subject: Know Your Rights as a Credit Card Owner [print this page] Know Your Rights as a Credit Card Owner Know Your Rights as a Credit Card Owner
Credit cards are useful. They serve as a substitute for cash and therefore, can be used in paying important bills and other household and even school needs.
Not everybody, though, can own a credit card. There are eligibility requirements that banks and other providers follow during the credit card application process. You have to be at least 18 years old, employed and must meet a certain wage level in order to be eligible.
In the U.K., there are currently 30 million cardholders. Unfortunately, not all are able to manage their credit cards properly. According to reports, at least 9 million borrowers are facing debt for failing to pay off their monthly dues. These people are contented paying only the minimum amount due each month unaware that they're slowly accumulating debt. Financial experts warn that doing this only lets you pay the interest charges on your balance and will take you several years more to pay off your bill.
Some consumers initially feel happy for successfully getting the best credit cards any person could own. But even with the best credit card, you can still fall into debt if you don't know how to control your spending.
Britons often rely on the plastic to help them during emergencies. Research has also found that with savings alone, millions of people in the U.K. won't be able to survive. The study revealed that 15 million Britons who have less than 249 sterling pounds of savings will have difficulty making both ends meet from one weekend to the next.
But there's hope and one way to deal with your credit card issues is to know your rights. As a cardholder, you have the right to control your credit limit. This means you can request your bank or provider not to increase the limit or lower the limit when necessary at any time.
You also have the right to reject certain aspects of the card. This can be applied when your credit limit has been increased and you do not agree with it. Or when you've been informed of an interest rate increase and you are not amenable in which case you can transfer to a new provider.
In terms of information, you are entitled to be informed of any changes in your credit limit and interest rates and the consequences of paying only the minimum amount every month. And as you are provided with an annual statement, you can freely compare credit cards with the different providers other than your own.
