The Powertool Shed

In August, 2004, the Federal Trade Commission issued their findings of a recent study, which showed that nearly 25 million adults were victims of fraud.

Now, most importantly, If you are a victim of fraud, please do not feel like you did anything wrong. It happens to all of us at one point or another, as the FTC’s study clearly shows. Everyone likes a magic trick, and none of us are fully capable of noticing the con-artists’ slight of hand. So, if you’re a victim, take a deep breath. You’re normal.

But, there’s an old saying that goes something like this: Fool me once, shame on you…Fool me twice, shame on me!”

Here are 5 KILLER STEPS to protect yourself from Credit Card SCAMS!

1. NATIONAL NO-CALL REGISTRY.

2. TELEPHONE SOLICITATION

3. 1-900 NUMBERS.

4. ANNUAL FEES, INTEREST RATES, ETC.

5. THE UNITED STATES FEDERAL TRADE COMMISSION

1. NATIONAL NO-CALL REGISTRY:

There’s nothing more annoying then those credit card offers that you get over the phone. I don’t know about you, but the last thing I want to be doing, while having dinner with my 1 year old daughter and my beautiful wife, is to be annoyed by phone calls from solicitors that just want to make money off me. Legitimate or not, these calls are a nuisance. If you’re like me, and you would rather live without dealing with these calls, then go do this:

1. The FTC has created the National Do-NOT-CALL registry. Go find out more information about it. The website is: http://www.donotcall.gov

2. If it makes sense, complete the online form.

3. Take a deep breath, and relax. Within 30 days, the list will start working for you. I can personally attest that, while the solicitations have not stopped completely, they have significantly, significantly decreased.

Join the FTC No-CALL-Registry, and enjoy a reduction in telephone solicitation phone calls.

2. TELEPHONE SOLICITATION:

Believe it or not, the vast majority of lenders out there are legitimate. Also, believe it or not, a lot of these lenders utilize telemarketing as a method of reaching out to potential customers.

1. But beware of a wolf in sheep’s clothing. Legitimate Lenders never ask for a processing fee in order to complete your application (this does not include appraisals during a real estate transaction in Escrow…We are discussing credit cards here).

2. Keep your personal information to yourself! Don’t give out bank information, credit card numbers, social security numbers, etc., to someone you don’t know, on a telephone call. Use your common sense.

3. If you don’t have the offer in hand, or confirmed in writing, then don’t pay. This is fraud. Who is this person on the phone anyway? Get their phone number, their address, their federal tax ID number, and then tell them you’ll call back. If they’re legitimate, they’ll give it to you. If you question them, then I say trust your instincts. You’re probably right on target.

Who is this on the phone? Don’t trust people you haven’t had a chance to get to know. Don’t let one enticing offer on a phone call, be your guide…

3. 1-900 NUMBERS:

A 1-900 number is, of course, a phone number that charges the caller per minute for making the call. Whether it’s a 1-900 number, or a future manifestation of the same type of telephone service, be wary of doing business this way.

1. The most common Credit Card SCAM, in all of its different forms, is called an “ADVANCE FEE LOAD SCAM”. Typically, you will find these in the classified section of your local newspapers and trade magazines, and unfortunately, you’ll also see them floating around the internet.

2. In a nutshell, the perpetrator will guarantee you a loan, but you have to pay them an upfront fee first. The fee can range from $100 to several hundred dollars. The charges can be extracted using telephone services like 1-900 numbers. Beware of courier services, and transactions that avoid the US Postal service, often conducted so as to avoid detection. The scam is that once the fake company has your money, they disappear from the planet, leaving you a victim of their con. You are out money, and no credit card.

3. Now lets’ not confuse Advance Fee Load Scam artists with legitimate lenders and institutions. I can attest that there are real companies out there, trying to help you to get the credit, loans, and consumer debt services that you need. I believe in many of these services, and I believe in the convenience and power of the internet. However, use your common sense in all your business transactions in life, and that includes credit. Never give someone money without getting anything back in return. Never trust someone that you don’t know. Never get enticed into a deal that’s too good to be true.

Use your common sense, and don’t fall prey to the con artists slight of hand, such as the Advance Fee Load Scam…

4. ANNUAL FEES, INTEREST RATES, ETC.:

Credit Card Scams come in all different shapes and sizes. Many of them are, arguably, not scams at all, but let’s just call them credit card offers involving consumer unfriendly terms.

1. Read the fine-line. Every Credit Card Offer must provide the Consumer with written documentation on the terms of the offer.

2. Check the Annual Fee, the Interest Rates, the Cash Advance Fees, the Late Fees, and all other terms of the offer.

   c) Make sure you know what you are getting. Some offers are for secured cards, some are for unsecured cards, and some offers are for shopping portals online and offline (Like a department store card). So, while none of these are scams, by definition, it is important that you fully understand the terms of the credit card offer that you are agreeing to.

Be a responsible consumer, and read the terms and conditions of your credit card offer…

5. THE UNITED STATES FEDERAL TRADE COMMISSION::

The best place to go for direct consumer information, protection, and remedy, is the United States Federal Trade Commission…

The average credit score is the rating that the 3 major credit bureaus assign to your credit report. It is based on your borrowing and repayment habits and depends on how much money you owe and how many times you have applied for credit. If you have a low credit score, there are ways of improving it. In general, an average credit score tells creditors that you are a good risk for them to lend you money.

Computing a credit score is a scientific process that Experian, Trans Union and Equifax use and each one has its own unique system. The credit score range is between 375 and 900, with around the 600 mark being the average credit score. In order to find out what your credit score is, you need to request a free copy of your credit report. This will give you an idea of what creditors see when they do a credit check on you.

If you find that your average credit score is below 500, then you are in the lower part of the credit score range. It also means that you have to take steps toward improving credit scores. For example, if you plan to look for a loan for a new car within the next year, you should start now by making a diligent effort to pay all your bills on time. If you apply for a loan, even if you are accepted based on your earnings, every person that asks for your credit score shows up on your credit report. This deters some creditors because they think you are a compulsive borrower.

The higher your credit score, the better chance you have of being granted credit. This is why you should always know what your credit report says about you and what your average credit score is. The credit score range you fall in not only determines whether or not you get a loan, bit it also determines the interest rate you have to pay. When you understand what creditors are looking for, you can work towards improving credit scores. When your average credit score is good, you will save money in the interest rates charged on the loan.

An average credit score is fine, although you can always do better.

To find out more about Credit Repair visit Peter’s Website Credit Repair Answers and find out about www.credit-repair-answers.com/free-credit-report-online.html“>A Free Online Credit Report and more, including Credit Repair Services, Credit Bureaus and Online Credit Repair.