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10 Reasons You Should Hate Your Credit Card Banks!
by Scott Bilker

Scott Bilker is the author of the best-selling book "Credit Card and Debt Management." He is also the Editor and publisher of the FREE DebtSmart® E-mail Newsletter (http://www.debtsmart.com). Sign up today!

Buying a house forces you into debt, going to college forces you into debt, buying a car forces you into debt, if you don't have a credit card then you don't exist because you don't have a credit history. We just can't win.

And when you finally get some debt, the credit card banks are right there to take advantage of us! I've had enough! I'm sure you have too, so please tell me your story in the survey.

1. CRAZY HIGH-INTEREST RATES
Believe it or not my friend recently received a credit card offer through the mail with a starting interest rate of 35%. I can do better with almost any loan shark! Oh yeah, that bank IS a loan shark--depending on your definition of "is."

2. CHANGING THE TERMS WITH FINE PRINT
Ever notice that the bank's letters that encourage you to use your credit are in BIG BOLD letters. You know, the letters that say, "go on vacation," "write yourself a check," "buy a new wardrobe," but the letters that try to get you to give up your rights are in microscopic small type?

What are they hiding?

They're raising their late fees, getting you give up your right to bring them to court, jacking-up your interest rates, and much more!

The worst part is that these "amendments" are "negative response." That means that if you don't tell them that you don't want the terms, then you're agreeing with whatever they sent you.

It's like those music clubs. You know the ones. You pay 1 cent to join and get 12 CD's. The only catch is that if you don't tell them not to send the monthly selection they send it automatically and bill you! It's like making a deal with the devil!

I'd love to do business like that! I'll just ship you a television, and if you don't return it I can charge you! Real easy to get the sale isn't it?

I guess if you happened to die while the letter is in the mail then it's a guarantee you'll agree since there's no way to respond. If the banks had it their way they'd probably try to bill you in the afterlife.

3. BAIT AND SWITCH
You know those pre-approved credit offers you receive in the mail nearly everyday? Well, they're really not "pre-approved." Check the fine print. They always have some words that allow them to weasel out of giving you the card that you think you're applying for.

The offer may say, "0% for six months, then 9.9% fixed, with no annual fee, and $5,000 credit limit." Then you get the card and it's "6.9% for 3 months, 29.99% variable, $50 annual fee and $400 credit limit."

What happened?

Re-read the fine print in the original offer and you'll find the tricky legalese that says something like, "Ha, ha bet you can't read letters this small! We don't have to approve the pre-approved offer and can therefore send you any card we wish."

4. PENALTIES FOR BEING LATE TO OTHERS
You'll love this one! Many credit card banks have changed their policies so they can raise your rates, no surprise, but check this out. Some will raise your rate to 23% if you're late paying your electric bill. That's right! They check your credit file and if you are late paying any other bills, not just theirs, they slam you even more!

5. DECEPTIVE OFFERS
Even when you read all the fine print they can STILL do whatever they want. They'll send you credit offers and say, "you can use all your available credit" and when you do they'll charge you a penalty fee! Then when you call to complain they'll tell you that you're an idiot that doesn't have any common sense. See my article "Chase Bank Tries to Pull a Fast One."

6. CAN'T EVER SPEAK TO A HUMAN
Just try calling them to check on your account. It's takes forever to speak to a human! They always want you to key in all the account information, all the numbers, then when you finally talk to their drones they ask you for all that information again! Why the hell did I enter it in the first place!

I can get around this by hitting "0" then the "#" keys. I get a reply, "We cannot recognize your account number so please be tortured again by reentering it now." I keep hitting the "0" and "#" keys until the recording gives up and says, "Please hold while we transfer you to one of our new hires who probably cannot help you anyway."

Hmm, It's almost like they don't want you to talk to anyone...

7. BANKRUPTCY LAW HYPOCRISY
Here's another good one. The banks have lobbied Washington to change bankruptcy laws to make it more difficult to dissolve debts in bankruptcy. They want the consumer to be more responsible for repaying their debt!

Let's see. Who gave the consumer making $10,000 per year a $50,000 credit line? Who sent that consumer letters saying, "go on vacation, give a check as a present this season, buy a new wardrobe."

Give me a break. These banks want to have it both ways. It's just as much they're responsibility for making us able to get into debt.

Do you think they'd be in favor of a 3-day waiting period to give credit cards? How about the government has to call the consumer to verify that they can really afford to use the credit line? Think the banks would like that!

8. STOP YOU FROM GETTING A JOB OR HOME
If you have a problem with your credit card bank they're going to report this in your credit history. Everyone looks at your credit history. Landlords review it to see if you will be a good tenant, insurance companies look at that report, and employers also review your credit history.

What happens when the creditors make a mistake? A mistake that makes you look terrible to potential employers and landlords? Oops, not their problem. It's your responsibility to find and correct their error.

I bet many people have been turned down for jobs and are paying more for their insurance because of a mistake in their credit report that a bank made years before!

