301
Nearly everyone uses credit cards, but an informed and careful consumer can keep out of trouble. Did you know that your credit card activity, good or bad, affects your credit rating? Be very careful to pay your credit cards on time. Simple laziness or absentmindedness can have a negative affect on your credit rating.
Did you also know that it's possible to have too much credit? If you have several credit cards with high limits, even if you don't carry balances on those cards, creditors may look at that as potential debt and consider that when assessing the risk of lending you money. Some people fee rewarded when their credit card company increases their credit limit. But if you don't need it, decline the increase. Or if your limit is already much higher than you need, request that they lower it.
If you have overextended yourself and are having a difficult time managing your credit card debt, you may wish to seek the assistance of a debt counselor or a debt consolidation service. They can help you get control of your debt and set up a pay-off plan. There's nothing like the feeling of being free of credit-card debt!
Credit cards are also a major source of fraud. Your credit card number, in the wrong hands, can result in a nightmare. If you've lost your credit card, contact your credit card company immediately.
Finally, take a look at the tips in this credit card section for ideas and information to keep you in good credit standing.
Many people find themselves with credit problems because they don't keep track of purchases they make with their credit cards. A simple method of keeping track of monthly credit card charges is to:
You may think these ten rules are unnecessary. But if you ignore them, you make it easy for the wrong people to use your cards.
Never leave your cards unattended at work. There are more credit card thefts in the workplace than in any other single location.
If your credit card is programmed to access an Automated Banking Machine (ABM),
When applying for credit cards, it's important to shop around. Fees, charges, interest rates and benefits can vary drastically among credit card issuers. And, in some cases, credit cards might seem like great deals until you read the fine print and disclosures. When you're trying to find the credit card that's right for you, look at
...Having too many credit cards with either high balances or large amounts of credit available can negatively impact risk scores depending on the overall credit history.
New technology is making it more difficult for criminals to use, alter, or counterfeit credit and debit cards. Some of the innovations are already in use.
These security features have been added to major credit cards:
Holograph - a three-dimensional, laser produced optical device that changes its color and image as the card is
Learn about the most important costs and rules of the card.
In general, if you expect to pay your credit card bill in full each month, the interest rate isn't your number one concern — you're probably better off having a card with no annual fee and the kinds of features (including rebates and rewards) you expect to use.
If you expect
After December 4, 2006, companies will not be allowed to print your credit or debit card expiration date or more than the last 5 digits of your card number on your electronic receipt. Some businesses will be required to make this change sooner, depending on the way they process credit card transactions. The law will allow receipts that are
...In some states the customer can be assessed a surcharge for using a credit card. However, there are laws against credit card surcharges in CA, CO, CT, FL, KS, MA, ME, NY, OK and TX. Additionally, Visa and MasterCard prohibit surcharges. American Express discourages them in general, and prohibits merchants from charging them if they also
...It is illegal for card issuers to send you a credit card unless you ask for or agree to receive one. However, a card issuer may send, without your request, a new card to replace an expiring one.
Counterfeiters make most counterfeit cards by silkscreening or painting the card logo and issuing institution's name onto a blank piece of card plastic. Because they are silkscreened, the cards don't look exactly like the real thing. Real credit cards are printed. Also, the signature panel on silkscreened cards may be glued or painted on and
...Annual Percentage Rate. The APR is a measure of the cost of credit, expressed as a yearly rate. It also must be disclosed before you become obligated on the account and on your account statements.
The card issuer also must disclose the "periodic rate" - the rate applied to your outstanding balance to figure the finance charge for each billing
While a credit card makes it easy to buy something now and pay for it later, you can lose track of how much you've spent by the time the bill arrives if you're not careful. And if you don't pay your bill in full, you'll probably have to pay finance charges on the unpaid balance. What's more, if you continue to charge while carrying an
...If you're at least 18 years old and have a regular source of income, you're well on your way to qualifying for a card. But despite the invitations from card issuers, you'll still have to demonstrate that you're a good risk before they grant you credit. The proof is in your credit record. If you've financed a car loan or other purchase, you
...If your credit card is lost or stolen, contact your bank or issuing institution immediately. Your monthly statement should list the phone number of whom to contact.
You do not have to pay for any unauthorized charges made after you have notified the issuing bank or institution. The most you will have to pay for unauthorized charges is $50 on
Many companies offer unsecured credit cards for people with no credit history or damaged credit. These can be expensive credit options, because many of them have:
You can dispute charges for unsatisfactory goods or services. To do so, you must:
Your credit card company may offer you services and products for a fee:
While shopping, you can easily be targeted by pickpockets. If your purse or wallet is stolen, you may lose all your credit cards at one time.
Separate your cards. Only carry those cards with you that you plan to use. Also, check your cards from time to time and put aside those cards you don't use very often.
Most issuers charge annual membership or participation fees. They often range from $25 to $50, sometimes up to $100; "gold" or "platinum" cards often charge up to $75 and sometimes up to several hundred dollars.
Issuers must follow rules for promptly correcting billing errors. You'll get a statement outlining these rules when you open an account and at least once a year. In fact, many issuers include a summary of these rights on your bills.
If you find a mistake on your bill, you can dispute the charge and withhold payment on that amount while the
...Many credit cards work as follows: You charge goods or services and the merchant who accepts your credit card sends the transaction information to the card-issuing institution. The institution then bills you, usually on a monthly basis. In many cases, payment may be made by the due date with no interest assessed. If the total bill is not paid
...Credit card—You can use a credit card to buy things and pay for them over time. But remember, buying with credit is a loan—you have to pay the money back. What's more, if the credit card company sends you a check, it's not a gift. It's a loan you have to pay back. In addition to the cost of what you bought, you will owe a
...Credit card debt is a major problem for Americans today. Many Americans are overextended with debt and are forced to stay at a job they don't like because of extensive credit card debt…
Over the lunch hour when you leave your office for lunch, you could be the target of a credit card thief. Credit card thieves often gain illegal access to the offices of employees who are away in order to search unattended. Most times, they leave the offices and immediately go on a shopping spree, charge credit cards to their limits, and
...It is your responsibility to protect your credit card from being stolen or used without your permission. Follow these tips to protect your card--and your credit:
While it might appear to be a good deal to pay only the minimum amount due on your credit card's outstanding balance each month and keep the extra cash for other bills, this could be one of the worst financial moves you can make. Why? It will take you a very long time to pay off the balance, and the interest costs (often quite high on credit
...Legitimate cards follow standard specifications as to color, tint, quality, and style. Stamped letters and numbers are spaced evenly and sized equally. The signature panel is uniform in size and is almost impossible to scrape off.
Altered cards are made from actual cards. The original stamped data is melted down or pressed out. Then, the card is re-stamped with legitimate account numbers, names, and expiration dates, which have been illegally obtained. On altered cards, the letters do not line up well and are usually irregular in size. Some credit card companies help
...The Credit Card Fraud Act imposes prison sentences and stiff fines on persons convicted of unauthorized or counterfeit use of credit cards and debit cards. Also, the law makes it a federal crime to use any unauthorized card, plate, code, or account number to obtain money, goods, or services. The Secret Service is authorized to investigate
...Truth in Lending also requires card issuers to provide the information earlier than they had in the past. This lets you find out what credit will cost you before you are charged any fees.
If a card issuer calls and takes your card application over the telephone and there is a fee for the card issuance or availability, including any fee based on
© 2012 http://www.askmrcredit.com/
