| Your credit is bad. Perhaps you have a | | | | are not. Cards with no annual fee almost |
| string of unpaid bills haunting your past. | | | | always have a higher interest rate. If you |
| Maybe you declared bankruptcy within the past | | | | leave a monthly balance, you'll always pay |
| 10 years, or defaulted on a student loan.All | | | | more than the annual fee in interest charges. |
| of the above can block your access to | | | | Only if you never leave an unpaid monthly |
| obtaining a major credit card, such as VISA | | | | balance can you benefit form a card with no |
| or Mastercard.But bad credit is not the only | | | | annual fee.================== |
| reason you can be denied a major credit card. | | | | |
| Some people simply have never used credit. | | | | Perks and Freebies |
| People who like to pay cash only, have never | | | | |
| financed a car, taken out a college loan, or | | | | ==================One of those insidious |
| a mortgage may have zero experience with | | | | ways is the offer such perks as frequent |
| credit. In that case, most card companies | | | | flier miles or annual rebates. Use the card |
| will reject your application, not because you | | | | so often, and get X amount of frequent flier |
| have bad credit -- but because you have no | | | | miles. Use your card, and get credit toward |
| credit rating.Many women who marry young and | | | | the purchase of an automobile. Is this a |
| do all their borrowing under their husband's | | | | good deal? Hardly ever. As you might have |
| name often find themselves with no credit | | | | guessed, the offer of rebates and gifts is |
| rating after they are widowed or divorced. | | | | simply an inducement for you to pay super |
| Thousands of women have been denied loans and | | | | high interest rates. Unless you are a big |
| credit cards on that basis.Still other people | | | | spender and travel a lot, you'll rarely |
| carry too much debt to be considered a good | | | | benefit from this kind of |
| risk. If you have a car loan, a student | | | | promotion.========== |
| loan, a mortgage, two or three -- out cards, | | | | |
| you are unlikely to be granted another credit | | | | Be Choosy |
| card.But in any and all of the above cases, | | | | |
| you can still obtain a credit card. No matter | | | | ==========In short, never sign up for a |
| how bad your credit, and even if you have | | | | credit card until you compare rates. Shop |
| declared bankruptcy, you can still be granted | | | | around. Credit card companies are just as |
| a VISA or Mastercard with a limit as high as | | | | competitive as any other kind of business. |
| $5,000, if you know the right company to | | | | That means interest rates that vary widely. |
| call, and how to make your application.We are | | | | In general, never go for a card that is five |
| going to reveal these card companies and the | | | | percent higher than the current prime |
| methods by which you can obtain a VISA or | | | | rate.======================== |
| Mastercard later in this report, but first, | | | | |
| let's talk about some of the other things you | | | | How To Get A Lower Rate |
| really should know about credit cards, | | | | |
| including annual fees, interest rates, credit | | | | ========================What if you are |
| reports and more.================== | | | | already on the hook with a major credit card |
| | | | with an agonizing rate of interest? Pick up |
| Your Credit Rating | | | | the phone, call your card company, and get |
| | | | tough. Often, if you ask for a lower |
| ==================How do credit card | | | | interest rate, you'll get one -- it's as |
| companies decide if you are a good credit | | | | simple as that.As further incentive, you can |
| risk or a bad credit risk? Well, it's sort | | | | threaten to transfer your balance to another |
| of a Big Brother thing. There are several | | | | card company with a lower rate. Many card |
| large agencies in America which track the | | | | companies are more than willing to take you |
| borrowing and buying behavior of just about | | | | on as a customer by paying off one of their |
| every single American who has borrowed money | | | | competitors for you. Of course, you are then |
| at one time or another.The four major credit | | | | beholden to them. That's okay if you score a |
| rating agencies are:CSC Credit Service :: | | | | lower interest |
| (Phone: 800-392-7816) | | | | rate.================================= |
| | | | |
| TRW Information Sys. :: | | | | How Anyone Can Get a Credit Card |
| (Phone: 800-392-1122) | | | | |
| | | | =================================Now what |
| Equifax :: | | | | about all of you "hopeless cases" out there. |
| (Phone: 800-685-1111) | | | | What if you have deplorable credit, or no |
| | | | credit rating at all. You may have already |
| Trans Union Corp. :: | | | | been turned down by a half-dozen card |
| (Phone: 800-851-2674)When you send in an | | | | companies. What can you do?First, you should |
| application for a credit card, the card | | | | think long and hard about why you want a |
| company contacts one of the above agencies, | | | | credit card in the first place. If you have |
| which pulls your file, if one exists, and | | | | a history of bad credit, a credit card may be |
| let's the company know if you have any bad | | | | the last thing you need. Many people feel |
| debts in your background.If you have never | | | | that credit cards and the debt they lead |
| borrowed money or used credit of any kind, | | | | people into is a modern form of |
| your name will not appear in the data base of | | | | slavery.Credit cards are almost magically |
| any of the above. If you have, there will | | | | deceptive and alluring. They get at the |
| almost certainly be information about you. | | | | deepest psychological lever of the human mind |
| If you have ever defaulted on a bill, or | | | | -- a lever which allows people to have the |
| walked away from a debt owed, that | | | | feeling they are getting something for free, |
| information will be available. If you have | | | | when in fact, they are paying two, three, |
| never defaulted on a loan, but have made | | | | four, even ten times as much for that product |
