Dealing with credit cards

There are many benefits to having a credit card. It may offer an extra layer of security when faced with unexpected expenses, and some offer rebates, gas, air miles, and other perks. Most consumers know they should spend wisely, but credit cards often lead to financial hardship and the difficulties that come with a bad credit history. Whether or not you are in the market for a credit card, our tips can help you protect your financial future.

  1. Comparison shop for a better deal. Comparing cards can be can be difficult, given the many, many fees, introductory offers, varying APRs, and credit limits available to you. NerdWallet has a useful tool that will compare over 1,000 credit offers, based on your individual circumstance.1  You can also print out a checklist to do a side-by-side comparison of credit card offers. 
  2. When shopping around, beware of secured credit cards. They may be the only option for those with bad credit, but the arrangement is like lending money to yourself. The opportunity to lend money to yourself comes with an APR and fees for membership, late payments, and/or over-limit charges.2
  3. Challenge fees. The CARD Act of 2009 prohibits companies from charging more than 25% of the credit limit during the first year. For example: if your credit limit is $300, the company many not charge more than $75 in fees. You may also be able to negotiate the reduction or forgiveness of exorbitant fees, e.g. a $25 late payment fee on a $20 balance, by calling customer service and asking to speak with a supervisor.
  4. Watch for changes to your existing accounts. The CARD Act of 2009 also requires credit companies to send notice of changes to accounts 45 days in advance. If you don't like the changes, call customer service to find out about your options.
  5. Avoid fraud. You may read more on the identity theft tip sheet, but there are a few basic ways to protect yourself from identity thieves. Keep your credit card in sight when you use it, and try avoid situations in which the seller might walk off with it, e.g. restaurant servers. Immediately call the toll-free, 24-hour service line for your credit company when you realize that your card has been lost or stolen. After you report it, you will have no liability for charges that you did not make.3
  6. Consider opting out of pre-screened credit offers. Pre-screened credit card offers can easily be stolen from your mail or your trash, giving identity thieves the opportunity to ruin your financial life. Opting out is a smart way for you to protect yourself without spending time sorting and shredding your mail. To opt out for five years, call 1-888-5-OPT-OUT (1-888-567-8688) or go to www.optoutprescreen.com.4  To opt out permanently, you must do so by mail. The optoutprescreen.com website has a form that you may print and mail to the address indicated. You may also send requests to each of the credit reporting bureaus, making sure to include your home telephone number, name, Social Security number, and date of birth. Mail requests to opt out permanently must be sent to each of the address below:

Experian
Opt Out
P.O. Box 919
Allen, TX 75013

TransUnion
Name Removal Option 
P.O. Box 505 
Woodlyn, PA 19094 

Equifax, Inc.
Options
P.O. Box 740123
Atlanta, GA 30374-0123

Innovis Consumer Assistance
P.O. Box 495
Pittsburgh, PA 15230-0495

Sources:

  1. http://www.nerdwallet.com/credit-cards/
  2. Counsumerist: http://consumerist.com/2010/05/12/rent-to-own-is-loansharking/ 
  3. http://www.consumer.ftc.gov/articles/0216-protecting-against-credit-card-fraud 
  4. FTC information on opt out: http://www.consumer.ftc.gov/articles/0148-prescreened-credit-and-insurance-offers 

Issue updates

Blog Post | Consumer Protection

CFPB receives over 2,500 junk fee comments | Ed Mierzwinski

In response to a tidal wave of unfair marketplace practices, the CFPB asked the public to submit comments on the impact of junk fees on their lives. Some 2,500 comments later, consumers have described the pain points caused by unfair junk fees.

Cover graphic courtesy Student Borrower Protection Center, used by permission

> Keep Reading
Report | CoPIRG Foundation and U.S. PIRG Education Fund | Consumer Protection

Not First Class: Flyer complaints soar as airlines cancel flights, deny refunds, ruin plans

We looked at the data around more than 200,000 complaints against the airline industry and the data around flight departures and arrivals starting in January 2016. This analysis should help consumers to take as much as possible into account when deciding where to fly and through which airline.

