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Educate, educate, educate! Without knowledge of the way these companies do business, you can fall victim to any number of scams. In the auto industry, these companies use a whole host of deceptive practices. In the credit card business, they try to scam you with additional fees on secured credit cards. In the loan business, they offer payday loans with ridiculous terms. By reading this article, you will become aware of some of their tricks and you can steer clear of them.

First, let's consider the auto industry. To steer clear of all finance related scams, try to have your financing in place before you go car shopping. Visit your local bank or credit union and see what terms they offer. Also, try applying for your loan online. If you can't get a loan, only then go car shopping, but, go to a normal car lot or dealer! Don't visit any no credit, no problem car lots yet.

At the dealership/car lot, find a car you like, test drive it, negotiate the price and then let the dealer know that you've had some credit problems. In today's supremely competitive market, dealers really, really want to sell cars and you might be pleasantly surprised at their offer. The interest rate might be a bit higher than if you used your own bank, but you've dodged all kinds of scams by negotiating the price of the car before you talked financing. If you go to a no credit, no problem place, just by being on THAT lot, you immediately identify yourself as having a bad credit history; you might as well wear a sign saying "Take advantage of me." One car dealership is notorious for running customers' credit histories before they even quote a price on a vehicle! The customers with the worst credit, who need to get the best price, often got the worst price.

These scams are not only found in the auto industry but also the credit card industry. In this industry, you need to be careful of secure credit card scams. First, you'll see ads that require you to sign up by calling a 1-900 number. You may end up paying as much as $50 for the phone call and never get a secured credit card! Next, be aware of any ridiculous annual fees and any interest that might be charged on your balance. You might see them in tiny print at the bottom of the ad. Finally, look for additional fees, such as processing fees, application fees and security deposits. Steer clear of them, or at least find a company that charges the lowest fees.

Some closing advice: if you use one of these no credit no problem companies, be ever vigilant! They are always adding to their portfolio of deceptive practices. Search the Internet by putting the word "scam" after the company name; often, you'll uncover stories about the latest scams. The key to not falling victim to these companies is being aware of their tricks.

Learn more about this author, R. William Weiss.
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