It sounds great, even financially savvy! A company willing to do all of the work to get you a lower-interest rate credit card. But don’t be taken in by this offer – it’s actually a scam. Here’s how it works:
How it works
A scammer, often through a pre-recorded message, will call with an offer that sounds too good to refuse. They claim they can negotiate for a low-interest rate credit card on your behalf, saving you thousands of dollars in interest charges, but there’s a catch. They need to charge you a hefty fee for this service. They’ll ask for your personal and financial information and your existing credit card number to pay the fee.
The Financial Consumer Agency of Canada (FCAC) has warned Canadians to never pay a fee to a third party to negotiate a lower credit card interest rate.
How to avoid the scam
If you receive a message or a call from someone claiming they can slash the interest rate on your credit card and they are requesting personal and financial information, hang up or delete the message. You can shop around yourself for a lower rate credit card and you don’t need a service to do this for you.
Still interested in a lower rate?
There are many low interest rate cards on the market and over 30 of those cards have an interest rate of under 13 per cent. Call your credit card issuer directly to find out what is available. You can also use the FCAC’s Credit Card Selector Tool to compare the low-rate credit cards that are available across many financial institutions. For longer-term borrowing requirements, a term loan or line of credit may be a better choice because the interest rate is typically lower.