A word to the wise – Buyer beware

The credit world is ripe for unscrupulous people because so many credit transactions are conducted over the phone and through the use of unfair, misleading, or illegal practices.

Pre-approval / Guaranteed approval
Some ads guarantee you'll he approved for a card no matter what your credit history or how much you deposit in a special account. These should he reported to your state's consumer protection agency. Also, he suspicious of people who want a fee for getting you a card. You could do it yourself.

Another caution: Some guarantees cad up being approvals for a tiny credit limit (e.g., $100). The issuer then checks your credit profile and, if it shows problems, refuses to raise your limit.

Don't write, don't phone
Many businesses want your address or phone number for their mailing lists, or to sell to a direct mail company. Most card issuers, however, forbid this practice. Also, in many states it's illegal for stores to write your credit card number on your check. Some experts recommend you don't let anyone write down your driver's license number if it's also your social security number.

Minimums and discounts
This isn't unfair, misleading, or illegal, but it's valuable to know: MasterCard and Visa don't let stores require minimum purchases. American Express follows the same policy if the store also takes Visa or MasterCard. Discover does permit it.
In some states, stores can offer a discount if you pay in (ash. But they can't charge more than the retail price if you use a card.

Where to complain
If you think a store has been unfair, you can report them to your state or city consumer protection office or attorney general. Diners Club and American Express want to know about violations of their rules. For problems with Visa or MasterCard, start with a call to the bank that issued your card; if there's no satisfaction, try Visa or MasterCard themselves.

Phone calls
Experts say that people who call and ask for your credit card number or send a postcard and ask you to respond are probably scamming you, even if they sound legitimate.

Close but no cigar
Some ads offer cards that look a lot like a Visa or MasterCard but are merely gold-colored cards you can use only to shop through a specific catalogue-often at higher prices. Look for the Visa or MasterCard logo to be sure of what's offered.

Contests and promotions
There are many scams (and legal but misleading marketing campaigns) that "guarantee" you've won a prize "with no obligation to buy," or offer "tremendous discounts" if you call right away. These people are usually either trying to get your credit card number so they can use it or slowly lure you into using your card to buy their product (at an inflated price and which you may never receive). This is a big problem area for law enforcement and consumers. The offers seem so tempting that people want to believe they'll win something for free, despite their better judgment.

Credit consultants
Some people calling themselves consultants or credit repair experts charge a lot to do what you could easily do yourself or what shouldn't be done at all. For example, they may dispute accurate items on your credit report to see if they can find a way to have the items removed. Their disputes could end up causing you more trouble instead of less, and cost high fees.

Special fees
Some card issuers charge a fee every time you check your balance or request other information through their toll-free customer service phone line. Ask about special fees when applying.

Application information
By federal law, anyone offering a card must display a table with certain basic information, including the annual percentage rate (APR), annual fee, and grace period. If you can't find it, be suspicious.

Note:
Fraud victim assistance. Trans Union has a department dedicated to investigating potential frauds. If you think you've been a victim, call 1-800-680 7289.