Credit Card Quick

How to Stay on Top of Credit Card-Related Scams

Identity Theft

It is no wonder that credit card-related scams are on the rise. Many credit card thieves and scammers have taken advantage of the countless Americans who are in some type of financial difficulty.

In short, they are preying on the most desperate Americans. Although this sad truth is all too prevalent in today’s society, there are a number of things we can all do to protect ourselves from credit card scammers. In particular, we need to know what to look out for. Here are some of the latest credit card-related scams that have come to light:

• You should never have to give up your credit card or banking numbers on a job application. This newest credit card fraud took individuals who were anxious for a job for a ride; these scammers faked jobs and lured individuals into thinking they were being hired for a position. As a result, many individuals willingly gave up their personal credit card and banking information on these fake job applications. The scammers made the applicants think that they were merely checking their credit report; instead, they took them for a ride by stealing their credit card information.
• You should never become involved with any type of debt assistance company before thoroughly checking their credentials. There have been a number of debt assistance scams that have convinced individuals to pay them a fee in return for either erasing or reducing their credit card debt by working with their creditors. Unfortunately, all they did was take off with these consumers’ money.
• You should never give your credit card numbers over the phone unless you initiate the call. Credit card phone scams have been increasing as of late, so it is important to pay close attention to anyone soliciting you and promising you lower rates. Never, ever give your credit card information to anyone who calls you; there is absolutely no way to verify who is making the call. If you have any question regarding whether it is really a legitimate call, ask for their name and phone number and immediately contact your credit card company to check the validity of the credit card offer.

Beware of Credit Card Scams

Credit Repair

You lost your job, you fell behind on your credit card payments and your credit has plummeted now to the point where you can’t get approved for a car loan. Then, almost out of nowhere, you get a letter, or a phone call or an email from a company claiming to fix your credit score – overnight!

Unfortunately, this scenario has been played out all too often all over the United States, particularly over the last couple years.

If this type of offer sounds tempting, imagine what an individual with poor credit must think. Unfortunately, there are many scammers hoping that this kind of promise sounds just too good to pass up.

Too Good to be True?

The credit crisis of the last, two years has left the door wide open for scammers looking to take advantage of consumers who find themselves in financial trouble. In other words, these types of “fix your credit overnight” companies are downright bogus, and even illegal!

They work by making promises of a quick credit fix, and often charge hundreds, if not thousands, of dollars to do it. And the only thing the consumer is left with is an empty bank account and still-poor credit.

There is no Substitute for Hard Work

Although it may sound enticing to hire the services of a company that promises to instantly repair your credit, the reality is that it just can’t happen. There is absolutely nothing a company can do (legally) that can change a poor credit score into a picture-perfect one.

Although this may be hard to hear, there is so substitute for working hard to repair your credit. It will take some time to accomplish, but it is possible to repair your credit by paying your bills and taking care of delinquent or past due accounts.

Consider Credit Counseling Service

For those consumers in credit trouble, there are many not-for-profit credit counseling companies that can help you repair your credit by working with your creditors to set up reasonable payment plans and by reducing or eliminating charges and fees.

There is a big difference between a credit repair scam and a credit counseling service, however. It is therefore important to research the credit counseling company beforehand and to carefully read all of the terms of the agreement.

Beware of a company that contacts you and promises to repair your credit for a fee! A credit counseling service will never ask for upfront fees to work with you. They will also be accredited and will likely be licensed in the state in which they are operating.

Scammers, on the other hand, will often not have a permanent address, and many of them will operate out of the country to avoid prosecution.

If your credit is poor and you are struggling to pay your bills and maintain your credit rating, then it may be time to contact the services of a credit counseling agency. Always remain aware and vigilant, however, of any company offering the “too good to be true,” as this is often the case!

Don’t let desperation and despair get the best of you – credit scammers are counting on it! Instead, remain level headed and educated and work towards the ultimate goal of repairing your credit.