If you are a first time credit card user or had mastercards for a long time it's very important to understand about possible scams that you can be exposed to. Though many credit card firms are superbly honest, there also are many deceptive ones who need to rip you off. If you are unaware of the ways in which you may be scammed or misled then you might end up losing a large amount of money. These are some of the worst credit card scams around and the way to avoid them:
Debt suspension
Debt suspension offers are often offered by banks as a method to 'help ' you keep on track with payments. The way debt suspension works is that you pay a specific quantity every month so that if you cannot pay your debts then no interest will accumulate in this time. Although this might appear like a great idea at first, the advantages are actually quite minimal. You cannot use your card whilst you are out of work, and though no interest is being added, your payments have not been paid so once you can work again you still have the balance to pay. Effectively you are paying money for something that won't actually help you. If you're getting a Mastercard then make sure that this kind of debt suspension offer is not included at a price to you in your payments. If it is then get it removed and find an independent cover which will help with your payments if you're unwaged.
Advance costs
One of the worst scams around is the advanced fees con, which targets people are frantic to get a hold of a card with good rates. The 'lender ' will offer you a card at a great rate, but the catch is you've got to pay them an administration or approval charge up front so that your claim is processed. Once you've paid this charge then you most likely will never hear from the company again. If you are ever offered a card but are asked to pay a charge up-front, just refuse. Regardless of if you have blemished credit you shouldn't need to pay fees up front for cards. A bank should either accept or reject your request, and charges aren't needed.
Credit protection
One of the most typical swindles around is to add expensive credit protection to your card in case it is mislaid. The additional money you pay for this protection is generally very high, and regularly covers you for little. If you report your card stolen instantly then it is improbable that you'll lose much, and other insurance policies or customer laws regularly cover you already. If you really want protection then get another policy from an independent company which will work out a lot less expensive and will allow you to guard all of your cards immediately.
If you are getting a credit card, then don't forget to check and double-check all clauses within the agreement you are signing. If anything appears suspicious at all, then do not sign and find a different company. As long as you are privy to the risks you will find a fair and fair Visa card company who can offer you great rates.
Learn the steps I used to repair my credit.
Debt suspension
Debt suspension offers are often offered by banks as a method to 'help ' you keep on track with payments. The way debt suspension works is that you pay a specific quantity every month so that if you cannot pay your debts then no interest will accumulate in this time. Although this might appear like a great idea at first, the advantages are actually quite minimal. You cannot use your card whilst you are out of work, and though no interest is being added, your payments have not been paid so once you can work again you still have the balance to pay. Effectively you are paying money for something that won't actually help you. If you're getting a Mastercard then make sure that this kind of debt suspension offer is not included at a price to you in your payments. If it is then get it removed and find an independent cover which will help with your payments if you're unwaged.
Advance costs
One of the worst scams around is the advanced fees con, which targets people are frantic to get a hold of a card with good rates. The 'lender ' will offer you a card at a great rate, but the catch is you've got to pay them an administration or approval charge up front so that your claim is processed. Once you've paid this charge then you most likely will never hear from the company again. If you are ever offered a card but are asked to pay a charge up-front, just refuse. Regardless of if you have blemished credit you shouldn't need to pay fees up front for cards. A bank should either accept or reject your request, and charges aren't needed.
Credit protection
One of the most typical swindles around is to add expensive credit protection to your card in case it is mislaid. The additional money you pay for this protection is generally very high, and regularly covers you for little. If you report your card stolen instantly then it is improbable that you'll lose much, and other insurance policies or customer laws regularly cover you already. If you really want protection then get another policy from an independent company which will work out a lot less expensive and will allow you to guard all of your cards immediately.
If you are getting a credit card, then don't forget to check and double-check all clauses within the agreement you are signing. If anything appears suspicious at all, then do not sign and find a different company. As long as you are privy to the risks you will find a fair and fair Visa card company who can offer you great rates.
Learn the steps I used to repair my credit.
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