Credit Card Q&A By Credit.com Have a question about credit cards?

Our experts answer the top ten most frequently asked credit card questions. Read our answers and submit your own question by email. 1. How do I apply for a credit card? Applying for a credit card is easy! Simply choose a credit card online that meets your needs. Click on the orange apply button or the picture of the credit card and you will be connected to a credit card application. Most of the applications are very short and only take a minute or two of your time. If you would like a credit card application emailed to you, send us an email at [email protected] letting us know what kind of card you are interested in and we will reply with your credit card application. 2. How do I report a lost or stolen credit card? To report your credit card lost or stolen, please call the customer service number on your billing statement. They will be able to help you close the card and issue you a new card. If you do not have your billing statement, either search online or call directory assistance (411) to ask for the toll-free number of the banking institution (ex. Capital One, Citibank, etc) that issued your credit card. 3. How do I contact my credit card company? Your creditors toll-free customer service number is printed on the back of your credit card in small lettering. Their customer service team will be able to assist you with billing, lost or stolen cards, fraudulent charges, change of address, and more. Unfortunately, Credit.com is not able to assist you with your account. Please contact your credit card company directly. 4. Where do I send my credit card payment? If you have lost your billing statement and need help getting the address to make a payment, simply call the toll fee phone number on the back of your credit card. The number will be written in small lettering underneath your signature strip. Most credit card companies also allow you to pay your bill over the phone. To make a payment over the phone you may use the same customer service number on the back of your credit card. 5. What is a "secured" credit card? A secured credit card can be a very helpful way to start building credit or to rebuild your credit. Secured credit cards are perfect for individuals who have been turned down for a credit cards, have never had a credit card, or are currently in bankruptcy. Secured cards offer guaranteed approval for all borrowers, despite their financial history. Secured cards guarantee approval by asking you to secure the card with a deposit, usually $200 to $250. This deposit will act as your credit limit and will be returned to you when you cancel your card. While your card is active, your credit card company will report your status to the three major credit bureaus. Your credit line will periodically increase, helping to improve your overall credit score and credit history. These credit cards tend to have higher interest rates, especially when withdrawing cash from an advance fund, so use them wisely. You can apply for a secured credit card online today. 6. Why do I receive credit card offers in the mail and then get declined for a credit card? Credit card offers often use reporting services from Innovis (Innovis is sometimes know as the 4th Credit Bureau) to determine what credit card products to offer. However, once you submit your application, the credit card companies may use your credit scores from Experian, TransUnion, and/or Equifax to make the final decision whether to approve your application. Often the information from Innovis is different from the three major credit bureaus, thus causing the discrepancy. 7. How long will it take to receive my credit card? You can expect to receive a letter in the mail with the status of your credit card application within 5-7 business days. If approved, you will receive your credit card within 10-15 days of your approval letter. The credit card company will

inform of you of the estimated time it will take for your card to arrive along with a phone number in case you have questions on your approval letter. 8. What do I do if someone else has used my credit card or obtained a credit card in my name without my authorization? Contact the credit card company immediately! Let them know you suspect you are a victim of identity theft. They will often remove fraudulent charges from your account. If a card was obtained without your authorization, cancel the credit card and report the fraud to the credit card company. Next contact Experian, Equifax, and TransUnion (the three major credit bureaus) and they will put a fraud watch on your credit. Click here to read more information on identity theft and credit monitoring programs. 9. Why should I have a credit card? Credit cards help you build your credit, increase your borrowing power, and make major purchases. If your future goals include owning a home, buying a car, owning your own business, or traveling, having a credit card is an excellent first step. Credit cards give you borrowing power. Your credit limit contributes to the amount of borrowing power you have. If you have several credit cards with large credit limits, you have a lot of borrowing power. This makes you more attractive to lenders because of your increased ability to pay back your loans. Credit cards also report your repayment history on a regular basis to the credit bureaus. If you use your cards wisely, lenders will see that you are a trustworthy person who makes your payments. A person who is responsible and has alternative means to repay loans is a low-risk applicant and has a much better chance of qualifying for a loan than someone with no history and no credit line. Credit cards can also be used as an additional form of identification. They can be necessary when renting a car or staying in many hotels, and they are excellent alternatives to cash. If your credit card is lost or stolen, you can be reimbursed for any fraudulent charges made. If your cash is lost or stolengood luck! Cash is much harder, if not impossible, to claim if it is stolen.. Credit cards come with many benefits, but borrowers should be careful to use them responsibly. You can apply for a credit card online now. 10. I have bad credit/no credit: Can I still get a credit card? Sure you can! There are several different credit card options available to borrowers with credit troubles: secured, unsecured, and student credit cards. Student credit cards are regular credit cards designed for students who are firsttime credit card applicants. You must be a student to qualify for these offers. Secured cards offer guaranteed approval for all borrowers, despite their financial history. Secured cards guarantee approval by asking you to secure the card with a deposit, usually $200 to $250. This deposit will act as your credit limit and will be returned to you when you cancel your card. While your card is active, your credit card company will report your status monthly to the three major credit bureaus and your credit line will periodically increase, helping to improve your overall credit score and credit history. If you are looking for something similar to the secured credit card but cannot afford to put down a deposit, you may want to consider an unsecured card for borrowers with credit problems. These cards allow you to apply with a processing fee of $39 that you pay after the credit card company receives your application. Your initial credit limit will be at least $250 and the following fees will be billed to your first statement: annual fee of $48, account set-up fee of $29, program fee of $95, monthly participation fee of $6, and an additional card fee of $20 per card (if applicable). These fees will reduce your available credit until they are paid. Although you will ultimately pay the same as if applying for a secured card, an unsecured card will give you the opportunity to spread out your payments over several months. Our recommendation is if you are considering either the unsecured card or the secured card, choose the secured card. You will save money in the long run by going with the secured card, and the security deposit is refundable. The fees on the unsecured card are not refundable and you will have to pay interest on any initial charges you dont pay right away.

Today, federal law states that your maximum liability for unauthorized credit card use is $50 per card -and $0 for any charges that accrue after you report a card lost or stolen. Speaking of fraud, MasterCard introduced the first credit card hologram in 1983 to help thwart counterfeit credit card operations. In 1976, BankAmericard changed its name to Visa. It wasn't the only credit card to rebrand itself: Until 1979, MasterCard was known as MasterCharge. American Express introduced the first credit card made of plastic in 1958. It also introduced the first credit card made of anodized titanium: the highly exclusive Centurion card (informally known as the Black Card). Before you get any bright ideas, keep in mind that on top of the annual $2,500 fee, American Express' Centurion card also has a one-time initiation fee of $5,000. As far back as the mid-19th century, and up until the modern credit card first appeared, high-end merchants issued "charge coins" to their best customers. These coins, usually made of metal, came in a variety of shapes and sizes, and many also had holes that allowed them to be placed on a key chain. The charge coins also had a unique customer identification number stamped onto them. While charge coin identification numbers were usually no bigger than five or six digits, most credit cards today have 16. The first digit in the string is an identifier that denotes the type of industry that issued the card: o 1 and 2 are for airlines. o 3 is for travel and entertainment. o 4 and 5 indicate a banking or financial institution. o 6 is for merchandizing and banking. o 7 is petroleum. o 8 is for telecommunications. o 9 is for other assignments. Although the first six digits of your credit card number are known as the issuer identification number, you don't need all six digits to necessarily tell what type of card you have. For example, cards that start with 34 or 37 are American Express. Visa cards start with a 4, and MasterCards start with numbers between 51 and 55. As for Discover cards, they start with 6011. Digits 7 through 15 make up your personal credit card account number. As for the last digit, it's a special number known as a "checksum," that's used to make sure your credit card number is not invalid via a cleverly simple math trick known as the Luhn algorithm. Here's another math trick: Assuming you have a credit card balance of $2,500 with an interest rate of 18%, and only make minimum payments equivalent to the interest for the month plus 1% of the balance, it will take you 17 years to pay it off at a total cost of $5,673.22. Of course, that's only true if you also cut up the card and never use it again. I bet the credit card companies wish you didn't know that. Today, federal law states that your maximum liability for unauthorized credit card use is $50 per card -and $0 for any charges that accrue after you report a card lost or stolen. Speaking of fraud, MasterCard introduced the first credit card hologram in 1983 to help thwart counterfeit credit card operations. In 1976, BankAmericard changed its name to Visa. It wasn't the only credit card to rebrand itself: Until 1979, MasterCard was known as MasterCharge. American Express introduced the first credit card made of plastic in 1958. It also introduced the first credit card made of anodized titanium: the highly exclusive Centurion card (informally known as the Black Card). Before you get any bright ideas, keep in mind that on top of the annual $2,500 fee, American Express' Centurion card also has a one-time initiation fee of $5,000. As far back as the mid-19th century, and up until the modern credit card first appeared, high-end merchants issued "charge coins" to their best customers. These coins, usually made of metal, came in a variety of shapes and sizes, and many also had holes that allowed them to be placed on a key chain. The charge coins also had a unique customer identification number stamped onto them. While charge coin identification numbers were usually no bigger than five or six digits, most credit cards today have 16. The first digit in the string is an identifier that denotes the type of industry that issued the card: o 1 and 2 are for airlines. o 3 is for travel and entertainment. o 4 and 5 indicate a banking or financial institution.

o o o o

6 is for merchandizing and banking. 7 is petroleum. 8 is for telecommunications. 9 is for other assignments. Although the first six digits of your credit card number are known as the issuer identification number, you don't need all six digits to necessarily tell what type of card you have. For example, cards that start with 34 or 37 are American Express. Visa cards start with a 4, and MasterCards start with numbers between 51 and 55. As for Discover cards, they start with 6011. Digits 7 through 15 make up your personal credit card account number. As for the last digit, it's a special number known as a "checksum," that's used to make sure your credit card number is not invalid via a cleverly simple math trick known as the Luhn algorithm. Here's another math trick: Assuming you have a credit card balance of $2,500 with an interest rate of 18%, and only make minimum payments equivalent to the interest for the month plus 1% of the balance, it will take you 17 years to pay it off at a total cost of $5,673.22. Of course, that's only true if you also cut up the card and never use it again. I bet the credit card companies wish you didn't know that.

How to Use a Credit Card

Decide whether you can afford the purchase and know how you are going to pay the credit card bill once it comes. Be sure your card is signed on the back by you. Slide your credit card through the machine. If the machine asks you for your P.I.N. number, press the cancel key. If the machine asks if you want a credit transaction, press the credit or yes key. Sign. If the machine is an electronic machine, sign in the box. Press the OK or accept key. If the machine is not an electronic machine, circle the amount on the receipt (this forces you to see it and hopefully recognize errors) sign on the line on the receipt. Give the receipt to the cashier. Present your card to the cashier if asked to do so. The cashier would check off the signature on the card with the one you just signed on the receipt. At the end, you should get your card back. Note: A credit card is not password protected unless you call service desk for this ADDITIONAL functionality or you live in the UK or an another country where this is required by law. Hereby, take care of your credit card, in case of losing, call your bank and police right away!

10 Reasons To Use Your Credit Card 1. Signup Bonuses The standard debit card offers zero rewards or very small rewards. Many credit cards, however, offer significant rewards when used responsibly. For example, applicants with good credit can get approved for credit cards that offer signup bonuses worth anywhere from $50 to $250 (and sometimes even more). Other cards offer up a large number of points that can be redeemed for rewards like gift cards or air travel. 2. Cash Back If you sign up for the right credit card, you can earn anywhere from 1-5% back on your purchases.

3. Investment Rewards Some cards, like the Fidelity Investment Rewards card, offer a higher rate of cash back; in exchange you must deposit your cash back directly into an investment account.

4. Frequent-Flyer Miles It seems like every airline these days has at least one credit card available. Cardholders rack up miles at a rate of one mile per dollar spent, or sometimes one mile per two dollars spent. The price of the plane ticket you ultimately end up redeeming your miles for will determine how valuable this credit card reward is, but many frequent flyer cards are made immensely more valuable by their mileage signup bonuses - these are often enough to put you 50-100% of the way toward a free flight within a month or two.

5. Points Many card rewards work on a point system where you earn up to five points per dollar spent. When you reach a certain point threshold, you can redeem your points for gift cards at some stores. You can also use the gift cards as gifts, making holiday and birthday shopping simpler and less expensive. 6. Safety Paying with a credit card makes it easier to avoid losses from fraud. When your debit card is used fraudulently, the money is missing from your account instantly. Legitimate payments for which you've scheduled online payments or mailed checks may bounce, triggering insufficient funds fees and making your creditors unhappy. Late payments can also lower your credit score. It can take a while for the fraudulent transactions to be reversed and the money restored to your account while the bank investigates. By contrast, when your credit card is used fraudulently, you aren't out any money - you just notify your credit card company of the fraud and don't pay for the transactions you didn't make while the credit card company resolves the matter. 7. Grace Period When you make a debit card purchase, your money is gone instantly. When you make a credit card purchase, your money remains in your checking account until a couple of weeks later when you pay your credit card bill. Hanging on to your money for this extra time can be helpful in two ways. First, if you pay your credit card from a high-interest checking account and earn interest on your money during the grace period, the extra interest will eventually add up to a meaningful amount. Second, when you always pay with a credit card, you don't have to watch your bank account balance like crazy to make sure you stay in the black. 8. Insurance Most credit cards automatically come with a plethora of consumer protections that people don't even realize they have, such as rental car insurance, travel insurance and product warranties that may exceed the manufacturer's warranty. 9. Universal Acceptance Certain purchases are difficult to make with a debit card. When you want to rent a car or stay in a hotel room, you'll almost certainly have an easier time if you have a credit card. Rental car companies and hotels want customers to pay with credit cards because it can be easier to charge customers for any damage they cause to a room or a car this way. So if you want to pay for one of these items with a debit card, the company may insist on putting a hold of several hundred dollars on your account. Also, when you're traveling in a foreign country, merchants won't always accept your debit card as payment, even when it has a major bank logo on it. 10. Building Credit If you have no credit or are trying to improve your credit score, using a credit card responsibly will help your credit score because credit card companies will report your payment activity to the credit bureaus. Debit card use doesn't appear anywhere on your credit report, however, so it can't help you build or improve your credit. When You Shouldn't Use a Credit Card Instead of a Debit Card Despite the advantages that paying with a credit card has over paying with a debit card, for some people it's still better to use debit. Using a credit card may not be right for you under the following circumstances:

You can't pay your credit card balance in full and on time. If this tends to happen to you, stick with cash to avoid racking up fees. You tend to spend more than you can afford. Paying with debit will limit you to spending money you've already earned. You can only get a credit card with a very low credit limit and you have a hard time staying under the balance. The fees for exceeding your credit limit are costly, and doing this can also put a dent in your credit score.

Dos and Don'ts Of Using Credit Cards Responsibly Don't

Use your credit card to make everyday purchases. Items like food, clothing, and gas shouldn't be purchased with a credit card. Using your credit card as a substitute for cash is a habit that can quickly lead to debt. For ordinary puchases, leave your credit card in your wallet and use cash or debit card instead. Get into the habit of making minimum-only payments. Making only the minimum payment each month increases the amount of time it will take to pay off your debt. It also increases the amount of interest you end up paying. To pay your debts off quicker and cheaper, you should pay as much as you can on your balance each month.

Five Reasons to Pay More Than the Minimum

Use your credit card to buy things you cant afford. Living a borrowed lifestyle is the quickest way to get into debt. If you cant afford a purchase today, chances are you wont be able to afford it tomorrow, or even next month. Spending Habits That Lead To Debt Close out a credit card without knowing how your credit will be impacted. There are times when closing a credit card can hurt your credit score. Avoid closing cards that still have a balance or those that make up a significant amount of your credit history. Five Credit Cards You Should Never Close

Do Make wise decisions about purchasing items you need versus those you simply want. Weve all used the word need to describe something we really just wanted badly. Using your credit card responsibly means recognizing which things you need and which you just want. Let your creditor know in advance if you wont be able to make your monthly payment on time. The worst thing you can do is simply forgo your credit card payment, no matter the reason. Most creditors will assist you if you let them know before you miss your payment. Simply call your creditor, briefly explain the situation, and ask that any late fees be waived. When You Can't Make Your Payment Stay within 30% of your credit limit. A large part of your credit score considers the amount of debt you have. Keeping your balances low helps you maintain a good credit score. Not only that, lower balances are easier to manage than those that are higher. How Your Credit Score Is Calculated Negotiate a lower interest rate. Especially if your current rate is higher than offers you receive. Your interest rate determines how much you pay for carrying a balance on your credit card. Evaluate the interest rate on your credit card periodically to be sure you are getting the best deal possible. How to Negotiate a Lower Interest Rate Understanding How to Use Credit Cards the Smart Way India has entered the era of plastic money. Credit is abundantly available just through the swipe of a card, with no questions being asked. Credit card marketers are enticing people into spending more than necessary. Being in debt, through use of credit cards, can results in a vicious cycle. Therefore, proper caution and restraint needs to be exercised when using credit cards. Here are a few basic things that you must know and do to get the best out of using your credit card. What is a credit card?

A credit card is a facility by which the issuer of the card, the lending organization, agrees to provide credit to the user of the card, up to a certain period of time, at the end of which the outstanding amount is expected to be paid back to the lender. If the amount is not paid back in full, then the lender will levy a charge. Credit cards are the most expensive form of debt available, and should be used only if one has the discipline to pay back ones dues in time. The major benefit of a credit card is convenience. The issuer is willing to give you a loan. As a customer, you should use credit cards only for short-term gaps in your ability to purchase goods or services. Ultimately, you have to pay the loan amount back. And if you dont have the money, then you will pay heavily for it in late fees and charges, which could often be more than you originally spent on the card. Terms and conditions Every card will come with terms and conditions. These will specify your rights and obligations towards the issuer of the card. Always read the fine print carefully. Once you start using your card it is assumed that you have read and accepted all the terms and conditions. So read and clarify what you must, before using your card. Annual fees Earlier it was common practice for banks to waive annual fees for the first and second year and not beyond this. However, as the market has become more competitive, a lot of credit card companies are doing away with the annual fees completely and are issuing life time free cards. So, shop around to see which is the best card that you can get at the cheapest fees. Understand your billing cycle A billing cycle is the period between two statement dates and is normally a period of 30 days. While using your card to buy big ticket items, time your purchase in such a way that you get a longer credit period. For instance, you could use your card to make a purchase at the beginning of your billing cycle. This way you get more time to pay back the issuer because you will not get a bill for at least a few weeks. In case you have more than one card ensure that the statement dates and payment due dates fall on different dates, so that your payments are not due on the same date. Minimum payment due The minimum payment due every month is generally 3% to 5 % of your total amount due, but that does not mean that you should pay only this small amount. It is strongly advisable to pay the entire outstanding amount due in one go in order to avoid carrying forward of your balance. The moment you start carrying forward your balance you will have to pay an interest on the unpaid amount. The interest charged could be as high as 40% which is almost double the rate any other lender will charge. This is where you have to be judicious and pay off as soon as possible to avoid credit card debt. Late payment fees Late payment fees are charged as penalty for not paying the minimum amount due, on time. The penalty levied is 30% to 35% of your minimum amount due. Default in paying your minimum balance can also lead to discontinuance of the card and will hurt your credit rating. Service tax Service tax is the tax levied by the card issuer for using their services which is 12.36%. Cash advance limit Credit card companies often allow cash withdrawals from an ATM up to a certain limit. The limit can vary from person to person depending upon their individual profile. Use this facility only in emergencies as interest is charged

from the date of withdrawal itself. You might find it cheaper to take a personal loan, as these loans are cheaper than credit card debt. Balance transfer charges Today banks are wooing customers with the 0% interest balance transfer facility. Balance transfer is the transfer of outstanding debts on one card to another lesser used card or a new one for a nominal interest or 0 interest. What you must know is that this offer is valid only for the introductory period of 3 to 6 months. After this period, the interest will revert to the previous rate that you were paying. Free balance transfers is a trick that card issuers use to get you to switch your cards to them, by offering you a short-term benefit. In the long-term, you are still liable to paying off your outstanding amount, and no amount of balance transfer can save you from credit card debt. Rewards schemes All credit card issuers have numerous reward schemes to promote card usage among customers. Each time you spend a certain amount of money, you accumulate some points. These points can be redeemed in return for discounts, products etc. Be cautious and dont spend on unnecessary products just to gain points. Similarly read the fine print before going in for any cash back offers during festival times. Please be aware that you will not be able to redeem your points as conveniently as you think. Often discounts are available over a limited period of time, or on a first come first service basis. A word of caution Be careful when using your card. If you notice anything suspicious, inform your card issuer so they can monitor activity on your card. Under no circumstances should you share your card with someone who you do not trust. Please do not share the security code on the back of your card with anyone. Above all, pay all your dues on time. This is the best way to use your credit cards. Five Things You Should Know About Your Credit Card Although credit cards are becoming an important purchasing tool in India, they remain poorly understood by users. In the year through March, nearly 755 billion rupees-worth ($16 million) of transactions were conducted through credit cards, a senior official of the Reserve Bank of India recently said. This was more than twice the amount of transactions done using debit cards. Still, the fine print of how to use credit cards remains a mystery for many. Every year, hundreds of credit card users complain about being charged excessive fees or about receiving abusive calls if they havent paid their credit card bills for a long time. Complaints from credit card users reportedly topped the list of grievances handled by Indias central bank between 2009 and 2010. Banks and card issuers give users all the information they need in the terms and conditions that come with the cards. But consumers tend to overlook the fine print and largely rely on what the credit card salesperson tells them at the time of purchase. And they are unlikely to draw full attention to the many catches, preferring to focus on the positives of owning a credit card instead. Ultimately, its up to the credit card users to know what they are getting into. Here are five things you should know about your credit card that you are unlikely to hear in a sales pitch: The long list of fees: Understanding the credit card statement seems to be a major hurdle, said Jairam Sridharan, head of consumer lending and payments at Axis Bank in Mumbai. I dont understand how you calculated the interest or feesthis is the most common problem people face, he said. So make a point of finding out what all the charges are in advance. If you are offered a free card or one with no annual fees, make sure the fee doesnt kick in after the first year or two. Its also a good idea to find out whether there are joining fees and how much youd have to pay for late payment

charges, cash advance charges (applicable on withdrawals from an ATM), and charges for spending more than your credit limit. Some of the highest fees are charged when you dont pay your credit card bill in full by the due date. You may have to pay an interest of up to 42% on the unpaid amount, plus a service tax of 10.30%. You may also lose your interest-free period for the next cycle if you havent cleared all your bills in time. In case you havent even paid the minimum amount due per month to the credit card company late payment charges will be levied. These are typically 500 rupees ($10.5) to 600 rupees for outstanding amounts of 10,000 rupees to 20,000 rupees. For greater amounts, the fee is higher. If you use your credit card to withdraw money from the ATM, you may have to pay your credit card company or bank 3% of that amount, or a minimum of 300 rupees ($6.3), plus interest. Why your credit card matters for your car loan: Did you know that your chances of getting a home or car loan depend on your credit card usage? If you didnt, now you do. Heres why: The credit card usage of individuals in India is tracked by an independent agency that prepares a credit score for each individual. This score is basically a snapshot of your credit worthiness, a high score showing that you are highly likely to pay back your loans and a low score that you are not. The credit score, drawn up by the Credit Information Bureau India Ltd., is based on factors like how promptly you pay your credit card bills and how many cards you have. Consistently late payments or too many cards would result in a lower score. The credit score ranges from 300 to 900 and is constantly reassessed. When you apply for (home or car) loans, your Credit Card Information Report and your score are very critical elements and indicate your financial discipline, said Arun Thukral, managing director at CIBIL. To keep your score high, avoid spending closer to the credit limit, said Parag Rao, a senior executive and head of the credit card division at HDFC Bank Ltd. A credit card should not become a means of financing your day-to-day finances, said Mr. Rao. How to deal with a stolen credit card: Most users assume that the credit card issuer covers most losses if the card is lost or stolen, but theres a catch: technically the issuers responsibility starts only after youve reported the loss. So if your card was used to make purchases before you reported it, you would be responsible to pay that money back. However, some credit card companies might consider covering part of the cost incurred before reporting the loss or theft, depending on the type of card you have. Its worth asking them ahead of time whether they would. Double check the payment due date: Salesmen often tell first-time credit card users that they will have 40 to 50 days to repay their purchases. But this is not necessarily the case. All cards have a fixed due date by which all payments need to be cleared. So if you buy something 10 days before this due date, you actually only have 10 days to pay for it not 40 or more if you want to avoid late payment fees. People fight with banks saying they were not given 45 days for all their purchases, said V. N. Kulkarni of Abhay Counselling Centre, a credit card counseling organization in Mumbai. Late payments hurt reward points: Many people love credit cards for their reward schemes: 25% cash back on movie tickets, 5% off your restaurant or fuel bill. But what you may not know is that this may not be applicable if you fail to pay your credit card bill on time. Reward points are intended to reward good behavior, said Mr. Sridharan of Axis Bank. They expire if there is undesirable behavior over a certain period of time, for instance if you havent paid your bills for a few months. In some cases, you might be able to get your reward points back by paying off all dues. At American Express they can be reinstated after users clear all their overdue payments, a company spokesperson said.

Credit Card Fraud Statistics and Facts In the end of 2005, MasterCard and Visa generated a sales volume of more than $190.6 billion, from the circulation of approximately 56.4 million credit cards across Canada. Credit card fraud statistics show that about $2.8 million was lost due to credit card fraud, from fraudulent use of MasterCard and Visa alone. In total, credit card fraud costs cardholders and credit card issuers as much as $500 million a year. Who pays for the loss? Everyone. Even if you havent been defrauded yourself, the cost of goods and services increases to pay off the credit and charge card frauds. Credit Card Fraud and Technology Transactions completed with credit cards seem to become more and more popular with the introduction of online shopping and banking. Correspondingly, the number of credit card frauds has also increased with the introduction of newer technology. From embossers to encoders to decoders, credit card counterfeiters are now using the latest technology to read, change, and implant magnetic information on counterfeit credit cards. What Are Counterfeiters Doing with the Cards? Counterfeiters mainly use fake identities to receive government assistance, unemployment insurance benefits, personal loans, and to scheme corporations and individuals. Counterfeit credit card is the most common type of credit card fraud and is responsible for 37% of the millions lost yearly by credit fraud in Canada. Types of Credit Card Fraud Credit fraud can fall into one of five categories:

Counterfeit credit card Lost or Stolen Cards No-Card Fraud Non-Receipt Fraud Identity Theft Fraud

The percentage that each type of credit card fraud represents is described below: Counterfeit credit card: Makes up for 37% of all funds lost through credit card frauds. To make fake cards criminals use the newest technology to skim information contained on magnetic stripes of cards and to pass security features such as holograms. Lost or Stolen Cards: Cards stolen from their cardholders or lost by them account for 23% of all card frauds. Often, cards are stolen from the workplace, gym, and unattended vehicles. No-Card Fraud: Comprises 10% of all the losses and is completed without the physical card in hand. This can happen by giving your credit card information on the phone to shady telemarketers and deceptive Internet sites that are promoting the sales of their non-existent goods and services. Non-Receipt Fraud: Is responsible for 7% of all losses. It occurs when new or replaced cards mailed by your card company are stolen during the process of being mailed. However, this type of fraud is on the decline with the card-activation process that most companies use. In 1992, non-receipt fraud represented16 % of the losses. Identity-Theft Fraud: Accounts for 4% of all losses, and occurs when criminals apply for a card using someone else identity and information.

