Whether you use that plastic card to buy a cake of soap or a horse powered Ferrari, you have responsibilities. Credit card holders have a certain responsibility to themselves and to their credit card issuers. Applying for a credit card means that you are entering into a contract with a lender and there are certain expectations from you as a borrower. It is important to know your responsibilities so you do not get into any financial trouble or dispute with your credit card issuers. Some of these responsibilities have been decided by the government regulating agency, Financial Consumer Agency of Canada (FCAC).
Signing the Contract: Before agreeing and signing the contract between the credit card issuer and yourself, you have the responsibility to completely understand the contract, the fees, the interest, etc. You are expected to read through the fine print of the credit card issuer’s Terms & Conditions thoroughly or consult an expert if you are having trouble understanding it. Do not hesitate to contact the credit card issuer for any clarification that you may need.
Paying the Bill: You have a responsibility to pay your credit card bill within the grace period of twenty one days, to avoid any penalty. If you have incurred a penalty it is your responsibility to pay it off.
Financial Irregularities: Every month, you will receive a detailed statement of accounts for all of your financial transactions using the credit card. You are responsible for reading through this statement thoroughly and finding any irregularities. If you do find any irregularities, it is your responsibility to report them as soon as possible to your credit card issuer.
Protecting your Credit Card: You have a responsibility to keep your credit card safe from theft and loss. You are expected not to share your card with anybody, not even family members. You are expected to protect your PIN number and never give it out through the phone or email to any person. You are responsible for keeping a strong password to use your credit card online and to frequently change it so you are protected. Lastly, with increasing fraudulent practices, you are expected to keep watch of your credit cards at all times, so that it is not swiped multiple times or through any other devices than the one required.
Losing Credit Cards: If your credit card is stolen or gets lost, it is your responsibility to inform the credit card issuer as soon as possible. You are also expected to file a complaint with your local police if it has been stolen.
Credit Report and Score: You are expected to be aware of your financial statements in your credit report and your credit score. You are responsible for reviewing your credit report that is maintained by the two credit bureaus, TransUnion Canada and Equifax Canada.
Feedback: As a consumer, you are responsible for helping your fellow consumers in selecting a credit card. You can do this by imparting your experience of the pros and cons of the credit card you are using
