Credit and charge card fraud costs cardholders and issuers hundreds of millions of dollars each year. While theft is the most obvious form of fraud, it can occur in other ways. For example, someone may use your card number without your knowledge.
It's not always possible to prevent credit or charge card fraud from happening. But there are a few steps you can take to make it more difficult for a crook to capture your card or card numbers and minimize the possibility.
Do:
Sign your cards as soon as they arrive.
Carry your cards separately from your wallet, in a zippered compartment, a business card holder, or another small pouch.
Keep a record of your account numbers, their expiration dates, and the phone number and address of each company in a secure place. Keep an eye on your card during the transaction, and get it back as quickly as possible.
Void incorrect receipts.
Destroy carbons.
Save receipts to compare with billing statements.
Open bills promptly and reconcile accounts monthly, just as you would your checking account.
Report any questionable charges promptly to the card issuer.
Notify card companies in advance of a change in address.
Don't:
Lend your card(s) to anyone.
Leave cards or receipts lying around.
Sign a blank receipt. When you sign a receipt, draw a line through any blank spaces above the total.
Write your account number on a postcard or the outside of an envelope.
Give out your account number over the phone unless you're making the call to a company you know is reputable.
Reporting Losses and Fraud If you lose your credit or charge cards or if you realize they've been lost or stolen, immediately call the issuer(s).
Many companies have toll-free numbers and 24-hour service to deal with such emergencies.
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Friday, January 1, 2010
Useful Tips On Avoiding Credit and Charge Card Fraud
Clean Credit Report: Easily Raise Your Credit Score 100 points
Clean Credit Reports, your credit report contains information about where you work, live and how you pay your bills (On time or not). It also may show whether you've been sued, arrested or have filed for bankruptcy with in the last 10 years. Companies called consumer reporting agencies (cra) or credit bureaus compile and sell your credit report to businesses all over the world.
Clean Credit Reports, many financial advisors suggest that you periodically review your credit report for inaccuracies or omissions. This could be especially important if you're considering making a major purchase, such as buying a home. Checking in advance on the accuracy of information in your credit file could speed the credit-granting process, clean credit is a must.
Because businesses use this information to evaluate your applications for credit, insurance, employment, and other purposes allowed by the Fair Credit Reporting Act (FCRA), it's important that the information in your report is complete and accurate.
Whenever you apply for any type of credit or financing, a credit report is pulled from at least one of the three major credit bureaus. You want a clean credit report to be pulled. While there are hundreds of smaller credit bureaus around the country, virtually every credit bureau is affiliated with either Experian, Trans Union, or Equifax.
Getting Your Clean Credit Report
If you've been denied credit, insurance, or employment because of information supplied by a credit reporting agency, the FCRA says the company you applied to must give you the agency`s name, address, and telephone number. If you contact the agency for a copy of your report within 60 days of receiving a denial notice, the report is free. In addition, you're entitled to one free copy of your report a year.
If you simply want a copy of your report, call each credit bureau listed since more than one agency may have a file on you, some with different information.
The three major national credit bureaus are:
Equifax, P.O. Box 740241, Atlanta, GA 30374-0241; (800) 685-1111.
Experian (formerly TRW), P.O. Box 2002, Allen, TX 75013; (888) EXPERIAN (397-3742).
Trans Union, P.O. Box 1000, Chester, PA 19022; (800) 916-8800.
Correcting Errors For Clean Credit.
To protect all your rights under the law and to keep your credit clean contact both the CRA and the information provider.
First to get clean credit reports, tell the credit reporting agency in writing what information you believe is inaccurate. Include copies (please keep your originals) of documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report you dispute, state the facts and explain why you dispute the information, and request deletion or correction. Always keep copies of your dispute letter.
They must reinvestigate the items in question, usually within 30 days, unless they consider your dispute frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives notice of a dispute from the CRA, it must investigate, review all relevant information provided by the CRA, and report the results to the CRA. If the information provider finds the disputed information to be inaccurate, it must notify all nationwide CRAs so they can correct this information in your file. Disputed information that cannot be verified must be deleted from your file, then you will recieve a clean credit report, with that item removed.
If your report contains erroneous information, the CRA must correct it(clean credit).
If an item is incomplete, the CRA must complete it. For example, if your file showed that you were late making payments ( 30 days or more), but failed to show that you were no longer delinquent, the CRA must show that you're current.
If your file shows an account that belongs only to another person, the CRA must delete it.
When the reinvestigation is complete, they must give you the written results and a free copy of your clean credit report, if the dispute results in a change. If an item is changed or removed, they cannot put the disputed information back in your file unless the information provider verifies its accuracy and completeness.
