This transcript is automatically generated
Okay see you work really hard you pay your bills on time you hope you're building a good credit score you think you're gonna get the best credit cards out there.
Can you joining us now John Alzheimer -- -- dot com consumer education president.
Are right John -- little -- me I you know what is this I think I have a great credit score and I'm not gonna get the best card what is going on.
Yet -- best response I have for you -- site.
You think you've gone so well -- stayed out of debt you pay your bills on time we don't excessively shopper credit you have that fantastic -- score.
And all of a sudden you get either denied or you get less than advantageous term look there is a sweet spot.
That house formed in the world credit scores and that sweet spot for the best deal seems to be between 750 -- a little over 800.
And if your higher than 800 you actually stand which I.
I'm not I'm -- and -- John how is it possible.
If I am the very best credit risk in the world I pay my bills on time I do everything right I -- reliable.
That I can't get the best credit card why would act to me.
OK so up all the things he -- mentioned the one thing that you just did do you did not mention.
Which is -- magic word Jerry and is revenue.
Credit card issuers don't do business of people just because there while -- they do business with people because -- -- risk and they don't want to be profitable.
That's just done here is sound fair though.
-- doesn't it -- hair that it they would hold it against UB kids you have this fantastically pristine credit rating.
Yeah and it's not that they're holding it against you -- it's just the people who have the stratosphere credit scores.
Just simply avoid using credit and that's the issue when it comes to generating revenue you have to actually swipe back all -- -- In order for any revenue to be generated for the issue or so it doesn't necessarily make sense for the issuer to incur the cost of approving the account by the credit report issuing in the car managing the account if you're not can actually use it.
And that these should they -- -- did they have to draw the line between.
Profitable and not profitable.
That is just completely depressing Alcan picked up I thought I had it -- I thought I knew how to work the system and I you're telling me they're new rolls out there that we have to pay attention to.
OK so wouldn't have a great credit -- -- no job is that like double jeopardy.
I know you're done -- you miles what I even apply to remember what the card act requires a card act requires that you have.
The capacity or the ability to make payments or you can have.
I don't -- sixty.
And zero incoming you're gonna get denied because you don't have a job we don't have any incoming don't have any money to make the payment so the hypothesis which is actually quite solid is you can't get some democratic part they don't have the ability to make a payment on it so credit be darned you have to have great ability.
And I get that we need to pray that makes sense to me aware that that is what about sub prime terms at the mall what does that mean.
-- did this it the first what made you angry guess that makes me angry.
You can walk into the -- apply for retail store credit card and mortgage regardless of what your credit score is walk out when a 500 dollar credit limit and a 24 point 9% interest rates.
Regardless of how did you credit as.
That seems to be be accepted way of acting isn't that the retail credit card -- -- one size fits all know and get 7%.
On a retail store credit card -- I think -- I don't stay away from this stuff.
I I am so bearish on retail store cards don't even get started -- triple the length of the segment.
-- the usability issue there's a credit limit issue there's -- carried a debt issue.
I I'd like to discount that you get anything passed the discount it's just not a good deal for consumers I'll I suggest -- a general.
Use credit card and don't exchange your credit report at a 10% off to open up -- -- because the deal is not gonna be in -- -- Ten minute burst my bubble and then I really thought touch this trip but did they ever your finger right -- -- any good product detail.
Aren't some new world out there in just educating us and we appreciated John -- -- -- -- you back here.