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