Many Gold and Platinum Offers are Scams That Will not Improve Your Credit or Help you Decrease Debt

Many people in the world today are infatuated with the pursuit of status symbols. They feel that items in this category convey a message of prestige, wealth, and power. These items come in all shapes and sizes and vary from expensive jewelry to luxury automobiles. By possessing such items you are making a statement regarding your success and position in life. Another example of a modern day status symbols are gold or platinum credit cards. Originally individuals needed to meet some relatively strict standards, such as minimum levels of income, in order to qualify for these cards. As a result, the cards came to be synonymous with affluence and success and were elevated to the ranks of status symbols. As is often the case, a disreputable segment of society found a way to exploit the desires and greed of the public.

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One level of criteria that has remained constant as a prerequisite to obtaining a gold or platinum account is a clean credit report. This requirement has excluded a large portion of the population from the opportunity of possessing such a card. Scam artists came to the conclusion (and rightly so) that this shunned group was a prime target. In reality their finances might be on shaky ground but by possessing a gold card they could present the illusion that everything was great. In addition, these "salesmen" further enticed the consumers by promising that establishing a gold or platinum account will help improve their credit and make it possible to obtain an unsecured card. These benefits would eliminate prepaid credit limits and lower the interest rates, which in turn, could lower both the monthly payments and the total amount of debt.

• The gold and platinum cards are generally secured. Sometimes this is disclosed and other times it is not. A secured line requires the card holder to deposit money into an account which he is then able to access through the card.

• In most cases your credit will not be fixed. Receiving one of the gold or platinum cards will generally do little to improve an individual's credit or make it easier to obtain an unsecured card.

• Generally use of the card is limited to purchases made through catalogs that the card company provides.

• You must pay fees. There is an initial fee, a fee to receive the catalogues, and often times and annual fee.

The bottom line is that this offer to receive a gold or platinum card is not going to make your debts and financial problems go away. In fact, it will not even provide the sense of satisfaction that some derive from status symbols. This scam, like just about any scam out there, can be covered by the basic rule that you learned from your mother, "If it sounds too good to be true, it probably is".

Mark Carney is a professional consultant with First American Debt Consolidation and Loans, a debt consolidation service specializing in financial education, credit counseling, and debt management services nationwide.