Credit Card Quick

How to Protect yourself from the Credit Card Legislation Loopholes

Introduction

It is no secret that credit card companies are looking for ways to make money given the new credit card legislation. As a result, many credit card companies have found quite a few loopholes in the new legislation; loopholes that you may not be aware of and loopholes that can cost you big.

There are, however, a number of things you can do protect yourself, even given the loopholes being enacted by credit card companies:

• Look closely at your credit card statement each and every month and take note of any changes in your credit card’s terms and conditions. The CARD act requires that credit card companies must notify you 45 days in advance of any credit card changes, thereby providing you with the opportunity to find another credit card or close your account. Remember: credit card companies can charge all the fees they want, but in the end it is up to you as to whether you will accept these fees or not.
• Regardless of what you have been told in the past, if you don’t like the terms and conditions of your current credit card, cancel the account and find another one. The small hit you may take on your credit score due to a closed account will be minor, so get rid of the unwanted card and make a better choice. It is important to close any accounts that you no longer use, as you will likely incur inactivity fees as a result inactive accounts.
• To find the most competitive credit card, check out popular bank, credit card, and lending websites. These websites compare all of the latest credit cards, side by side, so can shop for a new credit card in one place. In addition, don’t forget to check out credit cards through your local credit union or bank; often times the interest rates charged by these local institutions are quite attractive and competitive.

It is important to remain in charge of your financial future, and the only way to accomplish this is to remain educated, informed and aware.

How to Handle a Credit Card Dispute

Introduction

If you had to fight a charge on your credit card, would you know what to do?

It is important that you understand how to handle a credit card dispute so that you won’t be caught in a fight that you can’t handle.

Let’s assume that you made a purchase at a local department store and paid for it with your credit card. When you receive your credit card bill you notice that the department store charged your card twice for the same purchase. Now what do you do?

Under the Fair Credit Billing Act, you can file a dispute with your credit card company to have the charge removed.  It may take a bit of time on your part, but you can get the charge removed if you know which avenues to take.

1. Your first point of contact should be the department store that double charged your purchase. Bring the credit card statement with you and ask them to remove the charge. Chances are they will comply. However, if you have no luck with this approach, consider making a complaint, in writing, and send it as proof to the merchant. Remember to send the complaint via certified mail so that you have proof that it was received.
2. If you still have no luck with the merchant, your next step should be to contact your credit card company and file a dispute. Most credit card companies will want you to submit this dispute in writing. It is important to understand that most credit card companies will only entertain a dispute if it is filed within 60 days of receiving your statement. You may be asked by the credit card company to provide them with proof that you attempted to resolve the dispute with the merchant, which is why sending a dispute letter to the merchant, via certified mail, is so important.
3. The credit card company, once they receive your dispute, will contact the merchant directly to get specifics regarding the charge. If the credit card company finds that the merchant made an error, the charge will be removed. If the credit card company determines that the charge was not made in error then you will be responsible for the charge.
4. The Fair Credit Billing Act specifies that a dispute can only be made with your credit card company if the charge was over $50, and that the merchant must be located in your state or within 100 miles of your billing address.

New Credit Cards Tout Simplicity

Choosing Credit Card

If reading and understanding the terms and conditions of your credit card make your head spin, you’re not alone.

With credit card companies constantly changing their terms and conditions, and with the new regulations and restrictions being placed on creditors, the process of understanding your credit card has become all that more complicated.

However, some banks have recognized this and have begun to offer credit cards that tout the concept of simplicity.

Sounds nice, doesn’t it? Now we no longer need a degree in finance to understand our credit card statement, as well as its terms and conditions.

Bank of America Basic Visa

Bank of America was the first to jump on the “simplicity” bandwagon, with a “basic” credit card for customers that want straightforward language that is easy to understand.

Called the Bank of America Basic Visa card, this new credit card, which was recently introduced, features an easy-to-read, one-page explanation of its terms and conditions and a simple, $39 late payment fee.

Bank of America has responded to many customers’ desire for more transparent credit cards. Bank of America hopes this new card will eliminate confusion among customers.

Bank of America was also one of the first banks to introduce basic mortgages, as well, and backed up their promise of simplicity with a “clarity commitment.”

The fixed rate on this Bank of America Basic Visa applies to any type of transaction, including cash advances. The fixed rate will be the U.S. prime plus 14%. This rate will not change, regardless of the customer’s payment history or credit rating. In addition, there will be no fees if the customer exceeds their credit limit.

JP Morgan Chase Blueprint

JP Morgan Chase, likely in response to Bank of America’s new Basic card, has also rolled out its own version of a simplified credit card, called the Blueprint Card. This card provides greater flexibility to customers regarding how they pay their credit card balances every month.

As more and more customers become disheartened by forever-changing credit card practices, charges and fees, credit cards are being used less and less. It is now up to the credit card companies to follow the direction of Bank of America and Chase and start offering consumers what they’ve wanted for years: simplicity.

