Credit Card

How to Avoid Credit Card Fraud

December 23, 2015 by illinois

Credit card fraud is something that everyone should be aware of. There are several people out there who believe that they are not at risk for such fraud, but the reality is that if you have a credit card, you are at risk. There are also actions that people are doing every day that are putting them at an even higher risk for this type of fraud. Knowing what these actions are can greatly help to lower your chances of becoming a victim. However, keep in mind that no matter what you do, you can still become a victim, which is why it is essential to monitor your statements and credit to pinpoint this fraud before it affects your life severely.

[Read: Unfair Debt Collection Practices: When Debt Collectors Go Too Far!]

Things you May do to Promote Fraud

Credit card fraud occurs every day. However, the things you do today may be making you the target of fraud tomorrow. Here are just some of the ways in which you could be putting yourself at risk:

Loaning your card to others to use

This seems like a no brainer, however, everyday people are letting their relatives or friends use their card to pick up items from a store or the like. Though it may not be this person that commits the credit card fraud, these people may not be as careful with your card, meaning that other people can gain the information from it to use against you.

Utilizing your credit card at a gas pump

Most people do this, but they are taking a huge risk with doing this. Many hackers and criminals are now putting credit card skimmers onto the gas pumps as a gas station. The problem with this, is that the gas station owner may not even realize that this is on one of their pumps. For every person that scans their card, the skimmer is picking up the information. This allows a criminal to commit credit card fraud on a high number of people at once.

Putting pictures of your card online

For many people the thought of this is absurd. After all, with all the identity theft that takes place, doing this is a sure way to get your information stolen. However, there are those who have done just this and posting their credit card numbers online via a picture on social media. Sometimes, this may have been intentional. Other times, you may post a picture with your credit card in the background, and all it takes is the wrong person to notice this and zoom in on the information.

Losing a credit card

This is most often how credit card fraud occurs. You may have lost the card or had the card information stolen. Those who lose their cards or suspect stolen information need to cancel the card as soon as possible so that thieves cannot rack up charges on these.

Downloading attachments via email from a source that is unknown

If you were to download an attachment from some unknown source, you never know what you have invited into your computer network. Many times criminals are putting in spyware to spy on those who download the link. The spyware may be collecting the credit card information for the hacker to utilize later.

Shopping with a business that has had a data breach

This is an issue that leads to more credit card fraud these days than almost all other methods out there. Data breaches are becoming more common place, but you cannot stop shopping for the things that you may need or want. However, the best way to prevent this is to utilize cash when shopping. Otherwise, you are going to want to ensure that you are keeping a close eye on all that is taking place.

What to do if you Suspect Fraud

If you do suspect that credit card fraud has happened to you, there are several things that you need to do:

Contact your credit card company immediately and let them know of the issue
Monitor other accounts, including your bank account and the like to ensure that criminals were not able to get information from these accounts as well
Let the credit bureaus know if you feel that these criminals could use the information to stela your identity, as the bureaus will put an alert on your file so that new accounts cannot be opened
Once you get your new credit card, be sure to put “Ask for ID” on the back where the signature goes, as this can make it harder for someone to steal and use if this on the back
Also ensure that you are taking care of information on your computer and protecting this through using protection software

[Read: Your Rights With Credit Reports]

Having to go through a situation in which fraud has occurred is nerve racking. That is why you want to do all that you can do now to prevent this from happening.

It’s Time to Dump Your Credit Card

February 3, 2015 by illinois

You might have been using the same credit card for years now while thinking you’re getting a great deal the entire time. You don’t pay those junk letters and advertisements for new credit cards any mind because you’ve got it so good with your current provider, right? You might think you’re right, but it might also be time to dump your credit card. There’s most likely some weaknesses in the structure your current card provider has built and you could be missing out where you don’t have to. The credit card industry is running over with competition and offers that exist to try and undercut the next company’s business, so you can believe there’s always a new product or service out there that you could be taking advantage of. Are you sure there’s got to be better rewards or interest rates out there for you? Just dump your credit card this year and start searching for some of the other options out there for you!

Help over the Phone Is Lacking

Have you ever ran into issues with your bill that you needed to have rectified over the phone only to find no help at all? The customer service department is there to help each customer in some way or another. If you find that your company doesn’t seem to have much concern for your issues, you might want to dump your credit card for a provider that’s more understanding and helpful. Your time and problems are important, and you should get that sense from the customer service department: regardless of what you’re calling about.

