Getting Credit Help

If you feel you're being unfairly treated concerning your credit, you can invoke your rights by filing a complaint and contacting the Federal Trade Commission or your state agency. It always helps to have a witness or some documented proof to verify your claim.

Tips for Getting the Results You Want
Before you blow-up and go into a place of business and start shouting, sit down and figure out exactly what happened and what you want them to do about it. (Do you want a replacement product, an apology, a refund?)

Before you contact federal or state government office for help, you should make the effort to solve the problem yourself. Following the outline below can help you save time and hassles.

• First let the business know you have a problem. Talk to the business owner, manager, main office or whoever is in charge.
• Be clear about your problem and ask the business to remedy the situation. Be specific about the action you want the business to take.
• If your issue is not resolved, follow up with a letter — that way you have a record of your request. Be sure to refer to your initial conversation in the letter.

Keep copies of all correspondence. Also keep all original receipts, cancelled checks and credit card statements. If a business needs to see your documents, provide a copy—never an original.

If you do not have records, start keeping them:

• Keep a copy of all letters and correspondence.
• Keep a log of all calls and conversations with the company and include the date and the time of the call, what was said and the name of the person with whom you spoke.

If you don't get results, contact your federal or state government agency.

Compile here is a list directory of federal and state agencies equipped to handle your complaint. They also have online many consumer resources with could benefit and protect your life and your families.

Federal Trade Commission
Agency
Consumer Protection
File a Complaint


Government Agencies By State - alphabetical order

Alabama
Office of Attorney General
Consumer Protection
File a Complaint

Alaska
Office of Attorney General
Consumer Protection
File a Complaint

Arizona
Office of Attorney General
Consumer Protection
File a Complaint

California
Office of Attorney General
Consumer Protection
File a Complaint

Colorado
Office of Attorney General
Consumer Protection
File a Complaint

Connecticut
Office of Attorney General
Consumer Protection

Delaware
Office of Attorney General
Consumer Protection

District of Columbia
Office of Attorney General
Consumer Protection
File a Complaint

Florida
Office of Attorney General
Consumer Protection
File a Complaint

Georgia
Office of Attorney General
Consumer Protection
File a Complaint

Hawaii
Office of Attorney General
Consumer Protection
File a Complaint

Idaho
Office of Attorney General
Consumer Protection
File a Complaint

Illinois
Office of Attorney General
Consumer Protection
File a Complaint

Indiana
Office of Attorney General
Consumer Protection
File a Complaint

Iowa
Office of Attorney General
Consumer Protection
File a Complaint

Kansas
Office of Attorney General
Consumer Protection
File a Complaint

Kentucky
Office of Attorney General
Consumer Protection
File a Complaint

Louisiana
Office of Attorney General
Consumer Protection
File a Complaint

Maine
Office of Attorney General
Consumer Protection
File a Complaint

Marshall Islands
Office of Attorney General

Maryland
Office of Attorney General
Consumer Protection
File a Complaint

Massachusetts
Office of Attorney General
Consumer Protection
File a Complaint

Michigan
Office of Attorney General
Consumer Protection
File a Complaint

Minnesota
Office of Attorney General
Consumer Protection
File a Complaint

Minnesota
Office of Attorney General
Consumer Protection
File a Complaint

Missouri
Office of Attorney General
Consumer Protection
File a Complaint

Montana
Office of Attorney General
Consumer Protection
File a Complaint

Nebraska
Office of Attorney General
Consumer Protection
File a Complaint

Nevada
Office of Attorney General
Consumer Protection
File a Complaint

New Hampshire
Office of Attorney General
Consumer Protection
File a Complaint

New Jersey
Office of Attorney General
Consumer Protection
File a Complaint

New Mexico
Office of Attorney General
Consumer Protection
File a Complaint

New York
Office of Attorney General
File a Complaint

Consumer Protection
File a Complaint

North Carolina
Office of Attorney General
Consumer Protection
File a Complaint

North Dakota
Office of Attorney General
Consumer Protection
File a Complaint (form)

