Bad Credit Card

xoxoxoBruce · 09-11-2007, 09:17 PM

The Continental Finance MasterCard is unbelievable.

Quote:

Your initial Credit Limit will be $300.00 and you agree to pay the following fees, which will be billed to your Account and will appear on your first monthly Billing Statement: a one-time Account Processing Fee of $99.00, a one-time Program Participation Fee of $89.00, a monthly Account Maintenance Fee of $10.00 and an Annual Fee of $49.00. Your available credit after these charges will be $53.00 at Card issuance.

And at their discretion, they raise your limit...

Quote:

Each Credit Limit increase will be $100.00, subject to a maximum Credit Limit of $2,000.00. Each increase will appear on your Account no later than one (1) month after you have qualified for such increase. At the time of each Credit Limit increase, a $25.00 Credit Limit Increase Fee, which is a FINANCE CHARGE, will be charged to your Account.

This is really sad.

skysidhe · 09-11-2007, 09:39 PM

This is how big the fine print really should be.

Flint · 09-11-2007, 10:05 PM

They bump you $100 at a time, zapping $25 a pop, up to a max of $2000, from which they've extracted $500 off the top!

orthodoc · 09-11-2007, 10:38 PM

So, does anybody actually have this card?

Or is it some sort of intelligence test (if you apply, you fail ...) ...

lookout123 · 09-11-2007, 11:01 PM

Those go out preapproved almost immediately upon discharge of a bankruptcy. Sometimes they just do random zipcode drops. yes people take them to reestablish a revolving credit line. it sucks but it is what it is.

DanaC · 09-12-2007, 04:33 AM

Money costs more if you're financially desperate.

orthodoc · 09-12-2007, 06:53 AM

No one is forced, gun to head, to take on loans like this. I've been financially desperate; been chronically hungry with $80 to cover living expenses for three months; there are still choices. One of them is not to borrow money on terrible terms when you know you have no hope of repaying it. I hope people coming out of bankruptcy would get some financial counseling to help them avoid stuff like this.

lookout123 · 09-12-2007, 10:54 AM

most of them don't. usually the same day they will get preapproved cards with $500 limits from capital one, juniper, and providian. believe it are not, the best thing they can do is take them, bite the bullet on the terms, use them, and pay them off each time.

it is easy to get back to a 700 credit score within 18 months of a bankruptcy with the right stategy.

1. Take crappy credit cards (preferably from 4 diffferent companies)
2. make 3 months payments. go to select department stores and get their cards (all you need is to show a current card with visa or mastercard)
3. use each of these every month for something small, pay it off when the bill arrives.
4. after one year either lease or purchase a new (reasonably priced) car from dealership. Has to be new so that you get the advertised pricing tiers. If you refuse to buy new, just take a small loan from your bank or credit union on your current vehicle. make payments for at least one year before paying it off.
5. either open HELOC (and keep balance below 40%) or refi mortgage and pay for one year.
6. pull credit report. You should be hovering around 700.
7. keep pulling your report every 6 months or so for 5-7 years because some of your creditors probably sold the paper before you filed bankruptcy and the new creditors will occasionally pop up as delinquent until you file dispute and they will be removed.

DanaC · 09-12-2007, 11:42 AM

That's the point orthodoc: in order to rebuild their credit rating (and lets face it it's difficult to live in the west without using credit) they have to use those cards. That's how they're sold to them.

Flint · 09-12-2007, 11:49 AM

The credit card company is taking a risk, loaning money to somebody with bad credit, aren't they?

Shawnee123 · 09-12-2007, 11:52 AM

Credit card companies don't care about the risk. They make enough back it's worth it. Credit card companies are the debil, and prey on people who ARE financially desperate. Kudos to you, orthodoc, for being smarter than most, but I don't think we should FULLY fling poo on those who have been caught up in the mess.

Flint · 09-12-2007, 11:59 AM

But they are taking a risk. Let's just acknowledge that. They give you money, on the hope that they'll get it back someday.

