It doesn't matter whether you're a first time or long term credit card user; it is paramount that you know about the most common scams that you can fall victim to. Although many reputable card companies abound, there are just as many crooked ones as well.
If you are clueless of the methods used by these bad eggs to rip you off, then you could well be a candidate for a scam. Study some of the most vicious credit card con games below and learn to stay clear of them.
Debt suspension offers
Banks sometimes provide debt suspension offers as a service to "assist" you to be up-to-date with your card payments. In this scheme, you need to pay a fixed monthly amount so in the event you fail to pay your bills, interest will not accrue throughout this period.
Don't be easily enticed by this assurance as the benefits promised are actually very minimal. Moreover, your card is frozen while you are unemployed, and while the interest is also on hold, your payments are not updated and you have to settle the bill once you're working again. Think of it as paying good money for something you can't really use.
If you're offered a credit card, first verify that a debt suspension offer of this kind is not inserted in the agreement as this will cost you later. If it is included, then have it taken out and get a standalone insurance policy to assist in your bill payments in the event you are unemployed.
Advance approval fees
This scam is one of the worst there is and the victims are people who are in dire need of a card that has great rates. The "operator" will provide you with such a card but you need to pay an approval or administration fee in advance for your application to be processed.
Once you've made the payment, the company will vanish and move on to their next victim. If a card is offered that requires a payment upfront, simply decline. Even with a poor credit you are not required to pay advanced fees for cards. The lender can only either approve or disapprove your application; no fees are needed.
Credit protection
Another common scam that has claimed a lot of victims is giving your card credit protection in the event it is lost or stolen. The premium for this added safeguard is often very high but offers very little protection.
If you report a stolen card right away, then there's a high probability you won't lose much, as you're already protected by consumer laws. If you must require protection, then obtain a less expensive independent policy that will provide protective coverage for all your credit cards at the same time.
If you're applying for a credit card, be sure to read and check out all the angles of the contract before signing. If anything is not above board, then back out and look for another card company. As long as you are not ignorant of the different credit card scams, you will be able to come upon a reliable card company that can offer you the best deals. - 20765
If you are clueless of the methods used by these bad eggs to rip you off, then you could well be a candidate for a scam. Study some of the most vicious credit card con games below and learn to stay clear of them.
Debt suspension offers
Banks sometimes provide debt suspension offers as a service to "assist" you to be up-to-date with your card payments. In this scheme, you need to pay a fixed monthly amount so in the event you fail to pay your bills, interest will not accrue throughout this period.
Don't be easily enticed by this assurance as the benefits promised are actually very minimal. Moreover, your card is frozen while you are unemployed, and while the interest is also on hold, your payments are not updated and you have to settle the bill once you're working again. Think of it as paying good money for something you can't really use.
If you're offered a credit card, first verify that a debt suspension offer of this kind is not inserted in the agreement as this will cost you later. If it is included, then have it taken out and get a standalone insurance policy to assist in your bill payments in the event you are unemployed.
Advance approval fees
This scam is one of the worst there is and the victims are people who are in dire need of a card that has great rates. The "operator" will provide you with such a card but you need to pay an approval or administration fee in advance for your application to be processed.
Once you've made the payment, the company will vanish and move on to their next victim. If a card is offered that requires a payment upfront, simply decline. Even with a poor credit you are not required to pay advanced fees for cards. The lender can only either approve or disapprove your application; no fees are needed.
Credit protection
Another common scam that has claimed a lot of victims is giving your card credit protection in the event it is lost or stolen. The premium for this added safeguard is often very high but offers very little protection.
If you report a stolen card right away, then there's a high probability you won't lose much, as you're already protected by consumer laws. If you must require protection, then obtain a less expensive independent policy that will provide protective coverage for all your credit cards at the same time.
If you're applying for a credit card, be sure to read and check out all the angles of the contract before signing. If anything is not above board, then back out and look for another card company. As long as you are not ignorant of the different credit card scams, you will be able to come upon a reliable card company that can offer you the best deals. - 20765
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