Don't Fall For The Free MasterCard And Visa Rip-Off!
I'm sure you've seen them! You know the kind. They arrive in
your mail 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! Bull! This is a typical example of
what I personally call "A Legitimate Scam" - something that can
be done but has a hidden meaning that is non-appealing to the
average consumer.
Why would companies want to make it easy for you to obtain a
credit card? Do they like you? Do they want to help you because
they know you have been through hard times and need a break? NO!
They only want your money! You mean nothing to them!
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 VlSA. 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 - so-of-speak.
Credit is 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. 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.
In fact - some companies will try and make you feel "low class"
if you don't own a credit card. I am proud to say that I DON'T
OWN one. When I'm in a store and they say "Would you like to put
this on your charge?" I promptly say, "No, I pay for everything
I buy!" They immediately shut up. And if they would snap back
with a rude answer, I'd leave the stuff sitting on the counter,
walk out of the store and get what I needed somewhere else. You
don't have to take abuse just because you don't choose to line
the pockets of the rich credit card companies! It's insane!
If you've ever had a credit card and charged $200, you know you
end up paying back $400 or more (unless you pay the balance
within 30 days.) Stop allowing these "so called" banks to rip
you off.
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