Credit card abyss

Credit card abyss or credit card applications for catching up

Seems like every credit consumer knows about unsolicited credit card applications aggressively pushed forward by renowned banks and credit card companies. Bank of America, Chase and Citibank are continually offering their best credit cards to good or excellent customers and most of the offers are pre-approved.

That’s all right, though, if pre-approved unsecured and best reward and lowest rates credit card applications are intended for responsible customers with good and stable credit rating who’re normally measured as a good credit risk be the money lenders and who are meant to reinforce their credit rather than rebuild...

But as research shows, a significant number of credit consumers falling behind is due to suchlike unsolicited credit card applications but, - are you sitting? – not to solvable debtors but those flopping down in continual and apparently unpayable debt...

The policy is simple. Make bad credit customer use a new credit card to pay for the old one even if he/she is in fact not able to afford another card at the moment. Some of the big banks like Capital One, issuing credit cards essentially to subprime customers stick to this manner of crediting and thus derive funds.

Do not get much surprised then that when you default on your Cap One credit card, you are quite unexpectedly and without a prior request offered a new credit card. What’s the point in it for your creditor to offer you a new plastic when you barely manage this one? The answer probably comes like this (though Capital One is reluctant to admit it) – the bank has its objective to make more fee income at the expense of more ignorant debtors who, finding no other options, accept a new credit card and in the end appear more crippled than before.

Looking inside the process of the so-called “borrowing to pay for the existing debt”, Capital One has its customers pay more and more in the following way: you take one card after another to presumably do away with your current balance. But being initially in principle unable to hold a credit card, you start to accumulate more debt, being late and over the limit on all the cards you’ve taken. You borrow from one card to pay for another but you get over limit on it and now there are two debts already to kill.

It’s a very shrewd move, isn’t it to make you exceed credit limit on several credit cards with low limits instead of offering you one card with a larger limit and helping you to manage your debts? But creditors are self-profiteering be definition and they earn their living with your money, no matter at what cost they get it.

In this case the price is evident - card holders being late on credit cards payments, exceeding the limits and thus incurring additional penalty fees and interest rates accumulating a far greater overall debt.

The bank’s policy of issuing multiple credit cards is working perfectly well yet and lots of less sophisticated credit consumers are easily trapped. But what the bank is doing is trying though its late and over limit fees, compensate for the portion of customers filing for bankruptcy. What’s more, Cap One representatives see only benefits of multiple card offers, insisting that they are simply attempting to meet the customers’ needs and it’s not really their intention to present with an additional card a customer who is currently in debt.

But the fact is, and we relay on the words of Capital One credit card holders, when the bank detects a customer late with his payments or running over limit, they offer you a new card to catch up with the first.

Is the game worth the candle? Are you sure you’ll manage 2 delinquent credit cards instead of only one and do you think that your creditors will to meet you halfway on several debts rather than one? If not, maybe you should tear Cap One new credit card application to pieces? It’s up for you to decide.