I often read an article about payday loans and cash advances which pushes my buttons in a negative way. I also get discouraged by the credit card companies which get away with predatory lending and no one stopping them from targeting new customers. But, alas, I will confess; I watched a television commercial from a leading major credit card company this weekend that made me smile.
It seems that this particular company has finally realized that we regular folks are tired of the aggressive lending techniques being used by the credit card companies. There are no state regulations for creditors; they fall under their own jurisdiction and money talks. In what hopes would be a new trend for other creditors to follow suit; we finally have a credit card willing to give up the extra charges keeping so many people in debt.
* NO annual fee
* No late payment fee applied to the first time you are late. Hey, it’s a start!
* If you make a late payment, your interest won’t increase
* NO over limit fee
* NO foreign transaction fee
* 5% cash-back towards changing categories for all customers
* Unlimited 1% cash back earner, not just points
* Use your cash back reward and shop at a leading online store
* Have till midnight to pay your bill by phone or online
* Choose your payment due date by phone or online
* If you lose your job, you will receive help; i.e. lower rate or monthly payment
* Automatic expedited delivery of your new credit card
WOW! It sounds great, almost too good to be true, but it has to be true since the company sunk so much money in to advertising. I was definitely interested in what this company has to offer till I reminded myself that my credit cannot afford to have on more hard inquiry on it without some sort of idea if I may qualify. Then I remembered, there was no mention of any of the requirements to qualify for this special new card. It doesn’t replace old ones I may have with the same company; it in itself is a new baby in the credit card market.
It also offers a low initial interest for the first 14 months towards both purchases and balance transfers. It gives an interest rate range of what a cardholder could possibly expect to see as interest charges on their account. Even their highest percentage is still a pretty good rate to have in this day and age. What about qualifications?
The product promotions make this card seem all too good. Could it be too good to be true? Is it one of those cards which will only be offered to the top credit score holders? I guess it will take an application to find out. Hopefully, the company will be more expressive of their expectations. I can’t imagine that they will offer it to all applicants holding any score. For now, I will hold back on my application and wait for more information. For those of you that do have good credit, it won’t hurt you to try. As always, just because the card offers some great perks to cardholders, it doesn’t mean you should spend frivolously.
Whether you are accepted to this new card, a secured credit card or even a fast cash advance for quick money relief, read the fine print and disclosure pages carefully before accepting third party money. It may prevent you from creating a larger puddle of debt for yourself.