| If you are a first time credit card user or | | | | fees scam, which targets people are desperate |
| have had credit cards for years, it is | | | | to get hold of a card with good rates. The |
| important to know about possible scams that | | | | 'lender' will offer you a card at a great |
| you can be exposed to. Although many credit | | | | rate, but the catch is you have to pay them |
| card companies are perfectly honest, there | | | | an administration or approval fee up front so |
| are also many dishonest ones who want to rip | | | | that your application is processed. Once you |
| you off. If you are unaware of the ways in | | | | have paid this fee then you probably will |
| which you can be conned or misled then you | | | | never hear from the company again. If you are |
| could end up losing a lot of money. Here are | | | | ever offered a card but are asked to pay a |
| some of the worst credit card scams around | | | | fee upfront, just refuse. Even if you have |
| and how to avoid them: | | | | poor credit you shouldn't need to pay fees up |
| | | | front for cards. A lender should either |
| Debt suspension | | | | accept or reject your application, and fees |
| | | | are not required. |
| Debt suspension offers are sometimes offered | | | | |
| by banks as a way to 'help' you keep on track | | | | Credit protection |
| with payments. The way debt suspension works | | | | |
| is that you pay a certain amount each month | | | | One of the most common scams around is to add |
| so that if you cannot pay your bills then no | | | | expensive credit protection to your card in |
| interest will accrue during this time. | | | | case it is lost or stolen. The extra money |
| Although this might seem like a good idea at | | | | you pay for this protection is usually very |
| first, the benefits are really quite minimal. | | | | high, and often covers you for very little. |
| You cannot use your card whilst you are out | | | | If you report your card stolen immediately |
| of work, and although no interest is being | | | | then it is unlikely that you will lose much, |
| added, your payments are not being paid so | | | | and other insurance policies or consumer laws |
| once you can work again you still have the | | | | often cover you already. If you really want |
| balance to pay. In essence you are paying | | | | protection then get a separate policy from an |
| money for something that will not really help | | | | independent company that will work out a lot |
| you. If you are getting a credit card then | | | | cheaper and will allow you to protect all |
| make sure that this type of debt suspension | | | | your cards at once. |
| offer is not included at a cost to you within | | | | |
| your payments. If it is then get it removed | | | | If you are getting a credit card, then |
| and find an independent insurance policy that | | | | remember to check and double-check all |
| will help with your payments if you are | | | | clauses within the agreement you are signing. |
| unemployed. | | | | If anything seems suspicious at all, then do |
| | | | not sign and find a different company. As |
| Advance fees | | | | long as you are aware of the dangers you will |
| | | | find a fair and honest credit card company |
| One of the worst scams around is the advanced | | | | who can give you great rates. |