Don't Be Careless With Credit

It's an inconvenience nobody wants to live through: a theft. I can remember a summer's day at the public pool twenty-five years, where my father used to take us to keep cool in the Florida sun. He had left his wallet underneath a pile of clothes while we went swimming, only to later find it had been stolen. A few weeks later he received a credit card statement listing charges the thief had made on the card. Thankfully, my father had reported the theft immediately, and was therefore not liable for the fraudulent purchases.

Twenty-five years ago, though, you didn't hear so much about credit card theft and identity theft as you do now. While the Internet has expanded commerce horizons, it brings with it greater opportunities for thieves to take advantage of unsuspecting consumers. If you are just starting to establish good credit, it is important to be vigilant where protecting your interests is concerned. This doesn't mean, of course, that you should not apply for credit cards or never use the ones you have. Indeed, owning a department store card, a gas credit card, and a regular card are stepping stones to creating a health credit rating. This is good to have later in life when you are ready to purchase a car, computer system, or even a home.

You may think credit card or identity theft may not happen to you, but recent statistics are astounding. Nearly nine million people were counted among victims of identity fraud in 2006, with a good percentage coming from theft of credit card information via the Internet. It is a good idea, therefore, to take steps now to prevent possible fraud in the future. Twenty-five years ago our family's inconvenience was minor. These days some cases of identity theft can take months to undo the damage. Here are a few handy preventative measure to help ensure safe credit:

Limit number of cards you own: It is a great temptation to want to apply for every card for which you are approved. As you build a strong credit rating, more companies are going to approach you to sign on with on. At best, one should have no more than three general credit cards. Remember, they aren't baseball cards, there is no need to collect them all!

Look for credit cards with the lowest interest rating and select the two or three you think would be best useful for your day to day needs. Keep one card with you for regular use, and put the other cards in a safe place, like a personal safe, for dire emergencies like a car repair or medical payment. As you get new cards, destroy the expired ones immediately. Cut them into pieces and distribute them among different trash piles. You never know, some thieve often scour trash looking for intact cards and credit statements to use to their advantage!

Keep PINs private: Oftentimes, you are allow to set a personal identification number, or PIN, for a credit card in the event you need an emergency infusion of cash against your credit line. Often, too, we tend to use simple numbers, like a birthday or year, Social Security digits, or even 1234. This is not a good practice to keep. If your entire wallet was to be stolen, a thief might have access to much of your personal information, and can deduct a PIN number based upon what he learns from your identification.

Keeps PINs private. Use a combination you will easily remember, and don't write the numbers down where they might be found. When using an ATM, always make sure the view of the keypad is obscured when you enter your card information. Crafty thieves can detect a PIN number with binoculars, so be careful.

Report all thefts immediately: The second you realize your credit card is missing, call the credit card company and have it canceled. Check with the representative, too, to see about their theft and fraud policies. It may also be a good idea to consult with your insurance agent if you have a homeowner's policy that includes retribution for credit card theft.

Shop safely: The Internet makes it easy to shop online, but you want to be certain that you are purchasing only from trusted vendors. Check their websites: are the ordering pages secure? Is this a brand you know? Do they have a sound return policy and quality customer service? Is there a phone number available in the event you do not want to give your information over the computer? When you shop online, don't forget to shop the shops as well.

With vigilance and care, you can take strong steps toward preventing identity and credit card fraud.