Here are some aspects of one offer (product code 5044-01) that came into the Cagey Consumer's hands that had been sent to one such student:
Now what you actually receive is a credit card with a $250.00 limit that has been pre-charged with an "Acceptance Fee" of $119.00, a "Participation Fee" of $6.00 and an "Annual Charge" of $50.00. The card you receive already has $175.00 charged to the card before you receive it, leaving you a $75.00 balance of available credit. In reality it is costing you $204.00 to get a credit card with a $75.00 credit limit.
The card also promises a credit increase "if you make all of your payments on time for six months and pay substantially more than the minimum amount due each month", however a "Credit Limit Increase Review Fee" of up to $50.00 is assessed if you are granted an increase. You are much better off to deal with a company like Providian Bank who also helps people to establish or reestablish credit without misleading claims and exorbitant charges.
Guranteed unsecured $250 minimum VISA card
However, on the reverse and in 4 pt type buried in the middle of legal mumbo jumbo is:
In fact, their "fees" total $276.00 for $250 of unsecured credit.
Now, maybe this is legal, but I doubt anyone would not make the same offer of anyone else. This company obviously preys upon poor people and those who have suffered financial difficulties.
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