
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, March 5, 1990                   TAG: 9003051939
SECTION: BUSINESS                    PAGE: B-5   EDITION: METRO 
SOURCE: The Washington Post
DATELINE:                                 LENGTH: Short

SECURED CREDIT CARDS RAISE DANGER SIGNALS

America's credit binge is starting to take its toll. More than 600,000 bankruptcy petitions were filed last year, and according to one researcher, more than a third of banks' credit-card losses are now coming from personal bankruptcy.

But one person's disaster is another's opportunity. The rising tide of bankruptcies and defaults is creating a steadily increasing pool of people who have bad credit histories and are struggling to get back on their feet.

So an industry is springing up to (a) help, and (b) take advantage of them.

The one you want to deal with is (a), but the one you're likely to hear about on late-night television or read about in your supermarket tabloid is (b).

"There are all kinds of industries and firms out there willing to take advantage of you," said Robert B. McKinley of RAM Research-Publishing Co., a Frederick, Md., firm that tracks bank-credit-card trends.

At the same time, this burgeoning market has encouraged more banks to begin offering secured credit cards, which when provided on reasonable terms are a tried and true way for a consumer with a bad credit history to re-establish good credit.

"It appears that the secured-card market is finally starting to clean up its act," said Gerri Detweiler of Bankcard Holders of America, a consumer group based in Herndon, Va.

But, there are still a lot of shady marketers, she said.

To be safe, deal directly with the bank, both McKinley and Detweiler advised.

by CNB