The Importance of Checking Credit Card Bills

Paying bills is something that no one looks forward to doing. It's one of those things we just want to get out of the way. So we often look at how much is owed, write a check or pay online, and forget about it. But when it comes to credit card bills, that's not such a good strategy.

Credit card statements detail each and every charge we've made since the last statement. That doesn't make for a very exciting read, but it is an important one. If you don't carefully go over the charges on your bill, you could end up paying more than you actually owe.

Here are some of the things to look for on your statements:

* Watch for charges that you didn't authorize. If your card is not with you at all times, someone could have used it without your permission. And even if you haven't lost your card, someone could have fraudulently obtained and used your card number.

* Compare each charge with the corresponding receipt. Mistakes happen, and you could have been charged an incorrect amount.

* Look for double charges. Equipment malfunctions or cashier errors can cause a charge to go through twice. Unscrupulous employees or companies may also make duplicate charges on purpose.

* Review charges imposed by the creditor, such as interest, fees and credit insurance. If you see anything suspicious, check the cardholder agreement to make sure the charge is legitimate.

If You Find a Mistake

When you find an error on your credit card statement, it's important to report it quickly. If it's the result of fraud, notifying the creditor can prevent further misuse. And in any case, cardholders must act within a reasonable amount of time in order to be protected by law.

The Fair Credit Billing Act (FCBA) states that cardholders must report billing errors in writing within 60 days from the date the first statement containing said error was mailed. If they do so, the creditor must either correct the mistake or prove that the charge is legitimate within two billing cycles. If the charges were not authorized by the cardholder, he may be held liable for no more than the first $50.

A phone call to your creditor can be helpful if you have questions about a particular charge. And in the case of unauthorized charges, a customer service representative can tell you if other charges have been made since the statement was prepared. But if there is an error, notifying the card issuer in writing is a must. Otherwise, you may have no legal recourse if they refuse to make a correction.

Checking your credit card bill doesn't take long. If you keep your receipts organized, you can verify the charges in just a few minutes. And those few minutes could potentially save you a great deal of money.

Financial Stress = Bad Decisions

Stress can cloud judgment for the best of us. When we're worried or upset, we just can't think as clearly as when we're calm and happy. And when it comes to financial stress, the consequences of bad decisions can be serious.

Anything that adversely affects our income or expenses can cause financial stress. Job loss is an all too common cause. But illness, divorce and legal problems can also put a strain on the budget. Even happy events such as a move or an addition to the family can cause stress when it comes to money.

Logically, we all know that tough financial times call for smarter spending habits. But during a crisis, it can be difficult to keep the budget in check. After cutting back on everything we can, it may still seem hopeless. But instead of looking for other solutions, many people just give up.

Instead of seeking out other sources of income or finding creative ways to reduce expenses or increase income, those suffering from financial stress may go on spending sprees. They feel that they have nothing left to lose, so they spend money impulsively instead of trying to get back on track. They may run up huge credit card balances, but when the time comes to pay, they can't. So in addition to having trouble making ends meet, they have creditors calling daily and bad marks on their credit reports.

What to do if you're experiencing financial stress

If you find yourself in such a downward spiral, it is important to seek help quickly. By doing so, you could save yourself lots of money and heartache. In the vast majority of cases, those with financial difficulties have options that can help prevent things from getting worse.

At the first sign of financial trouble, it's important to contact your creditors. Tell them about your situation before you get behind on your bills. They will most likely work with you, because they want to maximize their chances of getting the full amount that you owe them. They may allow you to skip a payment, reduce your interest rate or lower your payments to help you out.

Talking to a trusted friend or family member can be helpful when you're looking at a bleak financial picture. They may be able to offer some suggestions. Even if they have no advice, just having a shoulder to cry on can help relieve stress.

If you have a lot of credit card debt, a credit counselor might be able to assist you. Credit counselors specialize in helping consumers manage their debts. Your counselor may be able to help you work out a budget, and he can also negotiate with your creditors if necessary. If you follow the plan he sets up, you could be debt-free within a few years.

