credit card offers were mailed to consumers in the third quarter of 2008, which is down 13 percent from the previous quarter and also 28 percent lower than figures from the third quarter of 2007.
Clearly, credit card providers are changing their advertising tactics – but why? According to Mintel, many companies have recently begun to question whether receiving a deluge of offers really does encourage people to apply for credit cards – or if it just overwhelms them.
The current economic situation also plays a role. “Not only are consumers tapped out financially, but issuers are also facing record losses. They’re scaling back direct mail to cope with unprecedented financial problems,” added Lisa Hronek, a senior credit analyst at Mintel.
Hronek thinks this trend will continue into 2009, partially because creditors will more narrowly target their customer base.
So, what if you are one of those people who is actually looking for a new credit card – particularly in these times when many lenders are drawing back and tightening up the criteria they use when extending credit?
Those who have a good credit score can still approach providers directly and apply for a card. However, take note that these companies will make a credit inquiry that will temporarily affect your credit score.
If you haven’t noticed any new offers arriving in your mailbox lately and your credit history is not fantastic, one option is to apply for a secured card.
With a secured card, consumers deposit into a savings account to secure a particular credit limit for a period of time. This type of credit card can be especially useful to people who are looking to rebuild their credit score.
Meanwhile, rest assured that paper-based credit card offers are not predicted to disappear off the face of the earth – at least, not yet.
Synovate’s Mail Monitor service has also consistently spotted declining mail offers in recent years, but don’t expect to kiss junk mail goodbye altogether. Synovate official Andrew Davidson said in August that a “huge number” of solicitations were still being sent and that direct mail “is still the number one method for acquiring new credit card customers.”
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