How To Dispute a Credit Card Charge

If you find a mistake on your bill charges, you can dispute the charge and withhold payment on that amount while the charge is being investigated. The error might be a charge for the wrong amount, for something you didn’t accept, or for an item that wasn’t delivered as agreed.

If you see an unauthorized charge on your statement, write to the creditor or card issuer within 60 days after the first bill containing the disputed charge is mailed to you. However, if more than 60 days have passed since you were billed for the item, you still might be able to dispute the charge if you only recently found out about the problem. Send your letter to the billing inquiries address. Do not send the letter with your payment. Be specific in your letter. In your letter, give your name and account number, the date and amount of the charge disputed, and a complete explanation of why you are disputing the charge. Keep a record of receipt to document that your letter was received. You might wish to send it by certified mail with a return receipt requested.

Once you have raised a dispute, the credit card company is required to investigate and report back to you in writing. The creditor must acknowledge your complaint in writing within 30 days of receipt, unless the problem has been resolved. At the latest, the dispute must be resolved within two billing cycles, but not more than 90 days. In many cases, the charge will be canceled. Often a merchant whose billing is challenged will back off rather than risk losing the privilege of accepting business by credit card. Interest associated with a successfully disputed debt must also be cancelled. Until the dispute is resolved, you need not pay the disputed portion of your bill. However, you must make a payment to cover any undisputed amount.

If you regularly find erroneous charges on your bill, it may be because someone has access to your credit card number and is using it illegally. In this case contact your credit card company immediately.

Difference Between Debit Cards And Credit Cards

Credit and Debit cards are similar to each other in terms of usage. Where you can use a Credit card, a Debit card can also be used. The difference between the two lies in the functioning and the way bills are paid.

Every time you use a credit card, you actually are borrowing money from the credit card company. The company pays the billed amount to the vendor and, in turn, you pay the money back to the company. By signing up for a credit card, you agree to pay back the money that you borrowed, in addition to any interest drawn on the amount. The maximum limit of expenditure is an upper limit specified by the credit card company. It depends from card to card.

In a debit card, a bank balance has to be maintained. No money is borrowed; the money is directly pulled out from your account. The merchant establishment will have a debit terminal which is in fact similar to a credit card terminal. When you give your card to make the payment, the card will be swiped. The moment it is done, an electronic message is sent to the bank which checks to see if the customer has that much money in the account. If yes, the amount is debited (taken) from the customer’s account and credited (added) to the merchant’s account simultaneously. All this is achieved in seconds. The maximum limit of expenditure depends upon the amount in your bank balance.

The advantage of a debit card lies in the fact that you don’t have to pay interest on the transactions you make, but still have the flexibility and power the credit card offers. But Debit cards do have some pitfalls. Because neither a PIN number nor a photo identity is required for usage, it gives instant access to your hard earned money and in case of a fraud your entire bank balance could be jeopardized. Therefore it has to be used extremely carefully. Another pitfall for many debit card consumers is not keeping up with their debit transactions; - you may end up trying to spend money that you don’t have!

Credit cards are helpful for consumers seeking to establish or reestablish an attractive credit history. Responsible credit card usage can improve one’s credit rating, which will improve your chances of obtaining favorable credit terms (low interest rates, low fees, etc.) for automobile loans, mortgages and personal loans. This option is not available with debit cards.

Which card works best for you depend on your bank balance, debt history, and work requirements and how responsible you are with your money!

Credit Card Scams And How To Avoid Them

In August, 2004, the Federal Trade Commission issued their findings of a recent study, which showed that nearly 25 million adults were victims of fraud.

There are a lot of scams floating around the credit card industry and if you are not careful you could be the next victim. The manner is which these scams are conducted are alenty but more or less have some basic similarities. You could be a victim of fraud on two occasions. While signing up for a new card and while using your card, if someone gets hold of your credit card number.

There are many companies giving advertisements of giving instant credit in spite of you having a bad credit history. Credit repair scams offer to erase accurate negative information from your credit file so you can qualify for a credit card, auto loan, home mortgage, or a job. These scam artists never deliver! Another common scam is placing an ad to call a “900″ number service, for which you will be billed ($ 2 to $ 50) just for making the call, it may instruct you to give your name and address to receive a credit application, or it may give you a list of banks offering cards, or direct you to call another “900″ number at an additional charge to get more information. Many times you don’t receive the credit card. Another scam doing the rounds is you find out after signing for a new card that it can only be used to pay for orders from a specific store or catalog. The store or catalog, which is owned by the company that issued the credit card, may not even offer merchandise of interest to you and many a times are grossly overpriced.

