First Savings Credit Card charged me 155.00 and the card has never been used, Sioux Falls South Dakota
after receiving application in mail, decided was time to get some credit in my name. Applied online as they directed. Was told that within 2 weeks I would be receiving notice whether I was approved. Got letter from company on Tuesday saying I was approved. On the following Saturday received a bill for 155.00, with a payment of 15.00 due by the 1st. How can a company do that and get away with it. The company gave me a 300.00 credit limit, and charged me over half of that before I even used the card. Anyone have any advice for me
Laura
Jacksonville, Florida
U.S.A.
1 Updates & Rebuttals
Tim
Grand Haven,Michigan,
U.S.A.
Stay away from creditors in Sioux Falls!
#2Consumer Suggestion
Sun, June 22, 2008
I'm a bankruptcy attorney, and I would estimate that at least 20% of the creditors I deal with are out of Sioux Falls. I would dare say that 40% of the mail handled by the Sioux Falls post office is credit card applications, and another 40% is notices from bankruptcy courts.
The only advice of any value that I can give you is to NEVER again get a credit card from any company operating out of Sioux Falls, South Dakota.
Were you scammed? Yes, despite the fact (which I'm sure will be raised by someone) that these initial charges were disclosed to you prior to ordering the card, and that you were advised that your avaliable credit would be roughly $150 after all the initial charges are assessed.
I would keep the card, as you did basically receive $150 in credit, but be VERY sure to NEVER go over the limit, and pay off your entire balance every month, preferably at least a week before its due, but not sooner than 10 days before its due (or you run the risk that they will apply the payment to the PREVIOUS month, and you will think that you did a good thing by paying early, until you get hit with a late payment fee because, ironically, you paid too EARLY).
If you familiarize yourself with every term and condition applicable to the card, you'll be just fine, and they will likely give you periodic increases in your credit line, and you can, over time, negotiate for fairer terms or move on to a better company.
Bottom line: use this card as a stepping stone to get a better card and a solid credit score. Don't use it to buy things you don't need, and be VERY careful to NEVER go over the limit or make a late payment. Here's a scenario that happens all the time with these bottom-of-the-barrell cards: you make your payment late, then they assess a $30 late payment penalty, which puts you over the limit, so then they hit you with a $30 over the limit fee. Then they raise your interest rate, and your well-founded idea to build some credit costs you deraly and ends up destroying your credit instead.
Best regards, and just be thankful you didn't fall for a "secured card" scam.