Do you get pre-approved credit card applications in the mail every week? The amount of junk mail we all get is out of hand and it seems that these applications keep coming more and more frequently. I have to make sure I shred them and not just throw them away as these pre-approved applications are just what an identity thief is looking for!
One of the main ways an ID thief gets your personal information is by stealing your mail. One of the things he is always glad to find is a pre-approved application for a credit card of any type. If they find one of these applications, identity thieves will change your address to their address or PO box and then send it in. They are hoping to get a brand new credit card sent to them in your name without you even knowing it!
Since you have not requested any of these applications, you will never know if one has been stolen out of your mailbox. If it were something that you requested, then after a while you will realize you never got it and follow up with the company. However, since these pre-approved applications are unsolicited, it impossible for you to ever know that one was sent to you in the first place!
That is why it is so important for you to shred all your finacial statements and junk mail. It really should be against the law for these companies to be sending out pre filled credit card applications that anyone can get a hold of. An ID thief is always on the lookout for something like that that he can use to pretend to be you and send in. Department store credit applications are a similar type of mail that you need to make sure you shred.
If an identity theif steals your mail, you may never know what kind of trouble you are in until it is too late. He may be able to charge a sizable amount on a credit card that will cause you months to fix. He may also change more of your addresses and cause chaos in many untold ways. It is a violation that is just as bad and feels just as bad as having a burglar break into your house. That is why these credit card applications are so bad and should be banned.
If your mail is stolen and the ID thief pretends to be you and sends in your application, you will not even know about it until it is too late. So beware and shred that junk mail that has any of your personal information on it. You need to make it as hard as possible for idenity theft to happen.
Congratulations! You've been pre-approved for the best credit card that UK lenders have to offer. All four of them. Or six of them. Or... how many offers was that in your post box this last week? If you return the applications to all the offers you get in the post each month, you'd soon find yourself up to your elbows in plastic - assuming that you passed the final approval for the cards for which you applied.
But wait - didn't the envelope say that you are pre-approved? Doesn't that mean that all you have to do is accept the offer and they'll send it to you? In a nutshell, no. In reality, you are being invited to apply for a credit card for which you meet preliminary conditions. Whether you actually qualify for the deal that's offered through the mailing is another story - one that you'll find in the fine print of the offer.
Ah, yes, the fine print. That's where you'll find all the terms and conditions of the actual offer. These days, that offer can range from nearly a guarantee that you'll be granted the card described to little more than a hidden sales package for something you'd never buy under other conditions. That's why it's vital to read all the fine print, and compare credit card offers BEFORE you apply.
But... doesn't pre-approved mean that you've already been approved for the offer that's being made? Actually, no. Pre-approved, or pre-qualified, is a finance term that essentially means 'at first glance, you look like our kind of people'. The credit card companies generally have a standard 'ideal customer' to whom they pitch their best products. That standard customer will earn a certain income and meet a few other criteria. Until you actually apply for a credit card, UK issuers can't actually look any deeper into your credit history than a quick surface look. If you meet their standards on that quick survey, they'll send you out an invitation to apply with them, quoting the best rate for which they think you'll qualify.
If you respond to their invitation and actually apply for a credit card, you are giving them permission to run a full credit check on you, and the final decision, including the APR and the actual card that you'll be offered, will be based on that check. By signing the application, you are agreeing to be bound by the terms that they offer you. It could mean that you end up with the best rate that the company offers - but there are also some very shady offers out there. If you're not careful, you could end up agreeing to pay a hefty cash membership fee for the right to purchase a few things from one or two shops.
Our best advice is to ignore the 'you've been pre-approved' notices that show up in your post box. Instead, if you're serious about getting the best credit card for your circumstances, make a visit to an online comparison site to compare the products you'll find on offer there. You'll be able to compare online and choose the best credit card from the many that are represented there.
Both Bruce Lipski & Jon Francis are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Bruce Lipski has sinced written about articles on various topics from Disease & illness, Interior Design and Gas Prices. Learn more about at my website .. Bruce Lipski's top article generates over 90500 views. to your Favourites.
Jon Francis has sinced written about articles on various topics from Credit Cards, Credit Cards Benefits and Credit Cards. Jon Francis has been involved with finance for many years! With an in-depth knowledge of the market help helps others get the best from a. Jon Francis's top article generates over 90500 views. to your Favourites.