The next risk factor is improper usage of cards. There are many fraudulent sites floating around the internet. If you perchance do online shopping on these sites , don’t be surprised if some unauthorized charge crops up on your bill. Another recent scam noticed was a caller calls you claiming to be from Credit Card Company. He asks if your credit card has been stolen. To make sure he asks for your credit card number and other details. NEVER do that!

Here are some tips which could be of some help from these credit card scams:

* Always take the terms and conditions of a credit card in writing. Ask for any secondary payments not listed in the advertisements. Beware of doing business through 1- 900 services.
* Use your common sense in all your business transactions in life, and that includes credit. Never give someone money without getting anything back in return. Never trust someone that you don’t know. Never get enticed into a deal that’s too good to be true.
* Never give your credit card number, social security number or personal details to anyone. Use only secured sites for online shopping.
* The FTC regularly updates the scams going in the credit card industry. If you feel doubtful in any situation or you think you are being tricked contact them immediately.

Credit Card Debt Consolidation

In 2002 there were over 1.3 million bankruptcies, the majority caused by unmanageable credit card debts.

Debt consolidation is the process of combining all outstanding debts in one loan account. For example, you may have an existing loan with a balance of $ 2,500, a credit card balance of $ 1,000 and a store card balance of $ 500. These could all be consolidated into one loan of $ 4,000. The purpose is usually to lower monthly repayments, through either lower interest rates on the new loan, or lower repayments from an extended repayment term, or both.

Should you consolidate debt? Debt consolidation does not work every time, but it’s worth investigating. If you decide to consolidate your credit card debt, and continue spending on your credit cards, it would only worsen your situation.

Firstly beware of emails and advertisements from debt counseling companies. In November of 2003 the FTC, IRS, and State Regulators issued warnings when seeking help from counseling agencies because of the increase in number of fraud cases. Many of these agencies claim to get you out of debt by making use of legal loopholes. Forget it. If legal loopholes were present, credit card companies would not issue you credit! One option in case you need help is to contact organization like National Foundation for Credit Counseling. NFCC has branches throughout the country; they are a non-profit, community organization that provides free and confidential debt management advice to anyone who needs it. NFCC gets paid by creditors, so it’s in their best interest to work out a repayment plan rather than advise you to declare bankruptcy.

You could take a number of debt consolidation moves yourself .Try negotiating better terms with your credit card company. Many customer service people are authorized to reduce rates if you are unable to pay back the installments. Consider taking a home equity loan since it has the advantage of carrying a fairly low interest rate, currently in the high single digits, and what interest you do pay is tax-deductible. If you have reasonably undamaged credit, you may qualify for an unsecured personal loan. Credit unions typically offer lower rates than banks, but even there you can expect a rate of 11% or more. Still, that may be a whole lot less than the 20%-plus you pay to the credit-card company. You could try getting a personal loan backed by your automobile or other real property. Because these loans are secured, you should get a lower interest rate loan and it would consolidate all your payments into one much lower payment.

Depending on your credit card limit, you may also consider transferring all of your balances onto one low interest rate credit card. If none of your cards are offering a low interest rate card, try signing up for a new credit card.

Debt consolidation works in many cases, but only if it is backed by a strict personal budget program.

Comparing Credit Card Offers

With the wide range of credit cards available in the market at present, it becomes confusing in choosing as to which card works best for you. All credit cards target a certain segment of consumers. For example student credit cards have offers which appeal greatly to the student population. You could choose your credit card based on parameters listed below.

