Sometimes it feels like the only things I get in the mail are bills and credit card offers. But for a lot of people, the credit card offers are becoming fewer and fewer. Less junk mail may be a mixed blessing, though. This week, Tracy Davidson, consumer reporter for WCAU in Philadelphia, explains how it's getting more difficult to get credit when you need it—and what you can do about it.

You Never Thought You'd Miss the Junk Mail
by Tracy Davidson

If you think your prayers have been answered and your mailbox is no longer filled with credit card offers you don't want—you're right. Lenders have tightened their standards. Fewer offers are going out. Zero-balance teaser rate offers are down about 15% over the last year and the rules have changed for many of the credit card offers that are out there. If they have low interest rates, chances are good they have more stipulations and fees. For instance, some might require you to make two purchases a month in order to keep that low rate. Otherwise that low interest rate is not so low anymore. And that higher rate can actually cost you a lot over time, especially if you carry a balance. Creditors are really increasing the number of things that can trigger a higher interest rate so, when you're shopping around for the credit card that fits you the best, look really closely at the fine print. There are lots of Web sites to help you compare cards including bankrate.com, lowcards.com and creditcards.com.

Getting the best rate
What can you do to get the best rate? As with so many things, it goes back to that all-important credit score. The better your score, the better the interest rate. It's really simple. And improving your score is really simple too—but that doesn't mean it's easy.

First, pay your bills on time. It's the single most important component of FICO scores. Recent, frequent and severe delinquencies dramatically lower your score. So do everything you can to pay on time. You might even consider automatic bill paying.

Second, if you're behind on any bills, contact your lender and try to make alternative payment arrangements. Do it now! Don't put it off.

Third, keep your balances low. I know it's easy to think, “Well, I'm not to my limit yet." But higher revolving balances as a percentage of your total available credit limits make you a higher credit risk.

So the bottom line on this topic on the consumer side—even though you may have less junk mail to sift through these days—is you have to be smarter than ever. Companies who want your money are usually great on the “sell." They'll put the benefits in BIG, BOLD print, but all those added fees? They'll look a little more like this! So even if you have to invest in a pair of reading glasses from the corner drug store, do it so you'll know what that card could really cost you!

Check out All That & More with Tracy Davidson.

Read more of Tracy's blog posts.