Credit card is a usual tool for shopping and in general, most financial transactions the world over. When you go for a credit card, one of most significant factors that count towards the kind of offers that you are likely to get is your credit history. This refers to the balances on your account; that is, the amount of credit you have safe in your account to the actual amount you owe to your lenders.
Much of your credit score is calculated this way. This balance of your debit against your credit is referred to as the credit-utilisation ratio. This ratio is a key signifier of your credit management capacity. And of course, lower this ratio, the better it is for you as a loan or credit-card seeker.
If your credit score is seeing a downturn, it may be a good idea to cancel your credit card, which can help you erase your debts in the short term. The most important benefit is the removal of temptation of spending which increases debts. On the contrary, paying out your debts clears your credit report, thereby increasing your credit-utilisation ratio and increasing your credit score.
It is wiser to cancel your newest cards first to help yourself manage your debt. Canceling older credit cards which you often use can weigh negatively on your credit history, the length of which is used to calculate your credit score. The contrary case is when you are not using the card and yet are having to pay an annual fee. Since in this case it has no transactions to show, it does not count towards calculating your credit history. Also, you save your annual fee.
There are many online resources in the form of websites that provide you a lot of important information to manage your credit card debts. It is good to refer to them to plan your financial strategies.
Some very alarming statistics are showing that credit card fraud cases are on the rise. No matter which part of the country you are living in you could easily become victimized by credit card thieves. Prevention is obviously worth a pound of cure and considering that credit card fraud costs billions of dollars to those who issue credit cards; it is about time that everyone did their bit to prevent this from happening to them.
Crafty Ways
Credit card thieves operate in very crafty ways and will use all of their ingenuity as well as creativeness to dupe unsuspecting credit card holders. Credit card identity theft in which credit card accounts are opened in the names of the credit card fraud victims, are the most common instances of credit card fraud.
If you take a few timely steps you can prevent credit card fraud. First of all, you need to record all your account numbers and their dates of expiry as well as phone numbers and addresses of all companies. Keep this information in a safe and secure place. Not carrying your credit cards in your wallet is another simple way of preventing credit card fraud. It is advisable instead to use a business card holder, small pouches or even in compartments that can be zipped up to ensure that your credit card is carried in a secure and safe manner.
Even when transacting business it is wise to keep a close eye on your credit card and to also get the credit card back as soon as it has been processed in order to prevent someone from noting down your credit card information and then using that information to defraud you. When you receive bills, these should be opened promptly and reconciled as soon as possible and if certain charges seem dubious you should immediately take up the matter with the credit card company.
Other tips that will help prevent credit card fraud include signing the credit card on the reverse side and notifying the credit card company about changes in address. Obviously, you would be inviting trouble and certain credit card fraud if you make the mistake of lending your credit card to someone. Also, it is just as foolish to give your account number on the phone, unless you are the one making the call.
Following these simple tips can help ensure that you don't become a victim of credit card fraud, and in addition, you should also make it a point to avail the services of companies offering credit card protection; especially, as it will help prevent identity theft. Finally, you can also visit some of the better known credit card companies to learn about other useful means by which to prevent credit card fraud.
Both Smith James & Jeff Glasser are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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