| frequent late payments, that is recorded, | | | | because of the interest they will pay on each |
| too, and goes against your credit | | | | purchase.On the other hand, not having a |
| rating.====================== | | | | credit card is becoming less and less |
| | | | practical in modern America. You can't rent |
| 25 Percent Error Rate | | | | a car without a credit card. Carrying cash is |
| | | | dangerous. Checks are not accepted |
| ======================If this sounds a bit | | | | everywhere -- and traveling to another city |
| like Big Brother, most would agree with you | | | | or country is extremely difficult without the |
| that it is. It's scary to think that some | | | | confidence and identity a credit card |
| large anonymous corporation is keeping a file | | | | brings.=============== |
| on you, but it's true. Furthermore, they | | | | |
| will share your file with any lending | | | | A Secured Card |
| institution that wants to know something | | | | |
| about you. That's the price you pay to | | | | ===============If you decide you really need |
| obtain credit. You've heard the statement, | | | | and want a credit card despite your past |
| "there ain't no such thing as a free | | | | problems with credit, you should get what is |
| lunch."When it comes to the game of credit, | | | | called a secured credit card. Even people who |
| the lunch is definitely not free, neither in | | | | have declared bankruptcy are granted secured |
| the monetary sense, or in the realm of | | | | cards.A secured card works this way: you pay |
| personal freedom.To top things off, credit | | | | a lump sum of cash upfront either to your |
| agencies make errors in as many as one-fourth | | | | bank or the card company itself, usually from |
| (25 percent) of all their reports. At this | | | | $200 to $2,500. The card company will then |
| minute, false information about you may be | | | | grant your credit for up to 150 percent of |
| ruining your credit rating.To check your | | | | the amount of your deposit. If you pony up |
| credit rating for errors, call the agencies | | | | $500, you will be granted a $750 credit line. |
| at the numbers I provided above. They will | | | | If you put up $1,000, you will get $1,500 in |
| request that you send them a written letter | | | | credit, and so on.Your deposit money will |
| asking for a copy of your credit report. They | | | | earn a very nice 4 to 5 percent interest |
| will send you a copy of the information they | | | | while it is held as collateral by your bank |
| have about you.Now let's look at how card | | | | or the card company. The deposit money acts |
| companies make the big bucks -- interest | | | | like a buffer for the lender. In the event |
| rates.=============== | | | | you default on your card debt, the lender |
| | | | gets to keep your money. They may still incur |
| Interest Rates | | | | a net loss, but the risk is far |
| | | | less.Additionally, the interest you gain on |
| ===============A few decades ago there were | | | | your deposit will offset the interest on your |
| laws against charging the kinds of interest | | | | monthly balance if you have one. If you get |
| rates credit cards get today. Exorbitantly | | | | a secured card with an 18 percent interest |
| high interest rates were called "usury," and | | | | rate, you can feel good about the fact that |
| were forbidden by federal law. Just 30 years | | | | your pre-payment is earning 5 percent.Which |
| ago loaning money at 20 percent would have | | | | card companies offer secured credit card |
| landed any banker in prison. Such rates were | | | | plans?The following: |
| the territory of loan sharks and organized | | | | |
| crime.Today, however, it's standard business. | | | | (At the time of writing, these details are |
| Some cards have rates approaching 21 | | | | correct. If they change by any chance, you'll |
| percent. Some product manufacturers, such as | | | | have to look up the institutions in the |
| Apple Computer, have credit plans that push a | | | | Yellow Pages, or simply do a search |
| whopping 23 percent.Most credit card | | | | online.)CitiBank -- Minimum deposit is $300, |
| companies attract customers with super low | | | | which earns 4%. |
| interest rates, sometimes as easy as 5 | | | | |
| percent. But what they only tell you in the | | | | Call: 800-933-2484Federal Savings Bank -- |
| fine print, which few people bother to read, | | | | Minimum deposit is $250, which earn 2.5%. |
| it that the interest rate jumps back up after | | | | |
| six months. Many cards that start you out at | | | | Call 800-285-9090Orchard Bank -- Minimum |
| 6 percent soon jump to 18 percent, or higher. | | | | deposit is $400, which pays 4% |
| By that time, most people have chalked up a | | | | |
| balance and are stuck. Most people simply | | | | Call 800-873-7307Key Federal -- Minimum |
| fail to notice when their rate increases. | | | | deposit is $300, which earns from 4% to 5%. |
| Credit card companies count on that. They | | | | |
| like who take no interest in details. If you | | | | Call 800-228-2230Signet Bank -- Minimum |
| don't watch them, they'll watch you -- and | | | | deposit is $200, which earns 5%. |
| your wallet -- and dip into it in the most | | | | |
| insidious ways.==================== | | | | Call 800-333-7116.Using a secured credit |
| | | | card can also help repair your credit rating |
| No Annual Fee Cards | | | | if you use it responsibly over a number of |
| | | | years.Even if you do not have bad credit, a |
| ====================Some credit card | | | | secured credit card is recommended for anyone |
| companies charge no annual fee for use of | | | | who wants the safety and convenience of a |
| their card. Annual fees range from $18 to | | | | credit card. Secured cards are a safe, |
| $55. You pay it every year simply for the | | | | responsible way to control your spending, and |
| privilege of using the card. Other companies | | | | you actually earn money though interest on |
| charge no annual fee. You might think, then, | | | | your deposit while you enjoy the use of your |
| that this is a better deal. Most often they | | | | card. |