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In handling credit, consumers are concerned about two things—preventing fraud and managing credit. With identity theft on the rise, credit card fraud prevention is definitely a must. Scammers victimize millions on a yearly basis. They’re very creative in using the Internet, postal mail, phones, and emails to trick you into give up your personal information or steal from you. When you manage your credit, you have to learn how to prioritize, discern, and decide. Impulsiveness is not the way to go in managing your credit. To avoid credit disaster, you have to be on the lookout for identity thieves and for your credit. If you mishandle one of the two, then say goodbye to your financial credibility. How to Prevent Fraud Just thinking about the things that identity fraud could do to your life can already be traumatic enough. As a responsible and prudent consumer, you should know how to fend off any kind of fraud. Here are some tips to help you:
- Always know the people you deal with.
If you chance upon an online buyer, know his phone number and physical address. It shouldn’t be a P.O. Box. Thoroughly research about the company or person you’re transacting with. Read reviews on the products or services that he is selling. If there are more negatives than positives, think twice before closing the deal. - Be careful when you wire money.
Make sure that you clear things up really well with the merchant you talked to before sending any amount. It will be very difficult to trace the hard-earned money you’ll send especially when it’s overseas. - Check your monthly credit or bank statements regularly.
Look for any charges that you don’t know about. Immediately contact your credit issuer or bank and refute these items. - Donate to established charities.
Calamities and tragedies are lucrative money pools for scammers. See to it that the site you donate to has been in existence for a long time now. Check the Facebook page of that charitable site and see if it has just been constructed. - Confirm any bank emails with your bank.
If you suddenly receive an email from your bank, asking for your account details, confirm it first with your bank by calling the branch. This may be a phishing scam. The moment you enter your details, the scammer will immediately receive it. Do not provide any information unless you called the establishment yourself.
How to Manage Your CreditCredit is acquiring your future salary and using it to pay for your purchases now. Every time you use your credit, you promise your creditor that you will pay it back with additional charges. In managing your credit, you should know the factors that affect the costs of your credit. You should also be aware of the amount that you borrow from your creditor. Always know your available balance in your credit and as much as possible, do not max it out. Managing your credit takes a lot of self control and foresight.You can lower the cost of credit if you: a) Make a large down payment b) Borrow the lowest amount permissible c) Pay back your loan as quickly as you can d) Pay your bills promptly e) Only use your credit when you truly need it All these result to a good credit history. Keeping a good credit history is a plus in managing your credit. It’s also an edge for you to maintain the lines of communication with your creditor. Using credit is a huge responsibility. You have to take good care of it so that your financial credibility will not perish. May the tips provided help you in warding off fraud and in managing your credit well. Amy is an active blogger who is fond of sharing interesting finance related articles to encourage people to manage and protect their finances. She also covers topics what enhanced identity theft protection should have and advantages of credit monitoring.
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