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What you need to Know about Traveling and your Credit Card

Card Security

Traveling with a credit card provides us with many conveniences and advantages. It eliminates the need to carry a large amount of cash; it protects us against fraudulent spending; and it even provides us with purchase protection insurance. Best of all, most major credits are accepted at destinations all over the world.

It is therefore important to always plan accordingly so that your travel plans won’t be interrupted by credit card problems.

• Call the company ahead of time – It always a good idea to call the creditor before you depart on your vacation to let them know that you will be traveling and perhaps charging more than you typically would. Many creditors, when they see a great deal of credit card activity, especially in a different location, will flag a credit card for fraud. It is therefore important to inform them, ahead of time, so that you won’t have to deal with a frozen credit card account while you are on holiday.
• Check your balance – There could be nothing more impractical than not having enough credit on your credit card while away on vacation. Therefore, it is best to check your balance before you leave and, if necessary, contact your creditor and request a credit line increase to accommodate your travel expenditures.
• Beware of using your credit card at suspicious locations – Use your credit card only at trusted locations while traveling, if possible; especially while traveling abroad.
• Always carry a backup credit card – If you experience problems with your credit card, it is always a good idea to carry another, major credit card as a back-up.
• Keep the credit card phone number in a safe location – Write down your credit card’s phone number and store it in a safe location while on vacation in case you need to contact the creditor. You may choose to keep it in a separate piece of luggage, or you may ask your travel companion to carry the number. Of course, you don’t want to carry the number in your wallet or purse, as it won’t do you much good if it is stolen, too, along with your credit card.

How to Use your Credit Card for Safer, Online Shopping

Card Security

Online shopping is enjoyed by millions of Americans each year, and is a great way to purchase the items and services you need or want without heading out to the store to do so.

However, along with the convenience of online shopping come the risks; in particular, the risk of fraud, theft or identity theft. Although there are no safeguards that can protect you 100 percent, there are many things you can do to ensure that your next online shopping experience is a safer one:

• Only shop at retailers with which you are familiar. If often just does not pay to shop with an unfamiliar online retailer.
• Never conduct business with a website that doesn’t have a permanent address and phone number.
• Look for the encryption symbol at the bottom of the webpage. The encryption symbol usually looks like a padlock; if the padlock is closed, the website is secure; if it is open, the website is not secure.
• Look at the website’s address. If the address begins with “https” then the information you provide should be secure; however, if the address begins with “http” then the information you provide may not be protected.
• Before shopping, carefully read the terms and conditions of your credit card, as to make sure that you are protected in the case of credit card fraud. Your card’s language should include information about your liability in the event of credit card fraud. If you can’t find the language in your card’s terms and conditions, call the creditor and ask for an explanation of your rights regarding credit card fraud.
• Consider purchasing from website’s that ask for your CVC2 code (they may call it a security code), which is a three-digit code located on the back of your credit card.
• Always read your statements carefully, and report any suspicious activity or unauthorized charges on your credit card immediately.

Scam Alert: Beware of Companies Promising to Reduce your Credit Card Interest Rates

Card Security

If you receive a phone call from a company promising to lower your credit card’s interest rates, beware: the promises made may simply be full of hot air.

Solicitation from companies promising to lower consumers’ credit card interest rates has been on the rise from as far back as 2007, according to the Better Business Bureau. It certainly comes as no surprise that a host of unscrupulous companies would begin to come out of the woodwork as the recession took its hold throughout the country. However, what is surprising is how many consumers have fallen victim to it.

Does it mean that there are many consumers out there looking for relief – any relief – from their credit card debt? Or does it mean that these fraudulent companies are getting better and better at doing what they do best: fooling consumers and taking advantage of them at their weakest moments?

The answer is, unfortunately, probably yes to both of these questions.

Details of the Scam

The scam usually goes something like this: a credit card holder gets a phone solicitation from a company promising to lower the interest rates on their current credit cards, thereby saving them hundreds, if not thousands, of dollars in interest rate fees every year.

The company then asks for an upfront fee to do this – usually between $1,000 and $2,000. The problem starts when the company does nothing to lower the interest rate on the credit cards. Some companies simply do nothing after charging the fee, while others simply transfer the balance on the credit cards to another credit card with an equally high interest rate.

The scam is easy to pull off because the company asks for your credit card information upfront so that they can contact your credit card company to get the fees lowered. Of course, it goes without saying that this is something any credit card holder can do themselves.

What you can do

The best defense against fraudulent companies is to stay informed, stay educated and ask questions. If the company’s claims seem too good to be true, they probably are. Aside from accredited consumer counseling services, companies in general can not make claims to fix your credit or change the terms of your credit cards.

If you suspect fraud, immediately contact the Federal Trade Commission to report the incident.

Skimmer Credit Card Fraud on the Rise

Card Security

Did you know that a thief can be using a credit card in your name, with your account number, right now?

Don’t think you’re at risk? Think again.

Have you ever handed your card over to a waitress, store clerk or hotel staff member when making a credit card purchase? If you answered yes, then you are at risk of being a victim of credit card “skimming.”

