Is it true that anyone can get a big-name credit card?
You may have seen these ads or ones like them:
Separated? Divorced? Bankrupt? Widowed? Poor credit? No Money?
No Problem
Make the call RIGHT NOW and get the credit you deserve!
- You owe it to yourself and your family to try again, even if you've been turned down before.
- Your most important credit card is ready.
This ad might be appealing to you if you have no credit or a bad credit history. Getting a secured credit card can help you build or rebuild your credit history. Be aware, though, that some people who sell secured credit cards make false claims in their ads to get you to respond.
Both secured and unsecured credit cards can be used to buy things and pay for services. A secured card requires you to put up collateral for your credit line, while an unsecured card doesn't. A secured card's savings account can be anywhere from a few hundred dollars to several thousand dollars. Your credit line will be between 50 and 100 percent of the amount you put down. On your deposit, a bank will usually pay you interest.
Also, you might have to pay application and processing fees that can add up to hundreds of dollars. Before you apply, make sure to ask how much the total fees are and if they will be refunded if you don't get the card. A secured credit card usually has higher interest rates and an annual fee than an unsecured card.
Companies that lie about Visa and MasterCard on TV, in newspapers, and on postcards have been punished by the Federal Trade Commission. The ads might offer unsecured or secured credit cards, or they might not say what kind of card they are offering. Most ads are written in a way that makes you think you can get a credit card just by calling a number on the ad.
The number isn't always free to call. A "900" number service may tell you to give your name and address to get a credit application, or it may give you a list of banks that offer secured cards, or it may tell you to call another "900" number for more information, which will cost you more money. Be aware that ads that try to trick you often leave out important details.
They often leave out the fact that a phone call to "900" can cost anywhere from $2 to $50 or more.
Most of the time, the ads for a secured card don't say that you have to put down a security deposit and pay application and processing fees.
Often, the ads don't say anything about how much money you need or how old you have to be.
The ads might not say that the secured card has an annual fee and an interest rate that is higher than average on any balance.
Look out for the following signs to make sure you don't fall for a secured credit card marketing scam.
Don't fall for easy credit offers. No one can promise that you will get credit. Even if you have a good track record with your account, other creditors will look at more than just that. Any bad history will also be taken into account.
Be careful with credit cards from "credit repair" or "credit clinic" companies. For a fee, these businesses may also offer to clean up your credit history. But you can fix real mistakes or information that is no longer accurate by contacting credit bureaus directly. But remember that a bad credit history can only be fixed with time and good credit, and it may be against the law to tell you to get a new Social Security number or other federal ID.
