First of all, let's be realistic. Here's a company offering an unsecured "Credit Card" with an initial limit of $7500 without a "credit check", with no annual fees and...get this, NO Annual Percentage Rate (APR)...sound too good to be true, well, it is...sort of.
(By the way, in their, "Terms and Conditions" they do state that, "By becoming a member of the USA Credit Program and obtaining a USA Credit Card, you authorize USA Credit to obtain a Credit Report that is based in the information that you provide to USA Credit)....so much for that "No Credit Check"!
USA Shopping Club is a markting company. AKA: Commonwealth Marketing Group, Inc. in Pennsylvania. They are a REAL Company with a real website and a real Customer Service telephone number that people actually answer. (1-800-262-4192)
However, what they do is a bit of a scam. I'll try to explain the process. Once you're solicited by USA Shopping Club, you will most likely be approved for a $7500 "Shopping" credit card. You will have to pay an $80 fee for your card and "Membership Kit". You will be offered an opportunity to "upgrade" to a "Elite Status" offering you a higher credit limit and an opportunity to join a "Credit Bureau Reporting" access offer,(I don't recommend any of them...just another way to get more money from you and possibly a reoccurring $20 monthly charge).
They will tell you that by agreeing to accept the card, they will report in your name to "a credit bureau", your unsecured credit line of $7500, thus "helping you to improve" your credit rating. (Depending on your individual situation, this may actually be detrimental.
In reality, within their "Terms and Conditions", they do state:
"However, USA Credit reserves the right to "NOT" report your account to ANY credit bureau".
So, as part of the "pitch" to help you improve your credit rating, they may or may not actually report for you. Another part of the SCAM.
As far as the Shopping Club website is concerned, PLEASE check it out first, if possible, before you sign up. What you will find is, "Over 22,000 item's", most of which you will not be able to purchase using your new "USA Credit card". They write in their "Welcome Kit" letter: "Household names like Sony, Samsung, general Electric, Black and Decker and more are waiting for you!
(Actually, you will be wating for them, as none of the products from these manufacturer's are available for purchase with your card).
Here's the REALITY... any product that is "ON SALE", or price marked in RED, can only be purchased by paying for the item, "In Full", plus applicable shipping and handling charges. The problem here is, "most" of the products or services that "most" people would consider purchasing, are...can you guess,
When I called a customer service representative, she explained to me that they offer many items that could be purchased using your card, (you do have to pay, shipping and handling in advance). However, I found that most of these items were inexpensive "junk" products, the kind you get at your company "Christmas gift exchange party".
Furthermore, she tried to explain, the reason you cannot use your card for the items "ON SALE", were that they are offered by the manufacturer's at such a substanital discount. (I checked on a digital camera they offered, "On Sale", and found I could purchase the same item at Circuit City's website for $100 less and receive "free" shipping and handling. She really had no explanation for this....
The story gets better....In an effort to try and get back my initial investment, $80, I decided I'd search for a few of the "Christmas Exchange" items and redeem the $80 payment voucher they sent. It took two hours searching the site to find anything that I deemed worth purchasing.
Finaly, I ordered some binoculars, a few DVD's and a CD Restoration System. I authorized the shipping and handling fees and waited. I noticed the charge to my bank account, but several days later, I noticed they credited the funds back to my account. Apparently, these items were not in stock. I never received any notice from them, I had to call.
I now only have a few more days in which to use this voucher, as it expires 60 days from the date you sign up, NOT 60 days from the date you actually receive the voucher, which took almost a month.
My recommendation is to stay as far away from this solicition as possible. They will disclose, share and sell your information to who they refer to as, "affiliated partners", at their discretion.
You will most likely not be able to find adequate product selections to use your card for purchase and even if you do, it's probably not in stock. (So much for the $80 voucher)
If you have fallen prey, you may cancel and receive a refund by calling their toll free number, (800) 262-4192, within 30 days and request a return authorization number. You'll want to keep the entire membership kit to return, or no refund will be forthcoming. In addition, the experience will still cost you $10.00 for the account origination.
As they will be using your personal information by "sharing", and most likely, "SELLING" to thier partner, affiliates...you can, "Opt-Out" by emailing them at "email@example.com" or simply writing them at the address shown on this report.
(Keep a copy of all emails or letters you send)
In any case, I hope this information will be helpful for anyone considering USA Shopping Club, or if you've already been burned.
U.S.A. Click here to read other Rip Off Reports on USA Credit