Credit Card Overpayment

To avoid paying for interest, some overly cautious individuals actually opt for credit card overpayment.
 
    
There are some credit card companies who send the overpaid amount back as a check or as a credit on your card. Others ignore this and will even charge an overpayment fee. So, before overpaying, make sure to check your credit card contract and review what it says about credit card overpayment. It’s not something you can do to secure your credit and maintain a good credit rating. It’s something you need to do with caution lest you want the overpaid amount to go to nothing. When you’ve done an overpayment, don’t rely on them informing you, call them and tell them about your overpayment and ask about options they may have for you. This process is simple for individual accounts. However, shared credit card accounts may face difficulties. Some credit card companies require both parties to be present or to communicate with for a credit card overpayment to be processed. Some credit card companies may take up to 60 days to process credit card overpayment. If they do agree to send a check or add it to your credit balance, you can use the amount to pay other bills like utilities. Getting everything straightened out will take a number of calls and hours of being on hold. The best option is still avoiding credit card overpayment.

If a credit card company does not give any options, you can file a complaint at the Federal Trade Commission through their website www.ftc.gov/credit. This independent agency provides protection to consumers against all unfair economic and financial practices of companies. It houses the most educational articles for consumers and provides all the necessary information for them to know their rights and responsibilities as credit card holders.

To avoid entangling yourself with the hassles of credit card overpayment, here are a few tricks that you can do. First, payoff your credit card bill in full, without balances and overpayments. Second, pay your bills on time. Online automatic payment is a good option for this. For those working with checks, allow at least a six-day period for the check to be received and you to be noted. Third, keep all your receipts and a written record of your payments and budget allocation.

There are also those people who are not aware of any credit card overpayment they may have done. So, it is smarter to check your credit account online to see all the transactions you’ve been doing for previous billing cycles. Once you see any errors, call your credit card company immediately.


  

Source: Credit Cards For People With Bad Credit Rating


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