Should you consider prescreened credit card offers that come in the mail? (2024)

If you frequently receive credit card offers in the mail, you're not alone. Card issuers do this to expand their customer base and reach a wider target audience. These are called prescreened offers as the company has identified you as a prime candidate for a card. But should you be interested in these offers?

CNBC Select explains why you might receive credit card offers in the mail, how they might affect you and how to opt out should you wish.

• Why do card issuers send preapproved offers?
• How does prescreening work?
• Should I consider applying for a card offer I received in the mail?
• Can I opt out of these offers?
• Bottom line

Credit card issuers may send you offers in the mail because they have identified you as part of their target audience for a certain card. They treat them as marketing material to persuade you to open a specific card.

With prescreened offers, card issuers can eliminate a large portion of the population that would not be approved for a specific card for one reason or another, and target more ideal candidates. If someone receives an offer for a card that they were prescreened for, they can know that they typically will have a higher chance of being approved, and might be more likely to apply.

The Fair Credit Reporting Act (FCRA) regulates how credit reporting agencies can collect, access and use the information they receive regarding your credit history. Under the act, credit bureaus are allowed to provide your information to certain entities upon request, such as credit card providers.

Selling credit information is one of the main ways that credit bureaus make money. So the card issuer will put together a list of certain minimum requirements, request a list of people who fit that criteria from a major credit bureau, and then send those people offers in an attempt to get them to apply for the card.

Taking advantage of a prescreened offer is simple. If you received a prescreened offer in the mail for the Citi Double Cash® Card, for example, you can apply by going to the website listed in the offer and entering your invitation code. Since this is a unique code, some personal details, such as your name, may automatically populate on the application. Of course, if you don't have the invitation handy, you could always go straight to the card application through the bank's website.

Most major card issuers, such as Chase, American Express, Capital One and Wells Fargo, send out prescreened offers. Not only that, but they may send them out for a variety of cards, ranging from no annual fee cards like the Wells Fargo Reflect® Card to travel rewards and premium credit cards.

Whether you should consider applying for a card offer received in the mail depends on your situation. For example, are you already on the market for a new credit card? Sometimes mailed offers have special terms or bonuses you won't find online. At the very least, they will give you an idea of the types and ranges of cards you have a good chance of being approved for.

For those who are considering applying for a new credit card, Experian offers a free credit monitoring service that gives you a one-stop look at your credit profile. This can not only help you check your approval odds before applying for a new card but also monitor how your score changes during your application process.

Choosing to apply for a card depends on many different factors, one being the quality of the card. Does it have reasonable rates and fees? Would you be able to meet the welcome bonus requirements? Does it offer other benefits like cash-back or travel rewards?

Each credit card offer you receive in the mail could be different, so if you're in the market for a new card it doesn't hurt to keep them in mind. Just be sure to check that it's from a legitimate card issuer, the card agreement fits your needs and that you haven't had too many hard credit checks recently.

Remember, prescreened, prequalified and preapproved offers represent the probability that you'll be approved for a credit card, but do not guarantee you'll be approved.

If you've grown tired of the seemingly endless stream of credit card offers in your mailbox, it is possible to opt out of receiving these. In fact, it's your legal right.

OptOutPrescreen.com is an official site created by the major credit bureaus, and "prevents Consumer Credit Reporting Companies from providing your credit file information for firm offers of credit or insurance that are not initiated by you."

You can opt out of prescreened offers for either five years or indefinitely. Requests to opt out for five years can be completed online or over the phone, while permanent requests require you to sign and mail a form.

It's important to note two things, the first being that this only prevents unwanted sharing of your credit information, if you choose to apply for a credit card or a loan willingly, they can still access your information. The second is that you can easily opt back in at any point in time, your decision doesn't need to be permanent.

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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of financial products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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