Carrying around wads of cash can be very risky – if cash is lost or stolen it is likely to be gone for good. Credit cards offer a safe way to manage personal finances.
Manage the risk of loss
It’s always a possibility that a credit card or an entire wallet full of credit cards is lost or stolen. To reduce the hassle involved in reporting
missing credit cards, keep a list of all your credit card accounts and contact numbers of the card issuers in a safe place.
Consider leaving many of your credit cards locked up in a safe place at home. Consumers often have a number of credit cards, but are likely to only use one or two routinely. By carrying fewer credit cards, you’ll have fewer to report if they go missing – and you’ll have back-up credit cards on hand while you’re waiting for the replacements to arrive.
Using a credit card for purchases may give you an extra level of protection – many credit cards offer consumers an extended warranty on certain items purchased with a credit card. Read your credit cards terms and conditions to learn more.
Paying for online purchases with a credit card is generally safe. Check the web page requesting your financial information – a web address that begins with https:// is secure and protects your personal information with encryption.
Debit cards vs credit cards
If someone fraudulently gained access to your checking account with your debit card or the debit card number, all your cash could be wiped out before you are aware that it happened. Getting your money back could take months while your financial institution investigates – if you get it back at all.
Using a credit card is much safer than using a debit card. If a credit card is lost or stolen and the card is used by an unauthorized person, cardholders are liable for a maximum of $50, by law.
Check your statements
Carefully review your monthly statement to check for any unauthorized use of your account. Thieves may access your account without stealing the physical card. Report any unauthorized activity to your card issuer immediately.
In summary, credit cards are very safe to use. The cardholder gains an extra level of protection against theft and fraud along with swipe-and-go convenience.