Dump That Credit Card Application in the Trash!
Contributed by Deborah Zeitler
Don't worry, there'll be another credit card application in your mailbox tomorrow
You can count on it - nearly everyday, there's at least one more credit card application in your mailbox. Because everyone's credit needs are so different, the fact is that most of those credit cards wouldn't be right for your situation. Make sure you understand how to choose the right card for you, before filling out and sending in one of those applications. Go ahead, throw them away! You can be sure that when you're prepared, there will be another credit card offer when you check your mailbox tomorrow.
Why credit card companies send so many applications
Credit card companies send out so many applications because it's financially profitable. Regardless of the cost of the mailing (and it can be quite expensive), they know that eventually a certain number of qualified people will mail in an application. That's a new customer who will probably be paying finance charges for many years to come, which will help to pay for mailing out yet more applications.
Card applications can be bad for your credit
You might be tempted to fill out and send in a lot of those credit card offers you receive, but try to resist the urge. Besides getting you into debt, sending in applications can be bad for your credit for another reason. Every time you apply for credit, the credit card company sends an inquiry to credit reporting agencies, asking to see your credit history. If too many inquiries show up on your credit report, it's actually a bad mark against you.
It's a sign that someone is potentially requesting too much credit, that they might later have trouble repaying. So be careful to only apply for a credit card when you really need one and know that you have a reasonable chance of being approved.
