SECTION 2
Your Credit Score
Improve Your Credit Score
Dispute Inaccuracies
Don't Ignore Debt.

SECTION 3
Home Equity
Home Equity Loans
Identity Theft
Rebuilding Your Credit
Credit Fraud

How Credit Cards Protect You

Imagine your wedding:  It’s a perfect day…until the DJ doesn’t show up and the caterer serves cold chicken.  What’s worse is, you’ve already paid them and neither one wants to give your money back.  What can you do about it?  If you paid with cash, pretty much nothing, unless you want to get a lawyer and spend several months in court over a few thousand dollars.  If you paid with a credit card however, there is a good chance you can get the money back without too much trouble.

Because of the Fair Credit Billing Act (FCBA), credit card companies automatically provide you with a kind of “insurance” on any purchase you make with a card.  It applies to credit cards, charge accounts, and overdraft checking  (but not to checks or debit cards).  Among other things, the FCBA protects you from vendors who charge goods or services to your account, but do not provide them as promised.

Aside from these advantages, the FCBA also limits cardholder liability in the event of fraudulent transactions.  But in order for this consumer protection law to apply, you have to be aware that fraudulent transactions have occurred in your name.  This is where your credit report comes in handy.

It’s important to realize that there are 3 major credit bureaus – Equifax, Experian, and Trans Union – each of which carries its own credit report on you.  If you find an inaccuracy on your credit report from one of the bureaus, you should check the others for inaccuracies as well.  Your 3 Bureau Online Credit Report is the fast, safe, and easy way to see your credit information from all three bureaus at once!

While it’s often up to you to review your credit report for potentially fraudulent charges, some companies will also alert you to suspicious activity.  The issuing bank may call you to verify out-of-state or unusual transactions, and in some cases even block the card from being used.  Furthermore, most every credit card has a limit on how much debt can be racked up in a single day.  If a thief were to exceed this amount, the credit card company may block the account from further use unless a prior verification with has been made with the cardholder.

The revised Fair Credit Reporting Act (FCRA) adds to the benefits provided by the FCBA in that it deals with protecting your privacy in relation to your credit report.  Both of these laws, combined with consumer minded issuers, and the easy access to your 3 Bureau Online Credit Report, are providing victims of credit and identity fraud with rights of protection that help make credit cards the safer way to spend money.