My Net Worth

Credit card companies are prolific marketers. Television ads. Sponsorships. And direct mailing.

Credit card mailings are in the billions. These mailings are offers to individuals to sign up for a company's credit card, transfer balances from old cards, often times, combining the two.

Do credit card companies blindly mail out solicitations to everyone in the United States? Probably not. Each company, each card, each campaign often has a strategic rationale behind it: targeting college students, unmarried professionals, the business traveler, etc. Even within these categories, the card companies may only want to extend credit to those with 'good credit'.

Prior to any mailing campaign, credit card companies will develop specific markets they wish to target. A key characteristic is the credit worthiness of the borrower. (Coincidentally, the three main credit bureaus are also in the business of providing this information.)

Per Experian's 2003 10-k:

Our customers utilize the information we provide to make decisions for a wide range of credit and business purposes, such as whether to, and on what terms to, approve mortgage or auto loans, credit card applications, identity verification, and similar business uses. Risk management and fraud detection and prevention services enable banks and financial institutions to monitor default rates by proactively managing their existing credit card accounts.

Experian's 10-k indicates that it has over 400 million persons from across the world. Chances are, if you meet the pre-determined criteria, you will receive a credit card solicitation via mail.

Are there problems with mass-mailed credit card solicitations? There are at least two. First, the more solicitations received by the consumer are one more opportunity to apply for and receive credit. This is the nexus of one key problem: who is to blame for the credit decision-the lender or the applicant?

Second, these pre-approved mailings are opportunities for identity theives to steal an application from your mailbox and open up an account in your name. This is very crucial for recent college grads, who move from place to place. Pre-screen offers mailed to old addresses...frightening?

There is a solution: removing your name from the marketing databases of the credit card bureaus. This gives the individual the chance to reduce the temptation for applying for new credit and reduce the opportunities of identity thieves stealing your mail.

Below are a few links to help you to opt out:

The FTC's opt out letter.

Experian's Opt Out web page.