A Trick Banks Often Use

preying on people carrying balances on credit cards

Photo by Julius Drost on Unsplash

If, like me, you carry a balance on at least one credit card (I am technically bankrupt, with my income — from Social Security — less than my debt) you probably receive offers, as I do, to apply for a “pre-approved” fixed-interest loan. If, like me, you have ever applied for one, you probably found that you were not “approved,” after all.

It was just a trick. Applying for any loan and being turned down results in a demerit on your credit score, lowering it. That allows the issuer of any credit card on which you carry a balance to increase the already usurious rate it charges you.



Stephen Yearwood

unaffiliated, non-ideological, unpaid: M.A. in political economy (where philosophy and economics intersect) with a focus in money/distributive justice