Protect your credit card!

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Protect your credit card!

It is a real life problem that affects many people in the United States and abroad. This problem takes thievery to a whole new level and it makes for very difficult financial management. What is this problem? Identity theft! Identity theft is the fastest growing crime in the country and for obvious reasons: It is easy to do, the chances of getting caught are virtually impossible, and there is an unbelievable chance for revenue!

Maybe you have encountered first hand identity theft. Maybe you’ve heard of someone, possibly a good friend or family member, getting taken by identity theft. Whatever your reason for knowing about the crime you probably know the importance of keeping you and your finances safe! This doesn’t end with just applying for a credit card or searching for a credit card- it is something you will have to continually monitor for the rest of your life!

The facts are in: If you want to seriously protect your financial assets you are going to need to take identity theft seriously and do your part to protect yourself! There are various criminals out there who possess the tools necessary to steal your most precious information and they won’t hesitate to do it- especially if you leave it wide open! It can be as easy as your credit card number being stolen or as complex as your entire identity being stolen (social security number, address and everything!).

There are several things you can do in order to protect yourself, from not putting your social security number on your checks to not just throwing away bank and credit card statements. Of course, the best way to combat identity theft is with knowledge- here’s a quick guide on the ways a thief can steal your identity and what you can do about it!

What types of credit card fraud are out there?

You probably didn’t think about getting your identity stolen when you applied online for your credit card. You didn’t think theft was part of the deal! There are various forms of identity theft that criminals choose to partake in, from stealing your checks to using your credit card number to purchase items. Identity theft doesn’t just happen to those with bad credit histories but to people with excellent credit as well. One of the most common forms of theft is in social security number usage. If someone has your contact information and your social security number they can do quite a bit of damage to your financial life. Keep your information secured and don’t tell it to anyone!

Protection starts with you!

Sure, nearly every bank and every credit card company runs some sort of program that helps card holders protect themselves from identity theft but they will do no good if you don’t take the first step. Initiative is everything when it comes to total protection!

Here are a few ways you can protect yourself, before embarking on the help of a financial institution:

• Get rid of evidence of your financial happenings! The most frequented way that thieves get a hold of your information is by going into your garbage cans/ dumpsters and picking up what you left behind! The wise thing to do is invest in a shredder if you don’t already own one and shred any and all your financial paperwork such as bank statements and credit card bills.
• Check your credit report on a normal basis! Three to four times per year you should be checking your credit report. It is here where you can find out for sure if someone has been playing around with your identity and/ or applying for credit accounts with your name attached.
• Use clever passwords! Nowadays (as you probably saw when you applied online for your credit card) nearly every website mandates that you fill out a user name/ password registration. Many people make the mistake of using the name of a pet or their maiden name: Don’t do this! Come up with something clever that you and only you can figure out!
• Get your name off the mailing lists! If you possess excellent credit then you no doubt get told of it everyday! Credit card companies love sending promo material to those individuals with good credit and you probably are getting several solicitations each day! However, there is a way you can combat this: Get your name removed from the credit agency list.

Even those who try as hard as they can to fight identity theft have a small chance of getting their identity stolen. If you happen to fall into this trap then you have to report the crime immediately! You don’t have to worry so much about losing all of your money (as the financial institutions usually cover the damages) but you’ll need to worry about your now destroyed credit history!

Your credit history is pretty much the biggest thing going for you in terms of finances and with a bad credit history you’re pretty much trash to the credit card companies and banks who you need a loan from! Once identity theft hits you, it will be a long run for you to get back on your feet.

One thing that you may want to invest in is a credit monitoring system, which scans your credit report once per day for any suspicious material. These systems usually range in price from $30 to $100 per year, so it is a small price for your financial freedom!

Remember, protecting yourself is the first step to a healthier future and reporting crime immediately is a must!