 |
|
The source of the best business, financial and legal news |
|
|
||||
|
||||
|
||||
|
|
|
|
|
 | |
| |
 |
Business Informations |
|
|
|
Know Your Credit Card Rights
When you apply for a credit card, the application that you sign is also a legally binding contract laying out all the terms between you and the bank, such as the interest rate and how its calculated, the grace period, whether there's an annual fee, etc. While you have to agree to the terms and sign if you want the credit card and while the lender will certainly hold you to the terms, the lender doesn't feel similarly committed. Lenders like to constantly amend the terms, effectively changing the deal after it was made. This is one of the few industries where you can be charged more than you originally agreed to pay. One of the main reasons they're doing this is because they are constantly checking your credit score, looking for an excuse to raise rates and thus their income. So, even if you have never been late on any payment to any bank or utility, your credit score can raise as you're approaching your credit limits. Or you could have missed a payment or lost your job. Lenders have any number of excuses for their actions. Also the lenders count on the customers not reading the little inserts filled with legal jargon they slip in with your bill or mail separately, at least until it's too late. Apparently the vast major of card holders never look at these amendments. Theu also hope that most of us are ignorant of our credit card rights. Not all changes to the credit card agreement are necessarily harmful to you, although you'll rarely find one being done in your interest. Most of them change minor terms of the agreement. But they can contain nasty suprises as well. The problem the lender has is that the original agreement is a binding contract that the lender can't change unilaterally. They have to give you an out. That's why it pays to pay attention and know your credit card rights. I once had a credit card account with the stated interest rate of 13.5%. I was financially strapped and was using more and more of my available debt. I had never missed a payment or was late to anybody for at least 10 years. However, not paying much mind to my statements, I did not know the bank sent me a notice that it would raise my rate if I used the card past a certain date. I did and I found myself facing an interest rate of 24%. Calling the bank and complaining and threatening to take my business elsewhere had no effect. After that I started to pay more attention to those little slips of paper. Twice more different lenders tried to do the same thing. But I followed the directions on the amendments to the credit agreement and wrote the bank within the time frame given, telling them to cancel my account. You must no longer use the card afterward. If you do, you've accepted the new terms in spite of your letter and you're stuck with them. If you have any automatic charges being made to the card, including things like credit insurance that the lender itself sells you, make sure they are cancelled in writing before the cutoff date. One little automatic charge will also constitute an acceptance of the changes in the credit terms. The bottom line is that the lender will consider any little slip in its favor and hit you with the higher rate. As long as you continue to pay your bill under the terms of the original agreement, the bank can do nothing about it. You can pay off the bill at whatever pace you see fit, as long as you make the minimum payment. I consider the lenders' actions as akin to kicking you while you're down. Most people wouldn't be using up their available credit unless they were already struggling. My credit card payments went up $46 per month on that card. I saved thousands by refusing to go along with other proposed increases. The issuer of one of my cards that has carried a zero balance for several years has been periodically raising the rate to where it is about 25%. Know your credit card rights and fight back. If you've haven't gone completely over the edge yet, you might find a lender willing to work with you. Chris Cooper is a retired attorney who is very familiar with debt, being in it too many times in his life. These articles pass on some of the knowledge he has gained striving to become debt free. He is editor-in-chief of http://www.credit-yourself.com a website devoted to debt management
MORE RESOURCES:
credit - Google News |
|
|
|
RELATED ARTICLES
Finding What is on Your Credit Report A credit report is basically a file about you kept by lenders and banks. As annoying as it may be, it's still perfectly legal for them to gather all sorts of details about you. Good Credit -- Essential for the Prospective Home Buyer Credit is a funny thing. It can be a useful tool in the hands of an informed individual, or a weight of burden to the unsuspecting. Dont Fall for Credit Repair Scams We've all seen the ads on television or in magazines, shouting, "Erase bad debt!" or "Remove negative entries from your credit report!" If you're a person suffering from a less-than-stellar credit rating, those headlines may seem like the answer to a prayer.The only problems is, those programs don't work, and to add insult to injury, you'll find yourself paying hefty fees to those companies, only to end up right where you started, or worse. Is Plastic Making You Happier? If you're like most people, you probably own at least one.And like most people, you've maybe never thought what it's really costing you?At a recent conference held by the Fabian