Don't Get Scammed by a Secured Credit Card Offer (cont.)
Contributed by Stephanie Litaker
Part of the terms and conditions often associated with a secured credit card will also include an application fee and processing fees, which can sometimes total as much as several hundred dollars - again this is something you should fully understand before you become involved with the company. One other thing to remember, a secured credit card will usually have a higher interest rate than that of an unsecured credit card.
This is usually attributed to the fact that as the holder of a secured credit card, you are seen as a higher risk, and are unable to obtain an unsecured credit card. Knowing that, the credit card company can charge you any interest rate they want to, and you'll still be likely to accept their card and their terms.
Avoid the scams for a secured credit card
The scams associated with secured credit cards are rampant, so much so that the Federal Trade Commission has begun to take action against any and all companies that prey on the false hopes of those with poor credit, or those that do not have all of the information. Many companies that run secured credit card scams advertise through television, newspapers, and direct mail advertisements. These advertisements will usually offer a credit card offer, but will not mention whether or not the cards are secured or unsecured, they will wait to disclose that information until a later time.
