HERE'S THE SCOOP

Obey the Limit
Your credit limit is assigned based upon such factors as your credit history, outstanding debt and income. As things change, you may outgrow your credit limit and wish to increase it. Provided that you have shown you are able to handle credit responsibly, we will consider increasing your limit either upon your request or through our company's process of continuous evaluation.

Revolving Credit
Revolving credit allows you to make purchases up to the predetermined credit limit that is assigned to you. "Revolving" means that as you use your card, you are continually doing two things: borrowing against your credit limit and repaying towards it. Suppose your credit limit is $1,000, and you have
no outstanding balance. If you buy $150 worth of books, you then have $850 in available credit. If you repay $100, you then have $950 in available credit.

Payment Flexibility
Another feature of your credit card is payment flexibility. You can "pay off" your credit card monthly by paying the full amount you owe, or you can pay the minimum payment or any amount in between the two. This flexibility is one of the elements that separates credit cards from charge cards. With charge cards, the full balance of your account is due each month. Your credit card also has a grace period. If you pay your balance in full each month by the due date, you won't be charged interest on new purchases
during this period, which is at least at least 25 days. Finance charges will be billed to your account should you choose to pay for your purchases over an extended period of time. The amount of the finance charge will be determined using the Annual Percentage Rate (APR) for your account. (Be sure to
consider these charges if you choose to pay for your purchases over time.) Other fees such as over-the-limit and late payment fees will apply if you exceed your credit limit or do not pay at least the minimum payment by the specified due date.

Credit Card DOs and DON'Ts
DO compare your credit card receipts to your monthly statement to ensure that the information is correct.

DON'T delay in dealing with errors on your statement. Contact us immediately.

DON'T share your credit card or receipts with anyone.

DO report your credit card as lost or stolen as soon as you notice it's missing.

DON'T share your credit card number over the phone unless you know the company calling is well-respected.

DO destroy any papers that contain your credit card number, except those records which are safely kept.

DON'T allow merchants to copy information off of your credit card when using it as identification.

DO be sure to sign the back of your credit card upon receiving it. Also see that merchants are looking at that signature.

DO keep a list of your credit card account numbers and phone numbers in a safe place in case a card is lost or stolen.

Building Your Credit History
OK. So you just received your credit card - now what's all this about credit history? Your credit history is a compilation of information that tells whether or not you pay your bills on time, how much you owe and how responsible you are in managing your finances. This information about your credit performance is kept in your credit file for approximately seven years. It is collected and maintained by national credit bureaus, which in turn may share the information with lenders who use it to decide on applications for various types of credit.

But an individual's credit history is not used only by lenders. The information is also used by landlords when renting and employers when hiring. Therefore, building and maintaining a good credit history is
essential to your future. Here are just a few tips that will help you do just that:

Pay bills promptly to keep finance charges as low as possible.

Always pay at least the minimum amount due on or before the due date.

Get a copy of your credit report to see that the information is correct.

Advise the credit bureau immediately if you see an error.

Make us aware of any change in address at your earliest convenience. Only a bill that arrives on time can be paid on time.

Create a realistic budget and stay within it.

If you start having difficulties paying credit card bills, contact your creditors as soon as possible. Honesty is the best policy. You can also contact the Consumer Credit Counseling Service (1-800-388-CCCS) which may be able to help you work out an alternate payment plan to get your bills back on track. Remember that each creditor may look at your financial profile differently. Some may consider your actual debt, while others see your debt as the total credit that is currently available to you. This means that even though you may have an impeccable credit history, you may be considered a risk if you have a lot of credit available to you.

Take Care of Errors Early!
Billing and credit report errors can quickly destroy a credit history that has taken years to build, which is why it's extremely important to note and immediately correct any errors that may affect your good credit
standing. If there's an error on your credit card billing statement, write to Capital One immediately! By notifying us right away, you won't have to pay the disputed amount until after the problem is investigated, and your nonpayment of that amount won't be reported to the credit bureaus during the investigation.

Whatever you do, do not ignore the error by not notifying us. If you fail to contact us and refuse to pay the disputed amount, it will be reported to the credit bureau as late or insufficient payment.

If you find an error on your credit report, write to the credit bureau immediately and explain why you feel the information is incorrect. Include any paperwork that will support your claim. Under federal law, if the credit bureau can't verify the information as correct, the credit bureau must correct the error or delete it from your file. If you disagree with the credit bureau's findings, write a brief statement to the bureau explaining why. This statement will become part of your credit report.

Avoiding Common Credit Card Problems
When using your credit card to make a hotel reservation (or for other lodging), it is important to cancel that reservation the moment your plans change. Otherwise, the hotel may still charge your credit card for the period that the room was reserved. The hotel may also place a "hold" on your credit card for the amount of anticipated total charges. While a hold is not actually billed to your credit card, it does restrict the amount of available credit. This "hold" is also practiced by some rental car companies.