How To Accept a New Credit Offer

Introduction

Accepting a new credit offer is not as simple as saying yes. Most of us have received new credit offers in the mail. They often come with big bold letters saying, "You're approved." However, it is not a good idea to automatically say yes just because we get a credit offer in the mail.

There are some steps that should be taken before accepting new credit offers. If after some careful research, you decide that you do want to accept, the process is quite easy. One word of caution to those who do receive credit offers, though it may say in large letters that you are approved, often in small print there will be something about pending credit evaluation. You do still run the risk of being denied, even though the company sough you out for the offer.

Step 1

Read the fine print, You will want to read all of the terms and conditions. These terms will include information about any fees that can and will be charged. Whether or not there is an annual fee for having the card. What happens if you are late with a payment or go over your limit. These are all things that that you must know in order to make an informed decision about a new credit offer.

Step 2

Determine the interest rate that you will charged. If the interest rate on this credit offer is higher than the interest rates on your other cards, you my want to pass on this one. A high interest rate is going to end up costing you quite a bit of extra money over the course of time it takes to pay down the balance. 

Step 3

Research the company. The Internet makes it easy to do a quick search on the company offering the new credit offer. You can also check with the Better Business Bureau. The more you know before accepting or declining the offer the better.

Step 4

Fill out the form with your personal information. If after your careful consideration you have decided to follow through and accept the new credit offer, you will have to fill out the form that came with the offer. You will have to fill out your personal information, such as name, address and telephone number. You will also need your social security number and usually there will be a question about employment and income.

Step 5

Either mail in the form or for some you can call a telephone number and submit your information that way. You may even be able to enter your information online.  Some credit offers that are called in or done over the Internet can be approved or denied within minutes. Others will take the information and send you an approval or denial in the mail.

Tips

Use caution when accepting credit offers. Too many credit cards can have an adverse impact on your credit rating. Do not charge your credit cards up to the limit. It is best to keep balances under half of what you have available.

Comments

Most Recent Articles