Common Questions about Scams, Fine Print, and Repossession

How can I avoid being a victim of a credit scam?

Don’t be taken advantage of by a credit scam. There are a number of them out there so keep some things in mind to avoid becoming a victim.

Never provide information over the phone to someone who contacts you to solicit your business for a loan. If you are interested in applying for a loan, you should contact the lender directly. That way you can be certain that the person you are talking to actually works for the company you are seeking credit through.

If an offer seems to good to be true, it probably is. When a company offers you freebies or money back if you apply with them, you can be fairly certain that somewhere in that deal you are going to pay for it. There is no such thing as a free ride.

Why read the fine print for special financing deals?

Many stores advertise special financing deals where you don’t have to make any payments and accrue no interest for a certain period of time when you buy a certain item from them. However, make sure you read the fine print on these deals. If you pay off the amount borrowed before the term expires than the statement is true that there is not interest charged. On the other hand, if you decide to wait and make no payments until the term expires, you may actually find that the interest actually did accrue and now you have to payoff the amount borrowed plus all of the interest. Reading the fine print can help you avoid a surprise at the end.

Should I lease my next car?

Should you buy a car or lease it? Many people agree that owning is a better deal; however, this really depends on your individual situation. The advantage of leasing a car is that sometimes you can get more car than you otherwise could afford. The disadvantage is that you never own the item and therefore do not accumulate any equity in it. In addition, a lease typically has very strict rules regarding how many miles you can drive and could cost you money at the end of the lease. If you are in a situation where you don’t drive your car a lot and like to trade it in at set times then the lease situation may work for you. Review carefully all of the terms involved in a lease to decide if it will work for you.

Should I consider voluntary repossession when I can't pay my bills?

When debts are too much for you to handle, you may decide to consider voluntary repossession of your vehicle before it is forcibly taken away from you. It will still affect your credit no matter which way it happens. It also may not completely eliminate the debt. When you car is repossessed it is sold and the money is applied to the amount you owe. If a balance remains, your creditor may come after you for the remainder. Before you get to the point where you are facing repossession, contact your creditor and discuss other options. They may be able to offer you a different payment schedule to help you get back on track.