CREDIT CARD (2)

Related to the previous post, this post also discuss about credit cards. When you applying for your card, there are also have costs, such as annnual precentage rates (APR), grace period, annual fees, and the transaction fees. With costs, you will also  able to get the features, such as credit limit, how widely the cards is accepted, and the services. For the bank and for the credit card holder, there is also have a law between them to protect each other's right.

In 1974, there is a law named Fair Credit Billing Act. The Fair Credit Billing Act (FCBA) explain about the protection for the consumers from unfair billing practices and to provide a mechanism for addressing billing errors in "open end" creditaccounts, such as credit card or charge card accounts. Briefly, it explains about an unfair billing practices. There are seven parts of the FCBA 1974.

The first is challenge a billing statement for errors, this means that when the bills came, you should calculate and now if it is ballance with your spending or not. Then, you must notify the creditor of a disputed item within 60 days. After it, the creditor will investigate whether it's error or not. You also cannot be billed for or forced to pay in the investigation era. If it is determined that you are responsible for the bill, you must be given the usual amount of time to pay it. The sixth is this law said that tour credit history is protected during the dispute process. The last is creditor should explain the customers about their rights at least twice a year.

There also other credit card protection, such as unauthorized charges, refunds of credit balances, and prompt credit for payment. Unauthorized charges is explained about what should you do when your card lost. When your card is lost, the first list to do is report it lost as quick as possible. Because when you report it before it is used, you won't be held for any responsible. But, when it already used your responsible will not more than $50 if you report it within two business days.

When you apply for the credit card, it won't be always sure that you will be accepted. There are some reasons that you're denied for applying the credit card, such as your bad credit history. If you not sure what is that, you can ask the creditor. If you think the reason for the deny is valid, the best thing you can do is improve your creditworthiness, such as pay bills on time, increase income, reduce spending, obtain a secured, and then after than you can ireapply. But sometimes, the reason is invalid, you can notify to the federal enforcement agency and then they will invesitage it.

Last, i will give you an advices and the tips about how you use your credit card. That are never borrow more than 20% of your yearly net income and monthly payments shouldn’t exceed 10% of your monthly net income. For you to understand it easily, i will give you an example. My net income each month is 10 million rupiahs, so my net income for a year is 120 million rupiahs, then i will not borrow more than 24 million rupiahs (20% times 120 million rupiahs). As i said before, my net income each months is 10 million rupiahs, so my monthly payment will not more than 1 million rupiah (10% times 10 million rupiahs). The tips are shop around (means that search for any sources before you buy something), read and understand the contract, and know your cost.