Credit Card Scamsadmin
If you have no credit history or have had credit problems , the ads, which offer credit card approval, may sound like an answer to all your questions. Unfortunately, for many people who sign their names before reading the fine print, they turn into a nightmare.
Often, the scam can start with a phone call, a postcard, or a letter, which claims that for a fee you can obtain a VISA or MasterCard or other major credit card, or establish that you are credit worthy enough to obtain one of these cards. Typically, the promoters of these phony offers indicate that your card is pre-approved and that it can be obtained without any credit check. The fee charged typically ranges from $35 to $50.
When your card arrives in the mail, you find out it can only be used to pay for orders from a specific store or catalog. The store or catalog, which is owned by the company that issued the credit card, may not even offer merchandise of interest to you.
This kind of “single-use credit card” is not a new concept, but recently unwary victims of this scam are being sold these credit cards by con artists who misrepresent them as being all-purpose bank credit cards. At times, the deception is magnified by the fact that the merchandise in the catalog from which you must choose your purchases is either inferior or grossly overpriced.
You can protect yourself against the phony “one-shot” credit card offers by being very careful when you are considering opening a new credit card account. If you have poor credit, be skeptical if you are offered a pre-approved card with no credit check. Be sure you know the specific purpose of the card. If you are not satisfied with the information provided by those marketing the cards, do not pay the required fee. Otherwise, you may become a victim. The possible solution for those who is trying to restore their credit history may be secured credit card .
How to Avoid the Credit Card Scam
To avoid being victimized, look for the following signs:
- Offers of easy credit. No one can guarantee to get you credit. Before deciding whether to give you a credit card, legitimate credit providers examine your credit report.
- A call to a ‘900’ number for a credit card. You pay for calls with a ‘900’ prefix — and you may never receive a credit card.
- Credit cards offered by “credit repair” companies or “credit clinics.” These businesses also may offer to clean-up your credit history for a fee. However, you can correct genuine mistakes or outdated information yourself by contacting credit bureaus directly. Remember that only time and good credit habits will restore your credit worthiness.