Pre-approved Credit Cards
Is another term used to lure in new card customers. Pre-approved cards must always be applied for, and involved
with this is a listing of the applicant's occupation, income, other debt
and similar factors. Once the application is submitted, the card supplier
will examine the numbers and decide if you will be able and likely to repay
your card purchases.
Unsecured Credit Cards
Do not require a deposit, and the consumer is allowed more freedom with
spending and repayment. If the minimum payments are on time, the limit
allowed will be increased if desired. If, however, minimum payments are not
paid on time, unsecured credit
card companies will continue to add additional late charges, as well as
a certain amount of interest that also must be repaid. The interest varies,
but can be as low as single digits and as high as 20% on your outstanding
debt.
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