It should be very easy to find information about the credit card providers with the best customer service departments.

Those Rewards Aren’t Useful Enough

The value of a good rewards program has been driven up in recent years and the person that’s had the same credit card for ten years is almost certainly not getting the same rewards and perks as the person that just opened up a credit card account this year. Cash back rates have risen astronomically and the lists of perks you could seem to be getting longer and longer. There’s no reason that you should be missing out on upgraded rewards and you might want to dump your credit card to see what’s out there waiting for you.

In some cases, if you’ve already got one type of card with a provider you like, you might be able to switch to another, more valuable credit card in their lineup without incurring any fees or penalties: this is especially true of the clients with strong payment histories.

Your Credit Score Is Even Better Than Before

It’s no big secret that different clients are offered different rates at the time of application depending on their credit score and worthiness. As long as you keep up with your payments and you pay down at least your minimum balances or more regularly, your credit score should improve over time. If this is the case, you’ll most likely get stuck with an interest rate that’s not very fair or reasonable. If you like your credit card provider enough, you could ask them to adjust your interest rate. If they don’t want to budge, you should just dump your credit card account and start with a new provider that’s likely to be more reasonable.

You might want to apply for a new credit card before cancelling your old account. Make sure you search around well for the best rate you can get before going with the first one you find.

Your Life Is Different and You Need More

Maybe you were a less responsible person when you initially applied for your credit card. Perhaps you used to be in the habit of racking up hefty balances only to pay them off little by little, but now you strive to pay your bills off in full before they’re due. If that sounds similar to your situation, you probably could afford to pay a little more in interest to get even better rewards that you can use.

If the opposite is true for you and you’ve got a great rewards program but very high balances, you might want to consider trying to dump your credit card for a lower-interest option that doesn’t bind your finances so heavily.

You’re getting out Of the Country

Most of the credit cards on the market today charge at least three percent for any purchases made outside of the United States. It goes without saying that your balance will add up very quickly if you’re planning a trip out of the country and using your credit card the entire time. If you’ve got an older generation credit card, it might not have the smart chip in it that’s crucial for using an ATM in another country.

If it’s time to dump your credit card, there’s more than enough options out there for you to choose!

Getting a Credit Card with No Annual Fees

December 10, 2013 by illinois

It is possible to get credit cards with no annual fees and this is good news for the card user. But there are many cards that come with an annual fee and you need to be reassured that the fees that you are paying are going to be worth the facilities that the card will offer. There is little point paying for a card that’s benefits that you are entitled to revolve around travel and you don’t travel. It is the same with all types of cards that involve an annual fee that you check what services that you are paying for because you might find the same service on a credit card with no annual fees.

Check Out What They Are Offering

It is important that when you are looking for a credit card and you are considering applying for a card that has an annual fee that you carefully look at the options that are being offered. Are they something that you will use or will benefit you in some way?

You need to work out the costs involved, are the costs of the products that you are getting in return for your annual payment worth more money than your payment or less. If you could purchase the goods singularly then you might consider using a credit card with no annual fee, it will be cheaper and if you do need the products or services then you can buy them without the card.

To recap:

Check out the offers available
Check out the individual prices of the products they are offering

Claiming the Benefits

If you are looking at a credit card that has an annual fee, then it is possible that they are going to be entitled to certain benefits. But check out how you are able to claim the benefits before signing up. Many companies have these great schemes but the claiming process either takes too long or is too complicated and this can mean that many people are losing out on the benefits that they are entitled too.

Sometimes there are fees associated with claiming the bonuses or the points for the credit card and this can amount to being even further out of pocket. You might have to dig deep to find this information and if there is yet more to pay then you might be better off using a credit card with no annual fee.

If you are certain that the card that you have got is the right one for you, have you checked out the cards that offer you a no frills account and they don’t ask you to pay for this service. It might be just as good.

What You Can Get

It is possible that you are able to get some great deals from opening up new credit card accounts and this can mean that you can get added benefit from opening the account. But it is important that you aren’t just opening the account for the free deal, especially if you are not planning to use the card, too many credit card applications can harm your credit file.

