By Michael Rupured


University of Georgia

As with most business deals, there are good and bad credit card
offers for today’s consumers. Just be sure you don’t sign up for
a credit card just because you want the free alarm clock. That
free clock could cost way more than you’d think.

Credit card solicitations are aimed at many different groups of
people. Many are legitimate and just what you’re looking for.

Unfortunately, some that are targeted to people with bad credit
aren’t very good deals. Victims may focus on a free gift rather
than the credit terms.

These solicitations may target college students and people with
credit problems, but everyone is vulnerable.

Not a utility bill

Credit card solicitations can take on an abusive nature in a
number of ways. Some come in your mailbox and look like a utility
bill. They’re marked with the word “INVOICE” across the top. But
very small print at the bottom reads, “This is a solicitation.”

Sometimes people set up shop in high-traffic areas on college
campuses or shopping malls and hawk credit cards. With most of
these, people sign up for a credit card and end up with very high
interest rates and unusual fees and charges.

Some solicitations advertise a low interest rate and high credit
limit. However, few people will actually qualify for this rate or
the high credit limit.

Does paying more than $200 in fees for a credit card with a $19
credit limit sound like a good deal to you? Some “prepay” credit
cards actually offer “deals” like this.

As more people suffer from damaged credit, some credit card
companies and banks are becoming more creative with ways to make
a profit from their despair.

People with damaged credit who would otherwise be unable to get a
credit card can now prove their willingness to pay through the
use of a prepay card. At least, that’s the idea behind these
cards.

In actuality, the prepay cards come with sometimes
hard-to-understand setup fees, application fees, acceptance fees,
annual
fees and monthly fees.

If a consumer with poor credit has $300 to put toward a prepay
credit card, he may have only $20 left to spend after paying all
the fees.

Shop around

Many consumers may not understand that there are better options
out there. By simply shopping around, they could find a card that
gives them a true line of credit, rather than a prepaid card.

If your goal is to reestablish your credit, a secured card is
probably your best choice. The fees and interest rates tend to be
lower on some secured cards than on the unsecured cards that are
targeted to the damaged-credit consumer.

Remember, no matter what card you choose, the idea is to build a
better credit history. Stick to small purchases you can afford to
pay off each month.

As with all business transactions, don’t make a hasty decision.
Shop around and always read the fine print. And remember that the
best deals probably aren’t the ones that come to you. They’re the
ones you have to seek out.