Having fraudulent charges on your credit card account can be nerve-racking, so it’s understandable why you’d want them removed as quickly as possible. Before we get into the timetables – both legal and practical – for this to occur, it’s important to note that The Fair Credit Billing Act limits your liability for unauthorized credit card charges to $50 and all major credit card companies have voluntarily extended $0 liability guarantees. This means that you will not be held responsible for purchases that you did not make if you report them promptly.

In most cases, a simple phone call to your creditor will be sufficient and you should expect the entire process to be resolved within a couple of weeks. However, if you want legal protection under the aforementioned Fair Credit Billing Act, there is a formal fraud reporting process that you are required to follow.

While often maligned as conduits to debt and overleveraging, credit cards truly are quite useful. Whether it’s building the credit history necessary to convince a bank you are trustworthy enough to merit a loan or effectively lowering the price of all your purchases through rewards, a credit card has the potential to improve all aspects of your finances.

What’s more, the credit card industry is perhaps as fundamentally strong as it’s ever been. The bait-and-switch tactics that pervaded before the Great Recession are no more. Gone as well is the once-widespread lack of transparency from issuers. In their place is the Credit Card Act of 2009, which has expanded and strengthened the consumer credit card bill of rights and fostered a what-you-see-is-what-you-get system for credit card offers.

The Card Hub Island Approach is a theory for credit card use which suggests that consumers should use different credit cards to meet each one of their specific financial needs. This approach is built upon the idea of compartmentalization and suggests that by secluding different expenses and types of payments, almost as if they are on their own islands, consumers can address them in the most cost-effective, strategic manner possible. As a result, they will be able to minimize interest costs, gain increased financial control, build discipline and maximize their credit card rewards.

The Card Hub Island Approach applies to every type of consumer, but its logic and value can be seen most clearly by separating people into two broad groups: those with revolving credit card debt and those who pay all their credit card bills in full every month.

Credit cards can be tricky, and as is the case with anything else, people make mistakes when using them. The trick is to learn from these mistakes and avoid making them again. In order to help facilitate this and to help you learn from the missteps of others, we compiled this list of the most common credit card mistakes. So read up and be on your way to sturdier financial footing.

Mistake:  Being unaware of foreign transaction fees
Why:  Credit card companies often charge fees of 2-3% for each purchase you make in another country. While these fees can lead to high costs, they can be avoided if you open a no foreign transaction fee credit card before traveling.

When buying an automobile, you are faced with a couple of different payment options. You can either pay for it in full or take out a loan from a bank, a credit union or the financing arm of a car dealership. Since most of us don’t have the means to purchase a car or motorcycle in cash, we are left with financing. While a loan will allow you to drive off the lot, you will not officially own your vehicle until you successfully pay down your balance. As a result, you will not be given the title, or pink slip, to the vehicle until your loan is paid down. Until that time, your lender will be the title holder for your vehicle because it serves as collateral against the amount lent.

An increasingly common tactic is for consumers who have paid down a significant portion of their auto loans to transfer the remaining balances to 0% balance transfer credit cards. A balance transfer is essentially when a credit card company pays down the debt you hold with another lender and assumes this amount itself. When you complete such a transaction, you become the title holder on your vehicle because the balance on your loan is zero as far as your auto loan lender is concerned and credit card debt is unsecured. Therefore, not only can a balance transfer lower your interest rates, but it will also transfer ownership of a vehicle into your name and negate the risk of repossession should you run into trouble making your payments.

People often wonder how they can get a higher credit limit.  This is a great question, but one must be asking it for the right reasons.

If you want additional credit because you are using all that you currently have and want the ability to spend even more, you have a flawed approach to credit card use.  You must understand that using most or all of your available credit is bad for your credit score because of something called credit utilization.  Credit utilization is a balance-to-available credit ratio that FICO—the largest credit scoring agency in the United States—determines for each of your individual credit cards as well as for all of your cards in combination and includes in the calculation of your credit score.  Having high credit utilization will bring down your credit score, thus your spending should be well below your credit limits.

Though credit card delinquency rates have begun to fall after reaching a peak during what we now refer to as The Great Recession, there are still millions of Americans struggling to get out of delinquency.  Because many of these people are fighting credit card payments, it’s key to understand how delinquency works–and it’s not as straightforward as it might seem on the surface.

