$100 Bonus Cash Back after $799 in purchases in the first three months

Chase Freedom Visa has always been a great cash back credit card. Now it is just getting better. It offers $100 bonus if you spend $799 in purchases in the first three months. You will get 10000 bonus points that can be redeemed for a $100 check payable to you! Very few credit cards in the current market can give you that much bonus. And most of those that give you a bonus usually have some pesky annual fees. This credit card has no annual fee and on top of the $100 bonus, it has excellent cash back rewards as much as 5% rebates for your purchases.

Reward redemption is friendly and it starts at as few as 2000 points for $20 cash. Here is what to do – once you get your Chase Freedom Visa – $100 Bonus Cash Back, register an online account with chase.com for online account management to redeem your points. When you redeem points, you can redeem 10000 points for a $100 check mailed to you at no cost (see the following screen-shot of cash redemption from Chase). You also have options to redeem 2000 points for $20, 2500 points for $25, etc.

5% Cash Back in rotating categories

In addition to the quick $100 bonus, Chase Freedom Visa – $100 Bonus Cash Back not only has no annual fee, but also gives you 5% rebate in quarterly rotating categories such as gas, home improvement, department stores, travel, etc, and 1% cash back on everything else. To look up the category of 5% rebate for the current quarter, you can visit yourchasefreedom.com. For example, for the quarter between July 1, 2010 and September 30, 2010, Chase Freedom card holders earns 5% cash back in purchases on gas, airline and hotel travel expenses, and auto rentals. It is a perfect credit card to earn $100 bonus and to use for daily purchases.

After all, Chase Freedom Visa – $100 Bonus Cash Back offers exceptional value with the following perks:

• $100 cash bonus after $799 spent in purchases in the first three months – a sizable bonus that is easy to obtain!
• No annual fee – perfect card to keep for a long time!
• 5% cash back in rotating categories every quarter and 1% cash back on everything else – better than most other credit cards that usually give only 1% rebate across the board
• Redemption for cash starts at 2000 points for $20 – points are as good as cash (100 points = $1) with a low redemption threshold

This is a consumer credit card, not a business credit card. Anyone with a good credit rating can qualify for it.

$250 cash bonus, the biggest credit card bonus available

Chase Sapphire Preferred Card is the only credit card that offer $250 cash bonus without annual fee for the first year. Just spend $3000 on the card in the first three months and you will get 25000 bonus points that can be redeemed for a $250 check payable to you! If you don’t usually spend as much as $3000 in three months, you can swipe the credit card to purchase some shopping gift cards such as Amazon, Walmart, Shell Gas to make up the $3000 near the end of the three-month window and use those gift cards at your pace afterwards.

Redemption starts at as few as 2000 points for $20 cash. Here is what you need to do – once you get your Chase Sapphire Preferred Card, register an online account with chase.com for online account management to redeem your points. When you redeem points, you can redeem 25000 points for a $250 check mailed to you at no cost (see the following screen capture of cash redemption from Chase). You also have options to redeem 2000 points for $20, 2500 points for $25, 5000 points for $50, etc.

In addition to the easy $250 bonus, Chase Sapphire Preferred Card has no annual fee for the first year ($85 afterwards), gives you 2% rebate on airfare purchases and 1% rebate on everything else. It is a perfect credit card to earn a quick bonus of $250 and to use for travel and daily purchases.

After all, Chase Sapphire Preferred Card offers exceptional value in offering you the following perks:

• $250 cash bonus after spending $3000 in the first three months – the biggest cash bonus and it is easy to obtain!
• No annual fee for the first time – no cost to earn your quick $250!
• Redemption for cash starts at 2000 points for $20 – points are as good as cash (100 points = $1) with a low redemption threshold
• 2% rebate on airfare purchases and 1% rebate on everything else – better than most other credit cards that usually give 1% rebate

This is a consumer credit card, not a business credit card. Anyone with a good credit rating can qualify for it.

$100 bonus after first use

Chase Sapphire Card is one of the few credit cards that offer $100 bonus. And it is easy – just use it once and you will get 10000 bonus points that can be redeemed for a $100 check payable to you! Not many credit cards in the current market can give you that much bonus. And most of those that give you a bonus usually have minimum spending limit or some pesky annual fees. This credit card has none of those strings attached.

