Easy-to-Get Gold Card, No Annual Fee Required--What's the Catch?
Written: Mar 03 '01
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Product Rating:
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Pros: Easy to get, no annual fee required
Cons: Has fees I'd never even heard of!
The Bottom Line: Don't be tempted by easy credit because you'll regret it later.
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| GlendaG's Full Review: Cross Country Bank |
A friend with very little credit history recently received a Gold VISA credit card solicitation in the mail from Cross Country Bank and asked for my opinion on whether to make application. This was right up my alley on both counts---giving an opinion and a lot of experience with credit cards.
There is a one-time Account Origination Fee of $50, which might be acceptable if the other terms were right. If you want the Gold VISA card (as opposed to Classic VISA) then you are required to enroll in Applied Advantage, which has an annual fee of $34.95. They give no precise details on the benefits, just that they include "emergency services, medical and legal referrals, auto rental insurance, and warranty manager service--not to mention the prestige of Gold!" Wow, Gold! Wonder what "warranty manager service" is.
Since the $34.95 annual fee is optional (if you don't have to have the Gold card), so far they're only into you for $50. But here's the kicker. I had never even heard of such monthly fees as this card carries. It requires payment of a $10 monthly maintenance fee, whether there is a balance or not! If there is a balance, the interest is 21.74% "which may vary", whatever that means. It seems like that would leave the door open for any percentage.
So how much credit do you think they'll give you on this expensive Gold VISA card? All of $300! Unless you qualify for a maximum of $1,000.
It's obvious that with this low credit limitation and the excessive fees and interest that Cross Country is giving credit to those who have the hardest time getting it, which is not a bad idea. But for those who can't get credit any other way, I think it would be better to get one of those cards that requires a security deposit than to be eaten up by fees by Cross Country Bank.
Recommended:
No
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Epinions.com ID:
GlendaG
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