Whether or not making a payment is sensible depends upon how credit card companies actually determine delinquency.  For example, suppose the minimum payment is $50 and the credit card holder can only pay $25. It won’t help to pay less than the minimum payment because the credit card holder will still be considered delinquent and will still have to pay late fees.  Therefore, one must pay the minimum payment in full to avoid delinquency.  In this particular case,  the card holder’s best bet would be to set aside the $25 and make the payment when he can pay the $50 in full. That will help to minimize a fall down the slippery slope of delinquency.

If you choose to activate this card, the annual fee is basically like a purchase of an equivalent amount charged on the card; you must pay this balance in full if you want to avoid incurring interest. If you can’t afford to pay the total amount, pay the minimum required (typically 3% or $15, whichever is higher) so as not to be charged late fees, though the remaining balance will accumulate interest.

If you choose not to activate the card, call your provider and tell them that you have not activated the credit card and want to close your account. They may still try to make you pay the annual fee, but make it clear to them that you are not liable for any fees because you are closing your account before actually activating the card.

Your credit limit depends on your overall credit risk. Credit card companies do not want to allow you to charge a great deal on a credit card unless they are fairly sure you will pay it back responsibly. Believe it or not, they probably do not want to have to deal with collections and lawsuits either. There are a number of factors which contribute to your overall credit risk, such as your credit score and your income relative to your debt. Your credit score is essential because a credit card company can be confident in increasing a credit limit if you have proven capable of paying lower limits. Likewise, card companies want to see that you income can support your existing debt and credit lines before granting you additional credit.

A good way for you to build your credit history if you are new to credit is to apply for a secured credit card. A secured credit card works just like a regular credit card with one major difference: a secured card requires a security deposit and your credit limit matches the amount of the deposit you put down. Since your credit line is tied to your deposit amount, a secured credit card will help you build credit history with low risk to both you and your lender – and your approval is guaranteed.

If you’re new to credit, it’s going to be difficult for you to get a regular credit card because you have no history to indicate to lenders that you are a trustworthy candidate for credit. You can prove it to them by getting a secured credit card in which your deposit acts as collateral against your credit limit. Once you have shown you can manage a secured credit card responsibly for about a year, it is likely that your credit card company will offer you a chance to apply for a regular credit card. People who are likely to have no or limited credit history include college students, recent divorcés or widows (whose credit history was in their spouse’s name), or people who have recently immigrated to this country.

The first thing you need to do to move from a secured credit card to an unsecured credit card is use your secured credit card responsibly. Keep your balance low (well below your credit limit), make your payments on time, and pay off your balance in full as often as possible. If you can do these things consistently, most credit card issuers will qualify you for an unsecured credit card after about one year.

After you’ve proved your reliability, there are three likely scenarios for making the transition from a secured credit card to an unsecured credit card. The first is that you close your secured credit card account completely after being approved for a new unsecured card. As long as you close your account in good standing and carry zero balance on the card, your entire security deposit will be returned to you. Generally your credit card company will send your money in the form of a check.

There will be several.  2010 will usher in the end of  “gotcha” rate hikes, which for so long have surprised consumers.  This and other changes, that are the result of the CARD Act, will cause the negative sentiment most consumers and Congress have towards the credit card industry to dissipate considerably, but it will be close to the end of the year before we see that happen.
Additionally, credit card companies will begin to compete with each other for customers again in 2010.  Competition in the market has been frozen because, due to record high default rates, the focus for issuers has been on loss prevention.  This will continue into 2010, but consumer credit will begin to become more readily available.

Lastly, and again due to the CARD Act, secured credit cards will make a comeback in 2010.  This is because under the CARD Act, consumers under 21 who want to apply for a credit card will either have to show proof of income or obtain a cosigner in order to be eligible for an account.  If neither of these options are achievable, secured cards will become the only option for consumers between the ages of 18-21 who are in the market for credit.

Credit card companies report you as being delinquent to the three major bureaus after you have been late on your payment for 30 days or more.  In your case, you have been late for 67 days, so your credit score will already have been affected.  Your credit card issuer reports to the three major credit bureaus every 30 days, so it is very important that you make a payment immediately to avoid being reported as 90 days delinquent, at which point your credit score will take another hit.  The effect that your late status will have on your credit score will be marginal and can be repaired if you practice responsible behavior for the next 12 months.
However, you should check your next credit card statement carefully or call your credit card company now, because your interest rate may have very well gone up (perhaps considerably) due to your late status.  Being this late on your credit card payment could have a costly effect on your wallet, depending on if or how much your interest rate has increased.  If it has skyrocketed, you should try to pay your balance off in full.  If you can’t do that, you may want to consider a balance transfer.