Redemption starts at as few as 2000 points for $20 cash. Here is what you need to do – once you get your Chase Sapphire Card, register an online account with chase.com for online account management to redeem your points. When you redeem points, you can redeem 10000 points for a $100 check mailed to you at no cost (see the following screen capture of cash redemption from Chase). You also have options to redeem 2000 points for $20, 2500 points for $25, 5000 points for $50, etc.

In addition to the easy $100 bonus, Chase Sapphire Card has no annual fee, gives you 2% rebate on airfare purchases and 1% rebate on everything else. It is a perfect credit card to earn $100 bonus and to use for travel and daily purchases.

After all, Chase Sapphire Card offers exceptional value with the following perks:

• $100 cash bonus after your first use – a sizable bonus that is easy to obtain!
• No annual fee – perfect card to keep for a long time!
• Redemption for cash starts at 2000 points for $20 – points are as good as cash (100 points = $1) with a low redemption threshold
• 2% rebate on airfare purchases and 1% rebate on everything else – better than most other credit cards that usually give 1% rebate

To top it off, this is a consumer credit card, not a business credit card. Anyone with a good credit rating can qualify for it.

Why? Because an individual can be a business too. The type of the business is called a sole proprietorship, which is the simplest business entity. Sole proprietorship is completely legit and is recognized by the Internal Revenue Services (IRS). In a sole propiretorship, your name is your business name and your SSN is your business Tax ID. For example, you can be a sole proprietor if you are doing some temporary contract work for a company, or if you are just selling items through online sites like eBay or through garage sales.

When applying for a business credit card, you have to indicate your SSN and the Tax ID of the business, which you can simply put down your SSN for both fields. For the vast majority of business credit cards, even if you are part of a corporation or LLC, you will still be personally liable for business debts and credit card issuers use your own credit report to determine on your qualification. That’s why they’ll always ask for your SSN.

For example, here is an example screen shot of applying for the Chase Ink Cash Business Card. You can see that SSN is suggested as a valid option for the business tax identification number.

You also don’t need to worry about any filings with the IRS for using business credit cards. You can simply use your business credit cards for regular daily purchases and pay off the balances as you would do with a typical credit card.

In addition, for most business credit cards, the credit card itself won’t show up in your personal credit report. This means that you can open many new accounts, max out the credit limits without affecting your personal credit score. This also means you can save thousands of dollars by taking advantage of the 0% Balance Transfer offers from business credit cards without worrying about your credit score.

With many business credit cards offering attractive perks, don’t forget to check out those deals from time to time.

But what about quick fixes? Many of these tricks are scams. But there are a few sneaky ways to legitimately to boost your credit score. Here are a few ways to do it:

1. Ask credit card companies to increase your credit limits

Credit utilization, or how much of your available credit you’re using, affects 30% of your credit score. Many credit experts insist you keep your balances low if you want to increase your credit score. Asking your credit card issuers to increase your credit limits will benefit your credit score in the same way. The increase in available credit will automatically lower your credit utilization ratio. It is preferred that you keep your balance to less than 25% of your available credit.

2. Keep and use old cards occasionally

The length of time that you’ve had credit affects 15% of your credit score. The longer your credit history, the higher your score can be. Therefore, if you ever want to close some of your credit cards, you should choose to keep the credit cards with longer histories and close those newer ones. But credit cards that haven’t been used for over six months may not help improve your credit score. Those credit cards may be reported as inactive ones by credit card issuers, as a result, they are not factored into all FICO credit score formulas. Therefore, it is better to use your old credit cards occasionally to keep them active so that they contribute to your credit score.

3. Piggyback

If your credit history isn’t all that long or spotless, adding a credit card account with a long, positive credit history to your report will certainly boost your score. But how do you all of a sudden add an old account to your report? You may ask someone — a friend, relative or someone you trust and who trusts you — to make you an authorized user of a credit card they’ve had for a long time and handled responsibly. By doing so, the whole entire history of the credit card from day one will show up on your credit report. In addition, the original card holder can choose not to give you the access to the credit card so that he/she can be sure that you can’t use the credit card to rack up debt.

