Difference between revisions of "Getting a Credit Card"
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{{REVIEWEDPLS | reviewer = [ | {{REVIEWEDPLS | reviewer = [https://www.bcuc.com/ Anna Fung, KC], BC Utilities Commission|date= October 2019}} {{Dial-A-Law TOC|expanded = money}} | ||
We use them all the time — to make purchases, shop online and collect points. But before you get a credit card, learn your rights and how to protect yourself. | |||
==Understand your legal rights== | |||
==What you should know== | |||
===Your rights are set out in a cardholder agreement=== | |||
The deal with a credit card is this: you get to buy things now in exchange for a promise to pay later. Basically, the card issuer is giving you a loan. If you fail to pay the money back by a certain date, you’re charged interest on top of it. The longer you take to pay back what you borrowed, the more it costs you. | |||
The credit card issuer (Visa or Mastercard, for example) allows you to spend up to a certain amount. That’s called your “credit limit.” | |||
== | The important terms of your credit card come in a contract called the '''cardholder agreement'''. You must accept the terms of the cardholder agreement before using the card. | ||
When you buy something with a new credit card, you’re saying you accept the terms of the cardholder agreement. It’s no excuse to say you didn’t read the agreement. Or didn’t understand it. | |||
===You must be given certain information=== | |||
The card issuer must tell you certain things in the credit card application form. This includes: | |||
* the interest rate | |||
* the grace period (the time before interest charges kick in) | |||
* any non-interest charges | |||
With your credit card, you also receive a copy of the cardholder agreement. (The issuer is bound by law to include it.) | |||
The agreement must set out the card’s terms and conditions, including: | |||
* the minimum periodic payment | |||
* the credit limit | |||
* how interest is calculated | |||
* your maximum liability if the card is lost or stolen | |||
===You’ll receive a monthly statement=== | |||
The card issuer must send you a statement every month. You can choose to get it by mail or email. | |||
The monthly statement must contain important information, including: | |||
* the period covered by the statement | |||
* the balance at the beginning of the period | |||
* a description of each charge and transaction during the period | |||
* the balance owing at the end of the period | |||
* the due date for payment | |||
* the amount you have to pay before the grace period ends to avoid interest | |||
==Protect yourself!== | |||
===The steps involved=== | |||
We offer tips to prevent problems. | |||
'''Step 1.''' Keep a record of your account numbers | |||
'''Step 2.''' Don’t lend your card to anyone | |||
'''Step 3.''' Shred credit cards you’re finished with | |||
'''Step 4.''' Guard your credit card number | |||
'''Step 5.''' Check your bills often | |||
'''Step 6.''' Report questionable charges | |||
=== | ===More on each step=== | ||
'''Step 1. Keep a record of your account numbers | |||
'''Find a safe place for your credit card account numbers. Write down the expiration dates on the cards. Keep the toll-free customer service number handy in case you lose your cards. | |||
'''Step 2. Don't lend your card to anyone | |||
Under the | '''Under the law in BC, your liability for a lost or stolen card is limited. That usually means you’re protected. But if you give your card and PIN to someone, you lose this protection. | ||
'''Step 3. Shred credit cards you're finished with | |||
'''Shredding your bank statements when you’ve read them is also a good idea. | |||
'''Step 4. Be careful about giving out your credit card number | |||
'''Don’t give out the number over the phone or online until you’re certain you’re dealing with a reputable company. If the company’s new to you, search for complaints against it online before you buy anything. | |||
'''Step 5. Check your bills often | |||
If | '''Review your credit card bills as soon as you get them. If you use online banking, check your account frequently. | ||
'''Step 6. Report questionable charges | |||
'''If there are any charges on your statement you think might be fraudulent, contact your card issuer right away. They can put a fraud alert on your card and prevent any more charges. | |||
===Go deeper=== | |||
Want to dive deeper into your rights and how to prevent problems with a credit card? [https://www.peopleslawschool.ca/everyday-legal-problems/money-debt/credit-cards/getting-credit-card Check out our in-depth information on this topic]. | |||
If you | ==Helpful agencies== | ||
===If you run into trouble, these agencies may be able to help.=== | |||
:'''Financial Consumer Agency of Canada''' | |||
:Deals with complaints against federally-regulated banks and trust companies. | |||
:Call 1-888-461-3222 | |||
:[https://www.canada.ca/en/financial-consumer-agency Visit website] | |||
:'''Consumer Protection BC''' | |||
:If you don’t think a credit card issuer disclosed the required information. | |||
:Call 1-888-564-9963 | |||
:[https://www.consumerprotectionbc.ca/ Visit website] | |||
== | ===Legal advice=== | ||
A legal professional can help you explore options and decide on your next step. | |||
:'''Lawyer Referral Service''' | |||
:Helps you connect with a lawyer for a complimentary 15-minute consult to see if you want to hire them. | |||
:Call 1-800-663-1919 | |||
:[https://www.accessprobono.ca/our-programs/lawyer-referral-service Visit website] | |||
:'''Access Pro Bono's Free Legal Advice''' | |||
:Volunteer lawyers provide 30 minutes of free legal advice to people with low or modest income. | |||
: | :Call 1-877-762-6664 | ||
:[https://www.accessprobono.ca/get-legal-help Visit website] | |||
:'''People’s Law School''' | |||
:See more options for free or low-cost legal help. | |||
: | :[https://www.peopleslawschool.ca/options-legal-help/?utm_source=beagle Visit website] | ||
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