Using Your Credit Card Responsibly

Bad credit can cause you many headaches in years to come. Credit card delinquency may prevent you from qualifying for other types of loans, such as a mortgage OR an auto loan. Furthermore, when you miss a payment, you may receive a call OR other correspondence reminding you of your overdue balance. To avoid this, be sure to pay at least the minimum payment by the due date printed on your statement every month.

Protect Your Credit Record

• Pay bills promptly to avoid late fees and to protect your credit rating.
• Keep track of your charges and don't exceed your Credit Limit to avoid Over-limit Fees.
• Report any change of address prior to moving so you receive bills promptly.

Credit Billing and Disputes

• Write to the creditor OR card issuer within 60 days after the first bill containing the disputed charge is mailed to you. However, if more than 60 days have passed since you were billed for the item, you still might be able to dispute the charge if you only recently found out about the problem.
• Send your letter to the address provided on the bill. Do NOT send the letter with your payment.
• Be specific. In your letter, give your name and account number, the date and amount of the charge disputed, and a complete explanation of why you are disputing the charge.
• Keep a record of receipt to document that your letter was received. You might wish to send it by certified mail with a return receipt requested.

 

If you follow these requirements of receipt, the creditor OR card issuer must acknowledge your letter in writing within 30 days of receipt and conduct an investigation within 90 days. While the bill is being disputed and investigated, you do NOT need to pay the amount in dispute. The creditor OR card issuer may NOT take action to collect the disputed amount, including reporting the amount as delinquent, and may NOT close OR restrict your account. If there was an error OR you do NOT owe the amount, the creditor OR card issuer must credit your account and remove any Finance Charges OR late fees relating to the amount NOT owed. For any amount still owed, you have the right to an explanation and copies of documents proving you owe the money. If the bill is correct, you must be told in writing what you owe and why. You will owe the amount disputed, plus any Finance Charges. You may ask for copies of relevant documents.