If You Have Had the Card for Sometime

If you have had the card for some-time and you have seen the advantages and you like the card then it is possible to talk to the card provider and ask if they would consider reducing the annual fee. They might consider the business that you are bringing and the benefit that they are giving you and this important. But if they refuse to give you a reduction in the annual fee it might be time to look for a credit card with no annual fees. It will mean that you can get the same great service without the extra charges each year. If you have the card for emergencies then it is not going to be used and you are going to be paying for a service that is not getting used to the full value. You are losing out because you are paying for a service that isn’t being used and this is going to be a drain on your budget, it would be better to have a credit card with no annual fees as a card for the emergency. It will be there when you need it and you will not be paying for services that you don’t need or use.

It can be possible to try out new cards and get the new deals it is just important that you are only apply for a new card no more than once a year at the most because it will have an effect on your credit file and it will affect the products that are going to be offered in the future and if you want the best products it is important that you conduct your credit file to your best ability.

How to Use a Credit Card Wisely

November 6, 2013 by illinois

The credit card has a poor reputation and while and is seen by some people as something almost evil. In reality it is just a piece of plastic and the person that has the credit card has control of how and when it is used. When you use a credit card wisely then it has many benefits that you can take advantage of to add convenience to your life and to always have source of simple to access credit available in emergencies. Used unwisely credit cards can become a financial millstone that drags down our ability to plan for the future.

We have compiled some reasons to use a credit card and some reasons that you might stay away from a credit card. You can read through them and honestly look at yourself and your financial situation and then decide if you should use a credit card or avoid them to put yourself on the right footing to have a better financial future.

Reasons to Avoid Using a Credit Card

Here we have compiled some reasons why you might consider a credit card is not the best thing for your financial future. It is important to be honest with yourself so that you can make the right decision.

Do not budget and tend to spend when you have money and go without finances are tight.
Do not take your finances seriously and are happy to live from paycheck to paycheck.
Will purchase things spontaneously without considering the longer term.
Cannot commit to paying any credit card balances off by the end of the month.

The facts are that if you cannot take control of your spending and budget wisely, a credit card can become a burden because it allows you to buy things now and pay for them in the future. This makes it very easy to rack up large amounts of debt that then attract a high interest rate.

It is not uncommon for people that have credit cards to be completely unaware of how much they owe until they receive their monthly statement. Even then the most highlighted figure on most credit card bills is the minimum monthly payment. This amount is the minimum that you can pay and people naturally pay this amount. This is also the amount that is most advantageous to the credit card company because it keeps the debt earning the highest amount of interest for the longest time.

Reasons to Consider Using a Credit Card

Builds a credit history.
Tracks spending and allows you to look through your purchases making budgeting easier.
Has protection if it is lost or stolen unlike cash.
Is convenient to use.
May have special insurance, discount or bonus offers.
May offer extended warranties on purchased items.
May have a rewards program that uses points or cash back on purchases.
Allows you to charge back fraudulent, not received or not as described purchases.

The credit card is a tool and just like a hammer when used responsibly and wisely a credit card can help you build a strong financial future. Credit is a vital part of many people’s lives and having a good credit history can help to reduce borrowing costs when we are looking to buy a house or a car. This means keeping our credit file clean with no missed payments, no late charges and a strong record of paying back debt. Using a credit card and paying it off monthly allows you to make a single payment for all of your purchases and builds up this positive credit history.

When you use a credit card each purchase is recorded and is immediately available online. You can track your purchases and payments and see that you are staying within your budget. Unlike cash if your credit card is lost or stolen you can easily get a new card quickly without losing anything. Carrying large amounts of cash can be a nerve racking experience and with a credit card it gives you secure access to your funds without having to make yourself a target for robbery.

You can use a credit card just about anywhere today from a convenience store to a gas station and a restaurant to a grocery store. A quick swipe and the payment is made and by selecting the best credit card offer you can be rewarded for every purchase you make. There are cash back offers and point systems that allow you to earn simply by using your card.

Other cards have benefits such as extended warranties and insurance that covers certain purchases adding value. These are all great reasons to use a card if you were going to make the purchase anyway. The seller is paying a small fee for using the credit card system and you can take advantage of the financial institutions wanting you to use a credit card by maximizing the benefits and paying them off before interest is charged.