Credit Card Safety Tips
Credit cards are one of the great conveniences of modern life.
They eliminate the need to carry around large amounts of cash
for large purchases or emergencies. They make it possible to
make online and mail order purchases without having to wait for
the post office to send your check to the merchant. All of this
power creates new risks to your finances. Fortunately, it's easy
to protect yourself with just a few simple steps.
First: Keep a copy of your credit card number and the issuer's
phone number somewhere safe - i.e. not in your wallet. This is
in case your credit card is lost or stolen you can report it
quickly. This is especially important when you go on vacation as
you won't have easy access to a copy of your billing statement.
Also, make sure that strangers will not have access to this
information - i.e. keep it locked up.
Second: If your credit card is lost or stolen, report it to the
issuer immediately. Yes, your credit card agreement probably
says you are only liable for $50 of any charges the thief makes,
but this is usually contingent upon you reporting the loss in a
timely manner. Besides, you cannot use your credit card in
physical stores unless you have the actual card and your card
issuer will not send you a new one unless you report the loss.
Third: Do not give out your credit card number to any company
that calls you out of the blue. Sure, they could be a legitimate
company offering legitimate services, but you have no way of
knowing that. They very well could be a scammer that just wants
your credit card number so they can either use it or resell it.
If the company has a product that you want to purchase, look
them up in the phone book and check with the Better Business
Bureau. If it is a charity, have them send you a donation card
in the mail. Any reputable charity will do so. While you are
waiting for the card, do a little research on the charity. Check
them out with the Better Business Bureau's charity division. If
they check out with the BBB, then you can contact them and make
your purchase or donation.
Fourth: Monitor your statement closely. Look for any charges
that you did not make. If you are sure you did not make them,
report them to your credit card issuer. This is similar to the
recommendation to monitor your credit report once or twice per
year, but you can and should check your credit card statement
every month.
Fifth: When you use your card in public try to keep the number
hidden. Thieves will try to get your credit card number any way
they can. That includes looking over your shoulder and
memorizing it while you are in line at the store. An easy way to
keep the number hidden is to keep your finger over the numbers
on one side and keep the other side close to your body. A better
way is to keep the card in your wallet as long as possible and
put it right back in your wallet as soon as you can.
Sixth: Shred your statements and receipts when you dispose of
them. Dumpster diving is a great source of personal info and
your credit card statements have your credit card number of
them. Before you put your statements in the trash, shred them. A
shredder that cuts paper into little bits of confetti is
preferable to one that just cuts strips. Strips are relatively
easy to reassemble into a readable piece of paper. With bits of
confetti, it is much more difficult. If you want to be really
safe, you should probably burn the bits of confetti, but most
thieves will move on to an easier target rather than trying to
collect and reassemble the bits of your statement.
It may sound like a lot of work, but it boils down to keeping
your credit card number out of the hands of people who have no
legitimate need to have it. Would you hand out your Social
Security Number to just anyone? Of course not. Treat your credit
card number the same sort of protection. With these few simple
steps, you can protect yourself and your credit from thieves.