Credit card companies sending more offers in the mail

08.07.09
By James Conroy

The fact that many Americans are already struggling with credit card debt doesn't appear to be fazing credit card companies as a recent report indicates that some firms are ramping up the number of credit card mailings after scaling back the practice over the last few months.

Research company Synovate says numbers from its Mail Monitor show that the number of credit card mailings dropped 67 percent between the second quarter of 2009 and the same period in 2008. But between the first quarter and second quarter of this year that drop was only 6 percent.

Anuj Shahani, director of competitive tracking services for Synovate's financial services group said this figures indicate that the industry has bottomed out and is poised to return to full form into 2010.

While the second quarter numbers were still down overall, Synovate finds that the top credit card companies did increase their mailings with Bank of America increasing its credit card mailings 77 percent over the first quarter and Citibank seeing a 61 percent increase over that time.

"Issuers are no longer as risk averse. While the economy starts getting back on its feet, issuers are getting creative and tweaking their product mixes to adapt to the new regulated environment" said Shahani. "We saw certain types of card offers resurface this past quarter, showing that issuers are starting those jammed credit engines once again."

This news from Synovate comes despite reports that credit card companies are being more picky in who they offer credit cards to in light of the recent credit crunch and growing delinquency and default rates.

Some consumers have indicated that credit card companies are requesting to look into their bank accounts before offering a card with the Wall Street Journal reporting that companies are doing this before restrictions take effect next year.

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Americans might start seeing more credit card offers in the mail