| If you're credit score has plummeted recently, you will | | | | Plunkett, subprime credit card issuers are wizards |
| find that it is extremely difficult, although definitely not | | | | when it comes to identifying customers who are so |
| impossible to get a credit card. | | | | desperate for a credit card that they'll apply for a card |
| It can be done, just expect to pay colossal amounts in | | | | even if it's against their best interests." |
| fees and monthly charges. | | | | The people behind these cards know how to prey on |
| The thing with getting a credit card with a bad score is | | | | people to make them believe that a subprime card is |
| that the industry thrives upon these people, so | | | | their only chance, when in fact that is not true at all. |
| desperate to get a line of credit that they will overlook | | | | The catch with these cards is that most of the fees |
| the horrible terms and conditions of these credit cards | | | | eat up the majority of the beginning available credit limit. |
| that often times just make their financial situation a | | | | A typical subprime card will start out with a $300 limit |
| whole lot worse than it already is. | | | | but will have a medley of fees including processing |
| When you have a low credit score and are looking to | | | | fees, annual fees and maintenance fees, just to name |
| get a credit card there are normally two options | | | | a few. |
| available to you - a subprime card and a secured card. | | | | If you find yourself in a situation where you can not get |
| Although consumers are fooled everyday, a secured | | | | approved for a regular credit card, you are much |
| credit card is definitely better than a subprime card - | | | | better off skipping out on a subprime card and going |
| almost under any circumstance. | | | | with the much more economical secured credit card. |
| Subprime cards are never really a good idea, and they | | | | There is no sense in paying all of those subprime fees |
| normally charge ridiculous amounts in fees and | | | | when there are other options out there. |
| maintenance charges. | | | | "What desperate consumers don't seem to know is |
| But many people do not realize this. | | | | that there is a better way. So-called secured credit |
| A February 27, 2007 article by Gregory Taggart of | | | | cards cater to the same risky market, using a better |
| Bankrate.com, "Nobody's ready for subprime time," | | | | model and at a much better price. They're called |
| discusses the drawbacks to taking out a subprime | | | | 'secured' because the card's credit limit is secured by a |
| credit card and how taking out a secured card is the | | | | savings account of equal or greater value opened at |
| way to go. | | | | the issuing bank. For example, if you apply for and |
| "Why would consumers who have debt trouble opt for | | | | receive a $300 credit limit, the bank or credit union will |
| a fee-laden subprime credit card rather than a less | | | | expect you to deposit $300 into a savings account." |
| expensive secured credit card? 'Marketing. Marketing. | | | | The secured card is clearly a better choice when |
| Marketing.' That's how Travis Plunkett, the legislative | | | | pitted against a subprime card. Do your research and |
| director of the Consumer Federation of America, | | | | look into a secured card as a good way to help rebuild |
| responded when asked the question. According to | | | | your credit. |