Free Annual Credit Report

If you’ve been through bankruptcy or other tough financial times but your problems are behind you, or you’ve never had credit, you may be considered an excellent candidate for a credit card. Your creditors won’t tell you this. It’s an industry secret they’d like to keep that way.

Credit card issuers send out approximately three billion solicitations each year to American consumers. This number represents an enormous growth since the early 1990s. While the number of American adults hasn’t risen that dramatically, the number of American people now considered creditworthy has. And all of these credit cards can take a big toll on your free credit report.

Credit card issuers operate in a fiercely competitive environment. People who have been through bankruptcy are now considered great credit risks—their debt is gone, they have a history of using credit and they can’t file for bankruptcy again for another six years. In fact, a Texas bankruptcy judge asked a couple who filed for bankruptcy to keep track of how many credit card solicitations they received during the two-year period after they filed their case. The total: 53, with credit limits ranging from $100 to $20,000. Talk about damaging to your credit report.

And people who have been through bankruptcy aren’t the only people with stuffed mailboxes. New immigrants, low-wage earners and others traditionally kept out of the credit world are being invited to participate at astronomical rates, all of which will have a dramatic impact on their free credit report.

Beware of all these offers. They are not meant to be flattering nor are they a sign that you can afford more credit. Credit card issuers are looking for consumers who will run up big balances and pay a lot of interest. And in return you’ll end up with some stuff you don’t need and a low score on your free credit report.