Also, if you request, they must send notices of clean credit report corrections to anyone who received your report in the past six months. Job applicants can have a corrected copy of their clean credit report sent to anyone who received a copy during the past two years for employment purposes. If a reinvestigation does not resolve your dispute, ask the CRA to include your statement of the dispute in your file and in future reports.
Second, in addition to writing to the credit angency, tell the creditor or other information provider in writing that you dispute an item. Again, include copies (please not originals) of documents that support your position. Many providers specify an address for disputes. If the provider then reports the item to any credit reporting angency, it must include a notice of your dispute. In addition, if you are correct that is, if the disputed information is not accurate the information provider may not use it again, thus you will have a clean credit report.
When negative information in your report is accurate, only the passage of time can assure its removal. Accurate negative information can generally stay on your report for 7 years.
Clean Credit: There are certain exceptions:
Bankruptcy information may be reported for 10 years.
Information about criminal convictions may be reported without any time limitation.
Credit information reported in response to an application for a job with a salary of more than $75,000 has no time limit.
Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Criminal convictions can be reported without any time limit.
Credit information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.
Adding clean credit accounts to your file:
Your credit file may not reflect all your clean credit accounts. Although most national department stores and all-purpose bank credit card accounts will be included in your file, not all creditors supply information: Some travel, entertainment, gasoline card companies, local retailers, and credit unions are among those creditors that don't report clean credit.
If you've been told you were denied clean credit because of an insufficient credit file or no credit file and you have accounts with creditors that don't appear in your credit file, ask the CRA to add this information to future reports. This will help get you on the road to a clean credit report. Although they are not required to do so, many CRAs will add verifiable accounts for a fee. You should, however, understand that if these creditors do not report to the CRA on a regular basis, these added items will not be updated in your file.
Your Credit Rating and How To Check It
There is a lot of confusion surrounding UK credit ratings, credit scores, credit blacklists, credit reports, and credit files. This guide to your credit rating aims to give you the facts you need.
What's in a Credit File
There are two major credit reference agencies in the UK, Equifax and Experian, who maintain credit files on virtually every adult in the country.
Almost all companies that give you credit terms will supply information to one or both of these two credit agencies.
Therefore, your credit file is likely to contain information on all your existing credit and loan arrangements, such as personal loans, mortgages, credit and store cards, bank accounts, etc. In addition, your credit record will contain information on any late or missed payments and the amount of the original debt still outstanding.
The credit reference agency files also contain electoral roll information for your address and court records relating to you. It is this information which allows prospective lenders to confirm your address and also see if you have any outstanding CCJs (County Court Judgements).
Whenever a mortgage lender or other company is assessing an application for credit, they will check the details held on you by Equifax and/or Experian. The reason they do this is because, by law, they are not allowed to request any information about you from any other companies with whom you have a credit agreement.
Also, by contacting one of these two agencies they can gain access to your entire credit history with just a single request rather than having to gather the information from multiple sources.
Each time a lender makes a search of your credit file, that search will be recorded and added to your file, leaving a credit check "footprint". Therefore, it is easy for a prospective lender to see if someone has been "shopping around" for credit, and this in itself could be a deciding factor in whether or not they agree to give you a mortgage.
Your credit file will also include details of other people living at your address if they are financially linked to you, or if the credit reference agencies think they are financially linked to you. In this way, other people's bad credit history can sometimes drag down your credit score. But if you find you are wrongly linked to another individual, you can write to Experian and Equifax and ask them to correct the mistake.
How can I see my credit file and correct any mistakes?
Under the terms of the Data Protection Act, the credit reference agencies Equifax and Experian are required to provide you with a copy of the information they hold on you in return for a small administration fee. At the time of writing (2004) the fee for each agency is £2.
Your details are supplied by post, but you can request a copy of your file by telephone, post or email. Details or how to apply can be found on the Equifax and Experian websites.
Remember that because some companies supply information to Equifax, some to Experian, and some to both, you will need to order copies of your file from both agencies in order to get a full picture of your credit record.
Alternatively, there are online services that will allow you to undergo a free credit score check, as well as download (for a fee) a copy of your full credit report.
If, after having obtained a copy of your credit file, you find that it contains errors, you can take the matter up with Equifax and/or Experian and ask them to correct the mistakes. Full details of the procedure for correcting your file are available on the companies' websites and are also sent in the post along with the copy of your credit file.
Credit scores, credit ratings, and credit blacklists
First of all, let's dispel a popular myth.
A lot of people think that there is a "blacklist" you can end up on if you have a particularly poor credit history, and that if you are on this list you will automatically be refused credit.
This is simply not true - there is no such thing as a credit blacklist. If you have been refused a mortgage or other form of credit, the reason will be because your credit score was not high enough.
When a lender requests information about you from a credit reference agency, they apply a mathematical formula to that information in order to give you a credit score. Different lenders will use slightly different factors to create the score.
