It may seem too obvious to mention but the single most important step that you can take is to keep your card safe! Make sure that you know where it is, that you do not leave it unattended when in a public place or in your home if you do not have complete trust in your guests. Try to keep it in a card holder, which, because it is bulkier, is less likely to be dropped, lost or misplaced. Never keep your PIN (Personal Identification Number) in the same place as your credit card. If they are lost at the same time, a thief can gain access to your credit card with consummate ease.

Secondly, you should remember that, with your charge card monthly statement or even your credit card stubs, a fraudster can obtain sufficient information about you to clone your identity and make use of your credit card for nefarious purposes. You should always dispose of this paper evidence of your credit card information securely, either by burning or shredding. Never just put it into the waste bin, as you never know who might come across it. The development of Chip and Pin technology has, it is true to say, significantly aided the fight against these types of fraud, although many countries have not yet embraced that technology and a market exists in the export of fraudulently copied or stolen cards to non-compliant countries.

Another form of credit card fraud that can be avoided is cloning of your card through a process that is commonly known as skimming. When you pay at a restaurant or bar or even at a filling station, your card can be swept through a piece of electronic equipment that can enable the conman to duplicate your card and then use it to build up massive indebtedness. Because your card has never actually disappeared, it can take some time before you even become aware that this has happened. One way of avoiding this practice is to ask that the card remain with you and that the payment terminal be brought to you. Alternatively, you can insist on keeping the card in your sight at all times until it is physically returned to you. This is particularly relevant where your are unfamiliar with the establishment and, even more so, when you are out of your own country.

Online credit card fraud has also developed apace over recent years. It is more difficult for your card details to be ascertained, as a result of the increased security afforded by secure socket layer encryption (SSL) If you cannot see the telltale letter ’s’ following the ‘http’ in a websites address in your browser bar, then you should not provide your credit card details. Many of the card providers also have their own security measure, such as Verified by Visa, to provide additional security. However, one means by which people are still being scammed is through the process known as phishing. This involves the credit card holder being contacted by email, with a request that he provides credit card information – often under the guise of the discovery of a security threat against his card! These emails can be professional and can look extremely authentic. However, if the recipient bears in mind at all times that no reputable credit card company or bank would ever ask for such information by email, this scam can be easily avoided. The same should be said, incidentally, for telephone requests to provide this type of information.

Finally, if you are unfortunate enough to fall prey to some of the practices set out above, please ensure that you notify your card supplier as soon as you become aware of it. Not only will this allow your card to be cancelled and any fraudulent use put to an end, it will also limit your own liability for loss sustained as a result of the fraudulent misuse of your card.

Conclusion

Whilst there remain many ways in which the security of your credit card is susceptible to compromise, it is to be hoped that the adoption of the simple security precautions set out above will mean that you are not one of those unfortunate individuals to fall victim to this type of fraud.

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The truth is their troubles may just be beginning. Before anyone applies for this type of credit card it is advisable to read the fine print.

First of all, most of the time the low interest rate is only for a short period of time, usually for the first year. After the year has passed they may find that the interest rate increases and in many cases to a higher rate than the regular credit card they had before. This is a way for the credit card company to recoup their losses from the low interest rate in the beginning.

Also it is important to note that if you are late or miss a payment, not only does it affect your credit rating, the credit company will charge late fees. In addition they will erase the low or 0% rate and raise it back up to a higher level rate. This usually goes retroactively back to the beginning of the account so in effect you are now paying the high interest rate plus the late fees tacked on. The low rate usually applies to new purchases, not a balance transfer from another card, or cash advances.

Sometimes cash advances are at an even higher rate, plus fees. What it boils down to is that these types of promotions are rarely a good deal for most consumers, they end up costing you more in the long run. Keep in mind a credit company is in the business of making money.

Regardless of all the non-sense fees, as long as you’re smart with your application and you know what you’re getting yourself into, you should be able to find yourself a great card that works for you!

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The good news is that would-be cardholders are in for a treat. Competitions between cards companies are very stiff which results in bigger and better rewards credit cards offer to attract new customers and maintain the old ones. Although all rewards cards sounds great at first glance, it is best not take everything at face value. The most important thing to do is to an extensive amount of research on each offer before you actually sign on for it. To guide you through the selection process, consider the following tips:

Tip 1: If you plan on carrying balances every month, you will not earn any rewards. One thing you should remember is that credit rewards cards have higher interest rates than average cards. If you have outstanding balance from month to month, you are not going to earn anything from the rewards after you pay off the interest.

Tip 2: Pay close attention to every rewards offers and you are likely to come across phrases such as “cash backs up to 1%”, what does that mean? It means that you will earn less than 1% on cash back and it will not be until you achieved high levels of spending will you earn more than 1%.

Tip 3: It is important to determine the type of rewards programs you need otherwise you might not be maximizing the benefits you will get from rewards credit cards. Additionally, make sure that the reward you are aiming for are actually worth your money. Why spend $12,000 on your card per year just to earn a $50 gift certificate?

