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GUARANTEED CREDIT CARD APPROAL!!
100% APPROVAL - GET THE CREDIT CARD YOU DESERVE!!
BANKRUPTCY? BAD CREDIT? YOU ARE ALREADY APPROVED!
CALL NOW AND GET YOUR CREDIT CARD.
Ads such as these are specifically targeted towards those people who have poor credit, but are eager
to get a credit card to rebuild their credit history. The vultures, which operate this type of
credit cards schemes offer very little in return for what little service they provide. These
operations will use deception to advertise what appears to be a major credit card through television,
newspapers, internet and mail offers.
Secure credit cards are an excellent method to re-establish your credit rating. It allows you to
show creditors that despite your financial setbacks, you are not capable of using a credit cards
and making your payments on time.
Secured Credit Cards
Both secured & unsecured credit cards can be used to purchase goods & services, however a secured
credit card requires you to open and maintain a savings account as security for your credit card.
The savings balance required ranges from a few hundred to a few thousand dollars. The credit
limit is percentage of your savings deposit (typically from 50 to 100%). Most banks usually pay
interest on your deposit
The downside to a secured credit card is you may face a hefty application and processing fee. You
will also have to deal with higher annual fees and higher interest rates.
Mail Offers
What can be more flattering than receiving an offer in the mail that states:
YOU HAVE BEEN APPROVED FOR A CREDIT LIMIT OF $2,500.00 !!!
GET YOUR VERY OWN CREDIT CARD SPONSORSHIP !!!
100% GUARANTEED APPROVAL !!!
You read this and you get all excited so you decide to call the phone number. Be careful
if it is a "900" number as you will be billed for the phone call. The "customer service"
representatives convince you that you are eligible for a VISA or MasterCard with a credit limit
of $2,500.00 regardless of your credit. You are required to pay a $129.99 processing fee (or some
other amount) in order to receive your credit card. The fee is either debited from your checking
account or charged to an existing credit card.
You eagerly await and finally receive your "credit card package". What you will find is that you
have not received a VISA or MasterCard, but some other card that can only be used to purchase
certain merchandise from a catalogue. You will be forwarded a sponsorship for a VISA or MasterCard.
All you end up receiving is a regular application form for a credit card that is forwarded to a bank.
You could have accomplished the same thing by simply picking up an application at your local bank.
Protect Yourself
Don't be fooled into one of these programs. Some of the warning signs to look out for include:
- Offers of easy credit
- Calling a "900" phone number (which may cost you anywhere from $2 to $50)
- required security deposit, processing & application fee
- higher than average annual fee
- most secured credit card schemes do not report to the credit bureaus
- This does nothing to help your credit rating
- Higher than average interest rates
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