All About Credit Cards

For anyone who has, has had and wants to avoid being had, this series of articles reflects years of continuing research. I'll discuss the worse that can ever happen to people thrown into credit situations - whether through their own doing or as victims and how they were able to come of them in one piece. These article are based on facts as I read and understood them.

A credit report is a history of your bill payments record. These can be bills such as home loans and mortgages, revolving credit and even cell phones. There are three credit-reporting agencies that are commonly referred to as credit repositories. Each uses a different type of symbol. When looking at your credit report, be aware of the very first page. This will most often contain the explanation of the symbols that are used by that company. There are various symbols that are utilized to identify payment histoy, types of accounts and whether or not the account is individual, joint or involves a cosigner.

Credit reporting agencies are NOT part of the U.S. Government. They are privately owned companies that get paid to sell information about you to your creditors. They get paid for good and bad information. You are NOT their customer. You do not purchase any goods or services from the Credit Reporting Agencies.

They do not care whether your credit is perfect or poor. They receive their money from the creditors in the form of charges and memberships. Why should a credit reporting agency care about you? You are only a consumer of goods or services.

In fact, Experian, which is one of the three large Credit Reporting Agencies is owned by a British conglomerate. Think about that. Why would a foreign company own a credit reporting agency in the United States? The answer is simply for the profit. Those are the facts.

Remember, most credit reports identify the consumer (you) by your name and your credit entries by the name, account number and the date that the account was opened. Being able to identify information that is not accurate can help you to raise your credit scores. One of the single most important parts of the following articles is your ability to identify on your credit report your legal right to know WHEN an account is first delinquent.


Related posts:
How To Obtain A Credit Card With Bad Credit Status

There are some questions concerning the use of debit cards. An Arcadia man said he used a debit card to purchase an item he never received and was looking for help in getting his money back.

Whether it’s at the gas pump, grocery store or online, more and more, consumers are being asked the same question: credit or debit? The decision you make can have long-lasting ramifications, so you had better think twice.

While the plastic cards may look similar, there are major differences between credit and debit cards, and sometimes even more between issuers.

Basically with a credit card, you’re borrowing money from a financial institution. Don’t pay it all back in a timely manner and you’ll be hit with interest rates sometimes higher than 20 percent. A debit card is an electronic check that takes money directly out of your checking account.

Consumer Reports notes that debit transactions now outnumber those on credit cards by more than $2 billion, accounting for over $1 trillion in 2006. Bank of America’s “Keep the Change” program actually rounds up a debit transaction amount to the next dollar and deposits the “change” into your savings account.

Since you’re using your own money, debit cards are easier to obtain than credit cards and can be a simple, pay-as-you-go money management tool for those that don’t want to get into credit trouble. But there’s no government help in resolving merchant disputes, only errors involving electronic fund transfers. Some banks may voluntarily help, but since the merchant has all your money, you have little leverage. Even if successful, you might be stuck with a store credit.

Under the Electronic Fund Transfer Act, if your debit card is lost or stolen, you’ve got just two days to notify your bank to limit your liability to $50. Wait, and that figure jumps to as much as $500. After 60 days, you’re liable for everything. If your checking account has overdraft protection, you could be wiped out. While some banks have voluntarily reduced these liability limits, you need to check with your institution. Consider opening up a separate small account associated with a debit card to limit any potential fraud losses.

With credit cards, you’re using someone else’s money and there’s no access to your bank accounts. Furthermore, credit card purchases are protected under the FTC’s Fair Credit Billing Act that gives consumers the right to withhold payment on disputed merchant charges. There’s no liability until the dispute is resolved. And if a credit card is lost or stolen, there’s usually no more than $50 liability for unauthorized use.

So credit or debit?

If you think of that debit card as cash, use it for smaller point-of-purchase items like fast food, groceries or gas, where you don’t need merchant dispute protection. If you’re travelling out of the country, foreign transaction fees might be lower by using a debit card. Bank of America, for example, charges 1 percent on debit transactions compared to 3 percent on credit cards.

Make sure you know what fees — if any — your bank charges using its debit card, and know your account balance. Just like a bounced check, you could get hit with big overdraft charges. Also ask a merchant if it runs a separate “hold” or “block” charge on your checking account that guarantees payment. It’s usually cancelled within 48 hours, but those funds remain unavailable.

Use your credit card for larger purchases or those being made online or over the phone. Also, charging a product on certain credit cards may provide an extended warranty that can double the coverage of the original manufacturer’s warranty, for up to one year. But check with the issuer of your card to verify specific terms.

To avoid becoming a victim of debit or credit card fraud, monitor your accounts and transactions through online banking or telephone in between getting monthly statements.

By David Morris

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