How many credit cards do you have in your wallet? With Creditcards.com reporting 6 billion credit card offers mailed to consumers in 2006 and with a recent credit card study showing 14 percent of Americans now sporting more than 10 of these plastic passports, simply getting off the card companies? mailing lists might be a good step toward financial independence.
It?s a move underscored by the fact that the average American family, according to the online card-comparison company, now maintains $9,000 in revolving debt.
“Don?t be so flattered [by the numerous offers] and be careful who you do business with,” said Gary Martin, vice president of lending for MECU, an $800 million-asset Baltimore City credit union. “There are so many ways ? other than interest ? that most credit card companies make their income, and it?s off all the other fees that are charged.
“There?s penalty pricing, there?s over-limit fees, there?s late fees, there?s fees to use the card, fees to access by check ? no matter what you do, you?re going to be charged ? and generally the interest rates are adjustable. … It?s the credit card companies that now are the modern loan sharks. They?re the ones out there trying to get your money.”
The Experian Consumer Direct study of 3 million credit files also found that U.S. consumers on average have four credit cards; 14 percent of the population uses 50 percent of its available credit and carries at least six credit cards; and that this six-credit card group has a lower credit score ? 645 versus 674 ? than the national average.
Creditcard.com?s Ben Woolsey says he thinks the 10-plus card group likely includes people with unused store credit cards, and this, he says, is a big red flag for credit rating agencies. “It makes you look like you have the potential to really get in trouble,” he said, “even if you?re not using it.”
Woolsey recommended resisting store bonus offers for credit card applications and ? especially if you?re being flooded with unwanted, preapproved credit card offers ? getting off the mailing lists.
To do this, he said, go online or call 888-567-8688 to stop the credit bureaus from selling your information to mailing lists. Or contact Equifax (800-685-1111), Experian (888-397-3742), and Trans Union (800-916-8800) directly.
