Pay-in-Advance Credit Offers

The Bait:
News that you've been "pre-qualified" to get a low-interest loan or credit card, or repair your bad credit even though banks have turned you down. But to take advantage of the offer, you have to ante up a processing fee of several hundred dollars.

The Catch:
A legitimate pre-qualified offer means you've been selected to apply. You still have to complete an application and you can still be turned down. If you paid a fee in advance for the promise of a loan or credit card, you've been hustled. You might get a list of lenders, but there's no loan, and the person you've paid has taken your money and run.

Your Safety Net:
Don't pay for a promise. Legitimate lenders never "guarantee" a card or loan before you apply. They may require that you pay application, appraisal, or credit report fees, but these fees seldom are required before the lender is identified and the application is completed. In addition, the fees generally are paid to the lender, not to the broker or person who arranged the "guaranteed" loan. Forward unsolicited email containing credit offers to spam@uce.gov.