|
Q: |
What's
the difference between a credit card and a debit card? |
|
A: |
Credit card allows you to pay via
installments and/or a revolving line of credit, with the limit
set by the issuer. Your monthly payment can range from a minimum
amount, set by your bank, to your entire outstanding balance.
Generally, if you pay the entire bill at the end of the month,
no interest is charged. If a balance is outstanding, you will
be charged interest at a predetermined annual percentage rate
(APR) which differs from issuer to issuer.
A debit card is linked to your checking, savings or mutual fund
account, and the amount of your purchases is deducted directly
from that account. A debit card functions as a paperless checking
account. Debit cards with the logos of the major credit card
companies are accepted for purchases anywhere those logos are
displayed. |
|
Q: |
What
is a Secure credit card?
|
|
A: |
A credit card that a card holder
secures with a savings deposit to ensure payment of the outstanding
balance if the card holder defaults on payments. This card is
for people who are considered Financially risky by the issuers. |
| Q: |
Who
can see my credit reports?
|
|
A: |
Credit report is used to track your
financial performance. A credit bureau creates your credit report
using information from banks, merchants, and other creditors.
Included in your credit report are a list of accounts (if any)
that have been referred to a collection agency; your payment
history with major credit cards, department store charge accounts
and loan payments; inquiries made about you over the last several
years and whether or not you have been granted credit; and public
record information such as bankruptcies, tax problems, etc. |
|
Q: |
How
can I see what's on my credit report?
|
|
A: |
You
can purchase your credit report from one of three companies.
Equifax
Experian
Trans Union
|
|
Q: |
What
do I do if I'm turned down for credit? |
|
A: |
Write to the credit
bureau within 60 days of being turned down for a free copy of
your credit report:
- Include a request for the names of any others who recently
received a copy of the report
- Correct in writing any errors you may find on your report
|
|
Q: |
How
do I start making a budget?
|
|
A: |
A budget takes a little while to
establish. To get started, keep track of all the money coming
in (income) and all the money going out (expenses) for a few
months. Certain expenses are for the basic necessities of life
— like rent, food, telephone, electricity, transportation, etc.
These expenses usually occur every month, although the amount
may vary. Other expenses are discretionary or optional — like
entertainment and vacations. Set up your monthly budget, and
then enter the actual expenses as they are incurred. Notice
whether you're spending more or less than you budgeted, and
take that into account when you set up your next month's budget.
Use our Budgeting Worksheet. |
|
Q: |
How
much of an outstanding balance should I carry on my credit cards?
|
|
A: |
Your outstanding credit card balances
should not exceed 20% of your monthly income, not including
rent or mortgage. The less you have outstanding balance the
more money you save. If you carry balance then you are probably
paying interest rate for the carry balance. We recommend that
you try to pay as much as you can toward your balance, so you
don't get burned by those high interest rates |
|
Q: |
How
can I better protect my privacy?
|
|
A: |
To protect your
privacy, and to control how information is used, you can:
1. Write or call:
Organizations you join,
Magazines you subscribe to,
Charities you support, and
Your credit card issuer
Ask them not to use your name for any solicitations and
to delete your name from lists they rent to outside organizations.
2. Eliminate pre-approved credit card offers from your
mail box by contacting one of the "opt-out" lines at the major
credit bureaus.
 Equifax
TransUnion
Experian (formerly TRW)
3. Ask telemarketers who you do not want to hear from
again to put your name on their "don't call" list. Federal
law states that they must comply with your wishes. |
|
Q: |
What
do I do if I disagree with a charge on my credit card bill?
|
|
A: |
You are protected in
case of a billing dispute with card issuers and other creditors.
If you believe there is an error on your bill, the Fair Credit
Billing Act provides you with recourse:
- Write the creditor within 60 days of the bill's date
- Provide your name, account number and type, date and amount
of the error.
- Explain why you believe the item is incorrect or in error.
- Do not send payment for the disputed amount.
- Document everything in writing, and always follow up
with a letter confirming the details of any phone conversation.
- Keep copies of all correspondence, statements, and receipts.
|
|
Q: |
How
do I stop unwanted phone solicitations? |
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A: |
Most companies use phone to solicitude
you get it from banks, magazines that you subscribe and other
institutions. If you want to stop companies from soliciting
you over the phone. Write to the following address
Telephone Preference Service
Direct Marketing Association
P.O. Box 9014
Farmingdale, NY 11735
Ask them to add your name to their members' "do not call"
list. Every couple of weeks, they send out a list with names
and phone numbers to companies that use phone solicitation
as their primary method of selling their products |
|
Q: |
Reduce
unwanted mail from nationwide marketers? |
|
A: |
Mail Preference Service
Direct Marketing Association
P.O. Box 9008
Farmingdale, NY 11735
Ask them to remove your name from their members' mailing
lists. |
|
Q.
Is it really possible
for the average person to fix their credit report?
A.
Most people don't realize how easy it is to begin to
repair your
credit. And removing inaccurate information is the best
place to start. Our
manual offers completely legal, time-tested ways to get your
credit report
back in shape.
|
| |
Q.
Is it true that the credit
bureaus have to respond to you within a certain
period of time?
A.
The credit bureaus have 30 days in which to respond to a request
by you
to remove false or inaccurate information. If they contact the
agency that
has reported the inaccurate information, and do not receive a
timely
response, the information must be removed from your credit
report. |
| |
Q.
How long is negative
information about my credit maintained on my credit report?
A.
By law, credit reporting agencies may maintain and report
negative
information for seven years. Bankruptcies may be reported for up
to ten years. |
| |
Q.
What is a consumer
statement?
A.
You may
submit a consumer statement in which you challenge the
statements made in your credit report if you believe them to be
inaccurate. Your written
statement should be no more that 100 words and should explain
why you
believe the information in your credit report is inaccurate. The
law requires
that your statement become a permanent part of your credit file.
|
| |
Q.
What is the Fair Credit
Reporting Act?
A.
The Fair Credit Reporting Act, also known as the FCRA, is a set
of US
government rules that requires the information supplied by CRAs
about your
credit history to be complete and accurate and available to you
on request. |
| |
Q.
What is a debit card?
A.
A debit
card takes money directly out of your bank account as soon as
you
use it. By contrast, when you use a credit card, you receive a
bill within a
designated period of time to pay for the credit that has been
extended to
you. You are responsible for paying the charges on the credit
card bill. |
| |
Q.
What if I'm not 100% satisfied with
your product?
A.
We offer a full no questions asked refund of your purchase
price. Please contact us. |
Frequently Asked
Credit Card Questions