What is the difference between an additional card and co-signer card?
An additional card is a card you get on your personal credit account with another person?s name on it. This means that the person now has access to your credit account as if it is their own account and can charge as much as they want without your permission beforehand. In addition, this person is not held accountable by your creditor for making any payment on the account. This responsibility falls on you, the account holder. As a result, no matter how much this person charges on your card, you have to pay for it?even if the person promises to pay you back and doesn?t. A cosigner card is a credit card someone applies for and gets a cosigner to sign on. Essentially, it is the applicant?s credit account, but if they stop making payments, the cosigner is then responsible for the account. The history of the account goes on both person?s credit reports. The cosigner will have to make special arrangements with the creditor before cosigning to get monthly statements on the account or reports of late payments. Otherwise, the cosigner will not have access to the account information. If you do cosign on an account, remember that you assume equal liability.
Do you know if secured deposits earn interest? If so, what is the range and what does it depend on?
some secured credit card offers do include interest on your initial deposit. In addition, some of these secured credit cards also allow you to add more money to this deposit in order to collect more interest. However, these features do not apply to all secured credit card deposits. Your card application and terms should state whether or not the secured card you are applying for has this feature. The amount of interest is usually comparable to the amount of interest you?d get with a savings account and varies with each card. The rate can also vary from month to month, so check with your credit issuer about the exact amount. While these secured credit cards may offer you interest accruing perks, these cards normally have annual fee requirements and higher interest rates on your balance owed. As a result, the interest you earn may not even cover the amount of interest and fees you owe back. Take the time to do the math on what a secured card will cost you and earn for you in reality. This could determine whether or not the secured credit card is a viable option for your financial future
Credit Protection Overseas
The Fair Credit Billing Act does apply to overseas purchases, which is one reason why you may choose to pay by credit card instead of cash or check. To dispute a charge under the Fair Credit Billing Act, you must write to your credit card issuer within sixty days of the postmark date of the bill on which the charge appeared. Complete instructions for disputing a charge are usually listed on your credit card bill.
What type of information do credit bureaus collect and sell?
Credit bureaus collect and sell four basic types of information. Identification and employment information Your name, birth date, Social Security number, employer, and spouses name are routinely noted. The CRA also may provide information about your employment history, home ownership, income, and previous address, if a creditor requests this type of information. Payment history Your accounts with different creditors are listed, showing how much credit has been extended and whether f paid on time. Related events, such as referral of an overdue account to a collection agency, may also be noted. Inquiries CRAs must maintain a record of all creditors who have asked for your credit history within the past year, and a record of those persons or businesses requesting your credit history for employment purposes for the past two years. Public record information. Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may appear in your report.
Correcting Billing Errors
Federal law provides specific rules that the card issuer must follow for promptly correcting billing errors. The card issuer will give you a statement describing these rules when you open the credit card account and, after that, at least once a year. In fact, many card issuers print a summary of your rights on each bill they send you.
Credit Limit
Every credit card has a credit limit. It can be anywhere from a few hundred dollars to $250,000. There are even cards, such as the MBNA Quantum Card, that has a credit limit of $1 million. This limit is all you are allowed to spend. Once you charge the full limit on your card, your card can not be used until the balance is paid down some. The more you charge on your credit card, the higher your minimum monthly payment will be. Some cards do not prevent you from charging over your credit limit. If you do so, you will find your next monthly bill has over the limit fees added to your balance. You will then be required to pay the total amount over the limit and all the penalty fees in order to avoid even more over the limit fees the next billing cycle. (Change to: You will then be required to pay at least an amount you charged over credit limit and all the penalty fees, in order to avoid even more over the limit fees the next billing cycle) As you can see, your credit card bill could easily grow out of control if you get over the limit. The moral is, stay under your credit limit!
Debit or Credit?
Once you become a student, you?ll hear this question almost every time you go to pay for something. If you don?t know the difference between debit and credit, learn fast. A debit card (sometimes also called a check card) is basically cash, not credit. Any time you use a debit card money is withdrawn right out of your checking out. When you pay for an item, your checking account balance goes down. Be sure to keep track of what you spend. Even though you might have $100 in the account today, you might have written a check for $50 yesterday that hasn?t posted yet. If you spend $60 with your debit card, your check will bounce when it makes it back to the bank. This can lead to all kinds of fees and penalties.
When should you turn a credit card offer down, and when should you accept?
For the new college student, it can be relatively easy to get a card. It will seem people are everywhere with offers. You will get offers in your mail box, and see VISA, MasterCard and Discover card tables at many school events. The solicitors at these tables will not only ask you to fill out quick and easy credit card applications, but they will also offer you free gifts and incentives just for doing so. The gifts are often yours to keep, even if you choose not to accept their credit card.
What is Consumers Liability for Unauthorized charges?
If you have a problem with merchandise or services that you charged to a credit card, and you have made a good faith effort to work out the problem with the seller, you have the right to withhold from the card issuer payment for the merchandise or services. You can withhold payment up to the amount of credit outstanding for the purchase, plus any finance or related charges. If the card you used is a bank card, a travel and entertainment card, or another card not issued by the seller of the defective merchandise, you can withhold payment only if the purchase exceeded $50 and occurred in your home state or within 100 miles of your billing address. If these conditions do not apply to you, you may want to consider filing an action in small claims court -- an informal legal proceeding that can be used to settle disputes. While the maximum amounts that can be claimed or awarded differ from state to state, most small claims courts hear cases involving amounts ranging from $25 to $2,000. Some states have recently raised their limits to $5,000. Check Check your local telephone book under your municipal, county, or state government headings for small claims court listings. Shop around for credit card terms that are best for you. * Make sure you understand the terms of a credit card plan before you accept the card. Review the disclosures of terms and fees that must appear on credit-card offers you receive in the mail. * Pay bills promptly to keep finance charges as low as possible. * Keep copies of sales slips and promptly compare charges when your bills arrive. * Protect your credit cards and account numbers to prevent unauthorized use. Draw a line through blank spaces above the total when you sign receipts. Rip up or retain carbons. * Keep a list of your credit card numbers and the telephone numbers of each card issuer in a safe place in case your cards are lost or stolen.
Why Does APR fluctuate?
some credit card plans allow the card issuer to change the annual percentage rate on your account when interest rates or other economic Indicators (called indexes) change. Because the rate change is linked to the performance of the index, which may rise or fall, these plans are commonly called "variable rate" plans. Rate changes raise or lower the amount of the finance charge you pay on your account. If the credit card you are considering has a variable rate feature, the card issuer must tell you that the rate may vary and how the rate is determined, including which index is used and what additional amount (the "margin") is added to the index to determine your new rate. You also must be told how much and how often your rate may change.
