The market reach of credit cards has extended to all niches and sectors of society, so much so that there is practically something for everybody nowadays. Students sign up for them as soon as their college enrolment; there are gas cards, grocery cards, air miles cards, what have you. In addition, the terms for each card package have become as intricate as ever, causing more loopholes than Swiss cheese, and giving the card companies an easy way out to get you back at the first opportunity. While most of these pitfalls may be avoided just by reading the fine print or getting a clear agreement on the terms with the card application processor, there are several techniques the card companies themselves pull that are plain scams at the outset.

Advance fees are one of them. Advance fees are usually offered to those who have problems with their credit rating, as it allows a person to acquire a card without consideration of his or her credit score, for an advance charge of course. Nothing comes for free in this debt-ridden country. This can be a very reasonable, even appealing proposition, especially for people who are at the end of their wits with their debt management problem. The card companies can also butter up the deal by intimating that larger-than-usual credit lines may also be offered at a relatively small interest rate; some may feel a con going on, but are lured in as well with the explanation that it is part of the process of upgrading the application to pre-approved status. Here’s the rub; the card will carry hidden charges, leading to a money drain which won’t reflect on the credit card.

Some companies may also take advantage of the cardholder’s lack of knowledge that debt suspension is essentially free, and they offer it at a ‘trifle’ charge. Debt suspension is usually a way of helping a cardholder in situations wherein he or she cannot reasonably pay off balances. Unemployment or medical emergencies drain the finances, and mounting credit card debt won’t help either side if the cardholder can’t pay up. As a service, the card company temporarily suspends the debt until the person recovers from the major setback, enough to resume payments. If your card company offers this service for a fee, be wary; you’re being conned.

Credit cards are also protected by law against fraud and loss. Unscrupulous credit institutions, on the other hand, offer this protection for a charge, through elaborate provisions in the contract. To pay for something you have a legal right to is a travesty, and you shouldn’t compromise with credit agencies which require fees for otherwise mandated duties. You’re a customer and you should be treated as such. As always, information is your best weapon against fraudulent offers; know your rights to credit and credit protection, and know all about the operative boundaries of your card company. You are amply protected by law from those who would try to separate you out of your money, especially if it is done under the guise of offering you privileged help.