3 of 51

Write now Article Tools

Credit cards are one of the most common forms of payment in our day and age. A lot of people find convenience in just sliding a little plastic card to pay for things.

However, their convenience is also what makes them so dangerous. Anyone can steal your credit card and use it. Most places don't ask for ID, even though they should. All they have to do is forge a signature, and you are the one that ends up paying.

Similarly, if you mistakenly misplace your credit card, it can end up getting used without your knowledge. There's a lot of people that would return a stolen credit card if they found it on the street or a counter, and unfortunately, just as many that would use. You might not even know you lost it or that it's being used until you get your monthly statement. The easiest way to use stolen credit cards is online because you run less risk of getting caught.

So to prevent this from happening, there are several easy precautions you can take. For one, be careful what websites and companies you give your credit card information for. Don't leave your account number lying around. This should be common sense.

One big problem people have with credit cards is that they carry all of theirs, so if your purse or wallet gets stolen, you have an entire collection of credit cards to cancel. Try to carry only credit cards you know you're going to need or that you use very often.

So what do you do when the unthinkable happens? You're about to pay for groceries and you realize you don't have your credit card. The first thing you need to do is report it stolen. Even if you think you might have just misplaced it, you should assume that someone stole and that they plan to use it. Timing is key because once you report your card stolen, your credit card company will not hold you liable for any charges placed on the card afterwards.

There are many federal protections in place to ensure that you do not suffer great financial losses. According to the Fair Credit Billing Act (FCBA) you are only liable for $50 of unauthorized charges on your card if you report it after it is being used. Additionally, if the charges involved your credit card number, but not the card itself, you are not responsible for any of it.

Even though this shouldn't serve as false hopes, a lot of credit card companies are sensible when it comes to charges. I once had my card number used to buy something online. My company actually called me because the charges were suspect. It was several charges to the same amount. When I confirmed that they were not made by me, they immediately cleared those charges and I got a new card issued to me.

Some companies also recommend that you send them a letter with your account information and when you noticed it was missing. This can be helpful for you and makes it easier for the company to track the facts of your case. At the very least, you should immediately call. Most companies have a toll free number you can call any time.

Getting your card stolen can be a hassle but as long as you deal with it in a timely manner, you should not incur any financial losses. Following the right steps to prevent it and after it, can save you a lot of headaches.

Learn more about this author, Ana Montano.
Click here to send this author comments or questions.

Add your voice

Know something about What to do if your credit card is lost or stolen?
We want to hear your view. Write now!