Shawnee123 · 09-12-2007, 12:01 PM

I didn't say they weren't taking a risk. I said they don't care; the benefits far outweigh the risks, for them, or they wouldn't inundate those folks with these "valuable credit accessories."

Clodfobble · 09-12-2007, 01:18 PM

But surely you would agree that someone who just declared bankruptcy shouldn't be given a card with a good rate and a high limit, right?

So should those people not be given any chance to rehabilitate their credit? I'll agree that their marketing strategies are incredibly unethical, especially to young people who haven't declared bankruptcy yet. But at the same time, some people who have fallen on hard times would really appreciate the chance to rebuild their credit via some sort of plan like lookout's, even if it's on unpleasant terms. And it can't be on pleasant terms, because a lot of people who have fallen on hard times of their own making would really appreciate the chance to spend several thousand more dollars they'll never pay back.

xoxoxoBruce · 09-12-2007, 01:31 PM

Agreed, but with a $100 limit and a reasonable fee, rather than $300 and charge $250 in fees, would work. I think they are predatory.

09-11-2007, 10:05 PM	#3
Flint Snowflake Join Date: Mar 2006 Location: Dystopia Posts: 13,136	They bump you $100 at a time, zapping $25 a pop, up to a max of $2000, from which they've extracted $500 off the top! __________________ **************** There's a level of facility that everyone needs to accomplish, and from there it's a matter of deciding for yourself how important ultra-facility is to your expression. ... I found, like Joseph Campbell said, if you just follow whatever gives you a little joy or excitement or awe, then you're on the right track. . . . . . . . . . . . . . . . . . . . . . . . . . . Terry Bozzio**

09-11-2007, 10:38 PM	#4
orthodoc Not Suspicious, Merely Canadian Join Date: Oct 2006 Posts: 3,774	So, does anybody actually have this card? Or is it some sort of intelligence test (if you apply, you fail ...) ... __________________ The greatness of a nation and its moral progress can be judged by the way its animals are treated. - Ghandi

09-11-2007, 11:01 PM	#5
lookout123 changed his status to single Join Date: Apr 2004 Location: Right behind you. No, the other side. Posts: 10,308	Those go out preapproved almost immediately upon discharge of a bankruptcy. Sometimes they just do random zipcode drops. yes people take them to reestablish a revolving credit line. it sucks but it is what it is. __________________ Getting knocked down is no sin, it's not getting back up that's the sin

09-12-2007, 06:53 AM	#7
orthodoc Not Suspicious, Merely Canadian Join Date: Oct 2006 Posts: 3,774	No one is forced, gun to head, to take on loans like this. I've been financially desperate; been chronically hungry with $80 to cover living expenses for three months; there are still choices. One of them is not to borrow money on terrible terms when you know you have no hope of repaying it. I hope people coming out of bankruptcy would get some financial counseling to help them avoid stuff like this. __________________ The greatness of a nation and its moral progress can be judged by the way its animals are treated. - Ghandi

09-12-2007, 10:54 AM	#8
lookout123 changed his status to single Join Date: Apr 2004 Location: Right behind you. No, the other side. Posts: 10,308	most of them don't. usually the same day they will get preapproved cards with $500 limits from capital one, juniper, and providian. believe it are not, the best thing they can do is take them, bite the bullet on the terms, use them, and pay them off each time. it is easy to get back to a 700 credit score within 18 months of a bankruptcy with the right stategy. 1. Take crappy credit cards (preferably from 4 diffferent companies) 2. make 3 months payments. go to select department stores and get their cards (all you need is to show a current card with visa or mastercard) 3. use each of these every month for something small, pay it off when the bill arrives. 4. after one year either lease or purchase a new (reasonably priced) car from dealership. Has to be new so that you get the advertised pricing tiers. If you refuse to buy new, just take a small loan from your bank or credit union on your current vehicle. make payments for at least one year before paying it off. 5. either open HELOC (and keep balance below 40%) or refi mortgage and pay for one year. 6. pull credit report. You should be hovering around 700. 7. keep pulling your report every 6 months or so for 5-7 years because some of your creditors probably sold the paper before you filed bankruptcy and the new creditors will occasionally pop up as delinquent until you file dispute and they will be removed. __________________ Getting knocked down is no sin, it's not getting back up that's the sin

09-11-2007, 09:39 PM	#2
skysidhe ~~Life is either a daring adventure or nothing.~~ Join Date: Apr 2006 Posts: 6,828	This is how big the fine print really should be.

