You need to be very mindful of the
fine print on the back of the
applications you receive from
credit card companies. My
wife had a
YOU ARE PRE-APPROVED! notice come in the
mail yesterday. She has excellent credit and two
platinum cards, so she didn't need another. Just for fun I read the terms on the back.
The company name was First Premiere Bank of Sioux Falls, South Dakota.
You are guaranteed $250. That's it! Here are the fees:
Acceptance Fee: - $119
Processing Fee: - $ 29
Annual Fee: - $ 50
Monthly Fee: - $ 6
--------------------------
Totals: - $204
Your credit line: + $250
--------------------------
Available Credit: + $ 46
So, for just getting this card, it costs you $204, with $46 to spend on
coffee and
beer. The
annual percentage rate (
APR) is 18.9%. If you add in the "monthly fee", it jumps to about 29%. Very sneaky!
So, watch out for those scummy credit card companies. Stick to more reputable ones (if they exist). Always read the fine print, you may just get a good laugh.