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How To Spot A Credit Card Scam By Darren Allsop. Credit card scams are more common that people know. Often time, companies prey on consumers who have bad credit or less than perfect credit. For many, creditors are not knocking down your door, offering you a great deal on a credit card.
Unfortunately, the credit card offers that you may be receiving may seem like legitimate offers. Often times, these types of credit cards come with extremely high interest rates, inflated 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.
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.
Many of these credit card scams lead you to believe that you are already pre-approved for a MasterCard with a credit limit of $5,000. They tell you all you need to do to activate the card is to simply verify all your personal information. They make it sound very simple, just verify the accuracy of your information and sign the credit card offer and mail back in the application. Once they receive the necessary information they will promptly mail back your new MasterCard.
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
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