1 Way To Avoid Credit Scams

If you have bad credit or less that perfect credit there are many companies that are out to try and take advantage or you. If you have bad credit you probably receive very few legitimate offers and these companies are counting on that fact.

Unfortunately, the credit card offers that you may be receiving may seem like legitimate offers. Often times, these types of credit cards come with extremely high interest rates, inflated fees and other crazy terms.

In the mail you might receive pre-approved credit card offers from different companies that disguised them as valid Visa's or MasterCard's. But in actuality they are offering cards that good for only store clubs or catalogue clubs. Usually their sales pitch informs you that you have received pre-approval for a credit line of up to $5,000 and they require no security deposit. They are targeting you by giving you the sense that you are restoring your credit and getting the taste of once again having the convenience of having your own credit card.

This may sound too good to be true. If you are desperate for a credit card of your own, you are ready to jump on any offer that arrives in the mail. Therefore, it is important that you read the fine print when such offers arrive in the mail. Look thoroughly over the offer before making a commitment to it.

Such credit card scams tell you that you are pre-approved for a MasterCard with a $5,000 credit limit. They inform you that you simply need to verify your personal information in order to activate the card. In order to verify the accuracy of your information, they ask that you sign the credit card offer and mail the application back in. Afterwards, your credit card will be mailed to you promptly.

But if you have taken the time to read the document carefully you will see that this is not an ordinary MasterCard credit card. You will only have the ability to use this credit card to purchase items on their special online or at a specific store. This credit card will not be valid anywhere else. The products that can usually be purchase with these credit cards are off brand electronics and house ware items.

Once you really started to read the terms for the credit card you will find that most of these companies require you to first mail them a check or money order of about $299 to activate the offer. They then tell you that you will be able to recoup your money by special discounts you will receive after you have made you first purchase with the credit card. In addition to the activation fees they also hit you with enormous annual fees. These fees you run a couple hundred dollars. Hopefully you have come to the realization that this is not an appealing offer.

Remember that these offers always include extremely high interest rates. Some companies will charge you rates of up to 45%. So it is vital that with all credit card offers you receive that you read all the fine print.

The best advice you can receive for an offer like this is to just throw it out! Your money would be better spent on getting a secured credit card instead of paying their activation fees. You can easily get a real Visa or MasterCard with a security deposit. And by going the way of a secured credit card you will actually begin repairing your credit through the major credit bureaus. Make sure you keep this in the back of your mind when you find credit card offers in your mailbox.

Article Source: http://www.realtyreferenceonline.com/articles

Come to our credit card content site For additional free information on where to grab the most cost affective credit cards. We all desire credit card hints, My credit card content website specialises in supplying pointers
also ideas on electing the greatest credit cards and where to obtain the least amount interest rates.
This article is available as a unique content article with free reprint rights.

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated