CreditHelpJournal.com

Are there any caps or limits on what a credit card company can charge me ?

I have been wondering about this, and was hoping someone out there could help my answer this question.

It seems to me that there was a federal limit at one time.

If there is not a cap, I wonder what is the deciding factor for what a credit card company charges, and what would stop them from raising the rate on good payers to 100% per year… especially if the credit card company knew that the client could not afford to just pay the card off… the client would have to pay the interest… sounds pretty scary.

Mandrake

Yes, a credit card company can sue you if you don’t pay your debt.

They can also stop doing business with you and they can also report you to one or all of the credit reporting agencies or credit bureaus.

You do have rights. Here is the direct link to the FTC:
http://www.ftc.gov/bcp/menus/consumer/credit.shtm

Make sure you are aware of your rights as a consumer.

Back to the question of Can a credit card company sue you if you default… its not really important to know if they “CAN” sue you… its more important to know if they are likely to sue you…
As you probably know, in the past, most cases did not go down this route… but, with bankruptcy reform that clearly harms the American Consumer… many more defaults may end up in court. However, not enough time has passed to fully see the results of this harmful law.

You should do your best to pay your debts. Calling the credit card company before its sold to a collection agency is also usually a good idea, since the credit card company historically only got ten cents on the dollar for unsecured (credit card) debt.

If you are getting sued, you should contact an attorney immediately.

ManDrake

If you decide to open various credit cards and apply for home loans, then you will have to go through many processes and fill out many forms in order for the banks to assess how much money you will get and what your interest rates will be.

One of the main factors that will influence the bank’s decision will be your credit score.

Your credit score will show them how reliable you are at paying back money and the higher your credit score, the better you chances are of getting a good loan. “But how do I find my credit score?” you may ask.

Well, there is plenty of information online about how you can find your credit score, find your credit reports, and see exactly how to improve your credit score using charts. These services are also free on many websites for a limited time, and you can check your score every day if you want to.

Other places to find your credit score will be from your financial advisor, or from certain brokers that will help you to find the best loan depending on your current financial situation.

They will use your credit score and try to help you to find and improve your credit score so that you can get a better bond, or car loan. One of the ways that they will do this is by looking at your credit score in great detail from the three major credit reporting agencies, namely Experian, Equifax, and TransUnion.

Different Way To Find Your Credit Score

They all have different ways of finding your credit score and will use slightly different pieces of information, statistics, and formulas to give you a score rating. Where will I find my credit score rating from each of these companies?

You can just look online, or your broker will be authorized to approach these companies directly. They will usually give this information out to banks and credit card companies which will help them to make a final decision as to whether or not to give you a credit card, or loan.

Some companies will still give you credit even if your score is bad, because they want your business, but the rates will be adjusted, and they will out a credit limit on your account which will help you not to overspend, and it will guarantee them that they will get their money every month.

So, there you have it. You can now stop wondering,” How do I find my credit score?” and “How do banks and credit card companies find my credit score?” They use the internet or the three agencies mentioned above. You can find it easily too, so you should do this to improve your credit score.

One of the most common questions I get asked is: “How can I find out my credit score for free ?”

The short answer and the bad news is: You can’t.

The longer answer and the good news is: There are ways to get your credit score for free… sort of.

TIP: Your credit score is different than your credit report.
A credit score is a numerical expression based on a statistical analysis of a person’s credit files, to represent the creditworthiness of that person, which is the perceived likelihood that the person will pay debts in a timely manner. A credit score is primarily based on credit report information, typically sourced from credit bureaus / credit reference agencies.

Here are ways of getting your credit score for free:

• Check your credit card online. Many credit cards via their online account access, will have a section where they will show you your credit score. If you don’t have online access to your credit card information, contact your credit card provider and find out how to get online access.

What is the FACT Act?
The Fair and Accurate Credit Transactions Act (FACT Act) was signed into law in December 2003. The FACT Act, a revision of the Fair Credit Reporting Act, allows consumers to get one free comprehensive disclosure of all of the information in their credit file from each of the three national credit reporting companies once every 12 months through a Central Source.

Is everyone eligible to get their free statutory annual credit file disclosure?
Yes. As of Dec. 1, 2005 all consumers are eligible to request their statutory annual credit file disclosure once every twelve months.

How can I request my free statutory annual credit file disclosure?
The FACT Act required that the national credit reporting companies establish a Central Source through which you will request the statutory free annual credit file disclosures. You may contact the Central Source by visiting www.AnnualCreditReport.com or calling 877 FACTACT. If you prefer to write, a request form is available on www.AnnualCreditReport.com.

How often can I get a free credit file disclosure?
The FACT Act entitles consumers to get one free statutory credit file disclosure from each of the three national credit reporting companies every twelve months.