Tip 4: Frequent Flyer miles are best for people who make frequent purchases on their cards. If you do not charge much on your card, it may take years before you will qualify for a free flight. If you are an occasional spender but still want to get rewards credit cards, look for those that offer rewards at low level of spending.

Tip 5: Gas rewards cards are great especially since fuel prices are increasing. However, know that you will only earn points or get cash backs if you purchased fuel at real gas stations. Using your cards on wholesale clubs, supermarkets or other locations may not qualify you for rewards.

Tip 6: A large majority of credit cards with rewards have limits. For this reason, make sure that you read the fine print to find out what your card’s maximum earnings for rewards are. In addition to rewards limits, some cards enforce expiration dates on rewards points. If you do not use your points on a specified period of time, you cannot redeem them anymore.

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People are not perfect; they may commit a few mistakes along the way. However, certain mistakes with credit cards can lead to immense financial loss, which is why it is important to know what to do in case things do not go as planned. In this article, we will discuss some of the most common personal cards mistakes and what you can do to avoid it.

Carrying Too Many Unsecured Credit Cards

Having one card is convenient, having two or more personal credit cards are great in terms of building better credit score. However, carry more than four cards and you are inadvertently setting yourself up for financial loss. Applying for too many credit cards may also give lenders the impression that you are gearing for a massive spending spree, which will paint you as “high risk”, thus, you will find it very hard to obtain loans in the future.

Falling For Promotional Rates

The problem with some card offers is that they tend to omit the word “introductory” on these offers and people will only know about the temporary rates once they read the fine print, or in some cases, once they get the bills after the introductory period expires. Know that these low or no interest rate are only good for a certain period of time and once the promo expires, it will go back to normal rates. So never sign on without reading and understanding the fine print first, otherwise you might end up paying more than you expected.

Not Paying On Time

There are many cases wherein making late payments are unavoidable but if you have been consistently making late payments or if you are behind for over a month then expect these to reflect on your credit report. In addition to it going on your record, you will also may a huge amount of money on interest rates and penalty charges. If you know you cannot pay on time, give your card company a call and let them know about it so both parties can work something out.

Excessive Spending

Having unsecured credit cards are sometimes too much of a temptation to many people and it is easy to fall into the habit of carrying a balance from one month to the next. If you carry these balances, you may exceed your credit limit and you will have to pay penalties for it. So use your credit cards responsibly and always keep track of your expenses.

Ignoring The Monthly Statement

Many people usually just look at their total balance from their statement and disregard the rest of information written. If you have been a victim of unauthorized use, you are literally throwing away your money if you fail to check if indeed, the amounts being charged to you are legitimate. So never skip on reading every information written on your statement.

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There are already a lot of husbands and wives who were endlessly arguing and fighting because of the fact that they do not have a common stand regarding on how to manage their respective finances. In this situation, you must always remember that when you are going to build a family, definitely, your finances will mean a lot; his includes payment of bills, purchasing your family’s needs, and even paying for your home. In this case, both of your credit card accounts and your credit score surely matters a lot.

Here then are some tips that may help you whenever you are already married and still use credit cards as a way for you to spend and purchase good s and services. Following these tips will surely lower your chances of having both of you fight just because of money matters.

* Take a look at how much debt can you handle both
More likely than not, you and your partner will have a different perspective on the debt that you can handle. Remember that your outstanding balance actually determines a lot what would your credit score look like. And it is also your credit score which determines whether you can secure a future loan or not. This is the reason why the amount of debt that both of you can handle matters a lot, and that it must be clear to both parties.

* Try to take a look at your combined income vis a vis your overall debt
Remember that getting anew credit card account would mean a new monthly bill to pay. In this case, you must actually see and talk with your spouse your overall income vis a vis all the debt that both of your have to pay. Take note that raising a family involves many bills to pay: food, utilities, appliances, house rent, schooling, gas and car bills, and many more. Therefore, you must properly gauge whether you can handle another credit card bill to pay or that you already have a lot of debt to pay. Having too large balance or too many credit card accounts truly hurts your credit score, which is the reason why you must actually be wary enough of such things.

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We are now not limited to the money we have in our wallets but by the size of our credit limit; which unfortunately, more often than not, does not correlate. The second is the fact that the cost of this convenience is actually very high. When you add up the interest on your purchase, assuming you are not paying off your balance in full on or before the due date, the risk of late payment fees, overdrawn fees and even identity theft, you have to ask yourself if they are worth it.

You have probably already made the decision to stop using credit cards but you may have been so seduced by the luxury of plastic availability that you are not sure how you are ever going to live without them. Here’s a list of helpful tips below if you want to stop using credit cards:

1.Destroy the ones you have. You may think that you are strong enough to keep your card on you for ‘emergencies only’ but it is better to be safe than sorry. I have seen even the mighty fall beneath the irresistible pull of plastic, so before you start saying things like ‘buying this pair of shoes is an emergency… it will help boost my spirits and carry me through the work week so I can make money to get out of debt.’ These mind tricks are a sure fire sign that you are not as strong as you think and the best bet would be to take a huge pair of scissors to your credit cards now.