A skimmer is a small, hand held device (often as small as a pager!) which enables a thief to immediately obtain your credit card information in just seconds.  The scenario usually plays out like this: the employee takes your card and leaves to run your credit card for your purchase. With just an extra swipe of your card into the skimmer, the thief now has your name and credit card information.

The thief then usually downloads this information onto a computer and uses it for a variety of fraudulent activities. Many thieves are able to duplicate counterfeit cards and then distribute them for use worldwide.

This problem is huge and getting bigger by the day. In fact, it is estimated that skimming costs consumers more than $1 billion each year.

There are a few things you can do prevent a skimmer from damaging your credit:

• Never let a clerk, waitress or other type of employee walk away with your credit card. Pay cash at restaurants and other venues where your credit card must leave your site.
• Keep a close eye on your credit card bill so that you can catch fraudulent activity before it gets out of hand and ruins your credit score.
• Immediately contact the credit card company in question if you notice any unauthorized charges on your credit card.
• Immediately contact the three, major credit reporting agencies – Equifax, Experian and TransUnion – if you suspect any fraudulent activity and ask them to put a fraud alert on your credit report.

It is important to remember that, as a consumer, you must remain on high alert when it comes to your credit. Stay informed, read your credit card statements carefully, and immediately contact the appropriate sources if you suspect any kind of fraudulent activity on your credit card.

Credit card Insurance – The Basics

Card Security

Nearly every credit card holder has been asked to take out additional credit insurance. Most of us simply decline this insurance, but is it really in our best interest not to carry insurance with our credit cards?

Although credit insurance varies between credit card companies, the majority of credit insurance plans involve protecting you and your credit in case of unemployment, disability or death. The credit card company essentially continues to pay your credit card bill every month until you are able to start paying again.

If you lose your job tomorrow, or become disabled, will you have the money to continue paying your credit card? If not, you can quickly fall behind on your credit card payments and just as quickly ruin your credit. Are you willing to take that chance?

In addition, if you die tomorrow, will your spouse have the funds to pay off your credit card debt? The last thing many of us want to do is leave our loved ones the responsibility of paying for our debts.

The credit insurance offered by many credit card companies is usually referred to as credit life insurance, credit property insurance, credit disability insurance and involuntary unemployment credit insurance.

Credit life insurance – This consists of life insurance that is designed to pay off your credit card balance in the event of your death. The lender is the beneficiary of your policy; in other words, the life insurance policy is automatically paid to the credit card company. Some credit life insurance policies have a fixed value, while others will not.

Credit disability insurance  – Another popular option which is often sold with credit life insurance, is designed to pay your monthly credit card payments for a fixed period of time and while you continue to prove your medical disability. It is important to remember, however, that most credit disability insurance policies will not pay your bill forever and will not pay off the balance of your credit card.

Involuntary unemployment credit insurance – Similar to disability insurance, as the credit card company pays your minimum credit card payment every month until either (a) you become employed once again, or (b) the policy ends. Just like disability credit insurance, involuntary unemployment credit insurance has a fixed time frame.

Credit property insurance - This  is a bit different than other types of credit card insurance, as it is designed to pay off your credit card debt for items that were destroyed in certain situations, such as a fire or earthquake. For example, if you purchased a new, flat screen television on your credit card and it was then destroyed during a fire, your credit property insurance policy would pay off that debt.

For most credit card holders, it makes sense to purchase credit card insurance, unless of course the costs outweigh the benefits. For example, many consumers already hold life insurance policies that would cover their credit card debt, and some consumers already have disability policies that would cover their living expenses while disabled.

If you are considering credit life insurance, remember to read the terms and conditions of the policy carefully and to weigh both the advantages and disadvantages of the policy before committing to any type of insurance policy.

How to Protect your Credit Card from Credit Card Thieves

Card Security

On any given day there seems to be a news story or two about credit card thefts and scams. We all know that protecting our credit cards and personal information has become very important, yet few of us really know what we need to do to fully protect ourselves.

What can you do to prevent yourself from becoming yet another credit card theft victim?

1. Never leave your credit cards unattended at any time. Many studies have found that the highest incidences of credit card theft occur at an individual’s place of employment. It is therefore important to not only keep your purse or wallet with you at all times (or locked up), but to also avoid placing your credit card in your desk or other area where others may see it.
2. Immediately report a lost credit card. Most of us would report our card to our credit card company if it were stolen, but not many of us would think to report a lost credit card. The time it takes to search for your misplaced credit card is all the time a credit card thief needs to obtain your credit card information.
3. Always check and double check your monthly credit card statement. Many of us who make multiple purchases on our credit cards on any given month do not take the time to study our credit card statements and the purchases that appear on them – and credit card thieves are counting on it. Did you know that many credit card thieves will make sporadic purchases in the hopes that the credit card holder will not notice the charges?  Remember that next time you receive your monthly credit card statement!
4. Never give your credit card information over the phone unless you initiate the phone call. If you receive a phone call or email from your credit card company asking to verify your personal information, do not give it out! Instead, immediately contact your credit card company to report the communication.
5. Don’t keep the pin number of your credit card in the same place as your credit card. This is simply an invitation for a credit card thief to obtain cash from your credit card!