Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Cards
Profile Image

Question By
Mama2attymybabyboy89

0 Contributions
0 People Helped
I recently received a pre qualified offer for a credit card requiring a processing fee
How do I tell if this is legitimate. I'm being told by my mom that it is a scam. They are asking for a $95 one time processing fee to access the $300 credit limit, which will actually be $225 after they deduct the $75 annual fee. Is this a typical process? I have an awful credit score so I assume that is why I only qualify for such a card as opposed to a card without a processing fee. Anyone know how I can determine the legitimacy of the company/offer?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
7370 Contributions
3810 People Helped

Avoid like the plague!!!  There are secured cards available from this site and the terms are clearly explained.  Secured cards have a low credit limit (your deposit in the issuer's account) and a high interest rate.  I'm seriously suspicious of "pre-approved" offers and anything that requires a "processing" fee is even more suspicious. Personally, I don't care for annual fee cards, either but some decent cards may require that.....but they tell you before you apply.

Top Contributor
5038 Contributions
1136 People Helped

Do some research on the card and then you will know. Do some Google searches on the card, that simple. It will give you more of an idea if it is a legitmate company or not. My guess is that it probably is legitimate. There are some companies out there that issue cards like these, such as First Premiere and a few other lenders. This is usually considered "predatory lending" by most people. As already said, it is best to avoid offers like this as they are very expensive, however some people have no where else to turn when they are in need of getting credit cards to build credit. It really depends on your situation whether you should get this card or not. For credit building it is better to have any credit card than no credit card, for finances sometimes it is better to have no credit card than a credit card. As mentioned, look for a Secured card. What ever card that you decide to apply for, do some research to make sure that the card will be reported to all three credit bureaus. It is very important to make sure that a lender reports to all the credit bureaus when the credit line will be used for credit building.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.