Like cash, sometimes credit cards
can be stolen. They may be physically stolen (if
you lose your wallet) or someone may steal your
credit card number (from a receipt, over the
phone, or from a Web site) and use your card to
rack up debts. The good news is that, unlike
cash, if you realize your credit card or number
has been stolen and you report it to your credit
card company immediately, you will not be
charged for any purchases that someone else has
made. Even if you don't realize your credit card
number has been stolen (sometimes you might not
know until you receive your monthly statement),
most credit card companies don't charge you or
only charge a small fee, even if the thief has
charged thousands of dollars to your card. There
are several things you can do to prevent credit
card fraud:
- If you lose your card or
wallet, report it to your credit card
company immediately.
- Don't loan your credit
card to anyone and only give out your credit
card information to trusted companies or Web
sites.
- Check your statement
closely at the end of each month to make
sure all charges are yours.
Credit cards can make life
easier and be a great tool, but if they aren't
used wisely they can become a huge financial
burden. If you do decide to use credit cards,
remember these simple rules:
- Keep track of all your
purchases.
- Don't spend outside your
budget.
- Pay off your balance on
all of your credit cards at the end of each
month.
- Don't loan your credit or
give out your credit card information to
anyone but reliable companies.
