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.
The unfortunate thing is the offers from these credit card companies seem like legitimate offers. Usually the credit company will give you offers that include astronomically high interest rates, steep fees and other crazy terms.
There are a number of different companies out there that mail out pre-approved credit card offers, which are disguised as valid MasterCard or Visa's. In reality, these types of credit cards are for catalogue clubs or store clubs. The credit card offer informs you that you have been pre-approved for a line of credit, with no security deposit, for up to $5,000. Such companies give you a sense that you are repairing your credit, all the while, allowing you to get a taste of the convenience of carrying around your own credit card.
Because you may be desperate to own a credit card you may ignore the fact the offer sound too good to be true and jump on any offer you receive in the mail. Make sure that you really read all the fine print in these offers you receive in the mail. Before you commit to anything look very thoroughly through the offer.
Most credit card scams start with a great opening line like, "you have been pre approved for a MasterCard with up to a $5,000 credit limit". They try to make it sound very simple. They ask you to check the printed information on the application and make sure all the information is correct. Then just sign the application and mail it back to them. Then they will verify your personal information and promptly mail out your new credit card.
However, if you thoroughly read over the document, you will realize that this is not a regular MasterCard credit card. Instead, you can only use this credit card to make purchase through a special online catalogue or in a special store. The credit card cannot be used anywhere else. The types of products you can purchase with these credit cards are off brand house ware products and electronics.
The usual catch to the scam can be found by further reading the offer. They usually require you to mail them a money order for $299 to activate the offer. They usually offer reassurances that you will get that money back with special offers or discounts from the company when you make your first purchase on your new credit card. Annual fees of additional hundreds of dollars are also added to the credit cards by some of the companies out there, and that is on top of the of the extremely high activation fee. Hopefully the more you read the less appealing the offer sounds.
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.
One of the best things you can do when you receive an offer like this, is throw it away. Instead, use the money it would take to activate the card and spend it on obtaining a secured credit card. With a security deposit, you can easily obtain a MasterCard or Visa. This is a great way to begin repairing your credit, since such companies report to the major credit bureaus. Be sure to keep all of this in mind the next time you walk out to your mailbox and see a credit card offer waiting for you.
Article Source: http://www.orbitaloc.com/
Come to my info website And receive additional free advice on how to find the most cost affective credit cards. We all need credit card tips, Our web site specialises in providing hints
furthermore advice on choosing the greatest credit cards furthermore how to obtain the lowest interest rates.
Feel free to grab a unique version of this article from the Unique Articles Submissions Service
Please Rate The Above Article From The Finance & Investment Category
Article Title: 1 Way To Avoid Credit Scams
Not yet Rated
Syndicate Finance & Investment Related Articles Via RSS!
Subject to Orbitaloc.com's Publisher Terms of Service, you may reprint this
article on your own website, blog, and ezine. (English only) You may also syndicate
the article via Really Simple Syndication (RSS). It is free of charge.
Free Articles on Finance & Investment and Other FREE Content Article Topics
The preceeding is an informative article from the Finance & Investment category.