> Keep Reading
News Release | CoPIRG Foundation and U.S. PIRG Education Fund | Consumer Protection

Report: Airlines’ refund policies, scheduling problems irk flyers

When the COVID-19 pandemic turned life upside down in early 2020 and commercial flights came to a near-halt, the U.S. government gave the airline industry $50 billion to save jobs and keep the industry afloat. Since then, despite surviving because of their customers’ tax dollars, the airlines repeatedly have canceled and delayed flights, denied refunds and failed at customer service, according to complaints filed with the U.S. Department of Transportation (DOT). Not First Class: Flyer complaints soar as airlines cancel flights, deny refunds, ruin plans, a new report released Thursday by CoPIRG Foundation analyzes more than 200,000 DOT complaints going back to 2016. 

> Keep Reading
Blog Post | Consumer Protection

How I got my finances in order | Mike Litt

Even with the knowledge I’ve gained working as a consumer advocate for several years, getting my finances in order has been a work in progress. 

> Keep Reading

Pages

News Release | CoPIRG Foundation and U.S. PIRG Education Fund | Consumer Protection

Report: Airlines’ refund policies, scheduling problems irk flyers

When the COVID-19 pandemic turned life upside down in early 2020 and commercial flights came to a near-halt, the U.S. government gave the airline industry $50 billion to save jobs and keep the industry afloat. Since then, despite surviving because of their customers’ tax dollars, the airlines repeatedly have canceled and delayed flights, denied refunds and failed at customer service, according to complaints filed with the U.S. Department of Transportation (DOT). Not First Class: Flyer complaints soar as airlines cancel flights, deny refunds, ruin plans, a new report released Thursday by CoPIRG Foundation analyzes more than 200,000 DOT complaints going back to 2016. 

> Keep Reading
News Release | CoPIRG | Consumer Protection

After decades of saving ratepayers money, Colorado’s utility watchdog has a new name and expanded responsibilities

After 37 years of critical watchdog work that has resulted in nearly $2 billion in savings for utility ratepayers, the Office of Consumer Counsel will be the Office of the Utility Consumer Advocate (UCA) moving forward. Reauthorized by the Colorado General Assembly this year for another seven years and with modernized responsibilities and additional resources and staffing, the UCA has new momentum to advocate for affordably-priced, safe and reliable utility service. 

> Keep Reading
News Release | US PIRG | Consumer Tips, Consumer Protection

Back to school: financial literacy tips for college students, teens

During this time of year, families are thinking about the children going back to school, and for parents who are sending their kids to college, it can be a bit overwhelming. A key to addressing those concerns is making sure their teens are prepared for “adulting” -- in other words, taking care of their own lives.

> Keep Reading

Statement: Johnson & Johnson recalls sunscreen products after tests detect carcinogens

Johnson & Johnson Consumer Inc. said Wednesday it’s voluntarily recalling all lots of five types of Neutrogena and Aveeno aerosol sunscreen after internal testing showed “low levels of benzene” -- which can cause cancer -- in some samples. J&J also said consumers should stop using the sunscreen.

> Keep Reading

Pages

Report | CoPIRG Foundation and U.S. PIRG Education Fund | Consumer Protection

Not First Class: Flyer complaints soar as airlines cancel flights, deny refunds, ruin plans

We looked at the data around more than 200,000 complaints against the airline industry and the data around flight departures and arrivals starting in January 2016. This analysis should help consumers to take as much as possible into account when deciding where to fly and through which airline.

> Keep Reading
Report | CoPIRG | Consumer Protection

Data from the Denver Office of Financial Empowerment and Protection

Data provided by the Denver Office of Financial Empowerment and Protection shows that thousands of people were helped in 2020.

> Keep Reading
Report | CoPIRG Foundation and U.S. PIRG Education Fund | Consumer Protection

What Coloradans Are Fixing 2021

Here in Colorado, we want to fix our stuff – even during the COVID-19 pandemic. According to a review of data from iFixit, which describes itself as the “repair guide for everything, written by everyone,” over 1 million unique users from Colorado went to www.iFixit.com to look up how to repair something in 2020. Even as repairing our devices for learning and working became critical to staying safe, 6 of the top 10 most popular manufacturers of devices that Coloradans were trying to fix restrict access to parts and service information

> Keep Reading
Report | CoPIRG Foundation, U.S. PIRG Education Fund, Frontier Group | Consumer Protection

Consumers in Peril

A review of the Consumer Financial Protection Bureau’s public complaint database finds that consumer complaints about financial grievances spiked during the pandemic year of 2020, eclipsing 2019, the previous record year. Analysis of complaint volumes and the types of complaints received shows that, as consumers dealt with the economic fallout of the pandemic, they increasingly faced  problems with financial companies.

