Most people don't realize how common Credit card scams are. Many companies target the consumers with less than perfect credit or those with badly damaged credit. For those consumers companies are not banging down the door to offer you a credit card with a great deal.
Scams using credit cards are far more common that most people realize. The companies will make you an offer that sounds very legitimate but most times they include outrageous annual fees, very high interest rates, or other odd terms.
These companies are hoping that you are trying to repair your damaged credit and want the conveniences of carrying a credit card with you. So what they do is mail out offers that look like legitimate offers for either a MasterCard or Visa. They first let you know that you have been pre-approved. Then they really get your attention by offering you a pre-approved credit card with a $5000 line of credit that requires no security deposit. In actuality they are usually credit cards that can be used at only specific catalogue clubs or store clubs.
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.
Most of these types of credit card offers will charge you upward of 45% interest, which is obscenely high. So it is vital that you have read all the information contained in credit card offers.
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.entiretheweb.com/article_directory
Drop by my article website For more free articles on how to find the best credit cards. We all want credit card pointers, My info site specialises in providing pointerstogether with advice on picking the best credit cards and where to get the lowest exchange rates.
