Avoid Reviving Old Credit Card Debt

Credit card companies and banks are out to find new customers and that includes people with expired debt. All credit card debt that is older than seven years old expires and drops off an individual’s credit report. At that point, it has little or no effect on the credit report. However, with the issuance of a new card, that old debt is now new again. The catch in getting that new card is to that the customer must promise to revive the old debt. These terms have consumer watchdog groups very concerned.

Companies such as CompuCredit claim that the issuance of these new cards is a good thing for consumers and that it puts them back in the credit pool. However, these companies are able to charge very high interest rates and other fees for “bad borrowers”. Anyone with expired debt should think twice about accepting one of these offers.

Source: http://www.inquisitr.com/174970/credit-card-companys-target-expired-debt-with-new-credit-offers/