Credit Cards And Scams

Credit Cards And Scams
Advance Fee Credit Cards
Some companies promise to​ get you​ a​ credit card no matter how bad your credit is​ .​

Here’s what can happen if​ you​ pay them the​ $200 or​ more they usually ask for:
You receive a​ credit card that’s only good for over-priced merchandise from their catalog .​

You get applications for secured credit cards .​
a​ secured credit card offer requires you​ to​ deposit $500 in​ a​ bank account to​ receive a​ credit card with a​ $500 limit .​
You receive nothing at​ all .​
Secured credit cards from a​ legitimate bank or​ credit union can help you​ re-establish credit .​
Many banks and credit unions will give you​ a​ secured credit card with no upfront fees or​ charges .​
If you​ want one of​ these,​ go to​ your own bank or​ credit union and apply for one .​

Other scams involve credit cards with a​ low credit limit of​ $300 or​ so .​
the​ bank making the​ offer charges you​ an​ application fee,​ a​ processing fee,​ annual fees,​ a​ rush approval fee,​ and a​ high interest rate that starts the​ day you​ open the​ account .​
These charges may eat up as​ much as​ 90% of​ your credit line! Remember,​ if​ you​ want a​ secured credit card,​ go to​ your own bank or​ credit union and don’t pay excessive fees.
Instant Loan Checks…. .​
There is​ no free money
Instant loan checks often come to​ you​ in​ the​ mail .​
They look like a​ bank check but are really a​ loan .​
the​ letter that comes with the​ check tells you​ that all you​ have to​ do is​ sign the​ check and cash it .​
When you​ sign the​ back of​ one of​ these checks and cash it,​ you​ are actually signing for a​ loan and agreeing to​ make payments on​ the​ loan with interest .​
to​ find the​ interest rate,​ monthly payments and other costs,​ you​ must carefully read the​ letter and the​ other papers sent to​ you​ with the​ check .​

Consumers often mistake these checks for benefits or​ reimbursements .​
After they cash the​ check,​ they find themselves with a​ high-interest loan they didn't want,​ didn't need,​ and couldn't afford .​
the​ rate of​ interest charged by the​ lender is​ often higher than what is​ stated in​ the​ cover letter .​
If you​ can’t make the​ payments,​ the​ lender may ask you​ to​ take out a​ new loan and secure it​ with your home .​

Before signing and cashing a​ check,​ be sure you​ know the​ following:
Who sent the​ check and why?
Read the​ letter that comes with the​ check .​
Be sure you​ understand what you’re committing to​ by signing and cashing the​ check .​
If you​ don’t understand the​ terms,​ call the​ sender and ask questions .​
Destroy checks that you​ don't intend to​ use it​ so no one else can cash them .​
Credit Repair Companies
Credit repair companies promise to​ improve your credit .​
They may also promise to​ get you​ a​ loan or​ a​ credit card .​
They lead you​ to​ believe they have special ways to​ get negative information off your credit report .​
They don’t.
Credit repair companies have no special powers to​ improve your credit .​
There is​ nothing they can do for you​ that you​ cannot do yourself .​
Paying them leaves you​ less money to​ pay your current bills and past debts .​
Because of​ the​ problems with credit repair companies,​ strict laws were passed to​ regulate their activities .​
For example,​ they must provide a​ written contract that you​ can cancel within five days .​
They can’t require payment in​ advance,​ and all promised services must be completed in​ 90 days .​
They must also register with the​ Department of​ Justice and file a​ $100,​000 bond with the​ Secretary of​ State .​
Be aware that very few credit repair companies follow the​ law.
Credit Cards And Scams Credit Cards And Scams Reviewed by Henda Yesti on December 31, 2017 Rating: 5

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