It is important to examine any credit offer. I had one client bring in an offer which was pre-approved for a credit card. Now this person did not have good credit and they were attempting to re-establish their credit.
The offer was for a $1,000 credit limit with a competitive rate of 14.99%, not bad for someone with bad credit. The problem were the fees to start. My client was ready to apply for the credit card, but wanted me to review. I went over the disclosure part of the agreement.
This credit card had nearly $250 just in fees to get started. Now the customer did not have to come up with fees. The fees would be included in the new balance. Meaning once the application was processed she would owe $250 right away. For her to receive the credit card she indirectly would have to pay $250 just to have the ability to use the card.
This was not a good offer to help re-establish her credit.
I will go over a couple other tips to look out for when applying for credit cards. These tips can benefit someone with perfect credit if you just look at the interest rate.
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