9. FEES, FEES, FEES
Late fees, overlimit fees, annual fees, bla, bla, bla. And they're going UP! It's like being robbed at gunpoint in an alleyway by a guy in an Armani suit!

Come on, give me a break! Does it really cost the bank $35 if you're late by one day with your payment? I doubt it.

Actually, you may not have been late at all. The bank may have just credited your account late and charged you anyway. see the article, "One Day Late--Yeah Right!" to read more about this.

Banks make 47% of their revenue from fees! Don't ever let a fee go. Call the bank and make them waive that fee, and if they don't, PUNISH them by doing business with another institution.

10. CREATE MORE WORK
I remember as a kid when my parents brought in the mail. I used to ask, "Is there anything for me?" What's was their response, "No, only bills."

Freakin' bills! That's all that's in the freakin' mail. And you have to read the details or they'll freakin' get you!

CONCLUSION
The only way to fight back is to use one bank against the other. They need our business so we need to reward the banks that are good to us and punish the ones that take advantage of us.

Banks are a business like any other. They're job is to service you and I. If we don't like they way they treat us then it's time to do business with another bank! Don't ever be "brand loyal" unless that bank has been "customer loyal." Meaning that they've always given you their best rates and service!

For free information about how we can help you reduce your debt, please fill out our form.

The new bankruptcy law, which went into effect on October 17, 2005, states that before filing for bankruptcy, one must enroll in a credit counseling program.

Christian Financial Consultants can provide eligible credit counseling. In fact, with our credit counseling, debt settlement, and debt consolidation programs, we may be able to help you avoid bankruptcy completely. When you file for bankruptcy, it stays on your record for 10 years -- making it difficult to get a loan, find a job, or even rent an apartment. For this reason, it has always been a good idea to try debt settlement and debt consolidation before considering bankruptcy filing.

Learn more about our credit counseling, debt settlement, and debt consolidation programs. Fill out the form on the righ side of this page for a free bankruptcy credit counseling session.

We all try to be as responsible as possible with our money by paying our bills on time, spending wisely, and saving whenever we can. But despite our best efforts, we simply can't be prepared for every single emergency or crisis that life throws at us. After all, who would have been able to predict that your car battery would die, your furnace would go out, and your rent would be due all in the same week? Sometimes you need a bit of help making it to your next paycheck. One way to quickly get the money you need is through a cash advance loan from an online source.

There are many websites out there that offer same-day or next-day cash advance loans for amounts between $100 and $500. The process of getting one of getting a cash advance loan from one of these sites is relatively straightforward. The first thing you have to make sure that you meet the minimum requirements as set forth by the company's terms of service. Although each website might have slightly different requirements, in general they will consist of things such as being with the same employer for at least three months, being at least 18 or 21 years old (depending on your state of residence), and having a checking account with direct deposit available. As you can see, these minimum requirements are pretty easily met. It doesn't matter if you have a history of bad credit or bankruptcies; chances are you'll still be able to get a cash advance loan.

The next thing you have to do is hand over some paperwork. What kind of documents do you have to provide? Well, that depends on the specific company that you're working with. Some lenders require all kinds of paperwork, copies of your driver's license, cancelled checks, paycheck stubs, and things of that nature before they will release a loan to you. You can either fax these documents in or drop copies off in person if there is a location near you. Of course, this means you have to have access to a copier and a fax machine. Then there are other lenders that process cash advance loans entirely online. The only thing they require of you is your checking account number and the authority to make a one-time automatic draft or withdrawal for the amount of your loan plus any fees and interest that you've agreed on.

Speaking of fees and interest, you can expect to pay a high price for getting an instant cash advance loan. The specific fee schedule would of course vary from lender to lender, but typical rates start at 20% or more. In other words, you can expect to have to pay back $120 for every $100 that you borrow. But at least with the funds from a cash advance loan in your pocket, you'll be able to keep your car, your job, and/or your home.

If you're in a tough financial position, you should consider applying for a cash advance loan online. The process is fast, easy, and completely confidential. You'll be able to get the money you need to get yourself back on your feet again no matter what your credit history looks like.

Extending a Low Rate
by Scott Bilker

Scott Bilker is the author of the best-selling book "Credit Card and Debt Management." He is also the Editor and publisher of the FREE DebtSmart® E-mail Newsletter (http://www.debtsmart.com). Sign up today!

Scott,
In the past year I left a considerably higher paying job for which I was in six years, to take a less stressful and lower paying one. Consideration of debt was a difficult one in this transition. I knew I would now be making less money to pay off the debts incurred but never realized how difficult it would be. I am now paying the minimum required and know that I will never get out of it this way. Any suggestions? Have moved most debt to lower rate cards, but the time on those is running out. Can I request that my rate remain the same since I make my payments on time?
--Nancy

Answer
Nancy,

You can request that your rates be lowered but they're not going to do it unless you give them a good reason. That reason is that you'll transfer your balance to another bank unless they lower your rate.

Now that you have a lower-stress job you may want to consider earning extra money in your spare time. I know many people that have successfully cleaned up they're house plus made some extra cash selling their old stuff on eBay.com.

