Credit Cards - What You Don't Know Might Shock You!
A Credit Article Contributed by Nithya K
Credit Cards and Their Latest Applicants
According to you who should be the ideal candidate for a credit card? You might say, you, your spouse, your neighbor etc. But the latest applicants might even be your dog or your newborn baby! In a shocking case, Stephanie got a pre-aproved offer for a card with a $100, 000 limit. Of the half-dozen offers the girl received, this was definitely the largest. Her goal for using the money - Buy a few things for her grandparents, her sister and a doll for herself. Stephanie is only 4 years old!
Her father, consumer advocate Clark Howard believes that the company got her name from a frequent-flier club membership list.
Howard feels that if issuing of credit cards was so random and sloppy, who was responsible for prospecting one's own name? Knowing that the credit card application system is so haphazard should act as a fair warning to stay up-to-date with your own credit. Despite all this, many credit card experts say that the screening process for pre-approved offers is tighter than ever. It is believed that the screening process is much better, says Robert McKinley, CEO, CardWeb.com.
Robert says, typically banks cross-reference credit bureaus information with other database lists until they come up with a slate of what looks like "ideal candidates." Also, there are some issuers who have taken credit bureau files from an affinity group. If an affinity group has an exclusive contract with members, they may market to all the members. And pre-approved credit cards do not mean what they meant years ago. Now the term has lost its meaning.
Credit Cards - Pre-Approved Offers
When you get a pre-approved offer from a company, it only means the bank is inviting you to apply for one of its credit cards. The company or Bank believes that you may be a good prospect based on certain financial criteria or your membership in a certain club. But again there is no guarantee that you will qualify.
In fact, many times, it would be very clear that the credit card company has not seen a credit report, as many offers end up with potential customers who have never seen a credit report! One such guy reported that his dog, Clifford, received a e-mail credit card pre-approved offer. He nevertheless, filled out the form, but made it clear that the applicant was a canine! But to his utmost surprise, he received a credit card with a $1, 500 limit.
Clifford continues to receive offers by mail and e-mail. The most recent offer said Clifford had been approved for a $10, 000 limit.
Credit Card Goof-Ups - Reasons
The cause for such goof-ups most likely would be that the owner would have put the pet's name on some sort application and the credit card company picked it up. Whoever the company uses to get their marketing database, it is purely paperwork. This might explain the credit card offers, but what about an actual card? It might be the result of an automated system. But it doesn't happen as often as it used to in the past. This is mainly due to the improved performance of the credit card company's computers and better filtering systems.