09-12-2007, 04:33 AM	#6
DanaC We have to go back, Kate! Join Date: Apr 2004 Location: Yorkshire Posts: 25,964	Money costs more if you're financially desperate.

09-12-2007, 11:42 AM	#9
DanaC We have to go back, Kate! Join Date: Apr 2004 Location: Yorkshire Posts: 25,964	That's the point orthodoc: in order to rebuild their credit rating (and lets face it it's difficult to live in the west without using credit) they have to use those cards. That's how they're sold to them.

09-12-2007, 11:49 AM	#10
Flint Snowflake Join Date: Mar 2006 Location: Dystopia Posts: 13,136	The credit card company is taking a risk, loaning money to somebody with bad credit, aren't they? __________________ **************** There's a level of facility that everyone needs to accomplish, and from there it's a matter of deciding for yourself how important ultra-facility is to your expression. ... I found, like Joseph Campbell said, if you just follow whatever gives you a little joy or excitement or awe, then you're on the right track. . . . . . . . . . . . . . . . . . . . . . . . . . . Terry Bozzio**

09-12-2007, 11:52 AM	#11
Shawnee123 Why, you're a regular Alfred E Einstein, ain't ya? Join Date: Jun 2006 Posts: 21,206	Credit card companies don't care about the risk. They make enough back it's worth it. Credit card companies are the debil, and prey on people who ARE financially desperate. Kudos to you, orthodoc, for being smarter than most, but I don't think we should FULLY fling poo on those who have been caught up in the mess. __________________ A word to the wise ain't necessary - it's the stupid ones who need the advice. --Bill Cosby

09-12-2007, 11:59 AM	#12
Flint Snowflake Join Date: Mar 2006 Location: Dystopia Posts: 13,136	But they are taking a risk. Let's just acknowledge that. They give you money, on the hope that they'll get it back someday. __________________ **************** There's a level of facility that everyone needs to accomplish, and from there it's a matter of deciding for yourself how important ultra-facility is to your expression. ... I found, like Joseph Campbell said, if you just follow whatever gives you a little joy or excitement or awe, then you're on the right track. . . . . . . . . . . . . . . . . . . . . . . . . . . Terry Bozzio**

09-12-2007, 12:01 PM	#13
Shawnee123 Why, you're a regular Alfred E Einstein, ain't ya? Join Date: Jun 2006 Posts: 21,206	I didn't say they weren't taking a risk. I said they don't care; the benefits far outweigh the risks, for them, or they wouldn't inundate those folks with these "valuable credit accessories." __________________ A word to the wise ain't necessary - it's the stupid ones who need the advice. --Bill Cosby

09-12-2007, 01:18 PM	#14
Clodfobble UNDER CONDITIONAL MITIGATION Join Date: Mar 2004 Location: Austin, TX Posts: 20,012	But surely you would agree that someone who just declared bankruptcy shouldn't be given a card with a good rate and a high limit, right? So should those people not be given any chance to rehabilitate their credit? I'll agree that their marketing strategies are incredibly unethical, especially to young people who haven't declared bankruptcy yet. But at the same time, some people who have fallen on hard times would really appreciate the chance to rebuild their credit via some sort of plan like lookout's, even if it's on unpleasant terms. And it can't be on pleasant terms, because a lot of people who have fallen on hard times of their own making would really appreciate the chance to spend several thousand more dollars they'll never pay back.

09-12-2007, 01:31 PM	#15
xoxoxoBruce The future is unwritten Join Date: Oct 2002 Posts: 71,105	Agreed, but with a $100 limit and a reasonable fee, rather than $300 and charge $250 in fees, would work. I think they are predatory. __________________ The descent of man ~ Nixon, Friedman, Reagan, Trump.

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