Steps in Avoiding Credit Card Fraud

Credit cards are very useful. They provide a quick, easy and convenient way to make purchases and allow you to defer payment. In someone else's hands however, what was once convenient can become devastating and dangerous.

Credit card fraud can cause serious problems. Not only can you lose money but your credit can be ruined, your identity stolen, and you can even be charged for crimes you didn't commit. Keeping your credit card information out of the hands of a thief and preventing credit card fraud should be a major consideration In your everyday life.

There are many things you can do to avoid credit card fraud:

Step #1: Limit the damage of losing your purse or wallet

Losing your purse or wallet can put your entire identity at risk. Chances are you have a great deal of personal information stored in your purse or wallet. Limiting what you carry on your persons will limit what a potential thief can assess.

Do not carry every credit card you own on you at all times. If you will not be using the card don't keep it with you. If a thief steals your wallet don't make it easy for them to access all your credit cards.

Step #2: Limit your junk mail

Junk mail can be a gold mine for a thief. All those credit card offers that come in the mail open a window for a thief to steal your mail and order a credit card that is in your name.

In order to limit this threat avoid giving out your address to companies that do not need it. Specifically request to be removed from mailing lists at your bank or other places where you do business. Also, have your name and number added to the national do not call registry at www.donotcall.gov. This will prevent many phone attempts a gathering information used to send you junk mail.

Step #3: Invest in a paper shredder

When you do receive this kind o junk mail have it shred. Any documents containing personal information should be shred as soon as they are no longer needed. Anything that has credit card information, including statements, needs to be shred when no longer needed.

A paper shredder is a simple, easy way to protect your information, prevent credit card fraud, and prevent identity theft.

Step #4: Use caution when using your credit card

While credit cards make life easier by facilitating payment it is not a good idea to be complacent about using your cards. Particularly on-line, giving your card out on many websites can get you into trouble.

Use payment processing companies instead of using your credit card directly. Sites like paypal.com will allow you to use your credit card without giving out your credit card number.

Step #5: Check your credit report

Doing everything that you can to prevent credit card fraud does not mean that it will never happen to you. The Federal Trade Commission has made it possible for you to check your credit report for free every 12 months. Take advantage of this free look at your report to make sure that you have not become the victim of credit card fraud.

Prevention is better than limiting the damage, but be on the lookout for fraud on your accounts all the same. When you get a copy of your credit report make sure that everything on it is accurate. Credit card fraud will show up as credit cards on your report that are not yours, or charges on your cards that you didn't initiate.

If you spot fraud contact the credit bureau immediately to dispute the transaction and contact the credit card company to cancel the card.

Credit card fraud is a scary thing. Your personal information and data is compromised and someone out there is living off of your credit. Follow these guidelines to help protect yourself from this potentially devastating type of fraud.