Avoiding Visa Card Stings
Posted at by CreditWiz on category CreditIf you are a first time credit card user or had visa cards for a while it's very important to understand about possible stings you can be exposed to. Although many Mastercard firms are wonderfully fair, there also are many deceptive ones who want to rip you off. If you are unaware of the ways in which you may be scammed or misled then you might finish up losing a large amount of cash. Here 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 way to ‘help ‘ you keep on track with payments. The way debt suspension works is that you pay a specific amount every month so that if you can't pay your debts then no interest will accrue during this time. Though this might seem like a brilliant idea initially, the advantages are truly quite nominal. You cannot use your card whilst you are out of work, and although no interest is being added, your payments have not been paid so when you can work again you have the balance to pay. Effectively you are paying cash for something that won't actually help you. If you're getting a credit card then make sure that this sort of debt suspension offer is not included at a cost to you within your payments. If it is then get it removed and find an independent insurance cover that may help with your payments if you're unemployed.
Advance fees
One of the worst swindles around is the advanced fees scam, which targets folks are frantic to acquire a card with good rates. The ‘lender ‘ will offer you a card at a great rate, but the catch is you have got to pay them an administration or approval charge up front so that your request is processed. Once you've paid this fee then you probably will never hear from the company again. If you are ever offered a card but are asked to pay a charge upfront, just refuse. Even if you have blemished credit you should not need to pay costs up front for cards. A bank should either accept or reject your application, and fees are not needed.
Credit protection
One of the most typical swindles around is to add expensive credit protection to your card in case it is missing. The additional money you pay for this protection is generally really high, and regularly covers you for little. If you report your card taken immediately then it is unlikely that you'll lose much, and other insurance policies or customer laws often cover you already. If you truly want protection then get another policy from an independent company that may work out a lot cheaper and will allow you to protect all of your cards immediately.
If you're getting a credit card, then do not forget to check and double-check all clauses in the agreement you are signing. If anything appears suspicious at all, then do not sign and find a different company. So long as you are aware of the risks you will find a fair and fair credit card company who can provide you with great rates.
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