Oh Boy Another Credit Card Offer

ARE YOU RIPE FOR THE PICKING?

Those of us who work from home
occasionally find ourselves in need
of a financial pick-me-up. Even the
best of businesses has a slow time
now and then. It's at a time like this
that we become especially
vulnerable to those practically
irresistible pre-approved credit
offers that come in the mail.

Admit it. You've received a hundred
of these offers if you've received
one. And the thought of getting just
a few thousand dollars more to give
you a little breathing room sure
sounds like a good idea. Before you
jump in with both feet, there are
some "red flags" for which you
should be looking on the pages of
these offers.

WAVING THE RED FLAGS

Take, for instance, the one I
received in the mail the other day.
They were offering me a "Gold
Card" with a $10,000 credit limit.
What's more, I was already pre-
approved. All I needed to do was
send in my $29.95 annual fee by a
certain date and my account would
be activated immediately. In spite of
this generous offer and in spite of
the stern warning that failure to
respond "may result in termination of
your eligibility," I passed on this one
because of the following "red flags."

RED FLAG#1: There was no phone
number anywhere on the notice they
sent me. That should say it all
regarding any company that wants
you to send them money.

RED FLAG #2: They required money
up front. I know that even many

well-known banks have annual fees on
their credit cards, but the point is that
they are well-known and this company
was not. At least with a recognizable
company you'll be aware of where
your money is going. Besides, there are
also several credit cards that you can
get that don't carry annual fees.

RED FLAG #3: A more careful look at
this particular offer revealed that they
were not really inviting me to get a Visa
or Mastercard after all. The $10,000
credit limit was to be "valid exclusively
toward all credit purchases" from this
particular company. In essence, it was
a line of credit to purchase their
products and their products only.

BUT THAT'S NOT ALL

This was only one of the offers I
recently received. Believe it or not, I
had to pause after I wrote that last
sentence so I could tell a telephone
solicitor that I was not interested in his
"Platinum" card. Anyway, here are a
few more red flags that should grab
your attention.

RED FLAG #4: Watch out for that
interest rate. Most of the unsolicited
credit card offers will carry an
excessive rate of interest. Be sure you
read the small print.

RED FLAG #5: Watch out for that
interest rate. No, it's not deja vu. I
meant to repeat myself. Again,
checking the fine print you'll notice that
some cards have an introductory rate
that lasts for six months and then
increases dramatically.

RED FLAG #6: Watch out for that
interest rate. This is getting
monotonous, isn't it? Check the fine

print again. You may discover that the
interest rate increases if you are ever
late making a payment. Another offer
I got had a 19% rate but if I was late
on a payment it ballooned to 24%

RED FLAG #7: Watch out for that...
(just kidding!). Actually, you do need
to go back into the fine print, but this
time pay attention to what it says
about the grace period. When do they
begin calculating the interest? If you're
not careful, even if you pay your
balance in full the first month you
could end up paying interest.

HOW BADLY DID YOU SAY YOU
NEEDED THAT MONEY?

If you're already in the habit of
automatically trashing every credit
card offer you receive, keep it up. If,
however, you are like me and like to
look them over every once in a while,
keep an eye out for these red flags. If
ANY of them show up in that offer
you are considering, toss it out. You
don't need the money that badly and if
you do take it, the chances are that
you'll end up needing it even worse
before your dealings with that
company are through.

------------------------------------------------

Michael Gifford and his wife, Shannon
have more than 30 years combined
experience in operating successful
home businesses. They are the owners
of NoBizLikeHomeBiz.Com, an
unbiased and objective resource for
home business. Visit
http://www.nobizlikehomebiz.com.
Michael can be reached at
expectgreatness@nobizlikehomebiz.c
om.