A credit report includes information on where you live, how you pay your bills, and whether you’ve been sued, arrested, or filed for bankruptcy. Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.

How do I order my free report?

You can order your free annual credit report online at annualcreditreport.com, by calling 1-877-322-8228, or by completing the Annual Credit Report Request Form and mailing it to:

Annual Credit Report Request Service,
P.O. Box 105281,
Atlanta, GA 30348-5281

When you order, you need to provide your name, address, Social Security number, and date of birth. To verify your identity, you may need to provide some information that only you would know, like the amount of your monthly mortgage payment.

A Warning About “Imposter” Sites and Trial Offers

If you want to order free annual credit reports online, make sure you spell annualcreditreport.com correctly to avoid being misdirected to other websites that offer supposedly free reports, but only with the purchase of other products. While you may be offered additional products or services while on the authorized website, you are not required to make a purchase to receive your free annual credit reports.

Chances are you’ve gotten offers to receive your credit reports through a “free trial.” A company may claim its free trial offer has no risk or obligation. And that may be true, but only if you take timely action to avoid future obligations. Read the whole offer carefully before you decide whether it’s a good deal for you. Never give in to pressure to agree to a deal.
If you have a problem with a trial offer, try to resolve it with the seller first. If you’re dissatisfied with the response, contact your local Better Business Bureau or local consumer protection agency.

The FTC recently settled a lawsuit against ConsumerInfo over the “free credit report” promotion it marketed through advertising on television, radio and the Internet, including its websites of freecreditreport.com and consumerinfo.com. The settlement, among other things, provides for refunds to certain Consumerinfo customers.

Although there are several scoring methods, the score most commonly used by lenders is known as a FICO because of its origins with Fair Isaac and Company. Fair Isaac is an independent company that came up with the scoring method and software used by banks and lenders, insurers and other businesses. Each of the three major credit bureaus (Experian, Equifax and TransUnion) worked with Fair Isaac in the early 1980′s to come up with the scoring method.

The three national credit bureaus each have their own version of the FICO score with their own names. Equifax has the Beacon system, TransUnion has the Empirica system, and Experian has the Experian/Fair Isaac system. Each is based on the original Fair Isaac FICO scoring method and produces equivalent numerical results for any given credit report. Some lenders also have their own scoring methods. Other scoring methods may include information such as your income or how long you’ve been at the same job.

Your credit score is calculated in a weighted formula. It uses the information in your credit report. The number itself can range from 300 to 900. The formula for exactly how the score is calculated is proprietary information and owned by Fair Isaac. Here, however, is an approximate breakdown of how it is determined:

35 percent of the score is based on your payment history.

This makes sense since one of the primary reasons a lender wants to see the score is to find out if (and how timely) you pay your bills. The score is affected by how many bills have been paid late, how many were sent out for collection, any bankruptcies, etc. When these things happened also comes into play. The more recent, the worse it will be for your overall score.

30 percent of the score is based on outstanding debt.

How much do you owe on car or home loans? How many credit cards do you have that are at their credit limits? The more cards you have at their limits, the lower your score will be. The rule of thumb is to keep your card balances at 25% or less of their limits.

15 percent of the score is based on the length of time you’ve had credit.

The longer you’ve had established credit, the better it is for your overall credit score. Why? Because more information about your past payment history gives a more accurate prediction of your future actions.

10 percent of the score is based on the number of inquiries on your report.

If you’ve applied for a lot of loans, you will have a lot of inquiries on your credit report. Excessive inquiries possibly indicate that you are in financial trouble or may take on a lot of debt. Recent credit inquiries may negatively affect your credit scores, but if the inquiries stop, the impact is usually short-lived. Every time when you refinance your home loan or have your credit history checked (for example, your landlord may check your credit before leasing an apartment), you will have a credit inquiry. Normal number of credit inquiries are not considered excessive and you don’t have to be overly concerned. Your credit scores may dip a little bit, for example, 10 points, and quickly bounce back a couple weeks later. FICO scores only count inquiries from the past year.

10 percent of the score is based on the types of credit you currently have.

The number of loans and available credit from credit cards you have makes a difference. There is no magic number or combination of types of accounts that you shouldn’t have. These actually come more into play if there isn’t as much other information on your credit report on which to base the score.

