Protect Your Credit Cards

Upon receiving a new credit card, sign it immediately in order to lessen the chances of someone else using it. Your new credit card should have been accompanied with important information, such as customer service telephone numbers, in case your card is lost or stolen. File this information in a safe place. Call the card issuer to activate the card. Many issuers require this step to minimize fraud and to give you additional information. Keep your account information to yourself. Never give out your credit card number or expiration date over the phone unless you know who you're dealing with. A criminal can use this information to steal money from you, or even assume your credit identity. Keep copies of sales slips and compare charges when your bill arrives. Promptly report in writing any questionable charges to the card issuer. Do not lend your credit card to anyone. Your credit privilege and history are too precious to risk.

Lost or Stolen Credit Cards

Report the loss or theft of your credit card to the card issuer as quickly as possible. Many companies have toll-free numbers and 24-hour service to handle such situations. It is good practice to follow up your phone calls with a written letter. In the letter, include your account number, when you noticed your card was missing, and the date you first reported your credit card was lost. If you report the loss before the credit cards are used, according to the Fair Credit Billing Act (FCBA), the card issuer cannot hold you liable for any unauthorized charges. If someone uses your cards before you report them missing, the maximum amount of unauthorized charges you will be liable for is $50 per credit card. After the loss, continue to review your billing statements carefully each month. If they show any unauthorized charges, promptly send a letter to the card issuer describing each unauthorized charge. Be sure to note in your letter the date your card was lost or stolen and when you first reported it to them.