What to do if your Credit Card is Lost or Stolen

However careful you may be regarding your credit cards, it remains a sad fact of life that both wallets and purses go missing or get stolen on a regular basis. This will usually mean that what most people consider to be their most valuable posessions — their credit cards have just gone missing. This is where your action plan regarding credit card loss comes into action. You do have one don't you?

In fact dealing with a lost or stolen credit card really shouldn't be that difficult or dauntin a process. Every card usually has an accompanying toll-free number where a lost or stolen card can be reported. Always make sure that you have a record of these numbers and the accompanying credit card numbers (but don't place this in your wallet or purse!). Then if your card is stolen you can quickly refer to this list, call your card issuer and report the theft. Fortunately, most states limit the liability of the consumer for any fraudulent charges made against their credit cards (in the US this is $50). However, if you report your card as lost before it is used to make any purchases you are liable for nothing. Even though you're not likely to take a huge financial hit because of the loss of your credit card you are still required to report that your card has been lost or stolen.

After your card is stolen make certain that you pay close attention to any items on your next bill. Mark any that seem strange to you and report any that seem fraudulent in writing to your credit card issuer. Send this to the communications address of your card issuer and mention in this when the card was lost/stolen and when you reported this to them. Do not include this letter with your payment slip as it will probably simply get lost during the payment shuffle process.

With chip and pin cards now being issued your PIN number is becoming as important as your card. Make sure that the number is not easy to work out. Never use such obvious PINs as your birthday or your telephone number or an element of your ZIP code. Never write your PIN number down or keep a record of it in your wallet.

Using Credit Cards Wisely

Credit cards are great, they can make life so much easier — as long as you use them responsibly. A credit card is essentially just another kind of loan which needs to be paid back. As a result, whatever you do, don't over-spend. It's far too easy to start accumulating debt and once that happens you may spiral into the situation of not being able to handle the debt.

With this in mind, make sure that you pay attention to the outstanding balance on oyur card. Always know just what it is and make sure to stop using your card once it exceeds the amount that you can afford to pay in full at any given time. Also make sure that you keep your receipts from all transactons and check these against your credit card bill. This will help you detect fraudulent use of your card and will alleviate any charge errors.

Make sure you pay your monthly bill on time. Even if it is just the minimum amount, it is still better than paying late. Not only will the charge card companies impost an interest penalty, your credit score could suffer also.


Conclusion

Use your cards wisely. If you are going somewhere where there will be a great temptation to over-spend leave your cards at home and only take cash. Make sure that you never get into problems with your credit card debts.