Chad Moore Calgary Mortgage Broker

If you’re like me, you’ve been to the Saddle Doom and McMahon Stadium to watch our Calgary sports teams.  And you may have been tempted to take advantage of the free:

• T-shirt
• Blanket
• Touque
• Hat
• Coffee mug
• <whatever>

…they offer at little kiosk’s.  Unbeknownst to many people, these are Credit Card companies (MBNA, for example) that want you to sign up for a new credit card.  Here’s what happens when you sign up for this free swag …

What You Really Sign Up For:

1.  You authorize a credit check.  These credit card companies ask you to complete a form, with your personal details, in exchange for <whatever> merchandise.  You get the merchandise no matter what – win!

2.   They check your credit history.  If you have “good enough” credit for another credit card, they send you one in the mail.  When you receive it, you’ll have four options.  One, you property discard of the card.  Two, you improperly discard the card.  Three, you stash the card in a drawer not to be used.  Four, you use the card.

The Credit Card company play the numbers.  For the cost of “free” stuff they give away, they know that a certain percentage of people will sign up.  And they know a certain percentage of people will actually use their credit card, where the company earns back the cost of goods they gave away.

3.  You are cross sold other “things” read: junk mail.  The credit card company just doesn’t want your credit card business …they want your line of credit, chequing accounts, second credit cards, increase your limit …and selling you things in the mail.

Beware! Here’s A Horror Story

True story.  A client of mine signs up for one of these credit cards.

Has it delivered to his home and throws it away.  He did not shred it or discard of the activation code separately.

He then proceeds to throw away Credit Card cheques he also received in the mail.

Some criminal is collecting all of this information, activates the credit card, opens another bank account in this guys name and …

STEALS HIS IDENTITY.

Bad news.

Once my client finds out about everything, he’s spent a lot of his time sorting everything out.  No money lost and his credit history was saved, but what a major inconvenience.

Moral Of The Story.

1.  Understand what happens when you authorize a credit check with a credit card company.

2.  Properly dispose of sensitive personal financial information.

3.  Ask yourself, “do I really need another t-shirt?”

Do you have another credit question?  If so, click here.

Talk soon,

Chad Moore