Hot Tip

Never lend your credit card or account number to a friend or relative.

If your credit card is lost or stolen, report it immediately to your card issuer.

Write your credit card number on a check only when paying your credit card bill.

If you find a mistake on your credit card bill, immediately write a letter to your card issuer to describe the problem.

Protect yourself

• To protect yourself against loss or theft of credit, sign your credit card immediately so no one else can use it. File the papers that came with your card in a safe place.
  
  
• Always protect your credit cards as if they were cash. Just like cash, credit card numbers can be stolen.
  
  
• If your credit card has a PIN (personal identification number), do not keep your PIN with your credit card. File the PIN separately.
  
  
• Keep your account number to yourself. Give your credit card number or expiration date over the telephone only if you know you are dealing with a reputable company.
  
  
• Never put your account number on the outside of an envelope or on a postcard.
  
  
• Draw a line through blank spaces on charge slips above the total so the amount cannot be changed.
  
  
• Keep copies of sales slips, and compare charges when your monthly statements arrive. If you see any questionable charges or errors, you must report these, in writing, to the card issuer within 60 days.
  
  
• Make a record of your credit card numbers, their expiration dates, and the telephone number for each credit card company in case of an emergency, such as reporting lost cards.
  
  
• Carry only those credit cards you regularly need, especially when traveling.
  
  
• Never give out additional personal information when you use your card for purchases.
  
  
• Don't give out your Social Security number when you use your credit card for purchases. All that's required is your signature.
  
  
• Never use a credit card as personal identification. Your credit privileges and history are too precious to risk. [top]

Billing errors

Under the Fair Credit Billing Act, you are protected whether you use your card online, over the phone, through the mail, in person, or at a store. If you find any questionable charges or billing errors on your monthly credit or charge card statement, you may dispute the item, and provided you follow the guidelines for resolving a dispute, you may withhold payment for that amount while the issue is being researched. The issue might be a charge for the wrong amount, for something you didn't accept, or for a product or service that wasn't provided. [top]

To dispute a charge:

• Write to the creditor and include your name, address, credit card number, and a description of the billing error. Look for instructions on the back of your billing statement.
  
  
• Send your letter as soon as possible. You must notify the card issuer in writing within 60 days after the first bill containing the error was mailed to you. In your letter, include your name and account number, the amount of the error, date of error, and the reason you believe there is an error. The card issuer will then investigate the problem and either correct it or explain why the original bill was correct. The issuer's response must occur within two complete billing cycles but no later than 90 days after the issuer receives your billing error notice. Although you do not have to pay the amount in question during the investigation, you are still responsible for payment on the remaining balance. [top]

Unauthorized charges

If your credit card is used without your authorization, and the unauthorized use occurs before you report your card missing, you can be held liable for up to $50 per card. If you report the loss of a card before it is used, the card issuer cannot hold you responsible for any unauthorized charges. [top]

Online shopping

Whether you're interested in computer software or compact discs, online shopping can give new meaning to convenience and choice. Should you decide to pay by credit card, your online transaction will be protected by the Fair Credit Billing Act just as other transactions are. But before you visit your favorite online store, make your online shopping experience safe.

Security is a must and begins with your connection and your browser. Unsecured information sent over the Internet can be intercepted. That's why a secure browser—one that encrypts or scrambles purchase information—is important. If you're unsure whether your browser is secure, check with your Internet service provider.

When you're ready to make an online purchase, pay close attention to the information you need to enter. Be cautious if you're asked to supply personal information, such as your Social Security number or your mother's maiden name. If you have any doubts, cancel your order immediately. [top]

Card registration services

Many companies offer credit card registration services, either for a fee or as a customer benefit. Sign up for the service, and in the event that any or all of your registered credit cards are lost or stolen, you don't have to worry. Make one call to the service, and each issuer will be notified. If you decide to use the service, compare the benefits and terms and look for the one that will best suit your needs. Read the service contract carefully to check the company's obligations and your potential liability. [top]

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  Introduction to credit •
• Establishing credit •
• Maintaining good credit


• Security & fraud •
• Financial resources •
• Glossary of terms •
• Budget worksheet