Credit Fraud - It's Buyer Beware

Credit Fraud is out there and you must be aware of them.

Recognizing an Advance-Fee Loan Scam

Ads for advance-fee loans are always appearing in the classified ad section of local and national newspapers and magazines. You'll also find them in mailings, radio spots, and on local cable stations. Many times, these ads feature "900" numbers, resultingt in charges to your phone bill. These companies also use delivery systems other than the U.S. Postal Service, such as overnight or courier services, in order to avoid detection and prosecution by postal authorities.

It's not hard to confuse a legitimate credit offer with an advance-fee loan scam. An offer for credit from a bank, savings and loan, or mortgage broker generally requires your verbal or written acceptance of the loan or credit offer. The offer usually is subject to a review of your credit report after you apply to make certain you meet their credit standards. You are generally not required to pay a fee to get credit.

Hang up on anyone who calls you on the phone and claims they guarantee you will get a loan if you pay a fee in advance. It's against the law to make this claim!

Protecting Yourself Against Credit Fraud

Here are some tips to remember before you respond to ads promising easy credit, regardless of your credit history:

* Most legitimate lenders will not "guarantee" that you will get a loan or a credit card before you apply, especially if you have bad credit or a bankruptcy.

* It is an accepted and common practice for reputable lenders to require payment for a credit report or appraisal. You also may have to pay a processing or application fee.

* Never give your credit card account number, bank account information, or Social Security number out over the telephone unless you are familiar with the company and know why the information is necessary.

Here is some good information from the FTC on how to avoid Credit Fraud as well as this crucial information on Credit Card Fraud.