The Importance of Reading and Understanding your Monthly Credit Card Statement

Introduction

Understanding your credit card statement should be on your list of things to do each and every month. Reading and understanding your credit card statement can accomplish a few things:

·    It can eliminate mistakes or inaccuracies on your bill.
·    It can provide insight regarding your spending habits.
·    It can provide you with valuable information regarding your card’s fees and interest charges.

However, each creditor’s monthly statement can look markedly different, making the process of understanding each creditor’s statement a bit complicated at times.

Although credit card statements may appear different, they all contain the same, basic information.  Here’s a breakdown of what you may find on your credit card statement:

New purchases – New purchases consist of any new purchases you made since the end of your last billing cycle. Make it a point to learn the billing cycle on your credit card so that you can better understand all of your new charges.

In addition, make it a point to keep all of your previous month’s receipts so that you can easily check your monthly statement for accuracy.

New charges – Besides purchases, you may see new charges appear on your credit card statement. This can be late payment charges, over-the-limit charges, cash advance charges or balance transfer charges.

 Finance Fees/Charges – These charges are associated with cash advances, purchases and balance transfers, and are usually separated as such. Pay close attention to these charges to make sure that your interest rate charges are accurate for each type of charge. For example, most creditors will assess higher interest charges for cash advances, or they may be offering a low, promotional rate on balance transfers.

Previous Balance – Your previous balance is the amount owed on the card at the end of the last billing cycle.

Payments/Credits – Any payments or credits from your last billing cycle should appear separately on your statement. Make sure your payments are applied properly so that you don’t pay unnecessary finance charges.

The Top Three Points to Better Credit Card Management

Introduction

A credit card comes with a certain set of responsibilities. It is up to you to understand the terms and conditions of your credit card so that you can maintain your card and protect your credit score at the same time.

The bottom line is that many consumers simply fail to carefully read and understand the terms and conditions of their credit cards, which only hurts them (and their credit score) in the end.  Although the new credit card legislation recently signed into law by President Obama will certainly go a long way in protecting consumers, it still comes down to personal responsibility.

And the best way to remain in control of your credit is to simply understand it.

What You Need to Understand about your Credit Card:

• Your APR – You certainly can’t manage your credit card effectively if you don’t know you card’s APR. If you have an introductory rate, you need to pay attention to how long it will last, and certainly what the APR will be once the introductory period has ended. Also, keep an eye on the APRs of other, competitive credit cards to make sure you are always getting the best rate. If not, contact your creditor and ask for a lower interest rate; if they refuse your request, search for another credit card with a better APR so that you’re always ahead of the game.
• Your statement – Your statement should be read carefully, every month – no exceptions! Countless Americans lose money every year because of inaccuracies on their statements that they simply never caught. Keep all credit card receipts and use them to check your statement each month. Also, pay close attention to any other types of fees, as well as past payments, to make sure they appear accurately, as well.
• Your billing cycle – Your billing cycle is crucial to your payments, your interest rate and, most of all, your credit score. Make sure you are aware of your credit card’s billing cycle, as well as the due date for your next payment. Knowing this information will keep you from forgetting to make payments, and it will also ensure that you make your payments on time, each and every month.

Today’s Credit Issues: Why has my APR gone Through the Roof?

Choosing Credit Card

Many of us have stumbled across a little surprise, of sorts, the last time we opened our credit card statement: an increase in our credit card’s APR.

As we are beginning to see – and will continue to see throughout the upcoming months – credit card companies are starting to fight back against the new credit card laws due to go into effect next summer.

This may mean raising credit card interest rates, slashing credit limits and closing accounts that have been inactive for some time.

The Universal Default

One of the key terms to pay attention to in your credit card agreements is the card’s universal default. This is a clause, found in most credit card agreements, that gives your creditor the authority to raise your interest rate for a variety of reasons, mainly if the credit card company perceives you as a higher credit risk.

Did you know, for example, that a creditor can raise your APR because you were late on your mortgage payment? Did you also know that your creditor can raise your APR if you recently took out a personal or auto loan (thereby increasing your debt to income ratio)?  It may not seem fair, but it is perfectly legal for a creditor to monitor your credit report and change your APR if they feel that you’ve become a higher credit risk.

Your Options

Unfortunately, you may have few options when it comes to a rise in your credit card’s APR. If you’ve been a good customer in the past, you may be able to contact the creditor and have your APR lowered; however, not many creditors are being lenient about APRs these days.

You may also try to find another credit card and transfer your balance to that card, but it may be quite difficult to find a good deal on a balance transfer.  Something to watch out for: many creditors have begun raising the fees on balance transfers. In fact, Chase has recently announced that it will start charging customers a 5% balance transfer fee, which is the highest in the industry (most balance transfer fees are 3%, but you can expect other creditors to follow Chase’s lead on balance transfer fees).

It is important to keep an eye on your card’s APR and continue making your payments on time for all of your credit cards, as well as your other lenders, as to avoid an increase in your APR.

Surefire Ways to Beat Late Credit Card Payments Once and for All

Credit Card Debt

With the tough economy and equally tough credit sector, we all need to stay on our toes and pay our debts to maintain our credit rating. With that said, it is now more important than ever to pay our credit card bills on time each and every month.

