Subprime consumers receiving more card offers
by Clinton Hultman | February 1, 2011 - 12:42pm ET
In recent years, many Americans have been denied new credit cards because of past delinquencies and money mismanagement. As a result, many have had to turn to less secure methods for cash advances. For some 
this meant taking out payday and tax refund anticipation loans simply to make monthly bill payments.
However, new reports suggest that credit card offers are once again being extended to subprime borrowers at an increasing rate.
In its recent Mail Monitor report, market research firm Synovate found the number of overall credit card offers rose to 2.73 billion in 2010, up substantially from the 1.39 billion the company observed during the previous year. Many of these mailings were targeted at subprime borrowers, as consumers with high credit scores had been saturated by solicitations in years past.
Subprime borrowers are often defined as having a credit score below 600, with many having suffered their financial difficulties as a result of the economic downturn. Not only is the total number of offers to subprime consumers increasing, but many are now coming with benefits such as cash back, zero percent introductory rates, and other advantages.
Despite the tempting offers, subprime borrowers should still exercise caution with their credit use. By reducing late payments to lenders and other bad financial habits on new credit cards, consumers could soon find their interest rates and overall fiscal health improve.
this meant taking out payday and tax refund anticipation loans simply to make monthly bill payments.However, new reports suggest that credit card offers are once again being extended to subprime borrowers at an increasing rate.
In its recent Mail Monitor report, market research firm Synovate found the number of overall credit card offers rose to 2.73 billion in 2010, up substantially from the 1.39 billion the company observed during the previous year. Many of these mailings were targeted at subprime borrowers, as consumers with high credit scores had been saturated by solicitations in years past.
Subprime borrowers are often defined as having a credit score below 600, with many having suffered their financial difficulties as a result of the economic downturn. Not only is the total number of offers to subprime consumers increasing, but many are now coming with benefits such as cash back, zero percent introductory rates, and other advantages.
Despite the tempting offers, subprime borrowers should still exercise caution with their credit use. By reducing late payments to lenders and other bad financial habits on new credit cards, consumers could soon find their interest rates and overall fiscal health improve.
Article filed under: News & Reviews
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