Keeping Your Credit Card Details Safe
The numbers of consumers that have been taken in by credit card scams have skyrocketed in the past decade, due mainly to online shopping and consumers divulging details of their credit cards to fraudulent persons. This can occur abroad as well as at home if you are not careful about where you shop. When you receive your credit card statement each month, you should go over it carefully to make sure that you have made the transactions listed and that there are none that you don’t recognize
When shopping online you have to make sure that the site you use is secure. Such sites are usually denoted by https. This means that when you enter your information the software on the site encrypts the data so that others using the server on the page cannot gain access to your private information. It is also important that when you do enter your credit card information online that you do so on your own computer rather than one that is shared among many users. You should also clear your browser cache from time to time to ensure that someone else cannot see what pages you accessed and try to gain access to your credit card in this way
Always make sure that the site you use for online shopping is secure. These sites will have a privacy statement assuring you that you won’t be endangering your credit card information by shopping on them. Some of the details of personal information that a fraudulent person can use if he/she does obtain your credit card number is your mother’s maiden name and the three digit number on the back of the card. These two pieces of information could open you up to fraud if you give them to the wrong person.
Only use secure sites when you shop online using your credit card. There are many sites that do not have proper security and your credit card information could become part of the public domain. Before you enter your number to check out with your purchases, check the security and the privacy policy of the site. Some sites, while being secure, so sell or give your information to other sites and this can lead to disaster for your finances
Be very careful when giving out your credit card information over the phone in response to solicitation phone calls. Some of these calls are fraudulent. When you receive a call offering some service or product and the caller wants your credit card information, the best course of action is to take the telephone number and call this person back. In this way, you can be sure it is from a legitimate company
The same thing applies to an email that claims to come from the HM Revenue and Customs. UK residents have received such emails telling them that their tax returns have been reviewed and that they are entitled to an additional refund that will be paid to their credit card account. The government will never contact you in this manner and will only do so in writing. Disregard such emails and delete them from your computer
When To Use Credit Cards
Some people would not ever use a credit card; they even consider them evil. In the past they may have had bad experiences with credit cards and there are several reasons why someone may not like them. If the past included a burden of heavy credit card debt, they want to avoid a repeat experience.
They may have had it drilled into their head not to have a credit card from their parents who have experienced the woes of credit cards, or they may just see no need for them and would rather avoid the mess altogether.
There are some people who are on the other side of the equation, they have a large stack of credit cards that take up a lot of room in their wallet. Very few people with multiple credit cards used frequently actually pay off their balance every month and this means that they are borrowing money on a very high interest rate.
Have you always avoided using credit cards like a disease, or do you have a long history of just charging whatever you want whenever you want?. The fact that you are reading this article could mean that if you do not now have a credit card, you are thinking of getting one or you are somewhere in the middle.
Your individual personality and how you react to financial matters will help determine whether you decide to get a credit card or not. We all would love to say that we handle our money perfectly but this is not true.
Getting a credit card should not be a first priority for you if you have trouble with your budget, because you probably are not ready for credit. If you are on a monthly budget, putting away money into savings every month, paying all your bills on time and buying only what you need, it may be easy for you to handle credit. If you have been able to stay away from putting yourself in debt, a credit card might be okay, but first think about why you want a credit card in the first place.
Do you want a credit card to borrow the money to live like you want to and buy what you want. If these are your reasons for applying for credit, reconsider your finances and do NOT get a credit card.
If the reason you want a credit card is because you just want to be able to just swipe your card and go when you are shopping, it is just as easy to use a debit card from your bank the same way. The sales clerk will usually ask if it will be debit or credit and you can just sign it as with a credit card and go on, if you choose to say credit.
If you are confident you can always pay off your balance in full every month, getting a card for gas reward credit card might work out. These cards will only be worthwhile if you always pay off your balance, or else you’d be canceling out the amount you receive from the rewards and still owe more in interest charges.
Credit Cards Are Subject To International Fees
When you use a U.S. credit card abroad, most of the major card companies charge a two to three percent foreign transaction fee.
Not until recent years, many credit card companies did not clearly explain these international fees in their terms and conditions.
Many people received notification concerning a class action lawsuit settlement in regard to these fees earlier this year. Credit card companies must clearly inform their applicants of all international transaction charges, because the lawsuit has been settled.
When you are wondering how much your current credit card company will charge on international transactions, call the customer service number to find out, most will probably inform you that the fee is three percent. Paying an extra three percent on every purchase can be very tough on the wallet, however, there are some ways to avoid paying for these charges.
Foreign currency exchange rates from your bank can often offer you a better deal than what you will get at a foreign currency exchange booth.
ATM withdrawals usually are free from foreign transaction fees, however if you will be using a debit card as a credit card there may be some added risks.
A credit card provides much better fraud protection than a debit card, so for this reason using a debit card abroad to make purchases can be risky. If an unscrupulous merchant overcharged you or used your credit card in a fraudulent manner, you can easily contest the charges and receive a refund on your credit card account. When a debit card is used fraudulently, it will make your bank account disappear and it will be very slow to reappear.
The only way to avoid paying international transaction fees, seems to be a credit card that does not charge these fees, and with these no fee credit cards you get the security provided by a credit card without any added expenses.
It is always great to know just how much you will be spending in your day to day life, but it is even better when you are vacationing, as ATM fees are charged for each transaction. Unless you are on a very exacting budget, it is difficult to judge how much to withdraw in one ATM transaction because most people cannot tell precisely how much cash they will need while traveling. A cash machine can be difficult to find in many countries, but you have to be careful to refrain from withdrawing too excessive of an amount to avoid the risk of being robbed.
You have to pay fees to convert to foreign currency and then you also have to pay fees to convert back to your local currency.
Traveler’s checks are a safe alternative to cash, however, they are not accepted everywhere and there is a fee to purchase them.
If you are applying to get a credit card that will not charge you additional credit card fees for foreign purchases, be sure you understand the terms and conditions of the credit card policy to know the card you will be getting is the one you thought it was.
Check the terms before using the card and be sure you can pay off the balance quickly, if it has a high interest rate, otherwise you’re simply paying fees a different way.