Financial stress can be a vicious cycle. You become stressed out because you can't make ends meet, and then you make bad decisions that hurt your finances even more, which causes even greater stress. But it doesn't have to work out that way. By taking control of your finances and getting help as needed, you can prevent a complete financial meltdown.

Fair Credit Reporting Act Explained

Your credit report can affect numerous aspects of your life. It impacts your ability to get credit and the amount you pay for it, but that's not all. It can also affect your insurance rates, employment prospects and even your ability to rent a place to live.

Keeping our credit reports accurate and private is of the utmost importance. This is why the government created the Fair Credit Reporting Act (FCRA). Enacted in 1971, this law contains several provisions that govern how credit reports are maintained and used.

Terms of the FCRA

* Only certain organizations with legitimate business reasons may request an individual's credit report. These include creditors, employers, insurers, and in certain cases, government agencies. Other parties can only receive your credit report if you request it for them.

* Credit reporting agencies may distribute names and contact information of those for whom they maintain files for marketing purposes. You can, however, request that they do not distribute your information, and they must comply. Requests may be made by phone or mail.

* If a lender or other party denies credit or takes other adverse action based on information contained in a credit report, they must notify the consumer in writing. They must also provide the name and contact information of the bureau from which the report was obtained.

* Consumers are entitled to a free copy of their credit reports if they are denied credit or subjected to other adverse action based on information contained therein. They may also receive one free copy of their report from each bureau once a year under the Fair and Accurate Credit Transactions Act, an amendment to the FCRA that was passed in 2003. Credit bureaus may charge a fee for additional reports.

* Errors on your credit report may be disputed by writing to the credit bureau. The credit bureau must investigate your claim within 30 days, and if they find that the information was erroneous, they must remove it and notify the other major credit bureaus. If they do not remove the information, you may add a summary explanation to your report stating why you disagree with the decision.

* The amount of time that negative finance information may remain on a credit report is governed by the FCRA. Delinquencies must be removed no later than seven years from the original delinquency, and bankruptcies must remain on the report for no longer than ten years.

The FCRA makes it easier for us to keep track of the information on our credit reports, and it protects us from improper use of that information. Knowing our rights under this legislation can help us maintain an accurate credit report, which will make it easier to obtain credit.

Pros and cons of using your credit card on the Internet

With today's technology and the E-commerce, using credit cards on the Internet is now more practiced and favored by consumers and online businesses alike.

For people who are not familiar with shopping on the internet using their credit cards, here is a list of the pros and cons that you must be adept with before considering using your credit card in the internet.

1) As a buyer and owner of the account, there are pros and cons in using your credit card on the internet:

* Online, you don't have to wait on a queue to purchase anything with your credit card. On the other hand, you might get ripped off since you don't know the seller.

* Shopping in the internet with your credit card gives you a wider selection of products with low prices. In contrast, shopping in the internet would not give you a chance to examine the product more thoroughly.

* Using your credit card online gives you the advantage of purchasing products anywhere in the world. However, some sellers may not be trustworthy enough to really deliver what you bought.

* Accessibility of shops 24 hours a day could be provided for you when using the internet. Also, 24 hours a day somebody out there could just be lurking waiting for you to key in your credit card number for him or her to use.

* Although there is a large selection of products to supply the needs of the customer, records have it that there is only an average of 1/10 stocks obtainable on the internet.

2) As a businessman using the internet to sell products and services, there are pros and cons in using your credit card on the internet:

* In using the internet to sell to customers that use credit cards, the company's market sales would increase. But, purchasing hardware and software to support these transactions would cost the company a large amount of money. Also, regular maintenance is required to ensure that all transactions happen smoothly.

* Because customers make use of credit cards through the internet, the company would be able to expand their sales globally. On the other hand, a company must make sure that the stocks are enough to supply the global market when the demand suddenly spikes.

*Through the large number of consumers using their credit cards online, the company's profits won't be that hard to increase. But this entails keeping up with the competition since there a lot of other companies vying to get the most out of the credit card phenomenon.