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| Don't Be a Willing Victim to Vicious Credit Card Scams |
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| Written by Benedict Hunter |
| Friday, 10 April 2009 09:12 |
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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 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. Suspension of debt service 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. While this sounds too good to be true initially, the scheme really aims to fleece its victim. You're disallowed to use your card if you're unemployed, and while no interest has accumulated, your balance stays unpaid and you still have to pay it when you find work again. What happened is you've been paying for something that won't be of much use to you. If you plan to get a credit card, be doubly sure that there's no debt suspension service that will add to your payments. If there is, then have it stricken out and go sign up with an independent insurance company which will help manage your payments when you're out of a job. Advance approval fees People who are desperately trying to get a credit card with good rates are the targets of one of the worst rip-off schemes in the industry. The "lender" will get you a card with a great rate but first you have to cough up an advanced approval fee up front in order to have your request processed. 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 card 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. If you are quick in reporting a stolen credit card, then you don't stand to lose much, and you are further covered by other consumer laws and insurance. If protection is really needed, then get a standalone policy from another company which can be less expensive and lets you cover all your cards simultaneously. 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. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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