They arrive in your mail - a conspicuous looking mail piece from some "official looking" bank claiming that you have been Pre-Approved for a Mastercard or VISA credit card.
Of course, you don't have to have any credit. You can even have bad credit or have just filed bankruptcy or even be rated as a "slow payer."
It doesn't matter because these companies want to give you a second chance! These companies want to make it easy for you to obtain a credit card because they only want your money!
How the thing works is that you must send $35 to receive an application that provides you with a name and address listing of banks willing to give you a VISA and/or Mastercard without any credit approval.
That's a stiff price to pay for a sheet of paper, don't you think?
The instructions that come with the application will let you know how the scheme works.
You must open up a bank account with the bank once that bank approves you.
Big deal!
They make it appear that you have won some contest or something and people will feel "good inside" that someone has approved them.
But that's not all....
The minimum amount you must deposit is $200 but you can deposit as much as you want.
In return, you get a Mastercard or VISA credit card with a credit limit up to the amount you deposit.
Wow!
What a great honor!
This is no break! Think about it. If a stranger gave you $200 to hold for him until Friday wouldn't you feel safe in granting them a $200 loan? I mean it's their own money you've got. If they default, you've got the full amount to pay off the loan. It takes a twisted mind to take $200 from you, grant you $200 credit with your own money plus charge you astronomical interest rates just to take the money from your hand and give it back to you.
That's insane!
Of course, to combat this insanity, the great and wonderful banks claim to help fix your credit report. They say that if you maintain payments in a correct fashion, this information will be reported to the credit bureau.
Yea, right!
When Shell calls the credit bureau to check your credit for a gas credit card, your report shows 47 defaulted loans and a bankruptcy.
However, there is one company that you make payments to on-time. Big deal. Don't you think the rest of your bad credit will still be the deciding factor in Shell's final decision. You bet you bottom dollar!
Look at this: the bank makes money from the interest of your deposit.
The bank also makes money by charging you 18% to 22% interest for the right to use their Mastercard or VISA. Plus the bank is guaranteed their money because if you don't pay on time, they take the money out of the bank account you opened with them along with any interest you have accumulated.
Why would anyone with $200 to deposit want a credit card with a $200 limit?
If you have $200 and want to buy an item for $200, go out and purchase it. That way, you'll own it lock, stock and barrel. No interest, no payments, no hassle! Plus, you won't owe your soul to the company store sort-of speak.
Credit is ofcourse a wonderful thing if you use it intelligently.
I know people who charge $100 at the beginning of the month and use that $100 to make $300. It's free money for 30 days. Then, when the bill comes, they immediately pay the entire balance and come out smelling like a rose with $200 to the good.
Or how about the legendary direct marketing millionaire "Harv T. Eker", who used his credit card to buy a "near-bankrupt" business for $2000. Within a year, he turned that business around into a multi-million dollar company.
Now that's intelligence!
On the other hand, credit is also needed in certain circumstances for establishing clout. You can't call in a telephone order unless you can charge the purchase to your credit card. This delays you getting items you want now. I guess that's a bumer for some people out there with no credit cards.
Copyright © Andre Vas, Direct-Credit-Card.com, All Rights Reserved.
Here's a GREAT FREE resource with everything you'll EVER
need to know about credit/debt management, credit cards,
and applying for the BEST one:
==> http://www.Direct-Credit-Card.com
A good credit history is critically important for the consumer.... Read More
Credit score is the key factor determining approval of almost... Read More
There are many of us that have been badly stung... Read More
When applying for a loan to purchase a car, the... Read More
The credit card companies make billions each year in legitimate... Read More
Everywhere we go, the word credit can be found, shining... Read More
"Easy Low Down Monthly Payment," "Buy Now Pay Later," "You... Read More
Your credit history is an important aspect of your life.... Read More
Are you one of the thousands pulling your hair out... Read More
When I received my first credit card in the mail... Read More
If you've ever applied for a credit card or loan,... Read More
There are times when you may be turned down for... Read More
Your credit file may not reflect all your credit accounts.... Read More
A lot of people spend more money than they can... Read More
You can stop receiving credit card offers in the mail!... Read More
Mark and Beth, a young married couple in their twenties,... Read More
Now in a world with so many easy to get... Read More
There are always some companies that have past due invoices... Read More
They arrive in your mail - a conspicuous looking mail... Read More
You've just received a "pre-approved" credit card offer in your... Read More
I remember back when I was 18 and completely oblivious... Read More
Credit card debt is a major social problem in some... Read More
You may already have 2 or more credit cards in... Read More
It's the number one source of consumer complaints at the... Read More
Have you ever wondered why your credit card bill is... Read More
Debt negotiation on credit cards is often referred to as... Read More
A "rate tart" is someone who switches from one zero... Read More
Most families in America today have a credit card; some... Read More
In the twenty-first century, there are few documents that have... Read More
The first rule when applying for banking and credit services... Read More
Chances are you have received your share of "pre-approved" credit... Read More
1) Do your homework. Applying for and getting approved for... Read More
Let's face it, if you are facing the possibilities of... Read More
If you want to purchase a new home or refinance... Read More
Consumers often have the first credit card that they ever... Read More
You probably don't need me to tell you credit cards... Read More
The Federal Fair Credit Reporting Act (FCRA) is designated to... Read More
Years ago your credit score was a big secret, known... Read More
Whether you are aware of it or not, credit bureaus... Read More
When you are deciding what type of credit card to... Read More
Are Credit Card companies starting to feel the pinch? We... Read More
If you want a cash advance or a payday/paycheck loan,... Read More
How Lenders Operate ? And How They'll Make a Tidy... Read More
Having a better credit score not only represents easier access... Read More
If you're like the average person, let me warn you... Read More
Do you know what your credit card is truly costing... Read More
Credit card debts problem is extremely common today. It is... Read More
Imagine opening your credit card statement one morning and discovering... Read More
As you probably know, interest rates are at all time... Read More
Here are some useful tips on using credit cards. Whether... Read More
1- Check your credit report regularly2- Secure personal information in... Read More
In the twenty-first century, there are few documents that have... Read More
Credit needed for real estate mortgage financing differs from credit... Read More
What is Credit?Credit is the backbone and the engine behind... Read More
Today, credit is an indispensable part of our lives. In... Read More
For years, major credit card companies have allowed cardholders to... Read More
What Is Your Credit Rating Now?If you have any charge... Read More
You hear people talk about credit reports all the time... Read More
If you have considered credit counseling as an option to... Read More
Credit score is one of the most basic, determining factor... Read More
Credit and charge card fraud costs cardholders and issuers hundreds... Read More
In order to determine a consumer's credit worthiness, creditors and... Read More
Parents have the full responsibility for their children and their... Read More
When you buy real estate, lenders run all of the... Read More
Your credit score may just be a little number, but... Read More
"Erase Bad Debt !""Remove Negative Items From Your Credit Report"You've... Read More
Credit |