| Rebecca Lindsey is a staff writer for Credit Ratings.com.
CardRatings.com
offers a consumer report of US credit cards and instant online approvals. Named
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Citizens for Fair Credit Card Terms, Inc. |
Chances
are, you have probably received one of those flashy letters with big
headlines that practically scream “YOU’VE JUST WON A BAZILLION
DOLLARS!!!” You begin to get really excited and then you see that
really, really tiny print below the headline that reads “You might
actually hear this statement if you have the winning number out of
the 100 billion numbers we give out, and oh, you must send us $15 in
order to get a number in the first place.”
Although this example may be somewhat
far-fetched, this type of scam happens everyday. Common "scams”
or frauds appear in the form of contests, home repair offers, and
credit offers. Unfortunately, fraudulent activities often target
senior adults. Some estimates show that the elderly are scammed out
of $40 billion each year. This is not because American seniors are
less savvy than younger people. Our greatest generation is simply
not accustomed to mistrusting people or doubting the credibility of
offers they receive. Scammers often use fast, friendly chatter and
slick promises to make the consumer feel at ease. This helps
scammers convince the consumer that they just can’t pass up the
offer.
Credit card offers with phony
promises of obtaining credit cards are often targeted at senior
adults who have no credit history or a poor one. In one common
scenario, the scammer asks the senior to provide them a fee in
advance before they can receive a guaranteed credit line.
Unfortunately, in a lot of cases, the so-called credit organization
does not really exist and the victims lose their money. The golden
rule to follow when considering any unsolicited offer is that if it
sounds too good to be true, then it probably is! Other good rules of
thumb:
| 1. |
Never
give out personal information over the phone to an unsolicited
caller. This includes your social security number, address,
bank account, credit card numbers, phone numbers, or date of
birth. |
| 2. |
If
you are considering a card offer from a telemarketer or
unsolicited mail, first check with your local Better Business
Bureau, or the National Consumer League National Fraud
Information Center. These organizations can often give you
reports on unscrupulous companies. |
| 3. |
If
money is requested in advance, be wary. Research the company
using the resources listed in #2, unless you know for certain
that you are dealing with a reputable company. |
For other tips on avoiding credit
fraud, check out the Association of American Retired Persons
website, or investigate other online resources, including CardRatings.com's
credit card scam section. Also consider local resources to learn
about credit cards and how to spot scams.
Why Is Everybody Always Picking On
Me?
Senior adults are also at risk for
credit discrimination. This seems rather ironic when you consider
that older adults tend to have less heavy debt and fewer
bankruptcies than younger people. Reduced income and no prior credit
history are among the common causes of discrimination as cited by
the AARP. But you should know that credit discrimination is against
the law, and you can take action if you experience this type of
treatment. Review the Equal Credit Opportunity Act (ECOA) on the FTC's website to find out what you can do.
Now Have Some Fun
Now that you know how to avoid the
scams, take a look at some trustworthy credit cards that cater to
seniors.
*First USA has partnered with the
American Association of Retired Persons to offer the AARP Platinum
Visa Card.
*American Express offers a Senior
Member Card for their “mature members.” While this is not
specifically for senior citizens - you only have to be 18 year of
age to obtain one - you will earn a reduced annual fee if you are 62
years of age or older. There are also a slew of "senior
perks" associated with this card.
*Like to hit the open road? First USA
offers several cards that offer special perks for travelers. Many of
these cards offer discounts for popular tourist destinations,
including Pigeon Forge, Las Vegas, and the Grand Ole Opry.
There are countless others - Golf
Digest MasterCard, World Travelers of America Visa, Colonial
Williamsburg Visa, the list goes on. Remember to look to established
credit companies and don't forget to view the Card Reports section
of CardRatings.com. After finishing your homework, let the good times roll!
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