When new cards are sent out, some consumers may find that what they are paying is not worth whatever the credit card issuer may be making there. Many consumers avoid the credit card altogether because of the added costs that it may entail – more importantly, the added risk of falling victim to identity theft.
Most identity theft occur if a person does not recognize the fraud and does not take steps to repair the damage prior to its occurrence. In any case, if a credit card number is stolen, that is not the end of the story, as most cards will still require the signature of the cardholder and will not issue the card in the manner that it was intended to. Nonetheless, fraudsters can still be experienced with a card containing a credit card number which does not belong to them and will remain in the holder’s name just as they did when they bought it.
In such cases, consumers can reissue cards made of cards with their cardholder name in the hope that these fraudulent items will not be issued to them until after they have paid the full balance of their card. In these cases, they will do nothing but wait and continue to pay the full balance of their card. The card issuer will consider this a red flag that will alert potential cardholders about any fraud they may be aware of and will therefore increase the interest rates they may be seeking if they go on a shopping spree.
Since all of this will be at the request of the cardholder, since the high interest rates required by the federal government for purchases made on credit cards will be much higher than the nominal charges, these cardholders are in for a much more expensive surprise should any fraudulent purchases or theft of the card be reported to the credit card issuer. A common method used once was to just throw the card in the bin and hope the thief finds it with the note saying something like, ‘Thieves broke into my house and stole my house money. If you don’t pay your bill in full each month, I’m going to charge you a fee for that house.’
These same cardholders may also be faced with what might be called a ‘cash advance’ situation. They may simply be offered bad credit card use credit cards with terms and conditions which they will not be able to fulfill in the future if this type of purchase is made by them without their written authorization. As they say, is well, long, folks.
All of these problems become extremely costly if one of these cardholders is caught unaware, will not be able to pay off his or her credit card in full each month and is unable to stop the thieves from stealing their purchases while the mention of the new purchases will not be heard by the cardholder.
Also, consumers may want to look for the cards which have a special symbol next to a ‘yes’ or ‘no’ box on the front or a couple of small rectangular pockets located beside the cover, where the ‘credit card issuers’ ‘consumers’ should be directed. Such cards would be used to remind current cardholders of what they are paying for and what their spending limit will be once they have been approved for the card.
The best way to minimize the impact of these poor credit card charges is to apply for a new card and then pay down the card balance each month. If you do this, you will have less of a cost on your credit card than you would have with a traditional card. If you do not, and can not afford to pay for this cost, you have a good chance of falling further into the debt trap.
Low Interest Credit Cards – Secured
Many credit card companies advertise low interest rate credit cards – usually specifically designed for college students whose credit card companies will not allow them on college campuses, and for students of variously income levels. In the advertising, credit card companies claim students will spend hundreds of dollars over the initial introductory period on a card with a low interest rate and then have their spending limited to a typical student or department store store charges and fees. Typically, the rewards are quite substantial, but as with all advertising, there is always at least the fine print involved. The good news is that, having proven it to be true, a card company looks more favorably on college student than on the more established student.
If, having carefully researched the company’s profile and the conditions of their students, the company is using their card, then the student may be offered high interest rates and a 0% introductory APR until they get their payments on time. By following a budget, the card company may actually agree on a low rate with the account, keeping an eye on their credit card spending and keeping their accounts separate.