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First, find out if it is in fact worth it. Generally speaking, these attractive advertisements and super credit card deals advertise very low introductory rates if you transfer your current balance from an existing credit card onto this new one. You can stumble upon these offers anywhere—online, in the mail, on a flyer or via a telephone call from credit card company salespersons—and you need to determine how great these deals really are, or if you’ll just end up paying much more in fees and interest in the long run.
Read the fine print. Read everything. Read it through several times so that you make sure you understand what it is saying. It may appear to be a bunch of financial jargon that you might not think is very important, but the truth is, this information is valuable and critical to your decision in whether or not you make the big switch. Call the credit card company and ask any questions you might have. If the deal is solid and they want to make a sale, generally they should be able to help you out in any way.
What do you need to find out about the deal? Here is an example. Let’s say that the advertised introductory rate is 6% (a low rate) on credit card B if you transfer your balance from credit card A, where you currently rack up an APR of 18% (a standard rate). You come across another offer, showcasing credit card C with an introductory rate of 9%. At first glance you may think, “Well, let’s go with credit card B—it’s the obvious choice here.” However, after reading the fine print, you discover credit card B’s special rate only last six months, and afterward the APR is 20%, whereas credit card C’s higher rate lasts for a year and the interest rate after that is 18%, the same as yours on credit card A.
In other words, you have to factor in a lot of variables when making the decision to switch your balance from one credit card to another. Besides comparing the introductory rates being offered, the length of the offer and what the regular interest rate is, you’ll also need to take into account balance transfer fees, annual fees, late fees and other fees, as well as whether the teaser rate applies to balance transfers only or also purchases, among other considerations.
Something else to keep in mind is that you may not actually qualify for the special rate being offered, depending on your credit history and credit rating. Before you make the big plunge, make sure you know exactly what you, yourself, will be getting. There may also be other conditions. For example, some credit card companies may penalize you for one late payment and take you off the introductory rate onto their regular rate, which may be higher than your current card’s rate.
However, many credit cards with these introductory rates offer great deals for people interested in switching credit cards and transferring their balance over and can be more than worth it. The important thing is to do your research, read the fine print and ask questions to determine which credit card and deal is the right one for you.
Once you’ve selected the right credit card offer, the next step is to fill out the balance transfer application form completely and accurately. Next, make the minimum payment on your original credit card while you wait for the balance transfer to go through. When it has gone through, the new company should send you a notice, after which you’ll need to verify the transfer with your old company so they can send you a zero-balanced billing statement. Finally, cancel your old card since you don’t need it anymore—it will also save you some temptation.
As credit cards becomes more and more common the security of the plastic money becomes a matter of concern.
The security of a credit card depends on the privacy of the number on the credit card. In other words, if a person other than the owner reads a credit card number, there occurs a probable compromising of security. This could mean that the security is low since in a transaction everyone will view the number.
Merchants often accept numbers of credit card devoid of extra mail order verification, although recording of delivery address will be made.
For instore purchases merchants accept credit card numbers, resulting in easy fraud to take place. Therefore requirement of the card and a signature is a pre requisite most of the time. A fast cancellation of a stolen card will prevent the fraud-taking place. The level of security for purchase from the Internet will be as same as that of mail order. Many opportunities for committing fraud are available due to a low security system present in credit cards. A large black market scenario is created for credit card numbers that are stolen and used quicly before cards get reported to be stolen.
The credit card companies are having the goal of reducing rather than eliminating fraud.
There are many ways of obtaining credit card information, which are stolen for carrying out Internet frauds and the simplest of it being information that can be copied from retailers irrespective of whether it is online or offline. Even though there have been efforts for improvement of security for purchasing by credit cards, poorly implemented merchant card acquisitions have led to security holes.
An example of this being websites that use SSL scripts for encryption of card numbers may email it from web server to somebody who is processing the details at a terminal. Humans create security risks wherever the detail becomes readable before the bank does the processing.
Another option for the protection of a credit card number is by Control Payment Numbers. They are fictitious numbers that will be linked to real card numbers, which are valid only for a short period with a single merchant.
Prosecution of criminals engaged in frauds using credit cards in United States have been carried out by Federal Bureau of Investigation and U.S. Postal Inspection Service. But resources are not available for the pursuing of all the criminals. Generally federal officials have been prosecuting a case that exceeds a value of US $5000.
Reduction in credit card fraud could not be proven eventhough three new improvements to common networks of credit cards are introduced. Foremost of that is an introduction of a verification system that uses 4-digit pin number, which only the cardholder will be knowing
Second is the introduction of smart cards that are tamper-resistant intended for making difficult the act of forgery. Third is a digital code, which is of three or four digit on the back of the card to be used in card not present transactions.
Not only is it a huge hassle when crooks run up big bills in your name.