Northern Mariana Islands
Office of Attorney General

Ohio
Office of Attorney General
Consumer Protection
File a Complaint

Oklahoma
Office of Attorney General
Consumer Protection
File a Complaint

Oklahoma
Office of Attorney General
Consumer Protection
File a Complaint

Oregon
Office of Attorney General
Consumer Protection
File a Complaint

Pennsylvania
Office of Attorney General
Consumer Protection
File a Complaint

Puerto Rico
Office of Attorney General

Rhode Island
Office of Attorney General
Consumer Protection
File a Complaint (form)

South Carolina
Office of Attorney General
File a Complaint

South Dakota
Office of Attorney General
Consumer Protection
File a Complaint

Tennessee
Office of Attorney General

Texas
Office of Attorney General
Consumer Protection
File a Complaint

Utah
Office of Attorney General
Consumer Protection
File a Complaint (email)

Vermont
Office of Attorney General
Consumer Protection
File a Complaint (email)

Virgin Islands
Office of Attorney General

Virginia
Office of Attorney General
Consumer Protection
File a Complaint

Washington
Office of Attorney General
Consumer Protection
File a Complaint

West Virginia
Office of Attorney General
Consumer Protection
File a Complaint

Wisconsin
Office of Attorney General
Consumer Protection
File a Complaint

Wyoming
Office of Attorney General
Consumer Protection
File a Complaint (request form by email)

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Non-Profit Organization and Advocate

Consumer Action
Organization
Consumer Protection
File a Complaint
An education and advocacy organization specializing in credit, finance, and telecommunications issues, Consumer Action offers a multi-lingual consumer complaint hotline, free information on its surveys of banks and long-distance telephone companies, and consumer education materials in as many as eight languages. Community-based organizations can receive these free publications in bulk.

Consumer Federation of America (CFA)
Organization
CFA is a consumer advocacy and education organization. It currently represents consumer interests on issues such as, telephone service, insurance and financial services, product safety, indoor air pollution, health care, product liability, and utility rates. It develops and distributes studies of various consumer issues, as well as consumer guides in book and pamphlet form. In addition, CFA publishes several newsletters.

HALT:An Organization of Americans for Legal Reform
Organization
HALT's mission is to enable Americans to handle their legal affairs affordably, equitably, and simply. HALT publishes a series of self-help legal manuals, operates a legal information clearinghouse, and advocates for legal reforms which will benefit consumers.

National Association of Consumer Agency Administrators (NACAA)
Organization
An association of the administrators of local, state, and Federal Government consumer protection agencies, NACAA provides training programs, public policy studies and conferences, professional publications, and other member services.

National Consumer Law Center (NCLC)
Organization
NCLC is an advocacy and research organization focusing on the needs of low-income and elderly consumers. Limited resources prevent the organization from responding to individual inquiries. The Center publishes Surviving Debt: A Guide for Consumers. NCLC Reports, a newsletter on consumer law developments, is published 24 times a year.

Who's who in the credit world

The Federal Trade Commission (FTC)
This is die federal agency in charge of anything to do with credit (along with many other aspects of our economy). You can send them written complaints, particularly if you cant resolve a dispute with a credit bureau or card issuer. The national office is in Washington, DC., and there are regional offices in Atlanta, Boston, Chicago. Cleveland. Dallas, Denver. Los Angeles. New York, San Francisco, and Seattle.

Creditors
These are the people to whom you owe money. A secured creditor is someone who extends you credit in return for your pledge that they can sell designated property of yours if you fail to repay the loan properly. An unsecured creditor is still entitled to be repaid somehow, but doesn't have the right to take and sell any specific property.

Credit guarantee company
When the store clerk runs your card through its machine, the clerk is contacting a credit guarantee company. This company, a liaison between the card issuer and the store, sends back the status of your credit to let the clerk know whether to make the sale, reject it. or even keep your (arc! so you can't use it anymore.

Merchant banks and issuing banks
When you buy, something using a card from Visa or MasterCard, the seller receives its payment from a "merchant' bank (minus a service fee that's typically 1%, to 6%, of your purchase). !'he merchant bank then is reimbursed by the "issuing'' bank (minus a service fee that's typically 1% or 2%) - The issuing bank is the one who issued you the card and the one who sends you a monthly statement requesting payment.

