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