Credit Card Quick

How Many Credit Cards do you Need?

Introduction

You may have heard the question: How many credit cards should I have?

Well, the short answer to this question is: It all depends.

Now that we’ve thoroughly confused you, here’s a little better explanation.

The fact of the matter is that what’s good for one person in terms of credit cards may not be best for another person. Typically, however, having more than one credit card in your back pocket may help you in a number of ways:

• You have another card in case one of your cards is rejected – Perhaps you forgot to pay your credit card bill on time, or you hit your credit card limit and you really need the security of another credit card. A second credit card can really come in handy in case of these scenarios. Sure, in a perfect world you would never reach your credit card limit or forget to pay your bill, but having another credit card for the “what ifs” is never a bad idea.
• Your main credit card is lost or stolen – If you have trouble with your main credit card and you are unable to use it because it has been lost or stolen (and your credit card account has been compromised), it is always a good thing to have another credit card to use.
• You need access to a large credit line – Often times, an extra credit card is kept by many consumers who want access to another line of credit in case of a financial emergency.
• You want to increase your available credit for credit score purposes – Part of your credit score is determined by something called your “debt to income ratio.” What this basically means is that about a third of your credit score is based on how much available credit you have at any given time. If you have a couple credit cards, chances are your available credit will increase, along with your credit score.
• You want to have spending options – You may have a couple credit cards that you use for different reasons. You may keep one and use it strictly for business expenses and keep another because you can rack up rewards on certain types of purchases. Because there are so many credit card hybrids out there now, you may have more than one card to take advantage of the many features and rewards being offered.

How to Prepare for a Lost or Stolen Credit Card

Identity Theft

If your credit card was lost or stolen tomorrow, would you know what to do?

Quick: what is the name of your credit card company and what is their contact information?

If you don’t know the answer to this question, you’re not alone. Many consumers simply don’t know who to call or what to do if their credit card was lost or stolen. And, unfortunately, not having this information on hand can end up costing you much more than a credit card.

Here are the steps to take if you simply can’t locate your credit card:

1. Before you find yourself with a lost or stolen credit card, keep a list of all your credit cards, along with their numbers and contact information, in a safe place so that you have a reference to turn to.
2. Take a deep breath and try to remember the last time you used your credit card and where you used it. Often times, we may misplace our card during a particularly hectic day and end up panicking when we can’t find it.
3. If you have checked your home, your car and your personal property thoroughly and you are convinced that the card has either been lost or stolen, you will need to take immediate action and contact your credit card company. You must report your credit card missing or stolen so that you won’t be held responsible for all of the charges placed on your card.
4. Get in the habit of carrying only one card with you at any given time to reduce the damage done by a credit card thief. If you are the victim of a pickpocket or mugging, you won’t have to deal with reporting multiple cards.
5. Remain knowledgeable and know that credit card thieves may be able to steal your credit card information, even without stealing the card itself. Keep your credit card close at hand while shopping and only shop on trusted websites with secure servers.
6. Check your credit report on an annual or semi-annual basis so that you can check for anything out of the ordinary on your credit report.

How to Protect yourself against Identity Theft

Identity Theft

Identity theft, some say, is the price we all pay for our technology-driven society. We all enjoy the benefits and perks of the Internet and computer technology, but it is also these things that can cause the most unscrupulous thieves to come out of the wood work and take advantage of unknowing consumers when they least expect it.

It is with this in mind that we must all approach today’s technology with an educated eye. And credit cards are no exception. There are many ways in which identity thieves have fooled people into giving out their credit card numbers and other personal identification, and there are many computer-savvy thieves that have used today’s technology  to hack into consumer’s accounts.

Although there are no fool-proof methods for protecting your credit from identity thieves, there are a number of ways in which you can reduce your chance of being a thief’s next victim.

1. 1) Instead of signing the back of your credit card, write the words “See ID.” This may deter thieves from using your credit card in case of credit card theft or loss. In addition, never keep your credit or debit card’s pin number with your card, as this is essentially a free pass for a credit card thief.
2. 2) Beware of any emails claiming to be from your credit card company. Many identity thieves send out “phishing” emails that appear to be from legitimate companies. In the email, the thief may encourage to you to click on a link that brings you to a website that, although it looks similar to your credit card website, is actually a phony web site. The identity thief quickly obtains your personal information when you type in your user name, password, credit card number or social security number.

A simple way to avoid this type of identity theft is to never, ever respond to emails that appear to be from your credit card company. Most legitimate companies will never send you an email asking you to verify information.

1. 1) Do not choose an easy password that can be easily guessed by an identity thief. Identity thieves will often try obvious passwords, such as your address or your birth date, when attempting to gain access to your account, so steer clear of any commonly used numbers or phrases. Instead, opt for a password that contains both alpha and numeric characters.
2. 2) Review your credit card statement every month, without exception. Many consumers who use their credit cards frequently throughout the month never stop to review their statements – and credit card thieves are counting on it.

Take the time to carefully review all purchases made on your credit card each time your bill arrives so that you won’t fall victim to identity theft.

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!