Visa and MasterCard
These competing organizations don't issue credit cards. They provide operational and marketing support for the banks who issue their cards. The banks are allowed to set their own credit terms, including the interest rate, grace period, and annual fee, as long as they stay within the guidelines of their member organization. Beside generating income from consumers Visa and MasterCard also charge merchants a percentage of each purchase made with their card.

Bankruptcy

Your creditors will be more interested in finding a way to get back their money than in forcing you into bankruptcy. But bankruptcy is an acceptable legal process that seeks the best resolution for you and your creditors. Although it's preferable to avoid the intrusion, stigma, and future credit problems that bankruptcy brings, sometimes it's the best solution. Once you apply to the courts, all collection efforts against you must stop, you're not allowed to take on new debts, and your assets are frozen.

You have two options:

Ask for a plan
You can apply for Chapter 7 bankruptcy. Here, you ask the court to create a workable plan and to carry it out. Your assets are frozen and a court-appointed person ('trustee") takes control of your finances. The trustee's job is to analyze your assets, income, and debts, then create the plan to distribute your assets to creditors as fairly as possible and in an orderly manner.

Usually, you'll he allowed to keep a certain amount of "exempt" assets in order to maintain a reasonable, modest lifestyle. Your income is usually protected so you can continue to support your family.

Once your assets have been distributed, the balance of your debts will be forgivenexcept for certain obligations, such as child support, alimony, and criminal liability. So, depending on your circumstances, you could he debt-free; although you'll have a damaged credit record that will take time to rebuild.

The process
1. Good professional guidance is advisable, but there are also self filing forms available from books or the local court. (Filing fees are around $200.1 You may file for Chapter 7 only every six years. There's no limit on filing for Chapter 13.)

2.You'll be asked to provide verification of

• income and property owned
• debts
• monthly living expenses
• property you're claiming as exempt

3. After you've tried, you'll attend a "creditors' meeting." Here, creditors can state their cases before the trustee, who then decides what's to he done. Since there usually isn't enough money for everyone, creditors accept a fraction of what they're owed.

4. A bankruptcy stays on your credit report for 10 years. When you begin applying for credit again, some lenders-but not all-will consider you too great a risk. By using tools such as secured credit cards, you can gradually rebuild a positive credit profile.

Create your own plan
Applying for Chapter 13 protection is similar to Chapter 7, but gives you more flexibility to resolve your debts as you see fit.

After filing, you present the court with your own scheme to repay your creditors, usually within three to five years. Generally. you must pledge all your disposable income (what's left after reasonable fixing expenses) to then plan.

If the court accepts your plan, you'll make you, payments to the court-appointed trustee, who will monitor your situation and distribute the money to your creditors. At the end of the process, you'll I w allowed to keep your remaining property, all cI the balance of any debts will he wiped out (unless, by law, they can't be discharged).

If the court doesn't accept your plan, you may he able to submit another plan or switch to Chapter 7.

What's protected, what's not. Some debts are dischargeable (they'll be forgiven even if you don't repay in full). Some assets are exempt (they can't be used to repay debt). Here are some examples of dischargeable and exempt assets in some states; be sure to consult an attorney.


DEBTS:
Dischargeable
back rent, utility bills,
personal loans,
legal or accounting fees,
court judgments

Cannot be discharged
alimony, credit card charges,
child support, tax obligations,
student loans, medical bills,
fines

ASSETS:
Exempt
your main car, tools of your trade, food, clothes, family heirlooms

Not exempt
luxury items, limited personal property, investments, cash


Notes:
Secured loans. Creditors with secured loans loans for which you've specifically pledged your home, car, or other property) are first in line to be repaid from the sale of that property.

Fraud warning. Some people try to use courts to avoid debts. It you've transferred property, withdrawn lots of cash, or bought luxury items immediately prior to filing, a court will investigate the possibility of fraud.

Handing too much credit debt

Sometimes we just can't get out of debt. Situations beyond our control can arise and overwhelm us. Uninsured medical bills, a loss of business, or unemployment can happen to anyone. The natural reaction may be to cover your head and hide, but you'll usually be offered help if you genuinely try to remedy the situation.

