In the past, consumers facing money problems rarely got new credit card offers. Lenders individually reviewed credit reports and chose not to offer credit to consumers they considered bad risks. More recently, however, lenders buy huge mailing lists and offer credit to everyone on the list without further evaluation. Many news stories have documented that credit cards are offered by mistake to children in kindergarten, family pets, people who have died and to prisoners in jail. In this environment, it isn't surprising that people experiencing financial problems, including debtors in bankruptcy, continue to get offers for new credit cards.
Credit card offers can be very enticing.
Nearly every offer promises some special benefit to a new card. In some cases, the offer is for a low rate. In others, no annual fee is promised. Still others advertise free goods or services, low minimum payments, frequent flyer miles, cash back, special member privileges and contributions to schools or favorite charities. These offers, however, never discuss the downside of a new card or the potential risks.