BBB of Greater Houston & South Texas

News Release: For Immediate Release

The Better Business Bureau Serving:
Brazoria, Ft. Bend, Galveston, Harris, Matagorda, Montgomery, & Wharton Counties. (Texas)

Better Business Bureau Tips:
Editorial Ideas From Your Better Business Bureau

Contacts:
Deana Turner:
Office: 713-341-6131, e-mail: dturner@bbbhou.org

www.bbbhou.org * bbbinfo@bbbhou.org * Council of BBBs: www.bbb.org *
24-Hour Information: 713-868-9500, 877-468-9222 (from area code 409 only)

Evaluating Unsolicited Credit Card Offers

Unsolicited credit card offers are pouring into American mailboxes daily, offering no annual fee, low annual percentage rates and pre-approved credit limits. How do you sort them all out? The Better Business Bureau (BBB) suggests you evaluate these offers carefully.

If you have sufficient credit and a good credit history, you may not need to consider the unsolicited offers that come your way. If this is the case, request that your name be removed from the solicitor's mailing list.

Find out who sent the offer. If you see a name such as "Processing Center" or "Credit Card Administration," keep looking. The company name may also appear on the reply envelope, on the letterhead of the principal offer, or in the fine print setting forth the terms and conditions of the offer.

Although you may see references to VISA® or MasterCard®, do not assume that the letter is from a bank issuing those cards. The offer could be from an independent marketer, attempting to charge you simply for mailing a credit card application.

Is the offer for a bankcard or merchant card? Not all credit card offers are for bankcards. Department stores, mail order catalog, and oil companies, among others, offer credit cards good only with the issuing merchant.

Does the offer say you are pre-approved? If no specific dollar amount or range is mentioned, to be pre-approved may mean very little. Pre-approved does not mean that the issuer knows that you can comfortably handle the extra credit. It may only mean that the issuer wishes you to provide more information before it commits itself to you for any specific amount. Before applying, ask the issuer to be specific about the amount of credit being offered.

Pre-approved or not, you will have to fill out a credit application. Be sure the information is accurate. If you default on your payments, your application may be reviewed to see if you lied, indicating intent to deceive.

Many cards have up-front fees, such as application fees, annual and secured account fees, finance charges, interest rates and late fees. Find out exactly who you must pay, how much, and what for. If you have questions about a company, contact the BBB for a company report.

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