Sub-Prime Merchandise Cards...

 SUB-PRIME MERCHANDISE CARDS:

The single most cost effective (and powerful) tool for consumers to increase their high credit limit and decrease their debt to credit ratio is the use of Sub-Prime Merchandise Cards which report to one of more of the major credit bureaus.

Unfortunately, despite their immense benefits, these are the most misunderstood cards in the credit industry.  A large portion of the misunderstanding is due to marketers misrepresenting the cards and the growing number of companies promoting them.  When you learn how they work one quickly understands why they have been the subject of much misrepresentation.

A Sub-Prime Merchandise Card is nothing more than a card attached to a line of credit which allows you to buy merchandise from a specific vendor (usually the company that sold you the card).  The merchandise (in most cases) will be purchased through a catalog or online mall.

Where the problem arises is that the cards are marketed almost exclusively to the sub prime market via email, telemarketing and direct mail etc.  The reason for this is they can advertise almost irresistible offers like “$5,000 Credit Card... GUARANTEED!  No Credit Check! NO Cosigner!  You cannot be turned down!” or “Unsecured $10,000 Credit Line!  Everyone Approved!”.  I’m sure you get the idea...
While there are many companies which do this and are a “shady at best”, there are a few which do it legitimately and it’s the best kept secret to build your credit and build it fast.

Here’s how it works: the company approves anyone with a pulse (literally) and gives them a card for $2,500 to $12,500 with NO credit check and NO cosigner.  However, the card is only good for merchandise through their website or catalogs and the consumer is required to put down a deposit on whatever they purchase.  After the deposit is paid, the remaining balance is financed on the card. 

For example.  A person buys $1,000 worth of merchandise.  Their deposit is $300 so they then finance $700 on their merchandise card and make payments.  Sound like a scam?  If you say “Yes” like most people then you’re missing the point... big time.

With a legitimate Sub-Prime...

Merchandise Card your credit line WILL be reported to at least one major credit bureau (or more).  This means if you get a $5,000 card and you finance $500, on your credit report it will look like any other credit card and will do three extremely important things for you.

1.) It will increase your current “High Credit Limit” by $5,000 almost overnight as the account “looks” like any other unsecured revolving account.

2.) By carrying a small outstanding balance it will positively impact your credit report by building and showing potential lenders your credit worthiness.

3.)  With a good payment history you are virtually guaranteed to receive “legitimate” pre-approved credit offers in the future due to other lenders renting your name from the credit bureaus.

This technique is hard to beat for both cost and effectiveness.  Of course, the whole key is knowing exactly which cards report to the credit bureau and offer the best rates.  The only thing more effective is...

Piggybacking...

-by Terry Price

(C) Copyright Terry Price
All Rights Reserved

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