There are three options:

Talk directly with creditors
The people to whom you owe money (your creditors) are motivated by two needs: to be repaid and to keep you as a customer. This tends to work in your favor.

Legally, as soon as you default on a debt (e.g., make a late payment), the creditor has the right to ask you to repay the entire debt. That rarely happens because the creditor is interested in building a relationship with you and selling more products or services. Most creditors, therefore, will listen if you ask for help in structuring a new repayment plan. For example, they may grant an extension of time or reduce payment amounts (and increase the number of payments).

If you're late paying, creditors typically send you form letters as polite reminders. If you still don't pay, they send letters with increasing intensity, or they call you on the phone. Eventually, a creditor will make demands, backed by the threat of action (such as a lawsuit or collection process).

Get outside help
If you work directly with a creditor, you could enlist help from:

A local credit counseling service. Find a service that is associated with the Consumer Credit Counseling Service (CCCS), a non-profit organization supported partly by the credit industry. For a small fee, a counselor acts as a go-between with your creditors and helps set up a workable repayment plan.

Mediation. Becoming more popular is the use of a neutral third party to help you and the creditor open a line of communication and resolve your own dispute. It's very informal; the mediator can't three either side to do anything.

Arbitration. You and the creditor can agree to argue before a neutral third party (often a lawyer or judge). If it's not for a lot of money, the process is informal and probably doesn't require a lawyer. Both you and the creditor are bound by the decision (and the winner may also win a refund of the arbitration fee).

Deal with bill collectors
The last resort of any credit other than suing you (which may not be economically feasible), is to hand over your debt to a collection agency. These people aren't interested in keeping you as a customer. They're paid for results and have one goal: to recoup as much debt as they can.

Your rights. Bill collectors are restricted by the Fair Debt Collection Practices Act, which applies to everyone who collects consumer debt for someone else, including attorneys. Here are some laws:

• You have the right to tell collectors not to contact you again. After that they can only call to say collection efforts have ended or that you're going to be sued.

• They can't threaten violence or use obscene or profane language.

• They can't contact you at work, and they can only call you at home between S am anti 9 put. Even then, they can't pester you on the phone.

• They can't put any markings on the outside of a letter or postcard that would reveal they're trying to collect a debt.

• They can't mislead you into repaying a debt.

Note:
Help from the government. If you feel you're being treated unfairly, you can invoke your rights by contacting the Federal Trade Commission (2O2-326-2222). It always helps to have a witness or some documented proof to verity your claim.

Debt consolidation. Debt consolidators-businesses that charge a fee to combine your debts and help you manage paying them off-are prohibited in most states and regulated in others. Apparently, most of these businesses are really looking to find ways to charge you high interest and fees. Non-profit organizations are exempt from these state laws.

A word to the wise – Buyer beware

The credit world is ripe for unscrupulous people because so many credit transactions are conducted over the phone and through the use of unfair, misleading, or illegal practices.

Pre-approval / Guaranteed approval
Some ads guarantee you'll he approved for a card no matter what your credit history or how much you deposit in a special account. These should he reported to your state's consumer protection agency. Also, he suspicious of people who want a fee for getting you a card. You could do it yourself.

Another caution: Some guarantees cad up being approvals for a tiny credit limit (e.g., $100). The issuer then checks your credit profile and, if it shows problems, refuses to raise your limit.

Don't write, don't phone
Many businesses want your address or phone number for their mailing lists, or to sell to a direct mail company. Most card issuers, however, forbid this practice. Also, in many states it's illegal for stores to write your credit card number on your check. Some experts recommend you don't let anyone write down your driver's license number if it's also your social security number.

Minimums and discounts
This isn't unfair, misleading, or illegal, but it's valuable to know: MasterCard and Visa don't let stores require minimum purchases. American Express follows the same policy if the store also takes Visa or MasterCard. Discover does permit it.
In some states, stores can offer a discount if you pay in (ash. But they can't charge more than the retail price if you use a card.

Where to complain
If you think a store has been unfair, you can report them to your state or city consumer protection office or attorney general. Diners Club and American Express want to know about violations of their rules. For problems with Visa or MasterCard, start with a call to the bank that issued your card; if there's no satisfaction, try Visa or MasterCard themselves.

