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Monday, December 06, 2004
The Truth About Pre-selected Credit Card Offers And How To Stop Them
by Ted Wooley
You go to your mail box. You begin to sort through the day's envelopes, and there it is…"You've been 'pre-selected' to receive a major credit card with a credit limit up to $5,000." Immediately, your mind begins to race as you ponder the possibilities. What you couldn't do with an extra $5,000. The application is brief; and with minimal effort and no postage needed, you send the request immediately on its return trip.
Does this sound familiar? The beginning is full of hope, and the days of anticipation pass slowly until the delivery of that blissful promise. Weeks later, another anxious trip to the mail box suddenly turns joyous as you open a mysterious plain white envelope. Unlike the loudly colored wrappings that heralded the promise, the envelope carrying the answer is void of all fanfare. You open it and there it is. A shiny new card just like they said. WOW!
You can't help grinning from ear to ear. As you begin to absorb the accompanying explanation, you suddenly notice something wrong. There it is; it's a typo. They left a zero off or your $5,000 credit limit. It says, "Credit Limit: $500." What is up with that?
Yes, you know it's no typo. You have just become another victim of the ol' "bait-and-switch." But this word crafting is perfectly legal, currently.
Don't believe those pre-approved credit card offers. Okay, believe it, but read carefully between the lines, and know that this promise was pinned by a master craftsman of stirring words. They didn't technically promise you $5,000. They promised you "up to" $5,000. That would be equivalent to any number between zero and 5,000. They did deliver on what they said they would do -- even if you were declined.
They didn't say you were approved. They said you were "pre-selected." I believe I understand the meaning of the prefix P-R-E, but I still do not understand the difference between being "selected" and "pre-selected." The credit card company will explain that your being pre-selected means your credit score matched the criteria that they gave to the credit reporting agency when it compiled and sold them the mailing list with your name on it. Tell me, how is that any different than being just plain old "selected?"
The PRE prefix makes it sound more exclusive. Marketing people are not stupid. For years the word of choice was simply "selected." But one day, a junior marketing consultant hit on a brain storm. "Let’s tell them that they have just been PRE-selected. Huh, what do you think, JB?"
Consumer response rates went through the roof, and that junior marketing grunt is today running his own ad firm. What a difference just three little letters can make.
Even when they attach those letters to the word "approved," as in pre-approved, make no mistake they will leave themselves an out. You will find small print that says basically your pre-approval is based on the assumption that nothing about your financial situation has changed since they added you to their mailing list. In this sense, the prefix seems appropriate. However, the end result is that you are no different than anyone else who applies. It's an empty promise to entice more completed applications. Most end up with the minimum credit to start. Some are even declined in spite of no recent changes in their financial condition.
You have the right to stop information contained in your file maintained by the credit reporting agencies from being used in a credit transaction not initiated by yourself. You can opt out for two years or permanently, or opt yourself back in by calling 888-5-OPT-OUT (888-567-8688). This one number will allow you to remove yourself from all three credit bureaus with one action. Or you can write the bureaus directly at the following addresses:
- Trans Union
Name Removal Opt-Out Request
P.O. Box 97328
Jackson, MS 39288
- Equifax Options
P.O. Box 740123
Atlanta, GA 30374-0123
- Experian Marketing
P.O. Box 919
Allen, TX 75013
Ted Wooley founded Horizons Unlimited Group in 1987. He has used his 20-year business experience to help equip thousands of individuals to achieve their personal dreams as an author, lecturer and a respected Internet and business consultant.
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