Credit Card Frequently Asked Questions

What is a credit limit? A credit limit is the total dollar amount of credit available to you for purchases and cash advances.

How long will I have to pay off purchases? If you pay your balance in full each month by the due date, you are allowed a grace period to pay off your entire balance before you are charged any interest on new purchases. * Even though you are not required to pay your bill in full each month, by doing so you will avoid finance charges. If you choose to pay only a portion of your balance, you should always make the minimum payment on time each month. * Typically, there is no grace period for cash advances.

If I don't pay my bill in full, what will I be charged? When you don't pay your bill in full each month, you are charged interest on the unpaid balance plus any applicable fees. Your Annual Percentage Rate (APR) for purchases is the interest rate you will be charged annually on any unpaid purchase balance. To find your Annual Percentage Rate and daily periodic rate after your account is opened, refer to your monthly periodic statement.

How much do I have to pay each month? It is best to pay off your bill every month. As long as you carry a balance, you must make at least the minimum payment by the due date listed on the statement. If you don't make at least the minimum payment by the due date, your account will be considered delinquent and it could have adverse effects on your credit rating.

What should I do if there is an error on my card statement? You should notify the card issuer immediately, in writing, within 60 days after the first bill containing the error was mailed to you. In your letter include your name; account number; the type, date and amount of the error; and the reason why you believe the bill contains an error. In return, the card issuer must investigate the problem and either correct the error or explain to you why the bill is correct within two billing cycles and not later than 90 days after the issuer receives your notice of the billing error. You do not have to pay the amount in question during the investigation.

What should I do if I can't make my credit card payment? If you ever find yourself in a situation where you can't make a monthly payment, notify your credit card issuer and work out a modified payment plan with your creditors that reduces your payments to a more manageable level. Be cautious about turning to a debt counseling company to solve your debt problems. Avoid paying such a firm in advance until you find out what the company can really do. Before you sign a contract, check out the organization with the U.S. Better Business Bureau or with your local consumer protection agency.

Who can I contact for additional help? There are nonprofit organizations across the United States that counsel indebted consumers. Counselors try to arrange a repayment plan that is acceptable to you and your creditors. You may want to contact a nonprofit counseling service, such as the Consumer Credit Counseling Service (CCCS), for help. To obtain the telephone number of your local CCCS office, call 800-388-2227.

How can I get a copy of my credit report? You may want to review your credit report at least every year or two. If you have been denied credit, you are entitled to a free credit report within 60 days. Under other circumstances, you may be charged a small fee.

The major US credit bureaus are:

Equifax P.O. Box 105873 Atlanta, GA 30348 800-685-1111

Experian (formerly TRW) PO Box 8030 Layton, UT 84041 800-392-1122

Trans Union P.O. Box 390 Springfield, PA 19064-0390 1-800-916-8800

What are my credit access and use Equal Rights? The Equal Credit Opportunity Act guarantees you equal rights in dealing with anyone who regularly offers credit, including banks, finance companies, stores, credit card companies and credit unions.

When you apply for credit, a creditor may not:

Ask about or consider your sex, race, national origin or religion;
Ask about your marital status or your spouse, unless you are applying for a joint account or relying on your spouse's income or you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas and Washington);
Ask about your plans to have or raise children;
Refuse to consider reliable public assistance income or regularly received alimony or child support; or
Discount or refuse to consider income because of your sex or marital status or because it is from part-time work or retirement benefits.

You have the right to:

Have credit in your birth name, your first name and your spouse's last name, or your first name and a combined last name;
Have a co-signer other than your spouse if one is necessary;
Keep your own accounts after you change your name or marital status or retire, unless the creditor has evidence you are unable or unwilling to pay;
Know why a credit application is rejected; the creditor must give you the specific reasons or tell you of your right to find out the reasons if you ask within 60 days;
Have accounts shared with your spouse reported in both your names; and
Know how much it will cost to borrow money.

What is the Truth in Lending Act? The Truth in Lending Act requires a lender to inform you of the cost to borrow, so that you can compare the cost and terms of credit offered by various lenders.

Issuers

Resources

Credit Card Frequently Asked Questions