A Better Business Bureau survey found the average victim spends $442 and 40 hours -- or the equivalent of an entire workweek -- straightening everything out.
But you may be more vulnerable to identity theft than you think:
* Seniors aren't the most common targets. Consumers in their 20s and 30s are.
* Only 10% of all stolen information came from computers or the Internet. The vast majority was pilfered from wallets, purses, checkbooks, credit cards, credit card receipts, mail or garbage.
* Nearly half of all identity theft is not perpetrated by faceless, sophisticated gangs. It's committed by the victims' friends, neighbors, relatives, family members or in-home employees.
With that in mind, here's a checklist on how to be a tougher target:
Smart Move 1. Secure your Social Security Number
Carry a Social Security card only when it's needed, such as when you're applying for a job, dealing with a government agency, or opening a new bank account. Otherwise, leave it at home; better yet, leave it in your safe deposit box.
Never give your Social Security number out over the phone.
Don't put Social Security numbers on checks.
Smart Move 2. Secure your credit cards
Carry only one or two credit cards at a time.
Print "ASK FOR PHOTO ID" on the signature line of your credit cards. You'll have to pull out a driver's license more often, but that makes it much harder for anyone else to steal and use them.
Have all the information needed to report a lost or stolen credit card readily available in a safe place. Our "Essential info work sheet" is a good place to write down the account number, expiration date and 24-hour emergency phone number you need to call. Or make photocopies of the front and back of each card. Just make sure all of the numbers are legible, especially the emergency phone number, which is likely to be in the fine print.
If a credit card expires and you don't receive a replacement, call the credit card company.
Protect your ATM and computer passwords. If you can't remember them and must write them down, disguise them as phone numbers for mythical friends or relatives. But don't make it obvious. Listing phone numbers for Joe Password or Peter Pin won't really protect much.
While most receipts only reveal the last four or five digits, watch out for any that print the full number. Take special precautions to safeguard and destroy those receipts.
Cancel any credit cards not in use. Don't just cut up the cards. Call or write the company and tell them to close the account.
This could lower your credit score by reducing your total amount of available credit. That's one of the 30-or-so factors the formula measures is the percentage of available credit you are not using. But this also reduces the amount someone can steal.
Watch for unauthorized charges on every bill. Make it easy to check whether a suspect expenditure is legit by saving all credit card receipts in a special envelope.
Notify every credit card company as soon as you move. Don't allow monthly statements or new credit cards to go to an old address.
Smart Move 3. Better shred than read
Buy a shredder and shred every document that contains any sort of information -- personal or financial -- that could help a thief "become you" long enough to run amuck through your credit.
This includes all those credit card and mortgage refinancing offers. Get a crosscut shredder that cuts the paper two ways. They're more expensive but they're worth it.
There are also shredders that will chop up plastic, such as credit cards and CDs.
Smart Move 4. Use your computer more -- and more safely
Since only 10% of identity theft is based on information stolen from computers, use your computer for financial transactions.
If your company offers automatic payroll deposit, sign up for it. Enroll for online bill payments, too. Have bank and credit cards statements sent to you by e-mail.
To make those transactions more secure, make install a firewall as well as anti-virus and spyware programs, and update them regularly.
Make sure your home wireless network is encrypted, otherwise your neighbors -- or anyone who parks a car in front of your home -- could access your network and hard drive from a laptop computer.
Don't respond to suspicious e-mails. Banks and credit cards don't send e-mails asking you to update or confirm information that they already have. When in doubt, phone the bank.
While it's not possible to "shred" your computer's hard drive, you can wipe it clean before selling or discarding it. Just hitting "delete" will not do the trick. The data are still there, and relatively easy to get at. There are programs that will actually wipe your hard drive.
Deal with online merchants that have a privacy policy, and look for the Better Business Online seal or the Trust-e symbol that shows that the seller has been independently audited.
Before charging purchases online, make sure you're on a secure site -- one that starts https instead of http -- or that the charges are handled in an encryption mode.
Smart move 5. Snail mail carefully
When paying a bill by mail, or sending a credit card number on an order, drop it into an actual mailbox. Don't leave it for your letter carrier to pick up. Crooks steal mail out of mailboxes.
Smart move 6. Know your credit report
Check your credit report for any credit activity or credit cards that are not yours. If you have five credit cards and your credit report lists eight, report the bogus cards right away.
You can get a free copy of your credit report every year from AnnualCreditReport.com. There are three major credit reporting agencies and they all carry pretty much the same information.
Stagger your free reports so that you can get one of them every four months. Or pay to subscribe to any or all three of the services so you can monitor your credit report whenever you want to.
They are:
* Equifax at www.equifax.com
* Experian at www.experian.com
* TransUnion www.transunion.com