Many articles that focus on credit or credit cards by nature will tend to discuss the issues in terms of a person with bad credit. After all the assumption being made here is that the person with bad credit is the person that needs assistance. And this is probably true from a conceptual standpoint; people with bad credit, unless they landed in that position because of something beyond their control (i.e. being laid off or incurring a personal debilitating illness) are more likely to be looking for assistance than people with good credit.
After all a person with good credit has earned the right to be able to sleep easy at night and not have to worry about their personal finances. A person with good credit has spent their money responsibly and never used their credit card when they did not have the money to pay for the balance. There may have been a few instances of the impulse buy but on the whole people with good credit do not carry much debt beyond their mortgage and run their financial lives with a calm sense of discipline and diligence.
And what do they get in return for this? A huge stack of envelopes each month with the words “You’re Pre-Approved!” written across each one in thick block letters.
Many people just throw these envelopes out without opening them and there is absolutely nothing wrong with this plan. If you are a person in this situation however, have you ever considered the possibility of actually opening them and reading them? It won’t take more than maybe thirty seconds to quickly scan each advertisement and what you find might end up surprising you.
Many pre-approved credit cards come with permanent lower interest rates and very low fee reward programs. These are absolute gems of credit cards because as long as you keep managing yourself in the same diligent and disciplined way you are going to accumulate a lot of rewards in a very short period of time (this is somewhat dependant on how much you spend as well but if you use your credit card for most of your purchases as most people with good credit do then this still holds true).
Basically what you are doing by reading these advertisements is making sure that you do not miss anything that you might regret. There have been many people over the years that have thrown away a pre-approved envelope only to see a commercial on television a week later for the same credit card with a higher interest rate and lower rewards. People are generally aware that a credit card company will charge a higher interest rate to people with bad credit but what they may be unaware of is that the reverse also holds true. People with good credit have the ability to get lower interest rates on their credit card purchases.
So the next time you pull in the mail and see an envelope with those magic words stamped across it have a look at the contents before you throw it out. After all, you’ve worked very hard to get your good credit score; don’t you think that you should start enjoying some of the benefits of it?