Are pay in advance credit cards and loans on the up and up?
You receive a letter in the mail. You’ve been pre-approved for a credit card or a loan, you just need to send in the paperwork with a $79 processing fee. Your credit isn’t perfect, so maybe this is your opportunity to improve it. Or maybe this is one of the biggest scams of the year. Believe it or not, pay in advance credit cards or loans aren’t the answers to your financial woes, they may just be the beginning.
If They Ask For Money Up Front, Walk Away
No matter how good the pay in advance credit cards or loans may seem, if they’re asking for a fee up front, you need to walk away from the offer. Almost 100 percent of the time these offers are scams. You send them your money and they find some reason or another not to approve your application after all. You’re out the fee and they’re laughing all the way to the bank. Doesn’t sound fair does it?
What Can You Do?
Make sure that when you apply for credit cards or loans, they’re not pay in advance credit cards or loans. Many legitimate credit card companies will charge credit-challenged customers an annual fee, but they’ll charge it to the balance of the credit card, they won’t ask for it up front. If anyone asks you for money in advance, they’re probably not on the up and up.