Is it still worth applying for credit cards by mail?

Applying for a credit card used to be a simple matter. The offers would arrive in the mail pre-approved, or more often an application form would be sent, to people the credit card company had identified as a likely prospect. The credit card companies were dependent on the mail service, and the company’s selection of attractive applicants could make the difference between a successful credit card launch and a failure.

The internet changed a lot of that. It’s now possible for an applicant to find a suitable credit card online, enter the details, and be told quickly whether he or she has been approved or not. This tends to be considerably less costly for the bank, and often these lower costs are passed to the customer. As the credit card applicant has a wide range of offers to choose from, the terms and conditions also tend to be better online. In short, in the old days of mailing the credit card providers chose the customers, while with the internet the customers choose the credit card.

However, credit cards still send out mass mailings, although not nearly as many as previously, and some people ask whether it is worth applying for a card offer received through the mail.

There are two advantages to consumers choosing credit cards from direct mail offerings. The first is that, if they have not previously paid much attention to the price of credit, this gives them an opportunity to do so. It is still the case that direct mail is one of the best ways to reduce credit card costs for the person who does not pay much attention to the personal finance market.

Another advantage of direct mail is that the terms and conditions are in an easier-to-read format, and they can be gone through at some leisure.

However, there are disadvantages, the main one being that the applicant is unable to compare various credit cards on offer through different providers. It won’t be easy to check the low interest period or interest rate against other cards on the market. The problem on the internet is the opposite, in that too much choice can mean that a credit card is never chosen.