Whenever you use your credit cards make sure that your transactions are safe and there are less chances of you getting caught in an act of fraud. Dealing with the credit card debts requires a planned approach and one can easily solve them provided one sticks to a plan and implements the same to the best possible.
One common term for consolidating credit card debt can be balanced transfer. Balance transfer means, the balance from one credit card or more is transferred to another credit card. This can be done by opening a new credit card account and transferring the current balance to the new card account. The actual logic is that why to pay high interest on multiple accounts when one can pay a low rate of interest on one card.
If your balances are high on your credit cards and as well as the interest rate, and if in your opinion integrating the credit card debt is the correct decision, before that consider the balance transfer offers. Look for the balance transfer offers which best suits your needs. Look for the lower interest rates. Many of the balance transfer plans offer introductory rates i.e. you need to pay a low interest rate in the beginning, but the interest rate will rise after a specific time period.
Unawareness and related losses
A lot of people are caught unawares when it comes to the functioning of the credit cards and the processes involved in the clearance of the related debts. People who are desperate to end their debts really do not care about from whom they are getting the services and how they are going to get benefited out of them. A lot of people are seen unaware about the time these processes are going to take. So before you get into any such pact with any of the loans for people with bad credit providers who guarantee you freedom from your credit card debts, here are some of the pertinent questions that you need to ask them and clarify.
Here are some important things that one should consider:
•Will the issuer of your present or new credit card, impose a fee for balance transfer? Are there any fees related to the issue of a new card?
•Would you like to pay any fee for closing your current credit card account?
•What is the prevailing rate of interest for transferring balances? For how long is that interest rate beneficial? What will be the new rate after the expiry of the current one? In reality will I be able to repay the transfer sum before the rise in interest rates? If any payment is missed or delayed, will the rate of interest rise automatically?
•Is the interest rate higher on the new card for new purchases? How payments are appertain to the balance transfer sum versus new purchases? If the balance transfer sum is at a lower rate of interest and the new purchases are charged at a higher rate of interest, will the payments go toward the balance transfer amount first before being applied to the new purchase balance?
•In practice, when might I be able to repay the amount on the card at my present rate of spending?
Using Your Credit Card and Keeping It Safe
One should be alert and careful while using one’s credit card in order to keep it safe. Whether you are shopping online, making purchases over the phone or dining at a local restaurant, there are some important points you’ll wish to be aware of so as to protect yourself and your account.
Always be vigilant when shopping or giving out information online. Several cases of online fraud have been reported in the recent times and they are known to cause irreparable damages to all. The only way you can save yourself from them is by taking preventive measures well in time. Here are some points with the help of which you can ensure that your online shopping is safe.
•If you are using or sharing public computers before leaving make sure you delete all cookies and any temporary file saved on the computer. This is more of a case when you are surfing internet at the cyber cafes.
•Shop on sites which are safe and secure. How to find out whether the website is secure? Look for the following:
1.A yellow lock on your browser at the lower right corner.
2.At the end of the http: in the URL look for the ’s’
•If you don’t find these, shop somewhere else.
When the purchases are made over the phone:
•The company from where you are making the purchases will ask you for the complete card number, expiry date and your name as it is written on the card. They might ask for the security code which is a three digit number on the back of the card known as CVV i.e. Card Verification Value, this helps the seller to verify that you actually own the card and it is legal.
•Do not place any orders or make purchases in public places where someone might hear you and note down all the details and use it to make illegal purchases.
Using the credit card in a store, fuel station or a restaurant:
•Make sure that the printed receipt you receive does not contain your complete card number. As according to the new credit card system only the last four digits of the card number are printed. In case the merchant has an older credit card system and the receipt you receive has the whole card number then be sure to keep it safely or destroy it.
•Keep an eye on the cashier to make sure that he or she is notnoting down the number or taking a photo of the card or in any other way copying your card.
Financial institutions or banks are continuously working to make your card secure and safe but apart from it you also need to take steps. Here are the things that you can do to make sure that your accounts are secured:
•Always keep a Xerox of your credit cards both front and back and of all the identifications at home in a secure place. In case your purse or wallet is stolen at least you will have all your card numbers and account numbers so that you can inform your banks or financial institutions.
•Notify the bank or financial institution immediately in case your credit card is lost or stolen.
•Do not keep your credit card statement open at easy accessible places, as the statements are a good source to access your credit card account. Place all the monthly statement in a safe place.
So the process is simple, keep yourself well aware of the recent updates in the credit card and the debt arena. Try and keep your expenses in control and whenever it comes to using your credit card ensure that you use it for the right purpose and at places where the transaction will be safe.