Also, be sure to make a complete list of all your financial obligations, mortgage/rent, phone, credit cards, cable tv, etc. and figure out how that works with your current income. This list of monthly payments is part of the roadmap you'll need to make the right financial decisions.

Scott

For free information about how we can help you reduce your debt, please fill out our form.

Mortgage Telemarketing--A Personal Story
by José Olivares

This article is brought to you by the FREE DebtSmart® E-mail Newsletter (http://www.debtsmart.com). Sign up today!

Scott, first I would like to thank you for all the good advice you have given me through your NEWSLETTER. In response to your question about our (readers) experience with telemarketers, I would like to share an experience that happened to me recently.

I, like many others out there, am looking to refinance my first mortgage at a lower rate than what I currently have. In my case, the loan is approximately $120,000 at 7.25% and also a second mortgage (home-equity loan) of $10,000 that I have at 12.25%. I decided to call a financial institution after receiving one of those infamous "you have been pre-approved" offers.

I spoke with a lady, who was very friendly, and she asked me if I could read the confirmation number on the right-hand side at the top of the letter. I gave it to her and she asked for some other information including my Social Security number.

I explained that I would be interested in refinancing with her company if they can beat the rates on my current loans. She said she would call me back with an answer.

About an hour later, she calls and tells me she has "good news" for me. They can combine both loans at a great APR of 9.48%. Stunned by what this lady is telling me I paused and asked her to explain how exactly it was that she was coming up with this GREAT deal since I was paying 7.25%.

Her answer was, "But Mr. Olivares you are paying 12.25% on the other one and you will be saving about $20.00 per month." At this time I told her to hold on while I started the DebtSmart Loan Calculator. I told her, and I quote, "How silly her offer sounded." I used the 30-year loan calculator, which I got from Scott, and told her that, yes she was saving me about $20.00 per month on the $10,000 loan. However, she is increasing the amount on the $120,000 loan by about $200.00 per month, and I asked her how it was that this was making any sense for her!

Her answer was that I could not "separate the two loans" the way I was doing it. At this time I knew there were only two possibilities: (1) this lady is not educated enough to have her current job or, the more likely case, (2) she's trying to gouge me by doing some "fuzzy math."

By the way, she was amortizing the loans for 30 years. Just like the original loan without taking into account that my second loan is amortized for only 20 years

For free information about how we can help you reduce your debt, please fill out our form.

Transfer Credit Card Balances
by Scott Bilker

Scott Bilker is the author of the best-selling book "Credit Card and Debt Management." He is also the Editor and publisher of the FREE DebtSmart® E-mail Newsletter (http://www.debtsmart.com). Sign up today!

My husband and I filed for bankruptcy in 1995. Since then we have established good payment records with high interest credit card companies. I'm ready to drop them and transfer my balances to a lower interest rate card(s). When I start looking on the net, I see introductory rates for first time applicants with good credit. I'm having a hard time finding cards with the transfer option.

I've had my existing accounts for several years (or more), plus we just bought a house, so I think we deserve better interest rates. I called my accounts personally, but they don't offer better rates, only a larger line of credit. I have enough credit already.
--Penny

Answer
Penny,

First of all Penny I'd like to say that I agree that you do deserve a better rate!

As you may know, bankruptcy stays on your credit report for 10 years. That means that all the banks know that you've had problems in the past, but that's long ago at this point, and I am sure there are banks that may be willing to give you a better deal.

The important issue now is how you've been handling your credit for the past few years. From what you've said my feeling is that you've been doing a good job with paying on time. That being my assumption it's time for the banks to give you a better deal or you should take your business elsewhere!

So you've already called your current banks and they won't budge on the rates. Try this, call them back and explain it this way, "I've just received a transfer offer in the mail for 1.9% and I'm going to take it if you don't reduce my rate. I've been happy dealing with your bank but it's just getting too costly. I'd be willing to stay a customer, but I need some type of reduction in my rate or I'll just have to take my business to another bank."

If the first rep you get on the phone cannot help you then ask to speak to a supervisor. If the supervisor says that they cannot lower the rate, then find out why and make it clear that they lost your business. WE MUST PUNISH THEM!!

Now, you mentioned that you have a few accounts. If the first bank won't lower the rate then call another account and transfer the balance from the first bank to this account. Tell the second bank, "If you give me a good deal on a balance transfer, right now, I'll do it." Well, at this point you should do it anyway. Just be sure to punish the first bank for not lowering the rate. Then, after the first bank doesn't have your business for a while you can give them a call and let them know that you're ready to start using them again if they give you a better rate or a transfer offer.

As far as the online offers go, it can sometimes be very difficult to get those low rate deals when applying online. I suggest you try in your snail-mailbox. That's where I always get the best offers. Actually, the best offers are from my current banks but there are other good offers from new banks all time. Last year banks mailed 3 billion offers to us consumers!

Never forget that no matter what your situation YOU are the customer and they should be treating you with the philosophy of "the customer is always right." There's a lot of competition out there for our business so let's all make them work to keep us satisfied.

For free information about how we can help you reduce your debt, please fill out our form.