If this is your first time applying for a credit card, be careful about taking any offer you don't ask for. If you don't watch out, your credit card could be used without your permission.
How to Avoid Fraudulent Credit Card Offers: 5 Tips
Tip #1: Go straight to the credit card company.
You might come across an offer that says their help will make it easier for you to apply for and get approved for a credit card. No middleman representative or company can change the outcome of your credit card application if it's not meant to be approved, unless they work directly for the credit card issuer. Improving your credit score is the only thing that will increase your chances of getting approved.
Tip #2: Bad credit counts...in a bad way.
If someone tells you that they can get you a credit card that is both unsecured and has low interest rates, they are trying to scam you. Bad credit is always important, and it is always important in a bad way. No matter who you are, credit card companies will never look past the fact that you have bad credit. If you don't have good credit but still want a credit card, your best bet is to get a secured card or a card made for people with bad credit.
Tip #3: There is no fee to pay up front.
And if there is, it should be small because there isn't much you should have to pay for. No major credit card company asks for fees up front very often, so the fact that you're being asked to pay them should set off alarm bells in your head. Second, if they call the fee you pay up front your "annual fee," it should show up on your first credit card statement and be paid along with the first charge on your card.
Tip #4: Know what their Gold, Platinum, and Silver Statuses really mean.
People will try to trick you by giving you offers for gold, platinum, and silver credit cards. But before you bite, take the time to find out what those offers really mean. Most of the time, having a gold credit card means you belong to an elite group because you have a high credit limit, low interest rates, and great rewards to look forward to. Is that the type of gold credit card they're talking about? Or could it just be a gold card with the same rights as any other? Or, even worse, it could only be used to buy things from their own catalogue.
If you want a gold, platinum, or silver credit card, you should first think about whether you can really afford it.
Tip #5: If you want to protect your credit card, you can do it yourself.
You might also find a credit card offer that gives you credit card protection and insurance, which is similar but not the same. The person making the offer might also tell scary stories about what could happen to you if you don't get your credit card insured. But the Federal Trade Commission (FTC) warns people not to take advantage of this offer because it usually doesn't work out. If you want to avoid problems with your credit card, you can do so by using it carefully and responsibly.
There are probably more types of fake credit card offers out there, but remember the golden rule: if an offer seems too good to be true, it probably is.
