Credit card offers that tempt

Last Friday, this credit card news blog carried a report about the enormous increase in offers that credit card companies are mailing to prospective customers. The numbers are staggering: in the last quarter of 2009, 551 million such solicitations were sent out; a year later, that number was 1.4 billion.

These statistics come from Mintel Comperemedia, a company that describes itself as "a service that provides direct marketing competitive intelligence." And, last December, one of its senior vice presidents, Andrew Davidson, revealed an insight that a lot of us could find strange: many recipients of junk mail don't regard it as junk at all. A surprising 24 percent of Americans studiously compare the card solicitations they receive, prompting Davidson to observe: "Consumers are doggedly persistent when it comes to comparing credit card offers, and will use the rewards program with the best cash-back rate or highest points return per dollar."

Credit card companies competing for business again

On March 31, Davidson followed up his remark with another insight:

Competition is intensifying in the credit card industry as the volume of credit card offers continues to rise. As a result, credit card issuers are starting to look for new ways to stand out in an increasingly cluttered mailbox.

Credit card applications worth making

So the fact that Americans are being selective about the credit card applications they're prepared to make is forcing card issuers to come up with ever more enticing deals. And, right now, there are a couple of offers in particular that are well worth exploring.

However, there are two caveats. First, few credit card companies are interested in attracting those with poor credit scores, and many offers are available only to those with good or excellent reports. And, secondly, offers come and go, and you may have to act quickly to catch the one that's best for you.

Chase Freedom� Visa

One of the outstanding credit card deals at the moment is the Chase Freedom� Visa card. At a time when many card issuers are scaling back their sign-up bonuses, Chase has chosen to maintain the one on this product. You get $100 cash back providing you spend at least $500 on the card during the first three months after it's issued.

This credit card may not be right for those who regularly carry forward large balances because its APR varies between 12.99 and 22.99 percent, depending on your creditworthiness. However, it has no annual fee, and offers a generous rewards program. You get 1 percent cash back on all purchases, and a further 4 percent (making 5 percent) on those made within categories that change each quarter. There is a cap on the amount of 5-percent rewards you can receive in any given quarter.

Balance transfer credit cards--standout deal

Anyone looking at balance transfer credit cards should almost certainly have the Discover� More--18 Month Promotional Balance Transfer card high on their short list. Yes, you have to pay a 3 percent balance transfer fee, but after that you get an exceptional--probably unique--18 months paying zero percent APR on the amount you transferred.

And that is one of the all-time outstanding credit card deals, at least for those who need a break from interest payments.

Published 4/21/11 (Modified 4/23/12)