This information is compared to the credit performance of other consumers with similar histories and profiles.

Your credit score doesn’t just affect whether or not you get a loan; it also affects how much that loan is going to cost you. As your credit score increases, your credit risk decreases. This means your interest rate decreases.

There are other factors that influence the interest rate you get for a loan besides your credit score, such as seasonal promotions, the costs the lender has to make the loan, etc.

In addition to banks and lenders, there are landlords, merchants, employers and insurance companies jumping on the credit score bandwagon.

Credit scores aren’t static numbers. Because they are calculated based on your current credit report, they change every time your credit report changes. While this change may be very slight, it can also be much more dramatic. The key is to improve your credit score is to use your credit cards carefully, make your payments on time, and keep your balances low. Remember not to max-out credit cards.

Don’t buy the pitch – and don’t buy the "loss protection" insurance. Telephone scam artists are lying to get people to buy worthless credit card loss protection and insurance programs. If you didn’t authorize a charge, don’t pay it. Follow your credit card issuer’s procedures for disputing charges you haven’t authorized. According to the Federal Trade Commission (FTC), your liability for unauthorized charges is limited to $50.

The FTC says worthless credit card loss protection offers are popular among fraudulent promoters who are trying to exploit consumers’ uncertainty. As a result, the agency is cautioning consumers to avoid doing business with callers who claim that:

• you’re liable for more than $50 in unauthorized charges on your credit card account;
• you need credit card loss protection because computer hackers can access your credit card number and charge thousands of dollars to your account;
• a computer bug could make it easy for thieves to place unauthorized charges on your credit card account; and
• they’re from “the security department” and want to activate the protection feature on your credit card.

The FTC advises consumers not to give out personal information – including their credit card or bank account numbers – over the phone or online unless they are familiar with the business that’s asking for it. Scam artists can use your personal information to commit fraud, such as identity theft. That’s where someone uses some piece of your personal information, such as your credit card account number, Social Security number, mother’s maiden name, or birth date, without your knowledge or permission to commit fraud or theft. An all-too-common example is when an identity thief uses your personal information to open a credit card account in your name.

We can’t expect to receive credit as a matter of course, however. We must apply for it. And just as you would
be hesitant to lend money to a stranger, no bank, retailer, or finance company will grant you credit without
knowing something about you. It used to be that retailers or banks would have to call each creditor you listed
on an application form before they would decide to extend you credit.

Today, they rely on credit reports, so it’s important for you to know what’s in yours.

What is a credit report?

A credit report is a record of your credit activities. It lists any credit-card accounts or loans you may have,
the balances, and how regularly you make your payments. It also shows if any action has been taken against you
because of unpaid bills.

Where do credit reports come from?

In most cases, from consumer reporting agencies (also called credit bureaus), which collect information about our
credit activities and store it in giant databases. The consumer reporting agencies charge lenders a fee for supplying
the information.

Today, there are three major consumer reporting agencies that operate nationwide, plus many smaller
companies serving local markets.

Who is allowed to see my credit report?

Consumer reporting agencies can provide information only to the following requestors: 1) creditors who are considering
granting or have granted you credit; 2) employers considering you for employment, promotion, reassignment, or retention;
3) insurers considering you for an insurance policy or reviewing an existing policy; 4) government agencies reviewing your
financial status in connection with issuing you certain licenses or government benefits; and 5) anyone else with a legitimate
business reason for needing the information in connection with a business transaction that is initiated by the consumer.

Consumer reporting agencies also furnish reports if so required by court orders or federal jury
subpoenas. And they will also issue your report to a third party if you give them written
instructions to do so.

What type of information is on my credit report?

There are usually four types of information:

• Identifying information: Your name (including if you’re a Sr., Jr. or a III), nicknames,
  current and previous addresses, Social Security number, year of birth, current and previous
  employers, and, if applicable, your spouse’s name.

• Credit information: The accounts you have with banks, retailers, credit-card issuers, and
  other lenders. The accounts are listed by type of loan (mortgage, student loan, revolving
  credit), the date you opened the account, your credit limit or the loan amount, any co-signers
  of the loan, and your payment pattern over the past two years.

