Questions & Answers
Jobs
Q. I want to make some money this summer but I don’t have transportation. I saw an ad to
“repackage and reship” stuff from my home. The money sounds too good to be true – is it?
A. This scam not only takes your money but could also land you in jail.
Usually, the merchandise was never paid for OR it was paid for using a stolen credit card. Now, you’ve handled stolen
goods and you may be liable for the cost of goods purchased online with stolen credit cards.
For more info, check out: Job Scams
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Credit
Q. I’m getting credit card offers all over the place! How do I choose which one is best for me?
A. Apply for one that best suits your finances and purchases. Find out: how much interest will be
charged on unpaid balances; if there’s an annual fee; other fees. For more info, check out: Credit
Q. What’s the difference between a cash card, debit card, and credit card?
A. A cash card lets you make deposits, withdraw cash, and electronically transfer funds from
one account to another at an ATM. A debit card is a cash card and checkbook in one. Debit cards work as a cash card at ATMs and you
can also make purchases at millions of businesses that accept major credit cards. The purchase is automatically deducted from your checking account so
remember to save your receipt and record the transaction in your check register to maintain an accurate balance. A credit card is a loan you
take out for the amount of the purchase that you can repay all at once or over time through monthly payments. If you make payments, you will be
charged a fee (interest) each month you carry a balance.
Q. My credit card bill is always due a few days after I get paid so I’m usually late with my payment
BUT, I always pay it off in full. Will this affect my credit score?
A. Yes! Each time you make a late payment, it is reported to the credit bureau and will lower your
credit score. Contact your credit card company to see if you can change your due date.
Q. What’s the big deal about applying for loads of credit cards? I got a 10%
discount on my purchases just for signing up!
A. Every time you sign up for credit, a mark is placed on your credit report. While one mark is not
bad, if you get six or more marks in a six-month period, you will actually lower your credit score!
Q. How long will bad credit stay on my credit report?
A. It will stay on for up to seven years, bankruptcy stays on for up to ten years and some
student loans stay forever.
Q. With no credit, how do I get a car loan?
A. You may be able to get a secured loan by offering some kind of collateral.
Collateral is property the lender has a right to take if you don’t repay the loan and has to be worth at least as much as the amount
you are borrowing. You can also ask someone to cosign for you. This means that, if you don’t pay back your loan, the cosigner
guarantees to pay it back for you. Be aware that if you are late or miss paying, you’ll not only ruin your own credit but also
your cosigner’s because it goes on their credit report, too.
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Cars
Q.
I bought a used car two weeks ago and the salesman told me if I had any problems with it in the next 30 days, they would fix it for free.
Now it has transmission problems and the salesman suddenly developed amnesia. I checked my contract and it says I bought the car
“As Is” – does this mean I’m stuck paying for the repairs?
A. Unfortunately, yes. “As Is” means that the seller makes no
promises to fix the item later and verbal guarantees do not have to be honored. If you want warranty protection, make
sure the seller puts repair promises In Writing. For more info, check out: Car Buying
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Travel
Q. I took a Spring Break charter trip to Cancun and mechanical problems delayed my flight
home for 36 hours. I missed my connection and had to buy another ticket to get home in time for school. Since it wasn’t my fault I missed my
flight, shouldn’t the charter company reimburse me for the ticket I had to buy?
A. The Department of Transportation allows a charter flight to be delayed up to 48 hours
if mechanical difficulties occur. The tour operator is not obligated to provide alternate transportation or compensate you for your expenses
if a delay occurs. For more info, check out: Travel Scams
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Renting
Q.My roommate and I had a big fight and he threatened to hurt me. We have a one-year lease and
have only lived here for five months. Can I break our lease if my roommate gets violent and I have to move out?
A. No, you can’t "break" a lease or terminate it early unless the lease says you can.
You and your roommate agreed to pay rent for a year and you’re both responsible for the full amount. BUT, if you do pay, you may
have some legal recourse against your roommate – talk to a lawyer about your rights. For more info, check out: Renting
with Roommates
Q.I just moved into my own apartment but don’t have much money for furniture and no credit.
Are Rent to Own stores a good way to furnish my new place?
A. NO! While they may be convenient, you are paying at least twice as much for the item
as you would in a regular store, the item may be used AND, if you miss a payment, you could lose the item and all the money you’ve paid.
It’s cheaper to pay yourself the money you’d be paying the store and in half the time you’ll be able to buy that item free and clear.
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Scholarship
Q.I got a letter saying, “You are a FINALIST to win a national scholarship!” I don’t
remember entering any contests and they want me to send them a fee to secure my FREE money. Is this legit?
A. Probably
not. If someone says you've won a prize and you don't
remember entering the contest or submitting an application,
be suspicious – especially if they want you to send money.
For more info, check out: Scholarship
Scams
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Shopping
Q.I bought this really cool leather jacket online and shipment was
promised in two weeks. It’s been six weeks and I still haven’t heard from the company and my jacket hasn’t arrived. At this point,
I don’t even want it anymore – am I entitled to get my money back?
A. Yes, you can cancel most orders and get a complete refund if you didn’t
get delivery in the time promised. Also, unless otherwise stated, merchandise must be delivered within 30 days & the company must
notify you if there are any delays.
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Misc.
Q.Is there a way to know if a company is scamming me?
A. Yes,
check them out with the Better Business Bureau (BBB).
For local companies, go to the BBB Houston website by
clicking on our Home
Page. Otherwise, go to: www.bbb.org
Q.How can I let people know about scams going on in my community?
A. Email us and could post it on this website.
Q.How can my friends and I learn more about scams?
A. Contact us and we can arrange to have a speaker come out and talk with your group for free.
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