Free Money! I'll Just Need to Take Down Your Credit Card Info

Scam artists are preying on credit card users -- particularly those with bad credit. If you fall victim to some of these tricks, it won’t matter what credit card service you have, because there is nothing your credit card company can do. Here are some tricks to look out for. Many of the following scams are so creative and complex that in one incident the people hired to assist in pulling them off didn't even know they were scams.

Scams targeting people with poor credit are becoming such a dire problem, because so many people have bad credit that they're an easy target and a large group. Last year alone, 1.5 million people filed for bankruptcy. Also people with bad credit tend to have less education, which implies they might be ripped off more easily.

Oftentimes the scams are simply deals that appear so good that people can't help but give them their credit cad number. Scam artists appeal to your hopes. However, once you look at things logically you can see right through these thieves.

A common fake offer is the 'Advance Fee Loan.' In this situation, a telemarketer tells you they are certain they can get you a loan at a great rate and a high limit, but you must pay a processing fee. When you stop kidding yourself about the possibilities of a quick fix to your debt, you'll realize this is a scam. Even if you're not sure, we guarantee the telemarketer on the other end is up to no good because 'Advance Fee Loans' are illegal. Companies cannot take a loan fee up front in many cases, because it could be construed as a bribe.

Another common scam is the 'Credit Card Loss Prevention' offer. The fake company tries to sell credit card loss insurance; however, almost every real credit card will cover you if your credit card has been stolen after you pay $50. Some platinum and other high-level credit cards don't charge you at all. These scammers try to sell insurance that will only cover you for a small amount, and they charge exorbitant hidden fees.

'File Segregation' scams offer ways to help you clear your credit report. However, once you agree and pay the fee, all they give you is a new nine-digit number to use instead of your social security number.

Not all scams are quite that complex. One common trick is the 'Subscription Renewal' scam, where a telemarketer calls asking you if you’d like to renew a common magazine at a reduced rate. Except that you’re never going to see extra issues of the magazine. Instead, you will find a number of strange purchases on your credit card bill.

There are some steps you can take to reduce your risk of scamming. First, know that no telemarketer is allowed to call before 8 AM or after 9 PM. Second, regularly check your credit card purchases online; do not wait for your monthly statement. Finally, don't give your credit card number to anyone who calls you on the phone. Ask for them to send you literature in the mail. If they refuse, then ask why.