Also, the definition of a good or acceptable score will vary from one mortgage lender to another. Therefore, it is quite possible to be turned down by one lender but be accepted for a mortgage by another.
Given that you are potentially worsening your credit score every time you approach a lender about a mortgage and they run a credit check on you, and given that different lenders will have different criteria for assessing your credit worthiness, it makes sense to talk to the experts right from the start if you are looking to take out a mortgage but suspect you may be hampered by a poor credit record.
If you're worried that a poor credit record may affect your ability to obtain a mortgage or remortgage, you should take the time to find a mortgage adviser who specialises in finding mortgages and remortgages for people with credit problems.
Choosing A New Credit Card
1. Choosing A new credit card
There are many reasons for choosing a new credit card.
It may be your first card or you may wish to reduce the amount of interest you're paying each month or if you're lucky enough to pay off your balance each month you may wish to take advantage of one of the many reward schemes around.
To help you choose we have compiled a set of questions and answers. One thing to consider is that you need more than one new card. For example if you have an outstanding balance and use still make purchases you should consider switching to a balance transfer card for the outstanding balance and a seperate card for the ongoing purchases. This is provided you pay off the ongoing purchases of course.
2. What To Ask - Standard Questions
Scenario : You pay off your existing balance each month Solution : Choose a reward scheme card. These will either pay be cash or may be points that can be used to purchase certain products.
Scenario : You have an outstanding balance but still make ongoing purchases Solution : Transfer the existing balance to 0% balance transfer card and at the same time get an introductory purchase offer card. This way you can allow the introductory purchase card balance to build up, while you pay off the balance transfer card. You need to be very disciplined with approach though. If you have taken up a balance transfer then try to avoid new purchases on this card as repayments are weighted towards the lower interest part of the balance.
Scenario : You have a large purchase coming up Solution : Apply for an introductory purchase card and then pay off the balance over the period of the offer.
Scenario : You have a poor credit history Solution : There are some high interest cards around for people with a poor credit history. If you do obtain one of these cards then make sure you always make your repayments. This way you will slowly build up your credit rating, which will eventually make the lower interest cards available to you.
3. Can your existing card be improved
This is one option that most people completely ignore. It is entirely possible that you may be able to negotiate a new rate on your card, especially if you have another card with a lower rate. They can only say no, so what have you got to lose.
4. Should I close my existing card
Not neccessarily is the answer. You may be able to use this card in the future for a balance transfer. Also, don't forget that you normally get around 58 days interest free credit. So you may be able to make the odd one-off purchase and spread the cost over a couple of months.
5. Finally ...
Please remember the golden rule. Only borrow what you can avoid to borrow. If you are careful you can make the credit cards work for you, but if the credit card companies make a lot of money out of people allowing the spending to get out of control. Don't allow yourself to be one of these people.
What You Didnt Know About Your Credit Card Numbers
Have you ever really looked at your credit card and tried to figure out what that huge string of numbers really means? Do these card issuers have so many customers that your account number has to be 16 digits long?
You may be surprised to know that all those numbers you see actually do stand for something, and it's not just who you are. Let's take a look.
Most of the major credit card companies operate on the same system when choosing a credit card number. Other cards like gas cards, department store cards and phone cards go their own way. Let's concentrate on the ones that all play by the same rules.
The very first digit in the series will be a 3,4,5, 0r 6. This number designates the type of card as follows:
3 = a Travel & Entertainment Card like American Express or Diners Club.
4 = Visa and Visa-branded debit cards, cash cards, etc.
5 = MasterCard and MasterCard-branded debit cards, cash cards, etc.
6 = Discover
American Express and Diners Club use the second digit to identify the company. That means that Diners Club cards will start with either "36" or "38", and American Express cards will use either "34" or "37".
The remaining numbers in the series are used for different purposes depending upon the card type and issuer.
In most cases, the next group after the opening series of numbers represents the routing number of the card-issuing bank, the group after that is the user's account number, and the final digit is a check digit. The check digit is a number that is calculated by applying a special formula to all of the other numbers. The check digit is the result of that formula and is used as an anti-fraud check.
To keep things from getting too confusing, look at your card as you follow along for the next steps.
American Express
The American Express Card uses digits three and four for type (business or personal) and the currency of the cardholder's country of origin. The next digits from the fifth through the eleventh are account numbers.
Digits twelve through fourteen indicate the card number within the account and the last digit is the check digit.
Visa
With Visa, digits two through six represent the bank number. Beginning with the seventh digit and running through the twelfth or the fifteenth represents the account number and the last number is the check digit.
Since all Visa cards do not have the same amount of numbers in the sequence, the number of digits in a group may vary.