CASE ON CREDIT CARD IN CONSUMER FORUM COURT I had HDFC Credit Card in 2008 and I was never delinquent till Jan 2010. I came to US for my further studies in Jan 2009 and I continued to make regular payments for the credit card through Western Union. I had paid the entire amount due by December 2009. But in Dec 2009, there were fraudulent activities in my account. I kept on following up with the customer care stating about those activities and to block my card in addition to reversal of those payments which I incurred in my account but there was no update or action taken at their end. It was almost 4 months since then, till April 2010, when I finally gave up. They levied the interest on the amount on my card although those were not my expenses. I refused to pay any amount. I am still in US but they are sending letters to my home. My parents were traumatized and mentally tortured by their threatening calls and were asked to make payment which according to me is totally unethical. They have even sent letter to my place asking to be present in Lok Adalat and now a letter from Chennai High Court. I tried to contact them through emails and phones, but they never got back to me. Its just that these letters keep coming to my address in India. It has caused lot of trouble for my parents. They are not supposed to be involved in this, but they are being dragged and threatened. My parents gave them my email address and also my phone number to contact me, but they never tried to reach me.

I need help. I need to know more about this as to what can be the consequences. My parents are exploited day and night and today they received a letter stating that HDFC has appealed from High Court and in case of non payment of the debt within 7 days, they might even seize my property. Is it possible and how relevant is the letter? Please guide me. They are totally over looking my effort to help them helping myself in a way. I tried to reach them in the best way I could, but it was of no help. They never got back to me either through email or phone although I have provided them with it. At least the advocates who are sending letters can try to reach me through email if not phone. But it appears to me that they just want money by hook or by crook. REPLY Dear Customer, We regret the inconvenience caused to you. Please write to [email protected] with your card and contact details and reference number TTU000448209072012. We will assist you with the repayment of your dues. Regards, Customer Assistance, HDFC Bank

Solved Complaints 4 IN CONSUMER FORUM COURT 46. Complaint against Reliance General Insurance / Medi Assist India TPA Prashant Moda of Delhi (Email: [email protected]), had submitted his mediclaim bill with Medi Assist India, TPA of Reliance General Insurance in June 2009. The claim was not settled till January 2010 when he posted the complaint with ICF and ICF took up the complaint with Reliance/Mediassist. His claim was finally settled on 13-05-2010 for Rs.32.643. 47. Complaint against MakeMyTrip for short-refund Rs.4,285/Mr. Angad Nagpal of Delhi (Email: [email protected]) had received short payment of refund against the cancellation of Kingfisher Airlines flight booked through MakeMyTrip in the sum of Rs.4,285/-. After not receiving the short paid refund amount even after reminders, Mr. Nagpal posted his complaint with ICF. ICF took up the matter with MMT and Mr. Nagpal received his balance refund amount on 26-07-2010. 48. Complaint regarding ICICI Bank credit card settlement:

Mr. Umesh Yawalkar of Pune([email protected]) had posted a complaint with the Forum in connection with his dispute with ICICI Bank credit card account. He had also complained about false commitment given by ICICI collection agency Ganaraj Services Pune that their representative collected a payment of RS. 15000/- from Mr Yawalkar against settlement of his credit card account and the card account was supposed to be settled for Rs. 45000/- as assured by the Agency. However, nothing as assured by the Agency took place and Mr. Umesh Yawalkar did not get any assistance from ICICI in resolving the issue of settling his credit card dues. This Forum submitted Mr. Yawalkars complaint to ICICI Bank and also advised Mr Yawalkar of the merits of the case. The issue was finally sorted out to Mr.Yawalkars satisfaction after getting some concession in late payment charges and interest component. 49. Claim against MakeMyTrip / Shiftthoughts Consulting Rs.5500/Mr. Brij Mohan Bhatt of New Delhi ([email protected]) had done a transaction with Shiftthoughts Consulting on 03-10-2009 to avail an offer through MakeMyTrip.com for the value of Rs.5,513.90. Mr. Bhatt neither received the coupon nor any communication from MMT. They did not agree to refund the money. Mr Bhatt posted his complaint with the Forum on 04-06-2010 and the Forum took up the same with MMT. After follow-up and further negotiations, MMT refunded the full money back on 20-07-2010. 50. Refund complaint against MakeMyTrip Rs.62,589/Mr. Xavier Selvaraj of Chennai, Tamilnadu ([email protected]) had booked through MakeMyTrip on 7th for his cousin to Mexico after confirming that no transit visa is required. However, Air France did not allow him to board the flight from Mumbai. MakeMyTrip had told him to make his own arragements from Mumbai and they said they bear the expenses and fare difference. However, MMT failed to reimburse Mr. Selvaraj and his reminders and phone calls to MMT for four months did not help. Mr. Selvaraj posted his complaint with ICF on 10-07-2010. Mr. Selvaraj finally got his reimbursement by 02-08-2010. 51. Complaint against ICICI Prudential Policy: Mr. Purushotam Yadav of Rewari, Haryana (Email: [email protected]) had taken a policy on 26-03-2010 by making a deposit of Rs.30,000/- at the insistence of ICICIs marketing personnel and he was assured mediclaim coverage, bonus commission, cash back and other benefits. After making the payment he had left for Oman and had tried to contact ICICI with regard to the said policy but did not get any response. Following his return to India, on checking the Policy details he was shocked to find that the features were entirely different to what he was offered. He did not get any of the benefits promised by the marketing people. Mr. Yadav took up the matter with ICICI Pru but his complaints were ignored. Mr. Yadav posted his complaint with ICF on 01-08-2010. ICF submitted the complaint to ICICI Pru and finally Mr. Yadav got his deposit amount back in the first week of August 2010. 52. Refund of booking amount from Hyundai showroom Rs.50,000/Mr. Vishal Guptal of Powai, Mumbai ([email protected]) had paid an advance of Rs.50,000/- to A1 Hyundai dealer at Andheri (E), Mumbai against Hyundai i10 Asta 1.2 WS GLS AT on 04-07-2010. However, even after waiting for 32 days for the delivery, A1 Hyundai failed to get an allotment of the vehicle from Hyundai and kept were making false promises. Mr. Gupta cancelled his booking on 06-08-2010 and asked the refund of booking money. The dealer delayed paying back the booking money. Mr. Gupta lodged a complaint with ICF and got the refund on 22-08-2010. 53. Refund complaint against MakeMyTrip Rs.32,444/Rahul Lodha & Deepali Jain of Parsiwada, Maharashtra (Email: [email protected]) had booked from Delhi to Leh (on August 3rd 2010) through Make My Trip (MMT) for August 15th , 2010 by Kighfisher. MakeMyTrip did not provide the ticket and on 09-08-2010 Mr. Lodha found out from Kingfisher that no such flight was schedule for the said date of booking. Mr. Lodha subsequently cancelled the ticket and requested for refund which was not forthcoming. He posted his complaint with ICF on 12-08-2010 and got his refund by 19-08-2010.

