These 7 Credit Card Facts Can Change Your Life
Credit cards can be lifesavers, either when cash is useless or checkout happens remotely. What you don’t know about credit cards might surprise you, and here are some facts that can change your life about the credit cards that DECU offers for qualified members.
Under federal law, a stolen or lost credit card carries just $50 liability for unauthorized purchases, and most issuers offer zero liability. If only your credit card number is stolen, then you have no liability under the law.
Unsatisfied consumers have the right under the Fair Credit Billing Act to ask for a refund from their credit card issuers for a bad purchase. There are some rules: Has to cost more than $50, has to be bought within 100 miles of home, and you have to make an effort to resolve the matter with the seller first.
Some cards have no spending limit, but they may limit the amount you can carry from one month to the next. The trick to maintaining a zero balance on your credit report is to pay the bill in full before the statement date rather than the due date.
Pay the balance off in full every month, before the grace period ends, and treat credit cards like cash. Only buy things that you need and/or can afford with cash. Collect reward points for free flights, car rentals, and hotel stays or cashback for things you already buy daily.
Credit cards can be very dangerous, but only if used incorrectly. Having a credit card with a low limit will allow you to develop and exercise your self-control.
You can see rates and fees before applying, and issuers must tell you why you do not qualify.
You can — and should! — pay more than the minimum.