Credit Card Scams

Consumers with current or past problems may be targeted for scams as well as those consumers who are unable to get credit through legitimate means.  BEWARE

The following key words should serve as red flags to credit offers. If you see these words, carefully read the fine print, and ask questions before responding.

Automatic Approval - means little, except that you met the company's screening criteria to be sent the offer.  You know your credit history.  A legitimate company will still want to check your credit report before giving you the card.

Checking Account Scams - claims of easy credit if you give your checking account number.  Never give your personal information unless you initiated the call and know with whom you are dealing. If you receive a phone call or postcard asking for your checking account number, promptly request the written information be mailed to you before making any decisions.

Credit Card for a Fee (upfront not annual) - you may send the fee and never get the card.  Think twice before you send money for a credit card offer.

'Gold Cards' - 'all that glitters is not gold'. Is it a real VISA or MasterCard Gold or merely some type of catalog shopping card with limited use?

One-Shot Credit Cards - used by department stores and outlets so that you can make a one-time purchase (major appliance). You may be deceived into thinking this is a regular revolving account that will build credit while it is merely a single use card which does little to re-establish your credit.

Secured Marketing Scams - offers of easy credit if you pay a deposit. Watch for 900 number calls, which are not toll-free and can be costly. Legitimate companies will still want to check your credit history before giving you the card.  Carefully research fees.  Make sure your deposit is not being used up by fees. Before you apply ask what the total fees are and if they will be refunded if you are denied the card. Refer to section on Secured Credit Cards.