MasterCard
For MasterCard, the second digit, through to anywhere between the third and the sixth digit is the bank number. All remaining digits, except the check digit at the end of the series, identifies that cardholder's account.
Now that we've gone over it all, you're probably wondering why you were ever wondering in the first place. Just remember though, knowledge is power. Some things are just fun to know.
Bad Choices, Bad Habits Regaining Your Ability to Choose is Key to Breaking Habits
A habit is any action that we have performed so often that it becomes almost an involuntary response. If we consider this habit to be undesirable then we may label it a "bad habit". People spend countless hours and dollars each year attempting to break these bad habits and often do not have any success. Why? Because there is no magic bullet. Change is hard work and there is no short cut to achieving it. The steps a person needs to take, however, can be very simply outlined. To effect a change in habits, one needs to bring the action back into the realm of consciousness and regain the ability to make choices.
What's the Payoff?
The first step in breaking a bad habit is to look at why you find this action so compelling. In other words, what's the payoff for doing this seemingly negative thing? Since you've already classified this as a "bad" habit you may be tempted to say there isn't one. But look closer. There is always a payoff. Let's say your bad habit is yelling at your kids. What's in it for you? You let off some steam and feel a little better for the moment. Or you have a bad habit of leaving the dishes unwashed? The payoff could be that you get to spend more time on the Internet!
What's the Trade Off
Next, take a look at the trade off. What is it that you are losing by exercising your habit? This step should be easier. Just think why it is that you consider it a bad habit in the first place. Yelling at your kids is a bad habit because it leaves everybody feeling tense and tears down your children's self-esteem. You are trading a temporary release of tension for the emotional health of your children. Leaving the dishes undone is a bad habit because your kitchen is a smelly mess. To have more Internet time you are trading off having a pleasant living environment. When you look at it that way it doesn't seem like you are making very wise choices, does it? There has to be a better way.
Time to Make a Choice!
Now that you've weighed both sides of the issue--your payoff and your tradeoff--it's time to make a choice. It's no longer an involuntary act because now you know that you are making a choice every time you perform this action. You are choosing what you value more: the payoff or the tradeoff! Each time you start to do whatever the bad habit is now you have to actively choose. Which do you value more? Do you value more the relief you get by yelling at your kids or do you value their emotional well-being? Do you value more having more Internet time or having a pleasant place to live?
Substituting Better Behaviors
The whole reason you formed your habits in the first place is that they filled a need. You had tension that needed relief or you had a desire to surf the Net. As you break the old patterns you still need a way to fulfill these needs. You will be not only making an active choice to not do the old action you will also be making a choice to perform a better, alternative action in its place. Instead of yelling at your kids you might decide to go for a run every time you are feeling tense. Instead of letting dirty dishes pile up you may decide to use paper plates when you are eating alone. What the new habit is that you substitute isn't so important as whether you feel good about the choices you have made. After all, the reason you consider it a bad habit is because it leaves you feeling bad about yourself.
I t's Up to You
How To Communicate Effectively With Your Spouse About Your Finances
When it comes time to get married it is important to be completely open about your finances. It can be difficult if you have made financial mistakes in the past. If you start out with open communication it will carry though into your marriage. Here are the five most important financial topics to discuss with your spouse before you get married.
First you should discuss any debts that you may each have. If you have student loan debt, you should not consolidate it together. There are many benefits that allow you to keep this separate. If you have credit card debt, you should quickly work to paying it off. Once you are married, you should only have one credit card account, and it should be a joint account. You should work on paying off all personal loans together. If you both own homes, you should sale one home or both and have the other home put into both of your names.
Second you should discuss any assets that you have. This can be your retirement savings, homes that you own, cars, general savings and general investments. It is important that you begin to view these assets as mutual. Your retirement savings in 401k plans or IRAs are connected solely to you. You may choose to cash in come investments or assets to pay down your debt.
Third, you need to know about each other’s spending and savings habits. It is generally best if these are fairly similar, although you can adjust in different areas to help each other out. You need to be able to communicate effectively on these topics, and if you understand the reasons why you each like to spend or save it can make communicating much more effective.
Fourth, you need to air out any financial dirty laundry. This is the time to confess that you have declared bankruptcy or have stopped paying on credit cards. You should make sure that you make a complete and full disclosure with your soon to be spouse. This is especially true when you are thinking about debt. If your spouse later learns that you have hidden something from her, it can cause serious trust issues in the marriage.
Fifth, you need to discuss how you each feel about money. This is different than spending and savings habits. You may want to discuss the following questions: How did your parents handle their money? Would you do anything differently? Did you have to work for anything you wanted or did your parents simply provide you with it? Do you see money as a tool or as a burden? Do you like to save or give or spend the most? Should we give money to others?