* What is the APR (Annual percentage rate). This is the rate you would be paying on outstanding balance.
* What is the maximum credit you can draw?
* Check out the minimum repayment per month. But remember that a very low repayment won’t help you much. If you borrow 500 $ and the minimum repayment is 25 $ ,it would take 20 months to pay off the balance and cost a lot in total when you include the interest payments
* Are they charging any annual fees? Not all credit cards have an annual fee, so remember to consider this when you are choosing which one is right for you.
* What is the late payment charge? There will be an extra charge, as well as the interest owed, if your payment is late. This charge may even be more than the amount you owe so be very careful to check what the charge is, and to ensure that all your payments are made on time.
* What other benefits come with the credit card? Choose on this aspect carefully to suit your lifestyle. An auto rebate might be very appealing to an individual saving to purchase a new car, whereas airline miles would be the rebate of choice for the globetrotter looking to squeeze in one more trip this year. If these rebate programs are likely to give you a return that is truly valuable for you, then it is probably worth signing up.
* Also check when interest payments will begin. Will you pay interest from the day of the purchase? Or will you have a number of days interest free before you begin to pay?
* Beware of Special Introductory Rates. You may be offered a low rate of interest for a limited time (Up to 6 months) when you sign up for a new card. A higher rate of interest may be charged for cash withdrawals. Make sure what the interest rates would be after the introductory offer expires.

Choosing a rewards credit card

With millions of cards in circulation the credit card industry has become extremely competitive and to attract more and more customers the companies have started offering various reward programs with their credit cards. 50 percent of all credit card offers in 2003 had some sort of reward component, according to direct-mail tracker Mintel’s Comperemedia.

The range of reward credit cards available in the market at present is mind boggling. Capital one’s “Go Miles” Visa lets you rack up miles without airline restrictions or blackout dates. For every dollar spent, you earn one mile, and for every 9,000 miles you earn $100 toward a plane ticket. American Express Hilton HHonors Platinum offers three points for every dollar spent, five points when you spend it at a Hilton property, and you can start redeeming for a free hotel stay after you spend between $1,500 and $2,500. You can use your points at 2,500 Hilton properties, and the card has no annual fee. Citibank Dividend Platinum Select pays 5 percent back on all gas station, supermarket and drugstore purchases and 1 percent back on everything else.

Choosing the right one depends on how much you charge each year and what kinds of purchases you make. The trick is to utilize the benefits of the card to the maximum. If possible don’t sign up for more than two reward cards. Charging on multiple cards can prevent you from earning substantial rewards. With some cards you need to spend a lot before the full reward kicks in. But there is a catch in rewards credit cards available. Even though most of these cards do not charge an annual fee these cards tend to carry a high annual percentage rate (APR). The typical reward-card APR is now about 14 percent, four points higher than the average credit card’s. For this reason, sign up for a reward card only if you plan to pay off the balance each month. Otherwise, the rewards are dwarfed by the interest costs attached to the card.

How To Choose a Business Credit Card

A business credit card takes care exclusively of your business financial transactions. Using a business credit card allows you to segregate your personal and business transactions. If you subscribe to a plan that allowed you to get more than one card, you could efficiently track who was spending how much and where. Most plans offer detailed billing information as part of a basic package. The main cardholder determines the spending limits for the additional cards .A card account also gives you big business discounts to your small business. You can expect discounts of up to 30% off some products and services.

While choosing a business card, compare rates to get the best one for your company. Many credit card companies in order to attract new customers come up with very low introductory interest rates. After a certain time limit this interest becomes very high. Unless you want to change your credit card every six months to keep the low rates, try to find one that will have a low rate the whole time through. Companies also offer premium services to make their cards more attractive. Whether in the form of airline miles purchase insurance, rental car discounts or something else; decide which bonuses your company needs the most. For example, if you and your employees spend a lot of money on gas, you can try to apply for a gas rebate business credit card that earns cash back on gasoline purchases. Similarly, if your business requires a large amount of computer equipment, you can get a card that earns a rebate on computer purchases.

The interest rates of these credit cards are generally high. In order to derive the benefit it is best to pay of the balances in interest free (which could even be 2 months) depending on the card chosen. The interest rates on the balance you carry could determine your company’s long-term financial health. You should also consider the consequences of not being able to pay off the accumulated balance. If the business is unable to make payment on outstanding balances, the owner’s personal assets could be at stake.

Buying Online With Credit Cards

The e-commerce industry has grown by leaps and bounds in the past few years. According to the Forrester Research Online Retail Index, consumers spent an estimated $4.3 million online in April 2001 alone .The ease with which one can do shopping at the click of a mouse button , sitting at one ’s home is a dream come true for many.

There are certain distinct advantages associated with online shopping. The variety of products available is mind boggling. You could also research the product you are interested in. What’s more, its open 24 hours 7 days a week! The disadvantage is that there is a possibility of credit card fraud if you are not careful. Sometimes you could spend hours online and still not find what you are exactly looking for.