Phone calls
Experts say that people who call and ask for your credit card number or send a postcard and ask you to respond are probably scamming you, even if they sound legitimate.

Close but no cigar
Some ads offer cards that look a lot like a Visa or MasterCard but are merely gold-colored cards you can use only to shop through a specific catalogue-often at higher prices. Look for the Visa or MasterCard logo to be sure of what's offered.

Contests and promotions
There are many scams (and legal but misleading marketing campaigns) that "guarantee" you've won a prize "with no obligation to buy," or offer "tremendous discounts" if you call right away. These people are usually either trying to get your credit card number so they can use it or slowly lure you into using your card to buy their product (at an inflated price and which you may never receive). This is a big problem area for law enforcement and consumers. The offers seem so tempting that people want to believe they'll win something for free, despite their better judgment.

Credit consultants
Some people calling themselves consultants or credit repair experts charge a lot to do what you could easily do yourself or what shouldn't be done at all. For example, they may dispute accurate items on your credit report to see if they can find a way to have the items removed. Their disputes could end up causing you more trouble instead of less, and cost high fees.

Special fees
Some card issuers charge a fee every time you check your balance or request other information through their toll-free customer service phone line. Ask about special fees when applying.

Application information
By federal law, anyone offering a card must display a table with certain basic information, including the annual percentage rate (APR), annual fee, and grace period. If you can't find it, be suspicious.

Note:
Fraud victim assistance. Trans Union has a department dedicated to investigating potential frauds. If you think you've been a victim, call 1-800-680 7289.

How credit card payments work

Credit card issuers explain their methods for calculating finance charges (interest) on the back of each statement. The most common method is "average daily balance.' To calculate this balance, the issuer totals what you owed at the end of each day in the billing period, and then divides that amount by the number of days in the period. That reveals the average amount you owed at the end of a day during that period, and determines the interest charged.

Here a comparison
By making a large purchase at the start of a billing period instead of at the end, you end up paying more in interest. You will notice how the average daily balance rises, even without new purchases, because there are more (lays with the higher balance outweighing the days with the lower balance.

Billing period. Many billing periods aren't a month long. Also, they don't always start at the beginning of a month or end at the end of a month. So you could use the card at the end of a month and have if appear at the beginning of your next billing period.

Grace period. Some issuers give you time (a grace period) from the end of the billing cycle to pay your bill (commonly 20 or 25 days). If you start the billing cycle with a $0 balance and pay in full by the due date, you'll pay no interest. The moment you carry over a balance to the next period, the issuer will immediately charge interest on every purchase.

Day 25 Payment due date. You must make at least the minimum payment by this date. If full payment arrives by now, the purchases will be interest-free.

How much goes to pay interest. This example keeps the same minimum payment for the entire payment period (for simplicity's sake). So, while not entirely accurate, it provides a sense of how much you'd pay in interest by making only minimum payments on a $1,000 credit card purchase. In this case, it would take you 43 months to repay in full and cost $360 in interest.

Month | Payment | Interest portion | Total interest | Balance owed
01 | $32 | $15 | $15 | $983
05 | 32 | 14 | 72 | 912
10 | 32 | 13 | 138 | 818
15 | 32 | 11 | 196 | 716
30 | 32 | 06 | 322 | 362
40 | 32 | 02 | 357 | 77
43 | 32 | 00 | 360 | 00

Notes:
Teaser rates. Many card offers promote low introductory rates. When the introductory period ends, the card issuer will automatically begin charging the higher interest rate on any balance you carry at the time.

Can you do better? Many experts say card issuers are often willing to negotiate the annual fee and even the finance charge, particularly for good customers.

Knowing your credit card rights

The Fair Credit Billing Act protects you from both honest errors and outright fraud by merchants when you buy something using a creditor travel and entertainment (charge) card. You don't receive as much protection, though, when using debit cards, such as an ATM card, that take money directly from your bank account.

