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Credit Cards
Credit Card
Basics:
-Credit
Card Benefits
-Glossary
-Applying
for
the Right Card
-Card
Offer Pros & Cons
-Cash Advances
-Balance Transfer Tips
-Smart Credit Card Use
-Going Over-the-Limit
-Credit Card Scams
-Delinquency Rates
-Paying Bills on Time
-Credit Card Insurance
-Fees
& Costs
-Student
Card Guide
-Unsecured
Offers
Card Offer Details
Mortgages
Auto Loans
Personal Loans
Credit Reports
Debt Consolidation
Home
-Taxes
-Managing Money
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-Checking Accounts
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CREDIT CARD SCAMS
When considering applying for a credit card, you
need to do your research. There are so many different
factors that need to be considered when deciding what
card to go with. This can be overwhelming. Unfortunately
there are dishonest companies that look to take
advantage of people unfamiliar with credit cards and how
they work. There are credit card scammers everywhere
that will take you for a great deal of money if you let
them. Below are details of some of the most frequently
occurring scams. If you can identify them, you can steer
clear from them. If you have questions or comments,
please
contact us.
Cards that demand fees in advance
Have you ever heard the saying 'if its too good to
be true....then it is!'? This is often the case with
credit cards. Companies will offer you a card with
really favorable terms, low interest rates and high
limits. The only thing you need to do to get this deal
is to pay a fee in advance. The issuer will say that the
fee is required for you to be pre-approved, or for the
paperwork needed to obtain the card. After you pay this
fee, the thief will vanish with your hard earned cash
with you never seeing or hearing from them again. The
bottom line is never pay any fees up front for any
offer...no matter how good it sounds!
Debt suspension offers
This type of offer is made available by all the
major credit card companies. This offer protects you
from having to make payments in the event that you get
sick or hurt and can not work...and can not pay your
bill. This is intended to give you the opportunity to
get your finances under control and in order before you
are obligated to re-start making your payments. No
interest is going to be applied to your card. You can
also continue making charges to your account. Sounds
like a good deal? It is! The banks will use this offer
as an extra feature for your card. Being that they are
offering it themselves, no insurance company is used.
The scam occurs when companies posing as insurers offer
this same type of deal to card holders that are unaware
that they are already protected by their credit card
company. Even if they do end up buying the additional
protection, the likelihood of even being to collect from
a claim is very small.
Credit protection.
If your credit card is lost or stolen and used by
someone without your permission, you won't have to pay.
Even though Federal laws limit your liability in the
case of theft to $50, there are scammers making millions
of dollars every year by selling this offer to card
holders that do not know their rights. Anyone who buys
into this scam will be paying for something they do not
need and won't even be able to use if fraudulent charges
are made with their card. Learn more about
what to do if you become a victim of identity theft. |
