Bank Scam #6: Offering a Discount to Apply for Credit

http://hometownheroesrun.com/lib/cio-survival-guide-the-roles-and-responsibilities-of-the-chief-information Top 10 Bank Scams

http://ornamentalpeanut.com/simple.php Bank Scam #6: Offering a Discount to Apply for Credit

Banking is simply a game of numbers. The first goal of the bank is to sell you multiple products. The bank knows that if you own 5 “products” from the same bank, you will stay as a customer of that bank. For example, if the bank opens a checking account, a savings account, a credit card, an auto loan, and finally a mortgage, you will own 5 products from their bank, and out of convenience–you will stay as a customer for life.

And, “Why leave one bank because of a few fees, if another bank will simply do the same thing?”

The second goal is conditioning for debt. The bank will start with a small credit card–and then slowly increase your available credit. This “conditioning” is used to slowly get you comfortable to carrying a larger balance on your credit card.

The next goal is to get multiple cards into your wallet. This is where “get good credit” comes in handy. “You will need multiple cards to have the best credit score” is the advice from your banker. And soon your mailbox is filled with multiple offers, many even at “0%.” The bank knows that if enough offers are sent in the mail–eventually your wallet can fit a few more cards.

The final goal is to keep you in debt for life, and, to keep you in debt, the banks will use many tactics, including your eagerness to “save money” as an incentive to open more accounts.

“Would you like to apply for our (department store) card to receive a 10% discount?”

Offering you a discount at a Home Depot or Macy’s department store is just another tactic used to help keep you in debt.

With 6 or 8 credit cards in your wallet, and an “800” credit score, you are the perfect customer of big banking.

Yes, it is December 17th and Christmas is just around the corner. I thought this post would come in a timely manner–while shopping at your local department store. The next time you are offered a discount to apply for credit, you may find yourself saying, “That’s Bank Scam #6: Offering a Discount to Apply for Credit.”

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