Credit Cards

    Chances are you've received "pre-approved" credit card offers in the mail. Examine the fine print carefully before you accept any offer for a credit or charge card. Look for:

1. The Annual Percentage Rate (APR). If the interest rate is variable, how is it determined and when can it change?

2. The periodic rate. This is the interest rate used to figure the finance charge on your balance each billing period.

3. The annual fee. While some cards have no annual fee, others expect you to pay an amount each year for being a cardholder.

4.  The grace period. This is the number of days you have to pay your bill before finance charges start. Without this period, you may have to pay interest from the date you use your card or when the purchase is posted to your account.

5. The finance charges. Most lenders calculate finance charges using an average daily account balance, which is the average of what you owed each day in the billing cycle. Look for offers that use an adjusted balance, which subtracts your monthly payment from your beginning balance. This method usually has the lowest finance charges. Stay away from offers that use the previous balance in calculating what you owe; this method has the highest finance charge. Also don't forget to check if there is a minimum finance charge.

6. Other fees. Ask about special fees when you get a cash advance, make a late payment, or go over your credit limit. Some companies charge a monthly fee regardless of whether you use your card.

    The Fair Credit and Charge Card Disclosure Act requires credit and charge card issuers to include this information on credit applications. The Federal Trade Commission offers a wide range of free publications on credit and consumer rights at http://www.ftc.gov. The Federal Reserve Board provides a free brochure on choosing a credit card and a guide to credit protection laws at www.federalreserve.gov.

Lost and Stolen Credit Cards     Immediately call the card issuer when you suspect a credit or charge card has been lost or stolen. Many companies have toll-free numbers and 24-hour service to deal with such emergencies.     By federal law, once you report the loss or theft of a card, you have no further responsibility for unauthorized charges. In any event, your maximum liability under federal law is $50 per card.

Comparing Cards:

1. Bank Rate provides free credit card tips and information.

2. Consumer Action has a site that features credit card surveys of interest rates, fees and other terms from dozens of credit cards, as well as free brochures and guides on choosing and using credit cards.

3. Card Web lists credit cards and offers e-mail newsletters, frequently asked questions and online credit card calculators.

4. Card Ratings lists and reviews credit cards, and offers tips and credit card calculators.

Complaints:

    To complain about a problem with your credit card company, call the company first and try to resolve the problem. If you fail to resolve the issue, ask for the name, address and phone number of its regulatory agency.

&nbdp;   If the word national appears in the name or the letters N.A. appear after the name, the Office of the Comptroller oversees its operations.

    To complain about a credit bureau, department store or other FDIC-insured financial institution, write to the Consumer Response Center. You may also file a complaint online at www.ftc.gov.

Credit Billing Disputes

    If you find an error on a credit card or charge account bill, you have the right to dispute the problem under the Fair Credit Billing Act. The law defines billing errors as: incorrect credits for payments, charges that you didn't make, and charges for goods or services that you did not receive or that were not as promised.

    Write to the creditor within 60 days of the postmark of the first bill with the disputed charge. If more than 60 days have passed but you just recently found the problem, you may still be able to dispute the charge.

1. Send a letter to the address provided on the bill. Do not send the letter with your payment.

2. Be specific. 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.

3. Send your letter by certified mail, with a return receipt requested, if you want to make sure it is received.

    If you follow these requirements, the creditor or card issuer must acknowledge your letter in writing within 30 days of receiving it and conduct an investigation within 90 days.

    While the bill is being investigated, you do not have to pay the amount in dispute. The creditor cannot try to collect this disputed amount, nor can the creditor report the amount as late or closed or restrict your account.

1. If there was an error, the creditor must credit your account and remove any related finance charges or late fees. For any amount still owed, you have the right to an explanation and copies of documents proving you owe the money.

2. If the bill is correct, you must be told in writing what you owe and why. You will owe the amount disputed plus any finance charges.

    What if you don't agree with the creditor's decision? You can file an appeal with the Office of the Comptroller of the Currency.

Protect Your Credit

Beware of Offers to Skip a Payment:

    If your credit company invites you to skip a monthly payment without a penalty, it is not doing you a favor. You will still owe finance charges on your unpaid balance. And interest could be adding up on any purchases you make after the due date you skipped.

Beware of Teaser Rates:

    Some cards are advertised with very low introductory interest rates called teasers. The rate is good for a short period of time. If you know you can pay what you owe while the low rate is in effect, it could be a good deal. But if the teaser time runs out and you still owe money, you could end up paying a higher rate than you might have without the special introductory rate. Just one late payment could also cancel the teaser rate.

Beware of Credit Insurance:

    When you take out a loan for a big purchase, a salesperson may try to sell you credit insurance. Your credit card company may also encourage you to purchase credit insurance. The coverage may be promoted as a way for you to protect yourself if your property is damaged or lost. Other credit insurance offers promises to make loan payments if you are laid off, become disabled or die. It is almost always better to buy regular property, life or disability insurance instead of credit insurance.

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