• Public record information: State and county court records on bankruptcy, tax liens, or
  monetary judgments. (Some consumer reporting agencies list nonmonetary judgments as well.)

• Inquiries: The names of those who have obtained copies of your credit report within the last
  six months (two years for employment purposes).

Where do the consumer reporting agencies get their information?

From parties that have previously extended credit to you, such as the department store that issued you a credit card or the bank that granted you a personal loan.

Do the consumer reporting agencies make the decision whether to grant me the loan?

No. The consumer reporting agencies only supply the information about your credit history. It is the lenders themselves who make the decision whether to grant you credit.

Why should I obtain a copy of my credit report?

To avoid any unwelcome surprises. It can be especially helpful to see a copy of your credit report before you apply for, say a car loan, a mortgage, or a credit card. Errors in credit reports are not uncommon. Keep in mind, however, that they are not part of a conspiracy against you; they’re simply the result of human error.

How do errors in reports happen?

Think about how often a misspelling of your name or a mistake in your street address shows up on a piece of your mail. Then imagine the possibility for error in a report that contains many more points of information about you. Cases of mistaken identity, out-of-date information, and outright inaccuracies can easily occur.

What should I do if I find an error on my credit report?

Notify the consumer reporting agency immediately. If the company cannot confirm the information under dispute, it will be removed from your file and a corrected report will be sent to those parties you specify who have received your report within the past six months (or within two years if the party requested your report for employment purposes).

What if the credit-reporting company stands by its report?

You have the right to present your side of the story in a brief statement, which the credit bureau must attach to your credit file. Anyone requesting a copy of your credit report would also automatically receive your statement (or a summary or codification of it) unless the credit bureau deems the dispute irrelevant or frivolous.

What should I do if I am denied credit because of something in my credit report?

The lender denying you credit must give you the name, address, and telephone number of the credit bureau that provided the credit report. At that point, you have up to 60 days to request a free report. Most consumer reporting agencies provide consumers with copies of their reports. A few may make disclosure only in person or by telephone.

The consumer reporting agency is obligated to let you know the nature and substance of all information contained in your report. It must also tell you the sources of the information and the recipients of consumer reports for the previous year (two years for reports furnished for employment purposes).

How long does information stay on my credit report?

Generally, the consumer reporting agency must automatically delete information on adverse credit instances that are more than seven years old and any bankruptcies that are more than 10 years old. However, these rules do not apply to information provided for credit transactions involving a principal amount of $150,000 or more, underwriting of life insurance involving a principal amount of $150,000 or more, or employment of an individual with an annual salary of $75,000 or more.

How do I get a copy of my credit report?

Thanks to Fair Credit Reporting Act, you are now entitled to receive one free credit report every 12 months from each of the nationwide consumer credit reporting companies – Equifax, Experian and TransUnion. Keep in mind that three large bureaus do not necessarily share information with each other. The content of your credit report can vary across bureaus, so it’s a good idea to request copies from each one.

• Understand the features of credit cards
• Compare credit card features and costs
• Know your rights when using your credit card
• File a complaint if you have a problem with your credit card

How will you use your credit card?

The first step in choosing a credit card is thinking about how you will use it.

• If you expect to always pay your monthly bill in full–and other features such as frequent flyer miles don’t interest you–your best choice may be a card that has no annual fee and offers a longer grace period.
• If you sometimes carry over a balance from month to month, you may be more interested in a card that carries a lower interest rate (stated as an annual percentage rate, or APR).
• If you expect to use your card to get cash advances, you’ll want to look for a card that carries a lower APR and lower fees on cash advances. Some cards charge a higher APR for cash advances than for purchases.

What are the APRs?

The annual percentage rate–APR–is the way of stating the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest rate as a yearly rate.

Multiple APRs

A single credit card may have several APRs:

• One APR for purchases, another for cash advances, and yet another for balance transfers. The APRs for cash advances and balance transfers often are higher than the APR for purchases (for example, 14% for purchases, 18% for cash advances, and 19% for balance transfers).
• Tiered APRs. Different rates are applied to different levels of the outstanding balance (for example, 16% on balances of $1–$500 and 17% on balances above $500).
• A penalty APR. The APR may increase if you are late in making payments. For example, your card agreement may say, "If your payment arrives more than ten days late two times within a six-month period, the penalty rate will apply."
• An introductory APR. A different rate will apply after the introductory rate expires.
• A delayed APR. A different rate will apply in the future. For example, a card may advertise that there is "no interest until next March." Look for the APR that will be in effect after March.

