Credit Card Traps: How To Spot Them On The Spot! - Credit

Credit Card Traps: How To Spot Them On The Spot!

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

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