The Pre-Approved Credit Card
You might receive a message informing you that you have been pre-approved for a loan or credit card, but which asks for an upfront fee. The question you should ask is, “Why would a creditor ask for an upfront fee?”
While many credit card companies do charge an annual fee, this is applied to the balance of your card. No credit card company will ever ask for an initial payment.
Wouldn’t you find it suspicious that a creditor is willing to offer you a credit line (oftentimes an exorbitant one) with no knowledge of your credit history or finances?