Don’t Be a Willing Victim to Vicious Credit Card Scams
Whether you’re using a credit card for the first time or have been using it for years, you should be aware of the many different scams you can possibly get exposed to. While most credit card companies have excellent reputation, there are also an equal number of shady ones out to get your money.
If you don’t have the slightest idea of how easily you can be duped by these con artists, you could lose several hundred dollars or more. Read about these vicious credit card scams and learn how to spot – and prevent – a potential rip-off.
Debt suspension offers
Banks sometimes extend the borrowers suspension of debt services so they can remain up-to-date with payments. This service requires you to come up with fixed monthly payments with the assurance that in the event you can’t pay your bills, no pile up of interest will occur.
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 is one of the ugliest rip-offs going around and is aimed at desperate people just dying to find cards with good rates. The operator will get you the card you want but you have to first pay them an approval fee in advance before processing your application.
Once you have been divested of this fee, the company will simply run away with your hard-earned money. If you are offered a credit card which asks for an advanced approval payment, just turn it down. Even borrowers with bad credits don’t need to pay in advance for cards. The lenders can only accept or turn down applications, and no fees are required.
Credit protection
Another prevalent credit card scam is one that offers high-priced credit safeguards to your card if ever it gets stolen or lost. The extra fee for your card’s “protection” is ridiculously high compared to the coverage which is almost none.
You’re not likely to lose much if you immediately report your lost or stolen credit card, and you’re already covered by insurance or consumer protection. If protection is really necessary, then contact an independent company for a standalone policy which will be cheaper yet will cover all your cards at one go.
Getting a credit card requires a lot of checking and understanding of the clauses within the contract before signing. If something seems fishy, then decline the contract and look for another company to deal with. Be sure to know the pitfalls of the game and you’ll eventually find a respectable credit card company where you can get great rates.
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