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