Why You Must Shred Credit Card Applications?

It is common for people to have one or two credit cards. They are convenient to use and can help establish good credit if the cardholder is responsible with their debt amounts and monthly payments. Because credit cards have become so ubiquitous in our world, many of us forget that they need to be protected just as avidly as cash. If your credit card offer has a high credit limit, then you might even want to protect more avidly than cash… unless you routinely carry $10,000 with you.

Identity theft is a big issue these days. You hear a lot about how you should protect yourself. You should shred, rather than just throw away, any documents that have your account numbers on them. This includes bank statements, receipts, loan statements, and credit card offer statements that you want to discard. This is the first form of protection that you should be taking. Often, identity theft begins when someone pulls important numbers out of your trash. You should even shred all of those credit card applications that you get in the mail. Your trash says a lot more about you than you might think. Let’s say that in your trash you have a credit card application that you didn’t want, a doctor’s bill from last month, and a note that you mother wrote you. These are three things that you normally wouldn’t connect to each other. While they don’t have anything to do with each other, the information in these documents could be enough for a savvy thief to steal your identity.

Consider the possibility that the thief already knows your name and address. It’s printed on everything. And even if somehow neither your name nor address is printed on something you throw away, he pulled the credit card application (you can found many applications for MasterCard customers) and other documents out of the trash right in front of your house. Now, also consider that the bill from doctor might use your social security number so that the office will know exactly who the bill is going to and from whom the payment is coming.

What’s your name, your address, and your social security number? These are three questions that are commonly asked by credit card processing companies when they are taking your application over the phone.But could the note from your mother possibly have something in it that would help a thief steal your identity? Credit card companies, in an attempt to offer some protection to current and potential customers, will often ask callers a personal question so that the caller’s identity can be verified.

These questions could be something as simple as “What city were you born in?” or “What’s you father’s middle name?” Stealing someone’s identity sometimes requires the thief to be good at solving puzzles. And a lot of them are. If your mother has signed the note with her first name, then the thief probably has her first and last name. There might be ten people in your city who have your name, but how many also have a mother with the same name as you. By consulting a phone book the thief can then learn your mother’s address. See how the holes start to fill in?

Protecting your identity is necessary, so you should always be certain to shred credit card applications. Throwing them away isn’t good enough. Unfortunately for you, a lot of crooks are very smart.

By: Michael Russell

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Which Credit Card Should You Opt To Use?

Chances are you obtained your credit card because a salesman hailed you in a shopping mall and tossed an attractive prize your way. But is the card right for your needs, as well as for your spending and borrowing patterns? There are two reasons to take a second look at our credit cards now. First, the card market has become more competitive in recent years and you can now take advantage of the latest offers and variations. Second, the ubiquitous credit card is becoming a bigger part of our daily lives. At such high usage levels, the right card could give you hundreds of dollar in savings a year. While there is no one best credit card, there are cards that stand out from the crowd in terms of rewarding you and giving you better savings and there are cards that are right for you based on how you use your plastic. With most cards offering a 20-day, interest-free grace period and late-payment fees, individuals who like to settle their credit card debts in full should opt for cards that provide savings in other forms. For instance, look for a card that has no annual fee and rewards you for spending money. Always read the fine print - several cards are offering 'free for life' deals that come with conditions. For instance, you might have to use the card for a specified number of times or spend a certain amount per annum. If you are in the habit of carrying a substantial balance on your card, forget about 'free for life' cards or bountiful reward programs. Just being in the habit of owing $1,000 on your credit card alone can cost you twice as much a year as the standard annual fees out there. You need to look for a card that minimizes the interest you pay.
That means looking for cards that charge less than the annual 18% industry rate on your outstanding balance and/or cards that give you a rebate on the interest you are charged. What if you pay high value purchases in installments? There are two options available with credit cards. One is offered by associated merchants and is interest-free if you complete payment within the specified tenure. There are also 'flexi-payment' plans provided by the card issuer, and these either have a one-time processing fee or an interest charge. You should find a card that is associated with many merchants since this provides you with the most opportunities to utilize the interest-free installment plan.

In some cases, you may have to pay a processing fee to use this scheme. The best card should then incur lower processing fees if any, to use this plan, while offering long payment tenure. On the other hand, if you prefer flexi-payment, look for a card that charges the lowest interest rate or processing fee and has a good choice of installment time frames.

Remember to compare apples with apples and annualize flat processing fees if you are comparing them with interest rates. To encourage consumers to spend on their particular card, banks give incentives in the form of cash-backs and gifts. Which should you go for? Here's a tip - most gift reward programs give you around 0.5% of every dollar spent. So, it's suitable for the big spenders. If you don't charge a lot to your credit cards, it's wiser to just go for a card with no annual fees.
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Shopping Online With Credit Cards? Here Is 10 Easy Steps To Be Safe

Do you shop online? Do you pay bills online with your credit card? Do you think a credit card is safe to use online?

If your answer is "YES" to at least one of the questions, please read below before using your credit card online again. There are some simple tips that can help you to safeguard yourselves against online credit card theft.

1. Check for fraud protection

Check with your credit card issuer if they provide fraud protection for online purchases. No fraud protection means less safety.

2. Check for temporary credit card number

Some credit card companies offer a temporary credit card number linking to your original credit card. Check with your credit card company if they offer such a thing. If yours doesn't offer such a card then it's always safer to use a credit card with a lower credit limit.

3. Check your computer

Having the latest antivirus software will protect you from trespassers who try to steal your information. Use a browser with 128-bit encryption, which provides maximum security.

4. Check the website

Before entering your personal information check for the lock sign in the bottom status bar of the Internet browser.

5. Check the online merchant

Only buy things from a well-known, trusted merchant. If the merchant is new always check with the local business bureau for any complaints before you buy things from them. Always read the privacy policies, terms and conditions, delivery and return polices.


6. Avoid out of country merchants

Though there are lots of good legal shopping merchants in other countries, it's always difficult to find reliable and trustworthy sellers among them. If you are doubtful, avoid doing business with them since most of the credit card companies will not give much support for international frauds.

7. Keep records.

Maintain all the receipts of your credit card purchases and compare them with your credit card statement. If there are any discrepancies contact your credit card company immediately. If you are a frequent online shopper, don't forget to check your credit card statements often.

8. Know the procedure

You should know what to do and whom to contact when your credit card information is stolen. Keep the phone numbers/contact person name handy so that you can act immediately without wasting time and losing more money.

9. Maintain a diary

If you are a frequent shopper keep records of all your purchases like order number, confirmation number and date of purchase in a diary. If you use more than one credit card, keeping a diary is a must. Even if you lose some of the purchase receipts, your diary will come handy when you check your credit card statement. You know it's easier to lose receipts than a diary.

10. Few more "optional" tips

When you are online shopping don't move from your seat till you are finished and logged out. Make this a habit even when you are using a home computer. Don't do multi tasks.

Online shopping is more fun and easy. Make it safer with these simple steps. "Better Safe than Sorry".

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