Credit Card Lowdown

Protect Yourself From Fraud

Whether you have one credit card or many one of the most important concerns for cardholders is the ability to safeguard yourself from fraud and identity theft, both of which are increasingly common today. A recent report by Credit Counselors recommends that credit card holders not leave credit card numbers, PINs or any such crucial information in a place where anybody can access it. It also recommends that if users misplace their card or believe it stolen, it is important to report this to the concerned financial institution immediately. To prevent such a tragic occurence, it is important that you tear up ATM or transaction receipts with your credit card number on them. Also individuals should take care to sign new credit cards as soon as they them. Otherwise it becomes rather easy for a criminal to sign the card himself and then use your card. Additionally, users should cut up unwanted and expired credit cards. Credit Counselors Reports:

If you report the loss before a credit card is used, the issuer cannot hold you responsible for any subsequent unauthorized charges. If a thief uses your card before you report it missing, the most you will owe for unauthorized charges on each card is $50.

Read More: Credit Card Tips

Getting the Right Card and Using It

Credit cards are just a form of borrowing and as such they have certain terms and conditions that must be adhered to. This includes the payment of fees and interests associated with the card. Annual Percentage Rate (APR), annual fees, transaction fees, and balance computation for finance charges are some of these. These fees and interests vary from card to card.  Some cards which have a low APR may slap you with very high penalties on late payments or non-payment. To discern these differences, make sure you read the fine print before making any commitments as Credit Companies are noted for hiding fees in the fine print.

Having discussed the negatives, one of the primary benefits of credit cards is the liability limits.  To take advantage of this, it is important that if you ever lose your card, report it immediately. This will minimize your liability, particularly if the card is stolen and then misused. Always keep transaction receipts so you can locate discrepancies, if any, on the bill sent by the financial institution. Ftc.gov Reports:

You'll probably also want to consider if the credit limit is high enough, how widely the card is accepted, and the plan's services and features. For example, you may be interested in "affinity cards" - all-purpose credit cards sponsored by professional organizations, college alumni associations and some members of the travel industry.

Read More: Choosing and Using Credit Cards