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-- credit card issuers continue to find a way around the credit card act.
Some companies are charging a sign up -- before -- -- the account is even opened.
-- -- how you can avoid credit card pitfalls and joined by John.
-- dot com consumer education president in Atlantic giant I saw this phrase.
Fee harvester cards and I thought.
Boy you know if I would -- at a credit card company I would be a little more savvy about marketing and calling the card so I actually.
-- -- -- -- -- Really great news.
When the last time you open a solicitation -- -- mailbox and said wow you are restore part of that I have -- let's find out for that we everybody.
Yeah well okay so it here's the headline here these cards carry interest rates as high as 79%.
Come on what he's going to -- I think I think that dispel the rumor today democratic hardest working charred more than 3039%.
Interest -- -- percent credit card clearly -- that rumor.
But these cards are.
Designed and targeted or the really really credit line you -- the opposite end of the spectrum with respect to fight -- scores of people who have scored around 500.
-- absolutely positively cannot get credit cards anywhere else however.
They are so desperate.
To have a piece of plastic in a pocket of making college credit card that they're willing to agree to these types of terms Saturday 9% interest -- -- -- -- -- -- -- Of their credit limit ouch that's not get the credit -- either just because they wanna say I've got to credit card.
And the reality is really hurting your score yet one of these -- because the industry understands what's going on here it -- talk about alternatives let's say you have a lousy credit score.
You won an alternative to a fee harvester cards we do.
While alternative number one it's a secured credit card -- -- -- credit card is much much better than a fee -- card.
For a couple of reasons day.
On the interest rates are certainly not 79%.
The you're controlling the credit meaning that the amount of money you're putting down as a deposit.
That's being issued right back to you in the -- credit limits if you want a thousand bucks you got to come up with a thousand bucks it's very hard to -- democratic art when you boarding at the payment up front.
Additionally the fees there are fees but they're definitely not as egregious as that he's charged.
Bodies harvester cards and most importantly they do report to the credit reporting agencies -- -- getting the benefit.
Of a secured part.
The other alternatives.
Debit cards prepaid cards and -- old -- cash incentive credit cards.
Should some people just not have credit carts.
You know I.
I I ponder that question long and hard daily.
And while I'm a firm believer that everybody should have access to credit and everybody who wants to -- have credit.
Deserves to be able to apply for credit.
I do except -- recognize the fact that there is a small segment of the population.
Who should not have credit because they are not good -- -- that and they will never be it man.
You know this reminds me of the super sub prime loan crisis.
It's the exact same folks that these banks are targeting here with these credit offers and it's just not worth while for people to use.
You agree with me on that John.
Yet not I hear you hit -- elsewhere on the head that.
If this is desperation this is paying.
29% -- in auto -- this is paying 19% for a mortgage this is someone -- so desperate to have -- product.
If they're willing to pay through the nose and really turns it turns a product -- -- something that it's not even more having.
Because the what you're paying for having it is not commensurate with the value that you're getting out of it so really and that type of situation you shouldn't happen at all -- -- back in Atlanta.
Thanks for helping him.
Thank you glad to be --
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