> Keep Reading
Report | CoPIRG Foundation | Consumer Protection

Trouble in Toyland

Toys are safer than ever before, thanks to decades of work by product safety advocates, parents, the leadership of Congress, state legislatures, and the Consumer Product Safety Commission (CPSC).  Despite this progress, our survey of 40 toys this year found 15 toys with issues including toys with high concentrations of unsafe chemicals and with potential choking hazards. With hundreds of new toys hitting the market every year, our survey of only 40 toys suggests there may be other potentially dangerous toys slipping through existing protections or worthy of further investigation.

> Keep Reading

Pages

Blog Post | Consumer Protection

CFPB receives over 2,500 junk fee comments | Ed Mierzwinski

In response to a tidal wave of unfair marketplace practices, the CFPB asked the public to submit comments on the impact of junk fees on their lives. Some 2,500 comments later, consumers have described the pain points caused by unfair junk fees.

Cover graphic courtesy Student Borrower Protection Center, used by permission

> Keep Reading
Blog Post | Consumer Protection

How I got my finances in order | Mike Litt

Even with the knowledge I’ve gained working as a consumer advocate for several years, getting my finances in order has been a work in progress. 

> Keep Reading
Blog Post | Consumer Protection

How I started my estate and end-of-life planning | Mike Litt

Until recently, I did not have estate and end-of-life planning in mind, but it was the natural next step in my quest to be a responsible adult, with a nudge from the existential threat of the COVID-19 pandemic.

> Keep Reading
Blog Post | Consumer Protection

Resources I used to prepare my advance directive | Mike Litt

Advance directives are legal instructions that include a living will (different from a regular will) and a health care proxy. In them, you state what treatments you do or don’t want at the end of your life and who you want making health care decisions for you if you can’t. 

> Keep Reading
Blog Post | Consumer Protection

What I decided to do after shopping for long-term care insurance | Mike Litt

Before listening to In Case You Get Hit By a Bus, I didn’t know about insurance that covers the costs of long-term care, such as home health care or nursing home care, for people who need assistance with daily living activities. 

> Keep Reading

Pages

Blog Post

In response to a tidal wave of unfair marketplace practices, the CFPB asked the public to submit comments on the impact of junk fees on their lives. Some 2,500 comments later, consumers have described the pain points caused by unfair junk fees.

Cover graphic courtesy Student Borrower Protection Center, used by permission

News Release | CoPIRG Foundation and U.S. PIRG Education Fund

When the COVID-19 pandemic turned life upside down in early 2020 and commercial flights came to a near-halt, the U.S. government gave the airline industry $50 billion to save jobs and keep the industry afloat. Since then, despite surviving because of their customers’ tax dollars, the airlines repeatedly have canceled and delayed flights, denied refunds and failed at customer service, according to complaints filed with the U.S. Department of Transportation (DOT). Not First Class: Flyer complaints soar as airlines cancel flights, deny refunds, ruin plans, a new report released Thursday by CoPIRG Foundation analyzes more than 200,000 DOT complaints going back to 2016. 

Report | CoPIRG Foundation and U.S. PIRG Education Fund

We looked at the data around more than 200,000 complaints against the airline industry and the data around flight departures and arrivals starting in January 2016. This analysis should help consumers to take as much as possible into account when deciding where to fly and through which airline.

Blog Post

Even with the knowledge I’ve gained working as a consumer advocate for several years, getting my finances in order has been a work in progress. 

View AllRSS Feed

Support us

Your tax-deductible donation supports CoPIRG Foundation's work to educate the public on the issues that matter, especially when powerful special interests are blocking progress.

Learn More

You can also support CoPIRG Foundation’s work through bequests, contributions from life insurance or retirement plans, securities contributions and vehicle donations. 




CoPIRG Foundation is part of The Public Interest Network, which operates and supports organizations committed to a shared vision of a better world and a strategic approach to social change.