54. Non-receipt of gifts from HomeShop-18: Ms. Aparna Mishra of Lucknow (Email: [email protected]) had purchased 2 pieces of 20lts. of Whirlpool grill Microvaves from Homeshop-18 on 25th of May2010. HomeShop had promised to give a starter kit & a Reebook Wrist watch. Ms. Sharma received the gifts with only one piece of Microwave. She had complained several times for the gifts for another piece of Microwave with the executives of homeshop-18 but did not receive the gifts of the second piece. She posted a complaint with ICF on 27-08-2010 and subsequently got her gifts on 30-08-2010. 55. Refund from Paramount Airways: Mr. Sriram Thanigai of Chennai (Email: [email protected]) booked in Paramount flight Chennai to Coimbatore for 9 tickets on 15 August 2010 vide pnr no. 09MQNR. The flight was cancelled on 17 August but money was not credited back as assured by Paramount. Mr. Sriram posted his complaint with ICF on 10-09-2010 and got his refund by 19-09-2010. 56. Refund claim against Paramount Airways Rs.7,896: Mr. Premkumar of Palakkad, Kerala (Email: [email protected]) had booked three tickets from Chennai to Coimbatore on 16-07-2010. On 02-09-2010 Paramount informed Mr. Premkumar that the flight was cancelled and he would get the full refund. Till 19-09-2010 he had not received the refund amount and he posted his complaint with ICFon 19-09-2010, following which he got his refund on 22-09-2010. 57. Payout cheque not received from ICICI Pru Life Insurance: ICICI Prudential had issued maturity cheque in favour of Mr. Sat Pal Goyal of Ambala City, Haryana, (Email: [email protected]). However, there was error in the cheque and Mr. Goyal could not present if for clearance. He returned the cheque and requested for re-issuance of cheque with correct details on 06-092010. Inspite of several reminders he did not receive his cheque till 21-09-2010 and he posted a complaint in the Forum. Mr. Goyal received his cheque on 23-09-2010. 58. Refund claim against Paramount Airways: Mr. Kamal Manohar of Chennai([email protected]) had booked a ticket on 22-08-2010 from Madurai to Chennai. The flight was subsequently cancelled and his refund was promised in 3 days time. Not receiving the refun Mr. Manohar posted his complaint with ICF and got his refund by 28-09-2010. 59. Complaing against Go Ibibo for refund: Mr. Rohit Agarwal of Kolkata (Email: [email protected]) had posted his complaint on 27-09-2010 for non-receipt of refund from Go Ibibo for failed air ticket booking transaction on 07-09-2010. He finally got his refund on 29-09-2010. 60. Refund complaint against Travelchacha.com: Mr. Kunal Arora of Delhi had booked his ticket through Travelchacha.com 08-08-2010 for journey from Bangalore to Delhi. He however did not get his ticket. Travelchacha.com confirmed the booking and assured that ticket would be delivered soon. However, on 18-08-2010 Travelchacha informed that his booking was not successful and his money would be refunded in two days time. However, till 25-09-2010 he did not get his refund inspite of repeated mails and calls. He posted his complaint with ICF on 25-09-2010 and finally received his refund on 06-09-2010. Credit Cards In India :- How To Get It & Which Is Better ? Requirements for getting Credit Cards