Three of the most important safeguards are against:

Billing errors
If you find what you think is an error on your statement, you can withhold payment on the amount (or ask for a credit if you've already paid) while the card issuer investigates the problem. You must notify the customer service department (not the department where you send your bills) in writing within 6o days of the billing date (also called the closing date). A phone call won't protect your rights. The billing date appears on the front of each statement.
Once notified, the card issuer has up to 30 days to respond to you and up to 90 days to resolve the problem. If there's no resolution within 90 days, you can deduct $50 from the amount even if you lose the dispute. Include any evidence, such as receipts, that support your claim.

Defects or disputes
By law, every product must work properly if used for its intended purpose. When you use a card, you get "buyer protection" help against charges that are:
• above the agreed-upon price
• for items ordered but never sent
• for merchandise you didn't order
• for things that don't work as they're supposed to
• for unsatisfactory services

First, you must try to resolve the issue directly with the seller. If that doesn't work, you can refuse to pay the bill and ask the card issuer to step in. The card issuer must try to resolve the problem within 90 days. If it takes longer, you may not be liable for the charge at all.

Buyer protection applies to purchases over $50 made in your home state or within too miles of your mailing address. (If the card issuer is connected to the product, there are no restrictions.)

Unauthorized use of the card
Once you report a card lost or stolen, you're not liable for an purchases or cash advances made without your consent. In any event, as long as you report the card missing within a reasonable time (e.g., 30 days), you're only liable for up to $50. The phone number to call to report a lost or stolen card is on the hack of every statement.

Many card issuers offer a lost or stolen card protection service for a fee (typically between $1 and $45 a year). When considering whether this service is worth the fee, keep in mind your liability is limited by law to $50 anyway, as long as you call your card issuer quickly.

The effect of disputes on your credit
During a dispute, the card issuer isn't permitted to report the amount to a credit bureau as a delinquent payment, and no collection agency can come after you. The issuer can continue to tally interest charges against the amount (in case you end up owing it), and they can apply the amount to your credit limit.
If the situation isn't settled to your satisfaction, you can notify the issuer in writing within 10 days. That will give you extra protection, because if they report it as a non payment, they'll be required to report your side of the story as well.

Notes:
No to annual fee. Card issuers are legally required to show the annual fee on the statement in the period before it's due, so you can decide whether you want to pay it. If you decide not to pay) you're asked to cut up the card and return it. You can still use the card until the end of the billing period. The issuer will continue to bill you monthly until you repay what you owe.

Card blocks. Some hotels put a "block" on your credit card for an amount they estimate you'll spend during your stay. Some car rental companies do the same,) Then they sometimes don't release the funds until weeks later, if you don't discover the block, you could be at a store and have your credit refused because you're at your credit limit. You have the right, however, to insist that a block be lifted when you check out of a hotel or return a car

ATM cards are different. You have 60 days from the date on your statement to report a billing error. Here's the law for reporting lost or stolen cards: If you notify the bank within 2 business days, you're liable for up to $50. If you notify them within 60 days, you're liable for up to $500. After that, your liability is unlimited until you report the card stolen.

Understanding your credit card statement

Your credit card statement is a snapshot of your account. Most of all, it tells you three things: how much you owed to start the period, how much you owed at the end of the period (on the date the statement was printed, called the closing date"), and the transactions that got you from start to end. Formats vary but generally each statement includes the information shown here. Reading your statement is the best way to track spending, monitor charges, and catch errors.

What you’ll see
This explains what your credit has cost you this past period and how the cost was calculated. This information doesn't exist for some cards such as Diners Club, because they don't charge interest.

Previous balance. What you owed on the day the last statement (not this one) was printed.

Purchases. What you bought during this statement period.

Payments. The amount you repaid and that was, therefore, reinstated to your credit line.

Credits. The total amount, if any, credited to your account because you overpaid, a charge was in error, or you returned merchandise.

Finance charge. The amount of interest charged this period. For example, if you're charged 1.5125% every period on the balance you owe, the annual percentage rate (APR) comes to 18.15% a year. For cash advances, you also pay 18.15% but you are charged interest from the day you receive the advance. (You're also charged a fee, typically 2% of the advance with a minimum of $2.50.)

Late charges. The penalty for paying after the due date.

Minimum amount due. The least you're required to pay before the due date.