Failing to pay your credit card on time can result in quite a negative impact on your credit score, and can certainly result in raised interest rates, late fees and your inability to obtain credit.

Luckily, we have technology on our side – namely, the Internet, to make sure that our payments are received on time, without fail.

Online Bill Payment

Online bill payment enables us to say good-bye to snail mail, once and for all! No more stamps; no more trips to the post office; and no more delays. The Internet has instead enabled us to pay our monthly bills in a matter of minutes, without the hassle of paper bills and checks.

Whether you decide to pay your credit card bill through your bank or directly through the credit card company’s web site, you will enjoy the convenience of a quick payment. In fact, most payments are posted within two or three business days.

Automatic Bill Payment

Better yet, if you want to ensure that your payment is received on time, consider automatic bill payment. Simply set up the date each month that you want your credit card bill to be paid and – voila! –no more missed payments!

Of course, automatic bill payment is ideal for card holders who pay the same amount to their credit card bill each month, although it is also convenient for business travelers that may not be home to receive their credit card statement every month. Another great feature of many credit card companies is that they can send you an e-bill instead of a paper bill, thereby enabling you to receive your monthly credit card statement regardless of where you are.

There is simply no reason not to pay your credit card bill on time each month. With today’s user-friendly technology, it is quite effortless to set up an online account, either through your bank or credit card website, so that you can take care of your monthly obligations anytime, anywhere.

The Advantages of Online Bill Paying

Introduction

You know the scenario: you’ve had a super-hectic week. The car broke down, the kids had a school play and baseball practice and you had to work late nearly every night. After your week has wound down and the kids are in bed, you finally make it over to your computer only to find the credit card statement that you were supposed to mail last week!

OK, now panic sets in when you find out that the due date on the credit card is no less than two days away!  What do you do next?

If you call the credit card company and plead your case, it will likely fall on deaf ears. Credit card companies expect you to pay your bill on time every month, and your problems and drama are simply unimportant to them. The only other alternative is to mail the payment in late and get socked with a late charge and possibly an interest rate increase.

But is this really the only option you have?

Luckily, you do have another option; one that enables you to pay your bill almost instantaneously, without the need to worry about postage, late fees or inconveniences.

The Benefits of Online Bill Payment

Most credit card companies and banks provide their customers with online bill payment services. Online bill payment systems provide customers with unsurpassed convenience, as they allow customers to quickly and easily pay their credit card bill online.

Imagine: no more stamps, no more envelopes and no more trips to the post office! In addition, online bill payment transactions are usually posted within a day of making the online payment, which therefore allows customers to pay their bills at the last minute, without fear of late fees.

In addition, many credit card companies offer e-bills, which eliminate the need to receive paper statements every month. E-bills provide a practical reminder to pay your bill each month, and they also provide added convenience when managing your monthly finances.

Finally, online bill payment systems are almost always free to use, and are very easy to set up. These secure websites simply require registration, and the use of a user name and password for accessing the account.

How to Protect yourself against Identity Theft

Identity Theft

Identity theft, some say, is the price we all pay for our technology-driven society. We all enjoy the benefits and perks of the Internet and computer technology, but it is also these things that can cause the most unscrupulous thieves to come out of the wood work and take advantage of unknowing consumers when they least expect it.

It is with this in mind that we must all approach today’s technology with an educated eye. And credit cards are no exception. There are many ways in which identity thieves have fooled people into giving out their credit card numbers and other personal identification, and there are many computer-savvy thieves that have used today’s technology  to hack into consumer’s accounts.

Although there are no fool-proof methods for protecting your credit from identity thieves, there are a number of ways in which you can reduce your chance of being a thief’s next victim.

1. 1) Instead of signing the back of your credit card, write the words “See ID.” This may deter thieves from using your credit card in case of credit card theft or loss. In addition, never keep your credit or debit card’s pin number with your card, as this is essentially a free pass for a credit card thief.
2. 2) Beware of any emails claiming to be from your credit card company. Many identity thieves send out “phishing” emails that appear to be from legitimate companies. In the email, the thief may encourage to you to click on a link that brings you to a website that, although it looks similar to your credit card website, is actually a phony web site. The identity thief quickly obtains your personal information when you type in your user name, password, credit card number or social security number.

A simple way to avoid this type of identity theft is to never, ever respond to emails that appear to be from your credit card company. Most legitimate companies will never send you an email asking you to verify information.

1. 1) Do not choose an easy password that can be easily guessed by an identity thief. Identity thieves will often try obvious passwords, such as your address or your birth date, when attempting to gain access to your account, so steer clear of any commonly used numbers or phrases. Instead, opt for a password that contains both alpha and numeric characters.
2. 2) Review your credit card statement every month, without exception. Many consumers who use their credit cards frequently throughout the month never stop to review their statements – and credit card thieves are counting on it.

Take the time to carefully review all purchases made on your credit card each time your bill arrives so that you won’t fall victim to identity theft.