Been Pre-Selected for People with Poor Credit History

pennypincher3562

Hi

This morning a letter dropped through my door. It was an application form for a credit card designed for people with poor credit history. APR about 35%, low credit limit (£1500.)

It mentioned in the letter that I had been pre-selected, and that the card was ideal for those 'trying to get their finances back on track, and rebuilding their credit limit.'

I've no idea why I've been selected for this card. I've spent years building up savings, almost paid off mortgage etc. I've got one small debt on an interest free card.

Should I be concerned that I've been selected for this card? I thought they would have done some research before sending me the application. Do they send out these applications based on the individual's credit profile, or basically to everyone in the same postcode?

Thanks
PennyPincher3562

stalkah

They would have purchased your details from another company at some point in the past. You haven't been "selected" or "pre-approved" as much as you would think. These are just marketing words, and general should have the words "to apply" after them, ie "selected to apply" or pre-approved to apply"

Find your nearest bin and feel free to deposit

pennypincher3562

Thanks Stalkah. In my head I though they would refer to my current credit record, before mailing me. Maybe this is too costly?

PennyPincher3562

stalkah

I don't think they could check your details with the CRA's until you was making an application. So it's just a general marketing hit and hoping some unfortunately desperate people will pick it up in hope of obtaining credit.

manami_mnm

What is the name of the card?

financialdisease

My other half got one of these letters this morning from capital 1 he is in credit card difficulties just now, it does make you wonder if there is some research behind it or just pot luck marketing?

pennypincher3562

Ive thrown it in the bin. It was a Capital One card. I did Marketing at uni, and reckon their must be some targeting involved. I'm not sure why, and how I'm one of the 'lucky ones' they picked.

At the moment all I can think of is my postcode is probably considered 'low income', or more unlikely they have some very outdated info on me.

'Pot luck' marketing would be very costly.

Cheers
PennyPincher3562

MPH80

Precisely - you're details have been bought from a company that the credit card firm consider to be ... in the right ball park ... they'll then cut that by postcode to see what the statistics are like ... then they'll remove existing customers if it's a 'by name' mail shot ...

And at some point the cost of customer acquisition is right against the cost of the leaflet shot.

But equally don't overestimate the thought going into these mail shots. A surprisingly number will simply hit an entire section of the country where they have names.

bouncydog1

pennypincher3562 wrote: »

Ive thrown it in the bin.

As it had your name and address on, you would be better to invest in a small shredder and put it through there first, to ensure nobody else applies for it in your name! We shred everything containing personal info!!

adindas

bouncydog1 wrote: »

As it had your name and address on, you would be better to invest in a small shredder and put it through there first, to ensure nobody else applies for it in your name! We shred everything containing personal info!!

My hand and is my shredder. It cost me nothing and do not need additional space.

bigadaj

adindas wrote: »

My hand and is my shredder. It cost me nothing and do not need additional space.

Yes, bit it's easier for you, Edward scissor hands.