MINTELs Comperemedia Reports Drop in Credit Card Direct Mail

According to MINTELs Comperemedia, consumers received fewer credit card offers in 2003 compared to 2002, with a decrease of 17% or almost 750 million offers. This is despite the fact that credit card estimated mail volume increased by 4% in November 2003 compared to October 2003. Card issuers continue to offer introductory rates of 0% on almost half of all offers mailed. The amount of time the introductory rate was applicable decreased compared to previous months and is more likely to be for six to seven months, compared to 12+ months as seen earlier in the year. Balance transfer offers continue to be prevalent as well, and some offers have rates that are applicable until the customer pays off the entire transferred balance. The interest rates on these balance transfers are higher, with the majority falling between 2.99 and 3.99%. Rates on life of balance offers have been lower over the past two months, falling to as low as 2.99, from up to 7.99%. Late fees increased over the past few months; 64% of all offers tracked in November had a late fee of $35 and 17% had a late fee of $39. The $39 late fee first appeared in August 2003, and has increased in popularity each month since.