Payment due date. The date by which the card issuer must receive your payment if you want to avoid a late charge.

Average daily balance. Each day, the card issuer calculates a new balance by adding new purchases and fees and subtracting any payments and credits. At the end of the month, the total of these daily balances is divided by the number of clays in the period. You're then charged interest based on that average amount.

The status of your account
This summarizes your borrowing power.

Closing date (also called "billing date"). The last day of the period. Charges and payments after this elate appear on your next statement.

Credit line (also called "credit limit"). The most you can borrow. If you try to go over, a store will probably be told to refuse the card. If you have a good payment record, you can ask to raise your limit.

Cash advance limit. The most you borrow in cash. Not all card issuers put a limit on cash advances.

New balance. The amount you owed on the day the statement was printed.

Available credit line. What you could have borrowed on the day the statement was printed. (The credit line minus the new balance.)

Available cash limit. The most cash you could have borrowed on the clay, the statement was printed.

The credit you used
You can see a day-by-day tally of the activities involving your account. Check each item carefully for errors. Some people save their receipts and check them against the listing here.

Note:
Over the limit. Some issuers let you go over your credit limit by 10% or so; others consider an extra dollar to be a violation.

Different cards, different credit

Essentially, a card is an authorization-proof that someone has given you credit. By using a card, you tell a seller, "This financial institution has authorized me to buy your product without cash and has guaranteed your payment." The seller then contacts an agent of the card issuer to verify that you still have an account in good standing, and asks you to sign a receipt for the item. The kind of card you carry, therefore, shows the credit requested and received.

Repay at your own pace
The most popular form of credit is an open line you can tap into-and repay-at your own pace (as long as you make at least the minimum payment required). It can take two forms:

Unsecured revolving credit. For this type of credit, you get a "credit card." 'There's a maximum you can borrow, and any amount you repay is immediately available to borrow again. You may pay interest on what you borrow or you may be given a period of time to repay in full without interest. Most credit cards are "unsecured," which means the lender isn't entitled to take specific property if you don't repay.

Secured revolving credit. People with poor credit or no credit history can usually receive a secured credit card through MasterCard or Visa. (Some retailers also offer secured cards.) It looks and works like any credit card, with this main difference: You have to keep money in a savings account (as "security") and allow the card issuer to tap into it if you fail to pay your bills. The amount of credit you receive is usually linked to the amount you deposit.

Repay in full each time
Travel and entertainment cards (also called "charge" cards) show that you've been extended credit, but only for short terms: You're required to pay in full by the due date for any item that appears on your statement. There are, however, no interest charges. American Express (which allows you 30 days to pay) and Diners Club (which allows you 6o days to pay) are the two most famous issuers of this credit.

Pay as you go
You can also get a debit card, which doesn't technically give you credit. Instead, every time ''u use it your bank takes the money from your account ("debits") and sends it directly to the merchant. If the money isn't in your account, the transaction will be rejected. ATM cards (the cards used to do banking at "automated teller machines") are the most popular debit cards.

Debit cards don't offer as much protection against fraud or billing disputes as credit and charge cards. For one thing, it's harder to recover money already paid from your account.

Other benefits
Depending on who offers you credit and the level of credit you receive (e.g., a basic card era gold card), you might receive added benefits such as:

• guaranteed hotel reservations
• double the manufacturer's warranty and extended service agreements on most products
• free collision coverage on auto rentals (no need to buy the agency's coverage)
• travel and emergency assistance, including medical and legal referrals when traveling and arranging emergency transportation to hospitals
• assistance with replacing lost tickets or luggage
• language interpreters
• delivery assistance for prescriptions, emergency cash, replacement for lost or stolen cards or valuable documents
• trip assistance, from ATM locations to weather reports and health and legal requirements in your destination

To find out your benefits, read the brochure that comes with your card or call the customer service number on the back of the card.

Notes:
Rebates. Some card issuers promote rebates on Purchases. Look at these closely. For example, in one promotion a card issuer offered a 1% rebate-on a year's worth of finance charges, not purchases. So, if You spent $15,000 on the card in a year and paid, for example, $275 in interest that year, you'd receive a $2.75 rebate.

