Making a decision on which credit card is right for you is one that takes a lot of time and careful consideration. Each credit card has its own terms and reward package, so proper research must be done to find the one that offers you the best deal. It can be real easy to find yourself on the road to financial disaster if you don't understand how to use a credit card after you receive one
It is an unfortunate fact that a few credit card companies will take advantage of people who do not understand how the cards should be used. These companies have adopted policies which protect their own interests instead of the interests of the customers. It should be a priority, when you are choosing a credit card, to study the agreement to find any hints of a scam.
Some offers should be thoroughly investigated, whether the offer comes in the mail or on the web. These offers may include advance fees, debt suspension, or credit protection.
Just pay a small advance fee and receive your credit card no matter what your credit rating is. At first it seems to be a reasonable request. These same companies may also make their offer more attractive by saying you will receive a large credit line for a small interest rate. If you seem to be slightly suspicious, the fee is explained as a necessary part of the process to change your application to pre-approved. If you do pay an advance fee, it will probably result in a loss of your money and you will never see your credit card.
Debt suspension is offered by most of the major credit card companies as a service to their customers. This enables them to provide relief through temporary suspension of debt until payments can be resumed. There may be circumstances that keep their customers from paying off their balances, such as medical problems or loss of work. Some companies prey on the fact that many people do not know that legitimate card companies offer this protection free of charge. As a way to scam the customer they offer this service for a fee.
Credit cards are federally protected against loss or theft. Independent agencies, however, offer credit protection programs for a fee. Credit cardholders who lose their cards or have them stolen, or used without their permission are protected by the credit card companies. It is a complete waste of your money to seek out and pay for such unnecessary protection. There is little chance of being compensated for a claim in these situations.
Watch for these credit card scams and some others which use an ignorance of credit card protections and policies against cardholders. The main objective is to keep from making these costly mistakes and to hopefully keep more money in your pocket.
