Credit cards put people in a false sense of security. They can help you organize your finances better and make money management a lot easier. You can even use your card to make your hotel reservations (and pay close attention to the 10% tips that all hotels these days offer).
That said, credit card fraud (or identity theft) is on the rise. It is an extremely serious problem. According to the Federal Trade Commission, losses due to credit card fraud are estimated to be over $54 billion.
Most of financial experts tell you that while you need credit and a credit card, you need credit cards and a verification system (more about that below). But do you really need all those additional cards? Do you really need all those credit monitoring services? Do you really need those extra reimbursements for your monthly credit card bills?
I think you may need two or three credit cards just to handle your personal financial needs and loans. You may want the one with the lowest interest rate plus two or three extra credit cards so you can use them as tools to improve your credit score. But understand that you do need money in order to build credit. Since so many American consumers aren’t careful about their credit, credit card companies are making elaborate and creative ways to pull money from them. Following are some of the scamming tactics they use to swindle you:
1. They offer nice gifts-stip coupons-air miles etc.
2. They promise no interest-no fees-no payments for 12 months etc.
3. They promise you a huge amount of available credit-up to $1500.00
All of these quotes are, by law, false and has no validity.
There are, however, some really helpful organizations that can help you in the fight against credit fraud. Here is your navigating list:
Trans Union – Call 800-888-4213
Equifax – Call 800-525-6285
Experian – Call 888-397-3742
Getting your credit report is essential to fighting identity theft, so call and visit the three credit bureaus and get your reports. The report must be thorough, but many people don’t look at it and hope it’s correct. They should also get a free copy of their credit report from all three bureaus per year.
Lowen your interest rate and do your own debt. Don’t dig yourself into a hole paying interest and fees.
If you need an extension, simply contact the lender and ask for an extension; maybe that you are not late.
Make sure you are open from the first payment until it is paid off.
Never apply for credit if you aren’t asked for it. If you never ask for any credit, your credit score will not be affected when you don’t apply.
Don’t cancel any credit cards that you no longer use because you no longer use them.
Do you pay your credit card bills on time? Pay them early if possible.
If you no longer use the card, Intialing with the card will be lost.
Consider a source from where you can get a free report. It is a free service by the government and has a government logo’d. You also do have the opportunity to get your report via email. Forget all the fraudulent sites out there; most of them are nothing but scams.
Although many companies claim to be able to fix your score or monitor it for you if you elect to consult one, be aware that if you do get the advice. I don’t believe at 1-800- 2credit. There is a lot of hype. I suggest that instead, call the three credit bureaus and ask them for a copy of your report. You can get your two for free if you call 1-800-8 stimulus.