Creditnet News Story

Credit card offers down in third quarter

Monday, November 2, 2009

By William Davis

However, account offers with variable rates saw an increase.

New research shows that the number of mailed credit card offers saw a drop during the third quarter of this year.

According to Mintel Comperemedia - a company that monitors direct mailings - the number of credit card offers dropped by 71 percent when compared to the same time in 2008. This year's third quarter saw 391 million credit card offers through direct mailing, compared to 1.3 billion last year.

Andrew Davidson, a senior vice president with Mintel, said that card companies are trying to work with new stipulations put forward by the Credit Card Accountability, Responsibility and Disclosure Act, which took effect this year.

"In addition to adjusting their direct-marketing strategy by sending less mail, they're raising rates and fees on existing and new cards," Davidson said.

Along with being fewer in number, Davidson said the quality of credit card offers is declining. For example, consumers are getting more credit card offers with variable rates. One reason why these cards are attractive to lenders is because of new rules in the Credit CARD Act that require a longer notice to card holders for rate changes.

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