Credit Card Problems
- Credit cards can make it easier to accumulate debt and financial obligations. As no cash is exchanged, you may underestimate the total amount of money you spend on basic expenses, entertainment and other purchases. The debt total can compound rapidly through high interest rates or fees, so it is important to manage card spending to avoid debt-related credit card problems. Consider spending only what you can afford to pay off every billing cycle to avoid interest rate penalties.
- Misplaced, stolen or lost credit cards can result in financial loss. The Fair Credit Billing Act limits personal financial liability to $50 for unauthorized transactions. If you are unable to find your credit card, it is your obligation to contact the card issuer to report the loss. Your card will be deactivated and typically a new card will be issued.
Your account information can also be stolen without the physical loss of the card. Hacked computer systems can cause your credit card number and transaction information to be stolen. Routine reviews of your monthly statements and transactions can minimize credit card problems due to unauthorized use. - Most credit card companies set a spending threshold on each credit card issued. The limit can be set based on your past financial history, income and your overall ability to repay the amount charged. Individuals who spend over their balance limit may be subject to an over-the-limit fee. Delays in transaction processing, other fees, late payments and not tracking the amount placed on the card can result fee assessment.
- Credit card damage can occur to the magnetic strip on your credit card. The strip located on the back of your card is used by processing machines and cash registers to quickly scan the account data needed for purchases. Gouges, scratches and general wear and tear can make the card unusable at gas station pumps and other self-serviced payment locations. Replacement of the credit card is generally needed to correct the problem.