If you carry over a part of your balance from month to month, even a small difference in the APR can make a big difference in how much you will pay over a year.

Fixed vs. variable APR

Some credit cards are “fixed rate”–the APR doesn’t change, or at least doesn’t change often. Even the APR on a “fixed rate” credit card can change over time. However, the credit card company must tell you before increasing the fixed APR.

Other credit cards are “variable rate”–the APR changes from time to time. The rate is usually tied to another interest rate, such as the prime rate or the Treasury bill rate. If the other rate changes, the rate on your card may change, too. Look for information on the credit card application and in the credit card agreement to see how often your card’s APR may change (the agreement is like a contract–it lists the terms and conditions for using your credit card).

How long is the grace period?

The grace period is the number of days you have to pay your bill in full without triggering a finance charge. For example, the credit card company may say that you have “25 days from the statement date, provided you paid your previous balance in full by the due date.” The statement date is given on the bill.

The grace period usually applies only to new purchases. Most credit cards do not give a grace period for cash advances and balance transfers. Instead, interest charges start right away.

If you carried over any part of your balance from the preceding month, you may not have a grace period for new purchases. Instead, you may be charged interest as soon as you make a purchase (in addition to being charged interest on the earlier balance you have not paid off). Look on the credit card application for information about the “method of computing the balance for purchases” to see if new purchases are included or excluded. Information on methods of computing the balance is in the section “How is the finance charge calculated?”

How is the finance charge calculated?

The finance charge is the dollar amount you pay to use credit. The amount depends in part on your outstanding balance and the APR.

Credit card companies use one of several methods to calculate the outstanding balance. The method can make a big difference in the finance charge you’ll pay. Your outstanding balance may be calculated

• Over one billing cycle or two,
• Using the adjusted balance, the average daily balance, or the previous balance, and
• Including or excluding new purchases in the balance.

Depending on the balance you carry and the timing of your purchases and payments, you’ll usually have a lower finance charge with one-cycle billing and either

• The average daily balance method excluding new purchases,
• The adjusted balance method, or
• The previous balance method.

Minimum finance charge

Some credit cards have a minimum finance charge. You’ll be charged that minimum even if the calculated amount of your finance charge is less. For example, your finance charge may be calculated to be 35¢–but if the company’s minimum finance charge is $1.00, you’ll pay $1.00. A minimum finance charge usually applies only when you must pay a finance charge–that is, when you carry over a balance from one billing cycle to the next.

What are the fees?

Most credit cards charge fees under certain circumstances:

• Annual fee (sometimes billed monthly). Charged for having the card
• Cash advance fee. Charged when you use the card for a cash advance; may be a flat fee (for example, $3.00) or a percentage of the cash advance (for example, 3%)
• Balance-transfer fee. Charged when you transfer a balance from another credit card (Your credit card company may send you “checks” to pay off the other card. The balance is transferred when you use one of these checks to pay the amount due on the other card.)
• Late-payment fee. Charged if your payment is received after the due date
• Over-the-credit-limit fee. Charged if you go over your credit limit
• Credit-limit-increase fee. Charged if you ask for an increase in your credit limit
• Set-up fee. Charged when a new credit card account is opened
• Return-item fee. Charged if you pay your bill by check and the check is returned for non-sufficient funds (that is, your check bounces)
• Other fees. Some credit card companies charge a fee if you pay by telephone (that is, if you arrange by phone for payment to be transferred from your bank to the company) or to cover the costs of reporting to credit bureaus, reviewing your account, or providing other customer services. Read the information in your credit card agreement to see if there are other fees and charges.

What are the cash advance features?