Society at London's Imperial college, one of the issues discussed was happiness, and, more specifically, why it seems to elude so many of us. Using Credit Cards Wisely "I think money was stolen from my card" or "I might have blocked my card in the ATM" - these are frequent problems that bank customer-support officers usually hear from agitated clients. Incorrect use of credit cards or wrong interpretations of their functions are frequent even after tens of years of credit-card extensive use. Dealing With A Collection Agency Step I - Selecting A Collection AgencySelecting a credit collection agency is perhaps the most important and difficult task. Some factors you must consider while selecting a collection agency are:- Experience and professionals - Geographical presence - Expertise - Fees and charging model - Customer references - Collection Agency Services has covered this topic in depth through various free collections reports and articles on this site. Simple Identity Theft Protection How many of you bank, shop, or transact other business online? There are at least 4 million Department pf Defense employees that access their pay records online only. Even offline, stored financial data can be placed at risk in computers that are used on the Internet as well. Taking Control of Your Credit History Your credit history is important; in fact, in this day and age, only family and your time are more important than your credit history! The first time you established a payment commitment over a period of time for a purchase, you began your history of credit, and the credit bureau created your account. Payments such as the electric company, a rental agreement, a cell phone, a car payment or a low-rate credit card which you also have a responsibility to repay are not reported to the credit bureaus as a part of your credit history. Its Your Credit - Take Care of It! Thanks to the Fair and Accurate Credit Act, American consumers can receive a free annual credit report from each of the three major credit bureaus-Experian, TransUnion and Equifax. You can order your free credit report by visiting www. Credit Repair Services vs. Do-It-Yourself Credit Repair Millions of Americans suffer because of bad credit these days, and almost all of these people turn to the Internet for help. In the past 5 years hundreds of 'internet-based' credit repair services have sprung up, preying on consumers in need of real help. Warning: Free Credit Report Imposter Websites Springing Up on the Web A recent amendment to the federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer credit reporting companies to provide consumers with a free copy of their credit report, upon request, once every 12 months.Access to the free credit reports has been phased in beginning last December in the West and will finally be nationwide by 1 September. Bankruptcy vs. Credit Counseling: What Should I Do? Credit Counseling and bankruptcy are both ways to relieve the stress of debt. However, they are very different and it is important to understand both before making a decision as to which is best for you. Credit Score - Reporting Your Financial Health Credit score is one of the most basic, determining factor while loan borrowing. Credit score is the criterion for the creditor to ascertain whether to give you credit or not. Credit Cards or Store Cards - Which Is Better? Introduction In this article, a presentation is made of the differences between major credit cards and credit cards offered by specific stores to their customers. The purpose of this article is to provide a general overview of major credit cards and store cards to aid consumers in making decisions regarding which lines of credit lines would be the best for them in a given set of circumstances. Good Credit Is a Necessity for Everyday Living Most of us want a good credit report to obtain vehicle financing, credit cards for emergencies and luxuries, and to finance a home mortgage. However, beyond these consumer loans, a great credit report makes your life easier. New Credit Scoring Model Could Help Millions Mark and Beth, a young married couple in their twenties, established a goal to buy a home within the first three years of their marriage before starting a family. They budgeted and used their money wisely in order to save for the down payment. Credit Help for Real Estate Financing: Credit Scores When you buy real estate, lenders run all of the "big three" credit bureau reports. Each credit reporting agency lists your credit history as supplied to them by the individual lenders and includes governmental records. What is Credit Repair and How Can It Help You? There are millions of consumer credit reports on file from mainly three major reporting bureaus which include Trans Union, Experian, and Equifax. These credit gathering agencies store huge amounts of data about every person that takes out a loan, credit card, or any other line of credit. Do You Know The Top Five Credit Card Mistakes? When you're dealing with credit cards, you're playing with fire. Unfortunately, there are plenty of people out there who don't realise that, and make all sorts of dangerous mistakes with their credit cards every day. How Creditors Measure Your Credit Rating Creditors will measure your credit rating based on the following three main things.CapacityCollateralCharacterThe three "C's" show creditors your:"Capacity" or income to pay the debt"Collateral" or assets to secure the obligation"Character" shows your compliance to repay the debt1.
|
| home | site map |
| © 2006 |
|
|
|
|
|
|
||||
|
||||
|
