Junk Mail May Ruin Your Credit

Junk mail. Nobody likes it. Oftentimes, people will take a glance at the envelope then throw it in the garbage. But it’s crucial to give each letter a thorough look-through. Some credit card issuers are sending cardholders statements in plain, unmarked white envelopes that look like a solicitation, or junk.

Despite the fact that statements incognito can limit the probability that your credit card bill will be stolen from your mailbox by an identity thief, analysts say that consumers should be concerned about the statements that are unmarked. If you throw out a credit statement without looking at it, it can lead to large credit troubles.

The reason why credit card issuers have changed the look of the statements is because delinquencies at credit card companies are increasing more and more every day. Because of this, issuers are outsourcing more of their jobs to call centers and agencies. Third party agencies are prevented from a lot of techniques that the original creditors could have done. To avoid potential lawsuits and violation of law, agencies are now sending out statements using plain white envelopes.

Payment history is accountable for about thirty five percent of your credit score, and one missed payment due to the mistake of throwing the white envelope away can end up costing you a lot.

To keep unmarked bills from annihilating your credit score, pick a way to receive statements that is safer then the post office. Go online and track your statements there. Always open all of your mail, even if you feel that it may be junk. Create a list of your monthly expenses and all of your accounts. Include due dates for bills in this list.

In a recession it is imperative that consumers protect their finances and do their absolute best to keep an adequate credit score. Taking these simple measures might do a world of good.

Mallory Megan works for a debt collection agency. She also writes articles on business, finance, consumer spending and collection agencies.