Secure credit cards
A secure credit card is an option that allows you to rebuild your credit history when you have bad credit. This is because it is secured by a certain amount of cash that you deposit in an account with the company that provides you the credit card. With this card, you will have to limit your spending to a certain amount. This is typically determined by the balance in your account. The lender may allow you to spend between 50% and 100% of that amount. You can use a secure credit card at any outlet store that accepts standard credit cards.
What Should I Do After Unauthorized Credit Card Transactions?
Credit cards are wonderful things to possess. They make shopping easier and a lot more convenient. They ensure that you can shop for things you love even when you don’t have cash available. They make online transactions a breeze. However, unauthorized credit card transactions can be a pain to deal with.
Spotting unauthorized transactions on your credit card
The only way to spot them is to be very serious about going over your credit card statements every month. If you can do this online throughout the month, then the chances are higher that you will be able to detect them sooner. Unauthorized credit card transactions are those transactions which you did not give permission for. They can result from theft or they may occur due to clerical error or a computer glitch. Whatever it is, spotting them as soon as possible will ensure that you have a stronger position with your credit card company. Of course, before going ahead and reporting any transaction, make sure that it wasn’t made by an authorized user or a joint account holder of your account.
Credit card scams and thefts
The truth is that scams and thefts happen and it is by due diligence that you can prevent them. In a particular type of scam, a thief will first make a small charge to your account, may be for $1. He will then follow it up with a bigger charge. The first charge will be done to make sure that the account is active. By making sure that you report each and every unauthorized charge made to your credit card, no matter whether it is big or small, you can prevent the scam from going any further.
What you should do?
- Report: The first thing you should do in case you notice an unauthorized transaction is to report to the concerned credit card company. The phone number will be available at the back of your card. If you don’t have the card, then look up the billing statements you were sent to by the company to find the phone number or go online. What they will typically do is cancel the card and issue you a new one. Some companies will require you to resolve the issue first with the merchant.
- Protect yourself: The law of the land says that you can be liable for upto 50% of unauthorized charges before you went ahead and reported a missing credit card. However, what your credit card company says is more important because many of them have zero liability policies, meaning that a customer is not liable for any amount of money before reporting a missing credit card.
- Removal of the unauthorized item: Typically, the company will remove the charge from your pending bill and you will not have to pay any interest on it. You will not be responsible to pay off the disputed charge at all.
Using care to review your monthly credit card statements is very important. Do it diligently to prevent any misuse of your credit card.