If They Get The Card Before You Do Then They Can Spend Money In Your Name

Credit card identity theft is on the rise, and if you are not careful you could become a victim and lose hundreds or even thousands of pounds.

By the time you know the money has been spent, the thieves might have racked up many different credit card debts, as well as other loans and financial products. Your identity is your most precious thing, and if someone gets hold of it they can make it look like you have spent vast sums and got yourself into debt. It pays to know how to prevent identity theft, so here are some tips about how to do just that. One of the most common ways that thieves can get hold of information is to intercept or remove from rubbish credit card mail offers. Be careful with mail offers. Although many people remember to get rid of bills and other items properly, they forget about these items, as they believe they are junk mail.

If they get the card before you do then they can spend money in your name. However, many of them have information about you on them and only require a thief to sign the document and send it back to obtain a credit card. Make sure that you properly shred or dispose of any financial mail, whether you think it is junk mail or not. Apart from destroying unwanted mail, you have to make sure that any letters or records that you want to keep are stored safely. Keep all records safe. If you have a credit card, or even if you don' t, you have probably received a stack of credit card letters in the post, telling you that you are' pre- approved' for a great credit card deal. If you know want to make sure that you don' t fall victim to these poor deals, then here is some advice on the ins and outs of credit card pre- approval.

Although some of these credit card deals are genuine, many are not what they seem or are even complete scams. What does pre- approval mean? It simply means that you have a credit score that matches the criteria to let you apply for one of these cards. Although in other areas pre- approval might mean that you have secured a definite amount and definite terms with a lender, depending on final credit checks, with credit card pre- approval mail it does not mean this. You are not guaranteed specific terms, nor are you even guaranteed to be accepted. Often, credit companies send you these letters because your credit score matches their criteria for card applications. Why do I get sent these letters?

Card companies are always looking for new customers, but if they simply sent out letters to everyone it would cost them a lot of money for little return. Whether this is a good credit rating for high limit cards or a bad credit rating for the sub- prime market, you are targeted because they think you are more likely to respond to their offer. Instead, they search consumer credit ratings to look for people who match specific criteria. Are these offers real? They are offering you the opportunity of' up to' a certain credit limit, and they are not saying you are approved, only' pre- approved' or' pre- selected. Although many of these offers are not what they first appear to be, they are not technically illegal. This means that they can change all of the conditions of the card you are sent and they are still not technically lying to you.

Common techniques used. Although this does seem morally wrong, it is your responsibility to check the information before applying. These offers are often misleading, and there are certain tricks that the card issuers use in order to make more money out of you. One common trick used is to charge you a very high interest rate, but put a clause in the contract saying you must transfer your entire current balance from another card onto the new card. Usually these terms are listed in the small print, but because most people don' t look at this they know they can get away with it. This means that they are putting a balance on the card straight away at a higher interest rate than you might currently pay. For example, they might offer you' up to' �10, but only give, 000 you �1, 00 Read the terms.

Another common trick is to offer you' up to' a massive credit limit, but then give you something much lower. The only way to really stop yourself being caught out by these offers is to read the small print carefully if you are thinking of applying. You are much more likely to get a better deal, even with the same card issuer, if you make inquiries yourself and shop around for the best deal. However, the best way to not get caught is to simply shred the offers and put them in the bin.