Credit Cards: An Important Lesson

One morning an older male was stopped on the road and queried how many charge plates he held. The elder replied, I have a story to tell you. When I was in college the city institution extended me an offer to take out a loan. Considering that I did not have employment yet, as I was still in school, I questioned why they would lend to me, a unemployed school student.

  When I inquired about this possible mistake, the institution replied, you can not generate dollars without shelling out income.

  I was surprised, astounded, and mystified, the man explained. Are they telling me to take out a loan and put the dollars to work?

 As the male recalled the tale, he pulled out his wallet and began to discover the amount of credit cards that he was carrying around. Soon a crowd surrounded around the guy and commenced seeing how many credit cards he owned. The number was 50.

  Someone questioned him, why so many?

  The male opened his mouth and beaming with joy continued on. That bank rejected my loan request for $5000.  The denial was painful to me. But as part of the refusal, the bank gave me 50 plastic cards at $100 each.

  When I asked why they refused a personal loan for $5000 but offered me 50 affinity cards worth $100 each they told me that diversification was more influential to them than portfolio balance. They wanted to downgrade their chances by splitting it up into 50 cards.