Security
& Credit Basics
Q: If my card offers a grace
period, does that mean my purchases are interest-free,
even when I carry a balance from month-to-month?
No. If you carry a balance, the issuer will charge
interest from the date of posting or purchase (depending
on its policy) on all new purchases. Generally, your
purchases are interest-free only when your card offers
a grace period, you start the billing cycle with a
zero balance and you pay all new purchases in full
by the due date.
Q. If I
accept a pre-approved credit card offer, am I guaranteed
to receive the card?
No. Card issuers are allowed to conduct a second screening
when you accept a pre-approved offer. If you do not
meet the criteria, you may be offered a card with
different terms, or you may be turned down.
Q. If my insurance company
does not pay medical bills for which I believe they
are responsible, can I refuse to pay the bill and
force the medical provider to collect from the insurance
company?
No. When you accept medical services, you agree to
pay the bill if the insurance company does not. To
protect your credit, you may want to arrange alternative
ways to pay, then try to collect from the insurance
company yourself.
Q. Since most credit card issuers
use some form of the average daily balance method
for calculating interest, will I save more money (when
carrying a balance from month to month) if I send
in my payment early, rather than waiting until the
due date?
Yes. Because the interest "clock" is ticking
daily, the sooner the lender posts your payment, the
less interest you have to pay.
Q. How can I prevent someone using
my personal information to apply for credit in my
name?
When someone wrongfully obtains and uses another person's
personal data in some way that involves a security
breach or deception, typically for economic gain,
it's called identity theft.
 |
Rip up, or better yet,
shred, any credit card applications, bank
or billing statements, and any other sensitive
documents. |
|
If you don't get a bill
for one of your credit cards in any given
month, call the issuer immediately. Don't
just assume you're off the hook that month. |
|
Use a locked mailbox
for incoming and outgoing mail (especially
bills). |