How to avoid credit card fraud!

Credit card fraud is increasing in the age of rampant identity theft. Identity thieves will use a verity of techniques to get your personal information and open fraudulent accounts in your name. You can safeguard your personal information by following some easy and sensible guidelines.

Here are the do’s to keep your credit cards safe:

Get a post office box to receive any correspondences from your credit card companies instead of having them mail the documents to your unsecured mail box.

Shred all unused credit card applications and financial documents with a cross-cut shredder before throwing it.

Keep a note of all the credit card account numbers, expiration date, and contact information of the credit card company and store it in a safe place. In case one of the credit card gets lost, you will have enough information to reach to the credit card company with specific details.

Always check your credit card statements thoroughly. Report any unauthorized transaction(s) to the credit card company otherwise it might lead to a possible identity theft.

If you move, update your information with the credit card issuer. This is for security purposes.

Do not use multiple credit cards for making online purchases. It is better to have one credit card separate for such transactions so that you can keep a track of every transaction done on the internet by that card.

Keep a track of the purchases done by the credit card. This will help not only in knowing how much you are spending on that card in a month but will also help in finding out any disputed item showing on your statement.

Here are a few things that you should not be doing while using a credit card:

Don’t leave your credit card receipts lying around anywhere. It has your confidential information that can be misused by an identity thief.

Don’t leave any blank spaces when you are signing the credit card charge slip

Don’t not keep your credit cards in the open for someone to capture your information via camera or memory.

Don’t carry all the cards in your wallet. Leave those cards at home on which you will not be making any purchase.

Don’t loan your credit card to anyone.

Do not give out your credit card number to anyone on the phone even if the person claims to be from your credit card company. Reputed companies will not ask for personal information on the phone.

Don’t answer emails that ask for your credit card number and don’t click on any suspicious links sent in the email that asks to verify your personal and financial information. Such emails and website might be sent for phishing.

Don’t keep your credit cards and PIN numbers together in the wallet.

Tags: Credit Card, Credit card fraud

Tips for teens looking to buy a car

January 5, 2009 · Filed Under Personal Finance · 1 Comment

A teenager feels a lot of happiness when he gets his driving license. He feels like buying a car for himself right away but faces a hard time when he looks for one in the market. He is not mentally prepared about the costs and responsibilities that await him, otherwise he might choose to wait a little longer. Here are some tips for the teenagers when they try to buy their first auto.

A teenager always feels inundated when he sees the car commercials. But he cannot buy one because he does not have the money readily available, especially when the cost of the insurance, gas and a down payment taken into consideration. If you want to get a good deal from the car loan company, always put 20 percent down on the car, and take a loan for the rest of the balance. The time period should not go beyond 48 months. If you try to push those limits any further, you will start your adult life by being in debt.

Buy a used car, but buy it wisely. If the new car is not in your budget, then it will be best to go for a pre owned vehicle. But be careful in buying a used car. Because if you buy a car with too many mechanical problems, it will cost you more than a brand new car. It is important that you show the used car to a trusted mechanic and get it thoroughly investigated.

Establish credit. A lender will always like to check the credit history of a borrower before offering any new loan. Your chances of getting the loan will be dim if you have a poor credit history because of not paying the bills in time. You must make sure that you are making timely payments on your credit cards or the store cards and the creditors are updating your payments to the credit bureaus. This will show good credit scores in front of the lenders.

Tags: Personal Finance