The PIN (personal identification number). To use your card for cash advances or withdrawals, you'll need to create a PIN (a password). Protect your PIN very carefully. Don't write it down, tell it to anyone, or let it be overheard.

Co-branding. You can get a credit card (typically Visa or MasterCard) that offers promotional tie-ins from other companies. Every time you use the card, for example, the company (e.g., an airline or a car maker) awards you points you can then use to buy their products at a discount or get them for tree. Read the terms carefully; some promotions are better than others.

Protecting your credit

Your credit report isn't always an accurate reflection of your credit activities. With millions of data entries coming and going between merchants and credit bureaus every day, there are bound to be errors and misunderstandings. Of course, your report may be accurate but still not be as positive as you'd wish. There are ways you can clean up your report. It's up to you, though; no one cares about your credit as much as you, and no one else can give you the ability to get to the money you need when you need it.

Monitoring your reports
You're entitled to see your credit report at any time. TRW allows one free report per year. In 1996, Trans Union and Equifax charged a fee between 8 and $16 per report. (now days it varies)

If you've been turned down. You're entitled to a free report from the credit bureau if something in your report has led to your being denied credit, a job, or insurance. By law, the company rejecting you has to send you written notice if one of the reasons for the decision was negative information on your credit report. You must request your report within 30 days of this written notice.

To request a report (free or otherwise), provide in writing your name, addresses from the past five years, social security number, birth date, phone number, and if applicable, a copy of the letter informing you that you were rejected because of the report.

Fixing errors
Inaccurate credit reports are a common source of consumer complaints to the Federal Trade Commission. Although the three national credit bureaus try to resolve problems within 30 days, there's no guarantee they will. Make copies of everything you send them in case your letters are lost.

How it works. Every credit report comes with instructions on how to report errors. Follow them and return your request to the credit bureau. The bureau is supposed to contact the merchant who supplied the disputed information and ask if it's correct. If it's wrong, the bureau fixes your report. If the merchant doesn't answer within 90 days, the bureau is supposed to drop the information from the report (but you'll have to follow up to be sure). If the merchant says it's correct, the bureau will tell you.

Having your own say
By law, you have the credit bureau palce a statement — 100 words Maximum — in your file explaining your version of the dispute. The bureau must also include your statement in any report it sends out.

When you apply for a loan, a lender will see the statement and take it into account. You may also want to place a statement in your file to explain a period of delinquency caused by some unexpected event, such as a serious illness or unemployment, that drastically reduced your income.

Addresses and Phones

You can mail requests for credit reports to the tree national credit bureaus:

Equifax Information Srevice Center
PO Box 105873, Atlanta GA 30348.
Or fax to (404) 612-2668

Trans Union Customer Relations Center
PO Box 390, Springfield, PA 19064

TRW, Attention: NCAC, Box 9409, Allen, TX 75002

You can request a report by vocie mail if you’ve been denied credit within the last 30 days. (If the phone request gets lost and you wait more than 30 days, you may be asked to pay for the report. To avoid confusion, mention the date of your phone request in your letter.)

Equifax: (800) 685-1111
Trans Union: (800) 851-2674
TRW (800) 392-1122


Fighting Back

Legal protection. You can sue anyone who obtains a report on you illegally or for illegal purposes. As of April 1996, the maximum you could collect was $2,500.

If a bureau doesn’t respond. You can complain to the FTC (Federal Trade Commission) in Washington, D.C., who contact the bureau. Or you can call your state attorney general’s office for help.

Beware. The mail and the internet are filled with offers to monitor your credit, get your credit report, and repair your credit. Experts say most of these offers are scams or misleading at best. Their advice is to never give your social security or credit card number to anyone over the phone or internet unless you’re sure of their legitimacy; if you know the company, for example.

Articles

A credit series that enables your time, money, and intelligence.

The big picture
The concept of credit
Your credit profile
The credit reporting system
Protecting your credit
What's in a loan
Types of loans
Different cards, different credit
Understanding your credit card statement
Knowing your credit card rights
How credit card payments work
Using the credit you've got to get more
A word to the wise – Buyer beware
Handing too much credit debt
Bankruptcy
Who's who in the credit world
Getting Credit Help