Credit Card Scam: Avoid this credit card scam, otherwise there will be a big loss
Credit Card Scam: Because they make a lot of money off these products, banks market their credit cards heavily. Banks typically engage outside agencies to sell cards by paying an amount to the agency for every card that they manage to sell. But now another credit card bait and switch has been revealed. So, the credit card scam, lets get to know this here how this works.
How does this Credit Card Scam work?
These agencies collect your personal information such as name, PAN number, phone number etc, from different sources because there are no strict data privacy laws in India. Then they give you a call and entice you to get a brand new credit card with an incredibly high limit they know you will run up and default on. However, when you go through all the tasks, you are rewarded with a very low limit.
A man, for example, soon received a phone call. Caller himself has got the name, phone number and PAN number of the other person and assured him that the credit limit of Rs 1 lakh will be given. However, after completing all the tasks, he was given a card with a limited credit limit of only Rs 50,000.
The caution is that many banks and agencies are offering this sort of credit cards. These can ruin your credit score. A credit card is a type of loan that you take out whenever you swipe it. You may lose your credit score higher if you spend more than should. Say your threshold is Rs 20,000, then if you spend Rs 15,000, it could affect your credit score negatively.
Because these agencies capture cash via sales of new cards, they entice to provide greater credit limits to individuals However, when its ownership card gets purchased, they end up being offered a very low limit that ruins their credit score.
How to avoid this Credit Card Scam ?
To avoid such fraud, apply for a new credit card directly to the bank. The bank is probably gonna hand you the truth. However, if you have been cheated by any such agency, do not activate the credit card, so that your credit score will not deteriorate.