avoiding credit card scams
If you’re a primarily time credit card employr or have had credit cards for years, it’s important to know about po ible scams that you can be exposed to. Although many credit card companies are perfectly honest, there are also many dishonest ones who intend to to rip you off. If you’re unaware of the ways in which you can be co ed or misled then you could end up losing a lot of money. Here are some of the worst credit card scams around and how to avoid them:
Debt su e ion
Debt su e ion offers are sometimes offered by banks as a way to help you keep on track with payments. The way debt su e ion works is that you pay a certain amount each month so that if you ca ot pay your bills then no interest will accrue during this time. Although this might seem like a good idea at primarily, the benefits are really quite minimal. You ca ot employ your card whilst you’re out of work, and albeit no interest is being added, your payments are not being paid so once you can work again you still have the balance to pay. In e ence you’re paying money for something that will not really help you. If you’re getting a credit card then make sure that this type of debt su e ion offer is not included at a cost to you within your payments. If it’s then get it removed and find an independent i urance policy that will help with your payments if you’re unemployed.
Advance fees
One of the worst scams around is the advanced fees scam, which targets people are de erate to get hancient of a card with good rates. The lender will offer you a card at a great rate, nonetheless the catch is you have to pay them an administration or a roval fee up front so that your a lication is proce ed. Once you have paid this fee then you probably will never hear from the company again. If you’re ever offered a card nonetheless are asked to pay a fee upfront, just refemploy. Even if you have poor credit you shouldnt need to pay fees up front for cards. A lender should either accept or reject your a lication, and fees are not required.
Credit protection
One of the most common scams around is to add expe ive credit protection to your card in case it’s lost or stolen. The extra money you pay for this protection is usually very high, and often covers you for very little. If you report your card stolen immediately then it’s unlikely that you’ll lose much, and other i urance policies or co umer laws often cover you already. If you really intend to protection then get a separate policy from an independent company that will work out a lot cheaper and will allow you to protect all your cards at once.
If you’re getting a credit card, then remember to check and double-check all claemploys within the agreement you’re signing. If anything seems su icious at all, then do not sign and find a different company. As long as you’re aware of the dangers you’ll find a fair and honest credit card company who can give you great rates.
