You can be a newbie credit card user or you can be an old pro in the credit card game, you should still be aware of the various scams that can come your way. While there are plenty of trustworthy credit card companies, there are also those shady ones who want to take your money.

If you don’t have the slightest idea of how easily you can be duped by these con artists, you could lose several hundred dollars or more. Read about these vicious credit card scams and learn how to spot – and prevent – a potential rip-off.

Debt suspension scam

Suspension of debt is a service occasionally extended by banks as a means to “help” you stay current with your payments. This scam will require you to pay a predetermined fee every month, guaranteeing that no interest will ever accrue in case you can not pay your bills.

While this sounds too good to be true initially, the scheme really aims to fleece its victim. You’re disallowed to use your card if you’re unemployed, and while no interest has accumulated, your balance stays unpaid and you still have to pay it when you find work again. What happened is you’ve been paying for something that won’t be of much use to you.

If you’re offered a credit card, first verify that a debt suspension offer of this kind is not inserted in the agreement as this will cost you later. If it is included, then have it taken out and get a standalone insurance policy to assist in your bill payments in the event you are unemployed.

Upfront fees

This scam is one of the worst there is and the victims are people who are in dire need of a card that has great rates. The “operator” will provide you with such a card but you need to pay an approval or administration fee in advance for your application to be processed.

Once you’ve made the payment, the company will vanish and move on to their next victim. If a card is offered that requires a payment upfront, simply decline. Even with a poor credit you are not required to pay advanced fees for cards. The lender can only either approve or disapprove your application; no fees are needed.

Credit protection

Another common scam that has claimed a lot of victims is giving your card credit protection in the event it is lost or stolen. The premium for this added safeguard is often very high but offers very little protection.

If you report a stolen card right away, then there’s a high probability you won’t lose much, as you’re already protected by consumer laws. If you must require protection, then obtain a less expensive independent policy that will provide protective coverage for all your credit cards at the same time.

If you’re applying for a credit card, be sure to read and check out all the angles of the contract before signing. If anything is not above board, then back out and look for another card company. As long as you are not ignorant of the different credit card scams, you will be able to come upon a reliable card company that can offer you the best deals.

When you least expect it, an emergency will arise, the kind that can be solved by quick cash availability. But if you’re like most people, you’re probably just living from one payday to the next, with little or no money left in the bank.

When do you need a payday loan?

You just brought in your car for a quick oil change and your mechanic spills the bad news. He said your brakes are almost gone and needs to be replaced immediately. $250 will cover the repair but you don’t have that kind of cash available, and your next paycheck is still more than a week away. You don’t want to borrow from your friends who you still owe money from.

You don’t want to waste your time with big loan companies because all you need is a small loan for a brief period. They’d lock you in to a $2,500 minimum loan inside a one year minimum payback period. You would fail the credit check anyway and all your credit cards have been maxed out.

You can also forget about your bank where you have a checking account. With a poor credit history, it’s not happening. And you’d get funny looks from the bank staff for trying to borrow such a small amount of money.

Just then, you recall a banner ad you saw online a week ago. It mentioned something like “Guaranteed approval. Bad credit? Not a problem. Zero credit check. Cash in a flash.” Payday loans! You can pay them back in payday period or two. The interest charges may be discouragingly high but if it will get you out of a tight financial fix right now without the annoying credit checks, then it’s all worth it.

How can you get a payday loan?

With your computer, you may apply online for a payday loan, also known as cash advance, from the comfort of your home. Since you’ve been steadily employed for more than three months, then you’ll just have to show them your proof of employment.

You’ve got a checking account that’s current and valid, and you have no record of bounced checks, which is good. And you have no previous history of online payday loans. Having checked your qualification, you can fill out the online loan application and wait an hour or two for your loan’s approval. The company will electronically deposit your money right into your checking account and you can have your brakes fixed on the very same day.

What are the interest rates?

Payday loan interest rates can vary from $15 to a maximum of $30, depending on the lending laws governing your state. Should you extend the loan up to your next paycheck, then you’ll pay twice the fee but buying your peace of mind is better than living with anxiety without your car.

If you know some people who have conducted business with a lending company, ask them to give you some details. Study a lot of online information and choose the right lender that can provide you the best payday loan options. With patience and due diligence, you will find a trustworthy lender that can get you quick cash that you can use during unexpected financial situations.