If you ever get something in the mail that says you’ve been pre-approved with like $5,000 or $10,000 in credit and you are thinking to yourself how could this be my credit sucks? Good For you. You are onto them. With these offers you will normally see a little Visa or MasterCard logo on it.

These companies want you to think that you are preapproved for a Credit Card and will prey on people who have just filed bankruptcy, they are elderly or have bad credit.

What you need to know is this is just a Catalog Card. When you get your card you get a catalog with it and can use the Card to purchase only from their catalog.

Look out for words like you can purchase many items through _________ that tells you right there that if this was a real Credit Card you wouldn’t have to be told where to purchase your items. Right?

When I had bad credit years ago, I would receive these offers and almost fell for them. Do not fall for any company disguising their Catalog Card as a Visa or MasterCard. And they will use Visa and Mastercard’s logos without permission to get you to order their card.

What’s in it for them?

Well look at the bottom where you are suppose to fill out your information for your new Preapproved Credit……..they will have a nice hefty fee there. Like $50-$90. What bank makes you pay for a credit card upfront? Granted, banks that do have Sub Prime Credit Cards out there do charge fees, however they charge your card when you are approved. They don’t ask you for any money upfront.

So be warned if you ever get one of these offers, before reading it look at the bottom and see if they are asking for any money to get the card. If so, do me a favor and throw the darn thing out!