Friday, September 24, 2010

Credit Card Mystery

Almost every day, I receive preapproved credit card offers in the mail. Isn't this supposed to be a credit crunch? What gives?

I've no idea why they think I should have more credit. My income is so small that if it wasn't for my unusual lifestyle, I'd be desperate. My expenses are dramatically lower than most people's, so we survive. My wife hasn't worked for a year and a half. Currently, I'm running a bit late on my property taxes.

Yet day after day, more credit card offers roll in.

I've no savings in the bank. My emergency funds have been cleaned out by emergencies. In fact, my emergency emergency financial backup plan was credit cards. Then more emergencies hit and I did have to use the credit cards. Really hated to do that, but I made a decision that credit card debt, as evil as it is, was the lesser evil.

The only thing that makes sense to me why I get all these credit card offers is that the ones I already have are being paid. Just paid one off completely. That's a good feeling. There haven't been any late payments because my nice single digit interest rate would skyrocket.

Still, it's not much to recommend me for more credit. My local banks wouldn't give me any sort of a loan right now. They know me and see how little my income is. That's fine, as a loan wouldn't be a good thing right now anyway.

However, the big banks keep sending me credit cards. Banks that had really bad relationships with want me to have credit. Don't they check their own records? There are reasons why I now deal with a local Credit Union for most of my business.

My current plan is to pay off the back taxes as soon as possible. Then the existing debt on the credit cards get the ax.

The absolute last thing I need is another credit card. One good thing, at this time of year, that junk mail comes in handy for starting the woodstove.



  1. I'd use the credit card to pay off the taxes if that situation starts to go critical. Then get together a small pile of cash and offer to settle with the credit card for whatever they will take and you can afford.

    The tax man can take your house. The credit card company can't.

    Good luck.

  2. I think that they just send those applications out in bulk mailings. They don't bother checking anything until you reply.

    The only card I have is a Gold AMX card. I have paid off everything. I tried to get a visa/master card, since some RV parks don't take AMX, but was turned down because I didn't have enough credit activity. (only paying on Motorhome) I have never been late in any payment and have money in the bank. So who are they really looking for? Someone who has a history of too much credit?