Use of credit cards is very common today. You will get credit cards from most of the employed people. However, many scams related to this are also happening every day. The scam about which we are going to tell you today is happening a lot with the youth these days. Especially with such youth whose salary is less. The most important thing is that this fraud does not cause you any loss of money, rather it spoils your CIBIL score.
How does this scam work?
Taking advantage of the weakness of data privacy laws in India, many agencies collect your personal information like name, phone number and PAN number. After this these agencies call you and promise higher limits on new credit cards. The callers lure that you will get a credit limit of Rs 50 thousand or more.
But in reality, once you apply for the card and complete all the procedures, you are given a card with a very low credit limit. Understand it like this, a person was promised a limit of Rs 50,000, but the card limit turned out to be only Rs 25,000. If this has happened to you then it can affect your CIBIL score.
How does your CIBIL score get spoiled?
Actually, credit card is used like a kind of small loan. If you spend a large portion of your credit limit, it can have a negative impact on your credit score. For example, if your card limit is Rs 25,000 and you spend Rs 20,000, your credit utilization ratio becomes 75%, which should ideally be less than 30%. High utilization ratio can reduce your CIBIL score.
The aim of these agencies is only to sell cards, because they get commission on every credit card sold. Therefore, they sell cards to customers by promising them higher credit limits, but in reality by giving lower limits, they have a negative impact on the financial condition and credit score of the customers.
How to avoid this fraud?
To avoid such fraud, you should contact the bank directly. Experts believe that to get a new credit card, always contact the bank directly. The information given by the bank is more reliable and secure. Apart from this, read the terms and conditions of the card. That means, before activating any credit card, read its terms carefully.
If any agency calls and offers you a credit card, be sure to confirm its validity. Apart from this, if you have been cheated by any agency, then immediately inform the bank and the concerned authority.
Also read: Rule Change 2025: LPG cylinder, car prices and pension, these 6 big changes will happen from January 1, there will be a direct impact on the pocket.
