PHOENIX -- How would you like a $500 line of credit and it doesn't matter what kind of credit you have?
It's an offer going around the valley. But it's an offer you should refuse.
It does seem tempting. It's an offer for a $500 loan with no questions asked at a time most banks aren't loaning. The offer comes in a call, e-mail or a letter. It's a credit card with a line of credit you can use for whatever purpose and you don't have to fill out a lot of credit information to get it.
But Patricia Armstrong with the U.S. Postal Inspector's office says there's a big downside.
"They are charging a fee upfront of $200 for a credit card that would give you a line of credit that's usually $500 -- not a lot," Armstrong says.
Armstrong says she's seen an increase in these offers in the Valley. She says most just play on the hard times people are having. Basically it's a losing situation.
This isn't free money. You have to pay it back and it will likely with a big interest rate. And you're being charged a fee of almost half of the amount you'll get.
Armstrong says "you should never have to pay anyone an upfront advanced fee for a loan."
Sometimes the mail offers are followed by a phone call and a lot of high pressure to act now. That's a huge warning sign to stay away.