2.Stop the influx of new offers. There is simply no point in getting rid of your old cards if new ones keep showing up at your door. One of the easiest ways to kick the credit habit is to put some distance between you and access to credit cards. You can stop receiving unsolicited offers in the mail by sending a letter to the major credit bureaus or calling 1-888-5-OPTOUT. You need to provide your name, mailing address, phone number and social security number to complete the process.

3.Devise a monthly budget. Now that you have cut your ties to credit you are going to have to come up with a spending plan. Many people have no idea how much money they spend each month when they use credit cards. To make a workable budget you should document your income and make allocations for all your major fixed expenses, such as mortgage or rent, childcare, other loans and so on. Your discretionary spending allocations; which would include groceries, transportation, and entertainment, should be realistic. When you have these basic items down you can then estimate an amount to dedicate to savings by subtracting the total of your expenses from your income. If you come up with a negative figure this would most likely represent the amount you were spending on credit to supplement your lifestyle. In other words, you were living beyond your means and you would have to slowly find a way to cut back until you regain control of your spending.

4.Pay bills using an online account. When you quit credit all of a sudden things seem a little inconvenient. You can’t phone in a payment or make recurring charges to your card and you may be tempted to fall back into the trap. You can save yourself by setting up an online account so you can use your own money to pay bills online.

5.Plan before you leave the house. Now that you don’t have credit cards to swipe on a whim, you are going to have to think ahead. This may take some getting used to, but it will definitely help you to schedule your large purchases and put a cap on frivolous spending. Over time this will amount to increased savings and more responsible choices. Not a bad move at all and definitely worth the initial pain of planning in advance.

If you follow this simple five step plan you will be able to kick the credit habit and live within your means. Choosing to do this may mean the difference between building a savings account and watching a mountain of debt pile high. I know which I would prefer… how about you?

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What Balance Transfer Credit Cards Are

These credit cards have a certain appeal that separates them from other forms of plastic. They offer applicants the chance to shift a balance from a high-interest card to a low-interest one. In fact, most of these cards come with an initial 0% interest period. This means you can make payments that are directly applied toward the balance. As you pay down the debt, you can save hundreds of dollars on interest expense.

How to Compare Balance Transfer Credit Cards

Many appear to be the same, but in reality they vary quite a bit. Check the following details as you sift through the options:

Length of introductory period – The initial period of no interest may be as short as three months, or as long as fifteen months. If you aim for at least 12 months of 0% interest, you’ll have ample time to pay off the balance.

What the 0% APR applies to – Some credit cards offer you 0% APR only on the transfer amount. This means that you will be charged a higher interest rate when you make a purchase. Moreover, all the payments you send in will first be applied to the balance, and then to the purchases. While you pay down the balance, the new purchases and their attached high interest rates will sit and accrue on your statements. Eventually, you could pay more in high interest than you planned on. To avoid this, look for a card that offers 0% APR on both balances and purchases. Or limit the use of your card until you pay off the transferred balance.

Check the fees – Most balance transfer credit cards charge an initial fee for bringing over the new balance. This is sometimes a certain percentage of amount transfered. Banks often include a cap, such as $50 or $75, on the transfer fee. The savings you receive on interest usually outweighs this expense.

Additional benefits – While they offer you a chance to pay off nagging debt, many come with other features as well. Some balance transfer credit cards include a rewards program. Others have a low interest rate that kicks in after the introductory period. Think long-term before you apply. Consider what benefits you’ll want after you are debt-free.

Using your Balance Transfer Card

These can be a solid solution if they are used properly. Think about creating a payment plan to get rid of the debt. Set aside money each month for card payments. If at all possible, pay off the balance before the introductory period runs out. As the balance dwindles, you’ll gain control of your finances. You’ll also begin to build a stronger credit history. When the balance is gone, you’ll be able to enjoy the card’s additional benefits.

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Today, credit card transactions are authorized and captured electronically and sent via Automated Clearing House (ACH) for deposit. There are various methods for card presentment for payment, dependant on the type of merchant accepting that payment: retail-face-to-face, Internet or Mail Order/Telephone Order.

When a merchant accepts a credit card for payment, the card information is transmitted through the “system” via a gateway, or a service that authorizes payments. Depending on the merchant account provider, this may be the same service provider or a separate service. This gateway allows the credit card transaction to go through a series of steps known in the industry as interchange, where the card issuing bank debits the cardholder’s account the amount of the sale and transfers the money to the processor and then ultimately to the merchant.

In order to accept credit cards, merchants must pay fees to the acquirer, or merchant account provider, based on numerous criteria, with heavy focus on transaction volume and method of processing payments.

Merchants must also take into account what is known as a chargeback when dealing with accepting credit cards for payment. A chargeback is a cardholder dispute. Per Visa and MasterCard rules, a cardholder can dispute a charge on his/her bill for numerous reasons. When a chargeback is initiated, the merchant will be debited for the amount of the dispute. It is up to the merchant to resolve most of these disputes by providing the required documentation to the merchant account provider in order to “represent” the chargeback and win the right to the money. If a merchant fails to provide the necessary documentation or does not represent in a predetermined amount of time, the merchant will lose the dispute and forfeit their right to the funds.

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