Some credit cards let you borrow cash in addition to making purchases on credit. Most credit card companies treat these cash advances and your purchases differently. If you plan to use your card for cash advances, look for information about

• Access. Most credit cards let you use an ATM to get a cash advance. Or the credit card company may send you “checks” that you can write to get the cash advance.
• APR. The APR for cash advances may be higher than the APR for purchases.
• Fees. The credit card company may charge a fee in addition to the interest you will pay on the amount advanced.
• Limits. Some credit cards limit cash advances to a dollar amount (for example, $200 per cash advance or $500 per week) or a portion of your credit limit (for example, 75% of your available credit limit).
• How payments are credited. Many credit card companies apply your payments to purchases first and then to cash advances. Read your credit card agreement to learn how your payments will be credited.

How much is the credit limit?

The credit limit is the maximum total amount–for purchases, cash advances, balance transfers, fees, and finance charges–you may charge on your credit card. If you go over this limit, you may have to pay an “over-the-credit-limit fee.”

What kind of card is it?

Most credit card companies offer several kinds of cards:

• Secured cards, which require a security deposit. The larger the security deposit, the higher the credit limit. Secured cards are usually offered to people who have limited credit records–people who are just starting out or who have had trouble with credit in the past.
• Regular cards, which do not require a security deposit and have just a few features. Most regular cards have higher credit limits than secured cards but lower credit limits than premium cards.
• Premium cards (gold, platinum, titanium), which offer higher credit limits and usually have extra features–for example, product warranties, travel insurance, or emergency services.

Does the card offer incentives and other features?

Many credit card companies offer incentives to use the card and other special features:

• Rebates (money back) on the purchases you make
• Frequent flier miles or phone-call minutes
• Additional warranty coverage for the items you purchase
• Car rental insurance
• Travel accident insurance or travel-related discounts
• Credit card registration, to help if your wallet or purse is lost or stolen and you need to report that all your credit cards are missing

Credit cards may also offer, for a price,

• Insurance to cover the payments on your credit card balance if you become unemployed or disabled, or die. Premiums are usually due monthly, making it easy to cancel if the payments are higher than you want to pay or you decide you don’t need the insurance any longer.
• Insurance to cover the first $50 of charges if your card is lost or stolen. Under federal law, you are not responsible for charges over $50.

Before you sign up to pay for any of these features, think carefully about whether it will be useful for you. Don’t pay for something you don’t want or don’t need.

What are your liability limits?

If your credit card is lost or stolen–and then is used by someone without your permission–you do not have to pay more than $50 of those charges. This protection is provided by the federal Truth in Lending Act. You do not need to buy "credit card insurance" to cover amounts over $50.

If you discover that your card is lost or stolen, report it immediately to your credit card company. Call the toll-free number listed on your monthly statement. The company will cancel the card so that new purchases cannot be made with it. The company will also send you a new card.

Make a list of your account numbers and the companies’ phone numbers. Keep the list in a safe place. If your wallet or purse is lost or stolen, you’ll have all the numbers in one place. Take the list of phone numbers–not the account numbers–with you when you travel, just in case a card is lost or stolen.

What can you do about billing errors?

The federal Fair Credit Billing Act covers billing errors. Examples of billing error are

• A charge for something you didn’t buy
• A bill for an amount different from the actual amount you charged
• A charge for something that you did not accept when it was delivered
• A charge for something that was not delivered according to agreement
• Math errors
• Payments not credited to your account
• A charge by someone who does not have permission to use your credit card

If you think your credit card bill has an error, take the following steps:

1. Write to the credit card company within 60 days after the statement date on the bill with the error to dispute the charge.
2. Pay all the other parts of the bill. You do not have to pay the “disputed amount” or any minimum payments or finance charges that apply to it.

If there is an error, you will not have to pay any finance charges on the disputed amount. Your account must be corrected.

If there is no error, the credit card company must send you an explanation and a statement of the amount you owe. The amount will include any finance charges or other charges that accumulated while you were questioning the bill.

What if the item you purchase is damaged?

The federal Fair Credit Billing Act allows you to withhold payment on any damaged or poor-quality goods or services purchased with a credit card–even if you have accepted the goods or services–as long as you have made an attempt to solve the problem with the merchant.

The sale must have been for more than $50 and must have taken place in your home state or within 100 miles of your home address. You should notify the credit card company in writing and explain why you are withholding your payment.

You may withhold the payment while the credit card company investigates your claim. If you pay the charges for the goods on your credit card bill before the dispute is resolved, you will lose your right to make a claim.