Your credit card gives you passage to a world of possibilities. It can not only assist you in securing payments, but it can also aid you to increase your credit score. If you use your card carefully and obtain the payments on time, you can grow your credit score by bounds and leaps. But, if the card is misused due to fraud and carelessness, your credit score and history can be seriously affected. Hence, it is necessary that you desist being a victim of credit card fraud. The following are the tips to assist you to avoid credit fraud.
Do Not Expose Your Credit Card Information
You should never reveal your security code, expiry date, card number, and other particulars of your card to anyone. These features can be utilized to make fraudulent transactions; it is critical to ensure that no one has access to them. Do not disclose your card information even if you get calls from people alleging to work for your bank.
Keep Your Card Safe
It is crucial that you keep your cards secure and away from the range of other persons. Place your cards in a wallet or bag close to your body so that it cannot be directly snatched away. Ensure that your card does not fall off by properly zipping your purse. Only carry the cards you need, rather than carrying all your credit and debit cards with you all the time.
Be Careful When Using Your Card On-line
Be cautious and make sure that you only use it on websites that are genuine and give SSL encryption security for on-line payments when you use your card to shop on-line. If the site does not render enough security, your card details can be stolen, and the same can be utilized for executing fraudulent transactions with your card or identity theft.
Keep Track Of Your Account
Opt for email and mobile alerts to keep a record of your credit card account every time. It is important to report to the bank immediately in case of any unapproved usage of your card. You can also reach your account on-line through electronic banking and be certain that you are informed of all the transactions made with your card.
Keep Your PIN Safe
You will need to give a 4 or 6 digit Personal Identification Number (PIN) to allow a transaction when you swipe your card at trade outlets to make payments, do not share your PIN with anybody or write it on any piece of paper as it can be misused or stolen.
It will mean termination of services such as the phone or electricity, or your account will end up in collections if you do not pay your bills in time. It could be nerve-wracking and costly if you get sued. But there are useful financial reasons why you should pay your bill in time.
Interest Rates May Rise
Some lenders incorporate language in the contract that permits them to increase your interest rates if you make a late payment. Some lenders may excuse few late payments, but regular late payments can end in a growing interest. Higher interest implies you pay extra over the life of the account or loan. Some credit card corporations will increase your interest or change finance terms even if you miss one payment.
Credit Scores Drop
Some lenders propose a short grace period of one to two weeks. After that, they may notify your account to credit bureaus as late. Normally, banks report late payments and those that are past due by one to three months. Late payments damage your credit score and can affect your possibilities of securing finances in the future. Late payments on your credit report may also decrease your chance of receiving a real interest rate on future accounts or loans.
Internal Collectors Can Be Aggressive
You might have to deal with a private collector if you make an overdue payment even if you pay your bills before accounts go to collections. They can be determined like the collection agencies, calling you many times a day and urging you for payment. Sometimes, people make payments just to satisfy such collectors, but that can lead to falling late with other bills and beginning the cycle over. Limit this from occurring by budgeting to pay all your bills on time.
Loss Of Account Benefits
Some accounts come with privileges, such as cash-back bonuses, initial interest-free periods, or rebates. Some creditors withdraw benefits from accounts if payments are late, which implies you might miss an access to valuable rewards or services.
There is a valid reason why some people may run late on bill payment, things in life happen. When that happens, working quickly to resolve the situation can assist you to lessen the adverse impact of paying late.
So it is essential to make sure you pay your bills in time to avoid getting yourself in circumstances where you have a delaying payment or missing to make a payment. It is harder to get out of the spiral once you get in.