Card Lemon - Why It is Very Important to Know
The whole of the commercial credit card industry depends on Visa/MasterCard, and they are always at pains to promote the fabulous benefits of using their products and services. Just as often as they tell you about the vast array of features, technologies and benefits they offer to their customers, they never tell you about a little-known benefit of card lemon bola tangkas gratis
For all those who have not yet heard of this, the card lemon is a type of credit card that has no credit limit, which makes it nearly impossible to obtain credit. The reason for this is that the issuer of the card has made a settlement with a collection agency daftar tangkasnet
There is a system which ensures that there is no recovery, in case the customer does not pay back their debt to the collection agency. In essence, by making the contract with a collection agency void the lender can recover their money and chargeback the outstanding debt.
It is often argued that even for a person with a bad credit rating, it is possible to obtain a card with no credit limit. This is true if the card is used to make a purchase that is charged off and then filed and can be collected without much difficulty. This is perfectly legal, however in the event that the card is used to make a large payment or an emergency expense the issuer can take legal action and confiscate the card.
In such cases the consumer can call the company and say that they cannot pay because the card has been used fraudulently, and the creditor will return the card to them. The consumer must pay this charge back to the creditor through legal means and will then not be able to use the card for any purpose again.
Before you apply for a card with no credit limit, try to find out what sort of terms and conditions apply to this kind of card. In some instances the card may have no annual fee, but this is at your discretion. If you are unable to qualify for a card with no credit limit, it is possible to obtain one which has a minimum monthly rate of interest, usually around 6%.
The benefits of this card lemon are that the issuer can recover their money easily and the customer must pay this charge back through legal means, and so the transaction will not count against their credit history. So, in the event of an emergency the customer is in a strong position and can usually obtain a good deal.
However, if the card is used to make purchases on a regular basis the issuer may refuse to give the card to the customer. In addition, the customer may also be subject to other charge backs. Therefore it is important to understand the terms and conditions before applying for this card lemon.