If you default, you have to pay the full amount of the loan. It requires a twisted mind to take $ 200 from you, gives you credit of $ 200 with your own money, more charge astronomical interest rates just to take money from your hand and return it to you. That’s crazy! Of course, to fight this madness, great and wonderful banks claim to help fix your credit report. They say that if payments are kept the right way, this information will be reported to the credit bureau. Yeah, right! When Shell calls the credit bureau to check your credit for a gas credit card, the report shows 47 defaulted loans and bankruptcy.

However, there is a company that makes payments on time. Big deal. Do not you think the rest of your bad credit will still be the deciding factor in Shell’s final decision. Bottom dollar you bet! Look at this: the bank earns interest money from your deposit. The bank also makes money by charging a 18% to 22% interest for the right to use your MasterCard or Visa. In addition the bank is guaranteed their money, because if you do not pay on time, taking money from the bank account opened with them along with any accrued interest.

Why would anyone with $ 200 to deposit want a credit card with a limit of $ 200? If you have $ 200 and they want to buy an item of $ 200, go out and buy it. In this way, you own blockade, values and the barrel. No interest, no payments, no problem! In addition, you will not have to pay his soul to the company store class-to speak. Credit is of course a wonderful thing if used wisely. I know people who charge $ 100 at the beginning of the month and use $ 100 to win $ 300. It’s free money for 30 days. Then, when the bill comes, they immediately pay the entire balance and get away with $ 200 for good. Or how about the legendary direct marketing millionaire “T. Harv Eker, who used his credit card to buy a” virtually bankrupt “business for $ 2000. Within a year, which turned business around a multi-million dollar company. That’s intelligence! On the other hand, credit is also required in certain circumstances, to establish influence. You can not call in your order unless you can charge the purchase to your credit card. This delays getting items you want now. I guess it a bumer for some people out there with no credit card.