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Fighting Back...What You Can Do
1. Shop around before accepting a credit card offer. Terms and conditions vary widely, so it's important to compare offers, for example, regular APRs range from 7.99% to 30.25%. Key fees and terms to compare:
• regular (non-introductory) APR: look for APRs near or below 15.04%
• grace period: at least 25 days
• late payment fee: no higher than $20
• annual fee: look for cards with no annual fee (most do not have annual fees)
• penalty APR: look for cards that don't assess penalty APRs, or if unavoidable, penalty APRs no higher than 20% and in place for a limited period of time only (for example, until two consecutive payments are made on time)
2. Read the fine print. Disclosure charts and surrounding text, carefully and thoroughly before accepting a card. Many punitive fees are stated only in the fine print below the disclosure chart.
3. Carry only one or two major credit cards, and avoid using the full available credit line. Remember that credit card purchases are more expensive than cash or check purchases once interest and other fees are included. Use credit cards sparingly and wisely.
4. Pay off all balances in full every billing period, or pay as large a portion of the remaining balance as possible, making the largest payments toward the card with the highest interest rate. Always pay more than the minimum, if possible!
5. Reduce the number of direct mail credit card solicitations you receive by calling 1-888-5-OPTOUT. This will remove your name from prescreening lists at the three major credit bureaus.
6. Seek credit counseling as soon as financial problems arise.
7. Check your credit reports at least once a year for errors. Correct any errors immediately. To receive copies, call: Equifax 1-800-685-1111 Experian 1-888-397-3742 TransUnion 1-800-888-4213
8. If you believe you are the victim of unfair interest rate charges, late fees or other penalties, or deceptive marketing, and the credit card company fails to address your complaint, file complaints with your state Attorney General's office and the national Office of the Comptroller of the Currency.
9. Use the credit calculator, available here to calculate how much you need to pay each month to pay off your balance within the time frame you've specified. The calculator can also tell you how long it will take to pay off your balance if you continue to pay the same amount each month.
10. Know your financial means and limitations, and don't spend beyond your means. Create a budget that takes into account your average credit card payments each month, and stick to it.
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