Credit And Credit Cards

You’ve probably heard of credit card skimming on the news, how thieves somehow manage to get copies of your cards and go out on a spending spree that you only find out about when your next statement arrives. But what is it, and more importantly how can you protect yourself against becoming a victim?

Credit Card skimming is a process where thieves steal your card details but not the actual plastic itself. The huge advantage of this is that you’re not aware it’s happened so they will have much more opportunity to use the card before you become aware of the theft and report it.

So how can a thief steal your credit card without taking your plastic? It’s surprisingly simple actually as all they need to do is take an additional swipe of your card when making a transaction to a separate device that records the details on the magnetic strip on the back of your card. A simple video camera can record you entering your PIN details and they have all the information they need to produce a duplicate card.

Evidence suggests that skimming takes place most often where it’s easiest to get away with it. Be more vigilant in restaurants (where it’s quite common for your card to leave your sight for a time), petrol stations, and shops; all places where a potential skimmer could easily take a second swipe of your card.

So how can you avoid getting your credit card skimmed? Well, in short, be vigilant. In order to skim your card the thief has to take a second swipe on a separate reader so watch what they are doing with your card when you hand it over. You should of course never let the card leave your sight.

Another precaution is to make sure you shred your credit card receipts and statements as advances in technology indicate that the information contained on these can also be used to create a duplicate card.

Finally make sure your PIN number isn’t easy to guess. Don’t use obvious numbers like your birthday, part of your phone number, or any number that could be easily related to you by someone who doesn’t know you well. Also to minimise the risk further try to use different numbers for different cards.

Paula Marriss is a financial advisor and editorial contributor at The Money Zone where she writes regular articles on Credit Cards and other Personal Finance topics. To read more please visit http://www.money-zone.net/creditcards/

Tags: apply credit cards, personal finance, bankruptcy, credit cards, money

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Credit card fraud is a constant source of worry nowadays and being stuck without your plastic, even if it’s only for a few days can be really frustrating if you are one of those people that relies on their credit card for everyday transactions.

The reason why credit card fraud is such a popular crime however is because we make it easy for the criminals to steal our information. “Not me” you might say but have you never let your credit card out of your sight (in a restaurant perhaps), or thrown away an old statement, written down that pin number and left it in the same wallet as your card?

Don’t worry, you’re not alone. That’s why credit card fraud is so popular. Criminals will always choose to steal from the easiest places they can find to get the most money and taking the lowest risk. Your credit card, if you don’t look after it properly, gives them that opportunity.

So let’s see about minimising the risks. Follow these simple tips and your risk of becoming another crime statistic will reduce significantly:

- Always keep your credit cards in a safe place and never in the same place as any other documents to do with your cards.

- When out shopping, never let the cards leave your sight when buying something.

- Never throw away your credit card receipts or statements intact. Preferably you should shred them. If you don’t have a shredder, rip them into tiny pieces before throwing them out.

- Never write down your PIN number (and if you really must) never, ever keep it anywhere near your credit card.

- Don’t wait. If you think you’ve lost a credit card, report it to your issuer immediately.

- Never give out your PIN number to anyone, even if they claim to be from your bank, building society or the Police. None of these people would ask you to reveal this information legitimately.

- When you receive a new credit card, sign the back immediately.

- Old credit cards should be destroyed before you throw them out by cutting through the magnetic strip. Obviously shredding is the ideal option.

- You should receive a new credit card just before the expiry date of your old one. If you don’t ring your bank to find out why.

All these tips are really just about being more aware of your financially sensitive documents and cards and handling them accordingly. Home Shredders are widely available nowadays and don’t need to be expensive are could provide you with that little extra piece of mind that you’re doing all you can to stop yourself becoming a victim of fraud.

However you choose to dispose of your old credit cards and financial documents, remember that if you can read it as it goes into the bin then so can a criminal that picks it out later.

Paula Marriss is a financial advisor and editorial contributor at The Money Zone where she writes regular articles on Credit Cards and other Personal Finance topics. To read more please visit http://www.money-zone.net/creditcards/

Tags: credit score, finance, personal finance, apply credit cards, loans

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When you are in college, you may think that it is going to be the best time of your life so you want to live it up. In reality, you are going to want to watch what you are doing with the credit card that you received from one of the major credit card companies out there.

You are going to want to set a limit to what you are going to spend each month with the credit card. That way you are not going to put yourself in credit card debt in the first year that you are at school. Once you have set your self a limit to what you are going to spend each month with the credit card make sure that you are sticking to the spending limit that you have set. In other words, you are not going to want to spend every thing that you are able to receive from the credit card in one month.

You are even going to want to make sure that you are going not to go on any big shopping sprees when you see something that you really like and think that you just have to have. That is going to end up putting your balance up higher than you are going to be able to pay for when the bill comes due. There is even a good thing about you getting the bill instead of your parents. When you are receiving the bill then you are going to be able to pay for all of your purchases your self. You really want to try not to have your parents paying the total balance of your credit cards each month because it is not going to teach you anything if you are not taking the responsibility for the bills that you have made on your own.

One thing to really think about is to only use your credit card when it is an emergency. This could be gas for your car so that you are able to get back and forth to your classes or even if you find that, you are going to need a certain book for your class that was not on your book list in the beginning of the semester. That way you are going to have a bill each month that you are not going to be able to pay for on your own.

Rachel Nava recommends Find Credit Cards for finding a college student credit card.

Tags: apply credit cards, credit, credit score, credit repair, finance

Popularity: 2%