HOW TO BECOME A TOTAL FAILURE

It shouldn’t surprise you when I tell you credit card companies only want one thing from you… your money! Oh yes, they don’t care as long as they can milk you for all you’ve got, because to them it’s all about the money, and the money for them truly does equal success, but for those of us who are gullible, it could eventually lead to financial failure.

“Credit Card Companies - They Really Are Out to Get You,” an article reprinted on Reuters News, revealed hidden facts about the credit card companies that stuff credit card offers in your mailbox, as well as the stores that attempt to get you to apply with other special offers like no interest for X amount of months. Here’s an excerpt from that article, which was originally published on the Gather Little by Little blog:

“No, it’s not paranoia, the credit card companies really are out to get us and they’re smart. Here’s just a few of the techniques they use and that unfortunately many people fall for:

10% savings for applying

This is a very common strategy employed by many different merchants who have their own branded credit cards. We shop at Target and get asked this question every single time ‘Would you like to apply for a Target card and save 10% today?’ This is the classic bait and hook strategy. They entice you with a 10% savings so they can get their plastic in your hands hoping you’ll use the card to purchase items in the future. Even better, they hope you won’t pay them off immediately. Rates on these cards can be very high, depending on your credit score.

I love Target, but I’m going to pick on their credit card program for a minute. A quick scan of the Target Redcard site showed APRs for a Target Visa ranging from 12.74% - 21.74%. When you apply you are first considered for a Target Visa, if you don’t qualify you will be automatically considered for a standard Target card which has a default APR of 23.74%. Any guesses on the percentage of people that don’t qualify for the Target Visa? To be honest, I don’t, but my guess is it’s pretty high. One last thing, the 10% isn’t immediate. They mail you a 10% off coupon in the mail after you are approved.”

To find out more about the hidden facts behind credit card companies, and to discover a few helpful tips, read the entire article at Reuters News. Once you’ve read the article, follow the author’s friendly advice, and by all means, read the fine print on any credit card offer you receive. If you do take the bait, spend wisely and don’t let those credit card companies milk you for everything you worked hard to achieve.

Misti Sandefur, an avid freelance writer, novelist and blogger, enjoys writing articles, short stories, e-books, print books, personal essays and Web copy for regional and national publications, publishers, book producers, businesses, nonprofit organizations and fellow writers who have too much on their plates and need assistance. Furthermore, she’s publisher and editor of the Coffee Break for Writers e-zine, and the author of two books, which are published under Misti Jackson. To find out more about Misti, visit her on the web and at her Life of a Writer blog.