Shopping online can be great fun but always follow certain precautionary measures to prevent credit card fraud.

* Make sure your internet browser complies with industry security standards such as Secure Sockets Layer (SSL) or Secure Electronic Transaction (SET). These standards encrypt information that is transferred across the network, so as not to compromise your credit card information to some fraudulent third party. A safe site will show a symbol of an unbroken key a picture of a closed lock, or a Web address that begins with https.

* When choosing passwords make sure to use a combination of letters and numbers. This makes it hard to hack your password.

* Never give your personal information unless you are sure who is going to access it.

* Shop with the company you know. If you are not sure ask for a paper catalog. Before buying anything check out the details such as shipping charges, as well as their privacy, refund, and return policies. You could also consider buying through intermediaries. Some companies such as I-Escrow act as intermediaries by holding the money and transferring only when buyer receives the merchandise.

* Keep track of your purchases and if any discrepancies crop up in your credit bill immediately contact the credit card company.

* In case of unauthorized usage of your credit card you are liable for only the first $50. The Federal Trade Commission offers information on all aspects of online shopping and also gives out alerts.

Benefits Of Using Credit Cards

One of the foremost benefits of a credit card is the instant availability of credit whenever needed. Credit card companies specify an upper limit of credit which can be borrowed and paid later through installments. One has the flexibility to use these credit cards throughout the country or even internationally.

Credit cards are also convenient. They can be used to make hotel, car rental and other reservations, shopping or ordering services through the internet or through the telephone. Emergencies knock the doors of our lives in forms totally unexpected; having a credit card during these circumstances sure comes in handy.

It’s much safer to use a credit card than to carry around cash. If you lose your credit card, you can ask your credit organization to cancel your card, and no one else can use it. But if you lose cash, your money is gone.

Credit cards also help to build a credit report. Your credit report contains information about how you’ve used credit in the past. It is a record of your payments on credit cards, car loans, student loans or home mortgages. Companies that loan money look at your credit report to determine your ability to pay back your debts on time. This is known as your credit rating. National credit reporting agencies organize the information and keep credit reports on file. Anyone who has ever used credit to buy anything probably has a credit report.

In order to attract more customers, different credit card companies offer various attractive schemes with their cards. Some credit cards protect purchases from damage or theft for a certain time period after the purchase is made, others provide free life and baggage insurance during your vacations on airline tickets purchased through them. Many also provide insurance for your rental car that allows you to skip all those extra fees the car rental company tries to add onto your bill. A point system is also popular. For every $ spent, points are accumulated in your account. These collected points can later be redeemed for attractive prizes such as a fax machine or even a free vacation.

To enjoy the real benefits of credit cards, they have to be used judiciously and within one’s budget. If one regularly pays off the bills, credit cards are a great substitute for paper money.

Applying For And Using Student Credit Cards

According to a 2003 study by Nellie Mae organization, the average debt of students is $ 2327.

Before a college student decides to apply for a student credit card, he / she should know the basics of credit and how it works. If a credit card is being applied for, just because the other boy or girl has it, or as a means of improving social status within their peer group, then stop and think. Why exactly do you need a credit card?

The advantage of students having a credit card is the instant availability of credit in case of emergencies. It makes the parents feel secure, if their children have access to extra cash, in case they shoot off their monthly budget. Another advantage is the fact that this credit card if used properly can help building a positive credit history. The student can then apply for a loan once he gets a full time job. Student should always use their credit cards wisely. Due to their less developed maturity levels, in the handling of their financial resources they are easily susceptible to getting in debt. This problem can become extremely complicated if they get into some form of addiction example drugs or liquor.

Students have to be extremely careful in usage of their cards. Always keep the following points in mind.

* Pay bills promptly to avoid late fees.
* Keep track of your charges.
* Do not exceed your Credit Limit.
* Always avoid Over-limit Fees.
* Report any change of address prior to moving, this way you will receive your bills right away

Getting a student credit card is easy. The standards about credit payback credibility are relaxed. Many cards also make no reference to your credit history. Credit terms vary among issuers. When shopping for a card, think about how you plan to use it. Do you expect to pay your bills in full each month, or do you plan to pay off your purchases over time? Consider the Annual Fee, Finance Charges, balance computation method, and whether or not there is a Grace Period for purchases.

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