There are no credit cards that you can apply for with a co-signer.  All credit card offers, terms and interest rates are based on the credit history of the individual.  Credit cards are not like auto loans or home loans, in which co-signers are allowed.  If you are unable to get an unsecured line of credit without a cosigner, you should apply for a secured credit card where a security deposit serves as collateral against your loan in the place of a co-signer.
On the other hand, if by co-signer you mean authorized user, then yes, this is something that you can do with a credit card.  An authorized user on a credit card is someone who has access to usage on the account, but is not responsible for the bill.  The primary account holder is fully responsible for the bill. However, the activity on the card will show up on the authorized user’s credit report.

You can pay back the cash advance you take against your credit limit over time, just as you would any other purchase you make with your credit card.  Any cash advance you take will be added to your existing balance.  However, this is a very expensive way to borrow money, unless you plan to pay it back immediately.
This is because there is almost always a high fee associated with cash advances on credit cards, and your credit card company will begin assessing interest on the cash advance immediately, usually at a rate above 20 percent.  Unless you are sure you can afford the finance charges that are associated with cash advances, you should probably try to find another way to come up with the cash you need.

No.  An expired credit card is just like an expired library card.  You simply get a new one at the time of expiration.  Your credit card issuer should send you a new card in the mail automatically.  If you aren’t sure that this will happen, call to find out at least a few weeks before the expiration date on your card.  Once you get your new card, your credit line, balance, and interest rate should all be the same, unless you’ve been notified separately of changes in those areas.

You should contact your credit card or debit card issuer immediately and report the issue.  By law, consumer liability for debit and credit card charges is limited to $50 when fraud is reported.  However, VISA and MasterCard, who control 100 percent of the U.S. debit card market and the majority of the credit card market, have gone one step further and require that all of their credit card issuers (like Capital One, Chase, Citibank, etc.) adhere to a zero percent liability policy for their customers.  They also require that immediate refunds be granted on disputed charges.  Most other major credit card networks have applied these rules as well.

This means that you should be able to get your money back right away, including over draft fees that were the result of the disputed charge.  If the merchant admits to an error after your bank has investigated the matter, that will certainly make things easier.

You can always use whatever available balance you have on your credit card.  So yes, as long as you make the minimum payment and there is a remaining open balance you can use it.  However, in this situation you are being very risky for two reasons.  First of all, if you have maxed out your 500-dollar line of credit and only paid $50 on the balance, the interest on the remaining $450 will likely put you close to your limit.  This means that in actuality, you would not have $50 left to spend and trying to make a transaction for that amount may result in going over your limit or having your card declined.  Secondly, and most importantly, it’s never a good idea to max out your credit cards unless you plan to pay back a large part or all of the balance right away.  Potential lenders like to see that you are using your credit modestly and that you are not up to your neck in credit card debt across all of your accounts.

Yes.  This is called a balance transfer, and by doing this you can transfer the credit card debt you have on one account to another credit card account with a different issuer.  Essentially the new issuer pays your original credit card company for your debt, bringing the balance on that account to zero.  Your debt then gets transferred onto a credit card account with the new issuer.  Many people transfer their credit card balances when they find a credit card with a more attractive interest rate than the one on which they have currently accumulated debt.   And yes, many credit card issuers also use balance transfer offers as a marketing tool and will extend credit card offers that feature zero percent or very low interest rates on the transferred balance for a period of time, e.g. six months or a year.  Balance transfer offers sometimes include fees, so you should take that into consideration before you go this route.

It depends.  If you don’t use your credit card in a particular month, but have an outstanding balance, then yes, you will need to make a payment on your credit card account.  When you get your statement it will reflect the minimum payment due, which will include the interest assessed on your outstanding balance.  On the other hand, if the balance on your credit card account was zero at the beginning of your billing cycle and then zero at the close, you will not be required to pay anything on your account.  Additionally, even if you don’t use your credit card in a particular month, as long as you are current on your payments, your account will still report to the three major credit bureaus as being in good standing.