Top 10 Credit Card Scams to Avoid

There are a lot of people out there in the world who would prefer that your money was in their pockets instead of in yours. Some of these people are legitimate folks who own businesses and market to you to get you to spend your money with them. However, others are people that just want to scam you. Credit cards are one area that a significant number of scams take place.

Here are the top ten credit card scams that you’re going to want to avoid:

1. Preapproved credit cards. When you get one of those credit card offers in the mail that says you’re preapproved for a card with great terms, there’s probably a catch. Often the card you actually get has much less favorable terms. Seek out good credit card deals instead of taking what’s sent to you.

2. Cards with annual fees. Unless there’s something so compelling about the card that you want to pay just to own it, always look for the annual fee and turn down the card that comes ith it.

3. Email scams. There are numerous email scams asking for your personal information or credit card information. For example, you may be asked for the 3-digit code on your card. Or you may be asked for social security information to qualify for a card. These are scams that lead to identity theft.

4. Secured credit cards. The word sounds nice and safe but this actually means that you have to set up a savings account from which credit card fees and payments are drawn.

5. Cash advance checks. They come in the mail and urge you to spend the money on your credit card. They also come with huge transfer fees and limited low-interest rate periods. Don’t use them.

6. Debt management companies. These folks tell you to stop paying your credit card bills and pay them instead in order to reduce the total amount that you owe. Is it ever a good idea to just not pay your credit card debt? Probably not.

7. Applications requiring you to call a “900″ number. If you have to pay by the minute just to call the company, what kind of credit card deal do you think you’re going to get from them?

8. Processing fees. You shouldn’t ever have to pay fees to a company just for processing your application. That’s just a scam to get more money from you.

9. International credit card scams. These may come via email or regular mail and are usually from places like Nigeria. The scams may vary in details but the results are always the same - and they’re never good for you!

10. Imperative offers. If the credit card offer warns you that you must act immediately or you’ll lose the great benefits of the card, it’s probably just a scam. Good credit card companies are going to offer long-term deals that aren’t going to expire just because you took a little bit of time to think about whether or not you really wanted the card.