Unfortunately, bad credit cards are no longer the only type of credit scam out there. Even though they’re the most prominent, there are more and more people willing to take advantage of anyone in need. Part of this probably stems from our struggling economy — more people are struggling financially, and more people need credit. Part also comes from the fact that we’re an increasingly credit based society.

Regardless of the reasons, though, it’s important that you recognize the signs of bad credit cards and credit scams before you get sucked in.

Warning Signs of Credit Scams

Here are some warning signs that you’re falling victim to a credit scam.

-They advise you to use an EIN to get a new credit card.

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If subprime credit card issuers have their way, the bad credit cards of the past may end up looking like alter boys compared to the thugs of the NEW bad credit cards.

According to the Associated Press, subprime credit card issuer First Premier bank in a recent mailing floated a test offer for a preapproved credit card for people with bad credit. Unlike most so-called fee-harvester subprime credit cards, the card came with a low annual fee of $75 and-oh, yes, by the way-a 79.9 percent APR.

The record credit card APR comes in reaction to a new provision of the Credit CARD Act, which Congress passed in May. In an attempt to rein in abusive credit card practices, the new credit card law caps the fees that subprime credit cards will be able to charge.

Credit cards for people with bad credit have earned the name fee-harvester cards, because of the high upfront fees charged to new cardholders.

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