Pre-approved credit cards are generally easy to use and often only need to be activated over a phone line. This type of credit card is still a form of borrowing and does involve some charges. A lot of people have received their fair share of offers for these types of cards, and usually they sound something like this, re-establish your credit with pre approved credit cards, regardless of your credit rating, some might even come with low initial interest rates and other incentives to get you to apply. These types of offers are a favorite way for credit card companies to market their service toward consumers with bad credit these days, although this method has perhaps reached it's saturation point.



Offers

Under the Fair Credit Reporting Act (FCRA), the Consumer Credit Reporting Companies are indeed permitted to include your name on lists used by certain lenders and insurers to make firm offers of credit or insurance that are not initiated by the recipient. The Fair Credit Reporting Act also provides consumers the right to Opt Out of receiving these offers, which will prevent Consumer Credit Reporting Companies from providing your credit profile information for these types of Firm Offers. If you are not receiving these firm offers because you have completed a request to Opt Out in the past, you can request to Opt In once again, if so desired. There are many different ways to opt out of pre-approved credit card offers, the easiest way is to call 1-888-5-OPT OUT (1-888-567-8688) to have your name removed from the direct marketing records and it can probably take up to six months to see the full results.

Interest

Some sub prime lenders actually do use this kind of screening to look for consumers with moderate to severe credit problems, who generally are more likely to be willing to pay the high interest rates, fees, or deposits that are required by such lending institutions. The interest rates vary from lender to lender, but can be as low as single digits and as high as 30 percent on the outstanding balance of an account It's wise to do a thorough to find out which banks have the lower interest rates. Pre-approved credit cards are usually approved without even running the applicants credit report and with the complete knowledge that some consumers will be late and even default with their account, but be aware that after the first time a late payment is received the interest rates will go through the roof.

When you receive these offers for credit cards in the mail, make sure you discard them by shredding the application so no identity thieves can activate the credit cards in your name. With all the stories about identity theft as in stolen social security numbers, and compromised account information filling our newspapers daily these days, a number of companies have been started up to help protect your rights, LifeLoc is just one in the field. Getting a copy of your credit report can help to ensure that all the information about you is correct, and no one else is using your credit.

Credit card companies overflow consumers and potential customers with pre-approved offers for credit and courtesy checks designed to be used in place of the customer's credit card. Many lenders get your name and address from the major credit bureaus in order to send you offers for pre-approved credit cards in the mail or via those annoying telemarketing calls. It is also true that anyone can opt out of 3rd class mailings (which include offers for credit and bank courtesy checks) at no charge to you.