Paying Advanced Fees For Guaranteed Loan or Credit Card Scam

Ever thought about applying for a pre-approved loan or a credit card that oddly enough asked for an up-front fee? If you have then it’s important to ask yourself why any bank in its right mind would do that. If you think about it though, you will soon realize that this is nothing but a scam.

You should remind yourself that while reputable credit card companies do charge an annual fee, this is typically applied to the balance of the card, never during the sign-up process. Furthermore, if you end up paying your balance in full each month, a legitimate bank will often wave the annual fee.

As for these “incredible” pre-approved loans for your business or for real estate; they’re nothing but scams as well. No legitimate bank is going to give you a pre-approved loan since they don’t personally know you or your credit situation. There is no way they’re going to give you a loan with a massive credit limit.

It’s unfortunate, but a sizable percentage of people fall victim to this scam by taking the bait and paying an up-front fee for a loan they will never receive. The crazy part is even if only one in every thousand people fall for the scam, the scammers can still can end up with several hundred dollars. It’s important to remember that if you see a scam like this in the future, avoid it at all costs and don’t become a victim!

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