Managing credit is extremely important, and it seems that is as big a problem as ever even today. In recent years, credit cards have become a necessity often for the typical person. Some people, having lost their house, too much debt and all those extra perks they receive now how can they pay all the bills? Managing credit is very tricky business, from groceries to rent to electricity to car payments. Yet most of us try hard to manage our money, and with the costs of life escalating day by day, it is hard to control a large chunk of our purchasing power. Fortunately, today there is a new scam that can scam you with alarming speed and frequency. It is commonly called a transfer credit card scam.
According to an article in The Sunday Times, this new scam carries the ominous title ‘File for bankruptcy’. Now, you see, this new scam charges one billion pounds each year in fees to cards that fail to approve new cardholders either by more than 90 days or without an investigation. We will call this an interest rate scam – Credit Scores Damaged! Let’s look at a few circumstances in which credit scores can be negatively affected.
‘ Interest Rate Scams
It is a fact that interest rate scams exist. In 2006, Equifax (EATF.COM) reported that ‘We received 181 complaints in 2006, Of these 181 (181) complaints were for personal debts, approximately half were related to credit cards, and another half to mortgages.’ The main purpose here is to cause members of the public to ‘charge and borrow’ us when the time comes to borrow from us. In addition, several of these credit scoring scammers make a ‘catch’ tag when trying to lure your attention by telemarketers to give their personal information by providing our credit data.
Many people who have bad credit history have no choice but to make the ‘do it yourself’ debt’ deal. We must rebuild our dignity, our sense of worth, and put our lives back back into the service that we once gave back. Our basic impulse is to borrow every so often, and make unnecessary purchases. If it is too hard, try a debt consolidation loan. One person who borrowed 10,000 dollars to buy a plane ticket could pay off all his credit cards with no interest at all. Yet another person borrowed 10,000 dollars and paid it off with an unsecured credit card.
A 2004 Business Insider article describes another such credit scam:
There used to be a loan program that offered 0% interest for up to 15 months on installment loans. And of course there are now all kinds of revolving credit accounts. There used to be two. One was full of cash but has since been sold to another scammer who is offering a zero percent interest rate and no interest for 15 months.
Don’t believe ‘the hype’, we have a new kind of ‘free money’ in this age where people go to great lengths to scam buyers and resell for a living instead of for a purpose.
There may be times when the fraudulent user does not meet the qualifications to be granted the loan – for which the scammer has been offered, but fraudsters are capable of exploiting the vulnerability of two existing credit counseling agencies.
Hence the use of phishing as the method for making ‘your’ credit report vulnerable.
This type of phishing is not only designed with phishing but also operates with other ‘verification techniques’ like asking for bank information and not necessarily asking for the actual signature of the person who provided the ‘fraud label’.
Sometimes the scammer uses phishing as an opportunity to get their attention while taking advantage of a vulnerable database, or even as a marketing ploy targeting vulnerable Americans.
The ‘Freebie Call’ trap offers up information that can be used when the person making the call is the consumer reporting company (or a third-party provider of the information) to gather a caller ID from a consumer’s bank – often through a stolen credit card number. These details can be used to ‘verification.’
It is better to be on the lookout for fraudulent or non-existent transactions than to have information that seems to be generated by a person who has no prior knowledge of a fraudulent activity.
Be aware that there are also ‘Scam or Revelations”” sites that sometimes fake credit information or contact information and then provide it to potential clients in the process of getting a loan or credit card with no collateral.
These are legitimate sites that are only a diversion, when there are legitimate companies and sellers who can easily usefully question any illegitimate or unauthorized source with sufficient legitimacy.
It is also better to conduct business with a credit reporting agency that has an established reputation, with a set of records, than with an agency that is completely unknown. Be on the lookout for any fake entities out there.