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Having a credit card can be kind of scary for new credit users. There are obvious risks that are involved with credit cards. However, there are laws that protect card holders from fraud and unfair practices. Here are a few examples of such laws.
- Credit card companies must show the fees that are associated with the bill.
- It is illegal for credit card companies to bill a consumer minimum payments without reducing the balance of the card.
- Credit card companies are required to tell you the length of time it will take to completely pay off debt if you only make the minimum payments. This is to make sure that the consumer is aware of the price difference in slower/smaller payments.
- Consumers are not liable for stolen credit cards even if it is a prepaid visa. You have the right to dispute any charge that does not belong to you, or that you find inaccurate. The credit company must offer you an explanation of the charge or a full refund of the disputed fee.
- Consumers are entitled to a free credit report once per year. You may still receive a credit report at any time after receiving the free copy, although you would most likely be charged by the providing company.
Credit consumers have many rights so having a credit card does not have to be a scary thing. Be sure that you understand your rights and act in accordance with them. The law makes having a credit card helpful in many situations. Credit cards are a good way to build good credit if you keep up your payments and use the card responsibly.