A Bank Account:- The very basic requirement. You must have a bank account with the bank. Most of the banks wont give you credit card if your account is less than 3 months old. Salary Slip:- This is required if you are a salaried person. The credit limit will depend on your salary which can be increased later by requesting via customer care phone number for most of the bank. I found SBI increases it automatically every 6 months if you have some good number of transactions. Income Tax Return Receipt(ITR):- This is required if you are a self-employed person. ICICI Bank Credit Cards ICICI offers various types of Credit Cards both VISA and MasterCards powered. At present, they do not offer Credit Cards based on Salary Slip or Tax returns to their customers in Kerala. They offer this only in select cities such as Bangalore. But luckily, you will be able to get ICICI Credit Cards against Fixed Deposit(FD), that is called Instant Credit Cards. As the name suggests, it is an instant credit card with the name INSTANT CREDIT CARD embossed on it. To get it, you need to have an account with ICICI. Walk into any branch of ICICI with at least Rs.20,000/- and open a Fixed Deposit. Walk out with your Instant Credit Card. The benefit of this instant credit card is the low interest fee. If I remember correctly, the interest rate is 2.49% per month which is quite lower than other credit cards based on Salary Slip or Tax Return ( which ranges anywhere from 3% to 4% ). Instant card has 3 flavors, Gold/Platinum/Titanium Credit Card. Note that you will be getting 9.25% interest for your Fixed Deposit. The card comes with 85% of the Fixed Deposit account as credit limit. More over, when you spend Rs.100 using this card, you will be getting 3 reward points which can be redeemed at www.payback.in for stuffs like computer, mobile, camera accessories and petrol card( this is my favorite). ICICI has tie up with PayBack, and PayBack has tie up with a lot other shops such as Big Bazaar. So you also will be able to redeem these points at Big Bazaar and get some items free of charge. You cant cancel the FD without cancelling the credit card first. For cancelling credit cards, you must clear all the dues in it. Thats the catch in this Credit Card against FD System. I must say, bank is quite safe in this case as they dont have or have minimal risk of repayment issues from customers. ICICI Bank has award winning internet banking facility, using which you will be able to see the transactions online and pay the due amount instantly. You can also set auto-debit facility so that your ICICI Account will be debited at the end of due date to avoid late payment fees. Edit:- I was informed by ICICI Bank that we can get a new credit card instead of the card in which INSTANT CREDIT CARD as the name printed on it, with our name printed on it by applying for a duplicate card which will cost you Rs.100 + service tax ( Rs.110.30 Total ). So if you need your name printed on it, just go for it. SBI Credit Cards:- SBI offered credit cards based on Salary Slip or Income Tax upto a few years back. But they do not offer it right now. However, you will be able to get a credit card against Fixed Deposit of minimum Rs.20,000/- with 70 or 75% credit limit. It is VISA powered. This card is not an instant card, and will take 7-14 days to deliver it. You will see your name printed on it. As a SBI Card user for the past two years, I find it quite expensive to keep as their charges are high. SBI also offers reward points. 1 Point for every Rs.100 spent. This point can be redeemed at www.sbicard.com website. They only have few items on their website for buying with the points. SBI has internet banking facility, using which you will be able to see the transactions online and pay the due amount online from any other banks, as they use BillDek gatway. The repayment is not instant, and you will have to wait 2-3 days for the paid amount to get credited in your credit card. Credit Cards : Overview Credit card is a very convenient option to make payments for goods and services that you may require on a day to day basis. Most shop keepers or service providers will not charge anything extra just because paid by credit card and not in cash. What's more the credit card company will give you a free credit period after which you have to pay off the full amount. Free credit period is not available on cash withdrawals and interest on such cash withdrawals start from the day of withdrawal till payment date.

Off course this financial magic is explained by the fact that most shoppers shop for higher amounts when they pay by credit card than if they were paying in cash. The magic works for you only if you make full payment of the entire 100% amount due on the credit card on the due dates. Almost all credit cards allow you to pay 5-10% of the amount due as minimum payment and make the balance payment later. This is called rollover facility. But this rollover facility comes at a steep interest cost that can be as high as 55% p.a. Also if you choose to use the rollover facility the free credit period granted to you is withdrawn and you will need to pay interest from the day on which each payment was incurred.

What is a Credit Card? A credit card is a plastic card issued by a bank or a financial instituion to its customer entitling the customer to buy goods and services on the card and pay for them later by a specified date.

Some factors you can keep in mind while taking a card There is nothing called as the best credit card in india but you can certainly choose the best credit card for yourself by comparing cards based on the following parameters. 1. Joining fees: It had become history a few years back but has made a comeback since 2009. Many cards are still available without any joining fee however so compare this before you buy. 2. Annual Fees: This is the annual charge on the credit card. When you get a free credit card offer in most case it means the Joining fees and the first year's annual fee is waived and you will ned to pay the annual fees from the second year onwards. Understand this offer before accepting it to avoid any issues later. 3. Reward points encashable at your favourite store or service provider: If you are a frequent user of an airline or a store chain then look for a co-branded card from them since that will not only give you better reward points when you buy from that particular service provider/store chain but also give you reward points on your other spends 4. Interest Rate on rollovers/cash withdrawals: If you need to look at this you are taking the credit card for the right reasons. Credit cards are not a good option for taking credit except for very short durations of time. 5. Eligibility for the card: if you are planning to apply for a credit card for the first time then which card you will be eligible for is perhaps more important than the specific features of the credit card. Any promise made by the DSA or even an official of the credit card issuer has no value unless it is in writing or at least on email. So if you are basing your decision on any such promise make sure you get it in record in some form. Do not sign blank application forms or documents and keep a copy of all documents submitted to the credit card issuer for your future reference. Get your credit report Apply online on CIBIL website and follow the instruction given there to get a copy of your own and your guarantors credit report. Check your credit report thoroughly to spot errors and follow the advise given here (cross link) to get any errors corrected. Remember any errors in your credit report can reduce your chances of getting a credit card.