Problems with Your Credit Card

Do you think there was an error on your bill? Billing errors are not unheard of — there will be instructions on the back of your bill telling you how to handle this with your credit card issuer. Follow them.

If you report a problem to the issuing institution in writing within 60 days of the billing date the company is required to investigate. They must respond to you within 30 days. While the investigation is ongoing you need not pay for the amount that is in dispute or the finance charges involved. Beware that if the charge was correct they can restore the finance charges back through the time of investigation and you will be required to pay them.

You may call with a billing error, but be sure to make good notes of the conversation. You will want to follow up with a letter. Be sure to note in the letter the details of the phone call to aid and expedite the investigation. Some credit card companies will require that you submit your complaint in writing.

The US Fair Credit Billing Act provides strong protection against getting ripped off when using a credit card.

Deciding between using a check or credit card can be a decision you are faced with often. In general using a credit card gives you more protection. The safeguards this provides do not apply when you pay by check, check card or debit card. But remember that credit card debt is easy to get into and hard to get out of — don't use your card if you can't afford to. Banks offer low percentages on savings account and very high on credit card balances — it makes sense not to carry a balance. You will pay for the privilege of using a credit card if you carry a balance even if you have a low APR.