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8 Credit Card Security Tips You Should Not Miss

8 Credit Card Security Tips You Should Not Miss

Recently, I bought a jacket at Ralph Lauren in New York City (an admittedly extravagant gift to myself for finally finishing my first book). At checkout, the clerk asked me to fill out a contact form. “No thanks,” I said. “I don’t like to give out my email address.”

“We won’t spam you,” he said. “It’s just to notify you when new items become available.”

After I briefly explained how spam works, and that notifying me of the availability of new items not only constitutes spam, but pretty much defines it, the clerk smiled politely and said “no problem.” As he went into the back to run my card, I noticed a second clerk standing nearby. He’d overheard our little back-and-forth and was smiling wryly to himself. Finally, he couldn’t hold it anymore. “You know they can get to you through your credit card anyway, right?”

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This gave me pause. I did know that, didn’t I? I mean, if a business wants to spam me, they can easily figure out my contact info from a purchase I’ve made. And that’s when a second, more insidious thought struck: If it’s that easy to spam someone after they use their credit card, how easy would it be to steal their identity?

When it comes to credit cards, there’s a whole universe of information out there, and much of it consists of black holes. That is to say, most of us simply don’t know what we realistically should or should not be concerned about. Sure, none of us want our identities stolen, our accounts hacked, our emails spammed—but what exactly are the risks and what can we do to mitigate them?

Following are 8 essential security measures we should all be taking with respect to credit cards. These tips will help us avoid spammers and identity thieves alike.

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1. Treat your cards like cash.

Would you hand a bartender a pile of cash and say “I’d like to open a tab?” So why do that with a credit card? We tend to treat cards differently than cash because they’re plastic. And hey, if someone snags your card, what’s the worst that could happen? Well, it’s called identity theft, and it ain’t a walk in the park. To avoid this, start thinking of and treating your credit cards like cash. Don’t leave them lying around or in the hands of strangers. Yes, this makes life slightly more annoying, but just think of how annoying it would be if someone snatched your card and copied or cloned it. Remember, a credit card is like a pile of cash. Treat it as such.

2. Only buy from trusted websites.

Online shopping is all the rave these days, and often times we enter our credit card information without giving it a second thought. That’s basically an identity thief’s wet dream. To keep the wolves at bay, make sure you check for security signs from whatever site you’re shopping from. These include a URL that begins with ‘https’ instead of the standard ‘http.’ That ‘s’ stands for ‘secure,’ which means the site uses encryption code when transmitting data online. Also check the page for a lock symbol or security firm icon from a trusted firm like Verisign or McAfee. Those symbols indicate a secure site.

3. Be careful when you travel.

The universal language isn’t English anymore—it’s code. That means that a hacker can snag your personal information from anywhere in the world. So be sure to be extra cautious when you travel. Only use your card at bank ATMs and trusted retailers. Let your bank know where you’re traveling and what the dates are so they can notify you if there are any suspicious purchases. And always update your antivirus protection if you’re bringing a laptop with you.

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4. Avoid public computers and WiFi.

People love to go online shopping whenever the mood strikes. Sometimes this means shopping on a public computer or open WiFi network. This is extremely dangerous as these platforms are especially vulnerable. So here’s a neat little trick for you: Feel free to browse and comparison shop online when you’re on an open WiFi network, but don’t purchase anything. Wait until you’re on a secure server (your home computer) before making a purchase. This has the doubly-positive effect of helping to curb your impulse-buying habits! As for public computers, never enter credit card information on them. Hackers often install malware onto public computers specifically targeting online shoppers. Plus the computer’s cache can store your personal information, making it easier for someone to steal it.

5. Never save your credit card number.

I know, I know, that whole ‘1-click’ thing makes life super easy. But just think of how easy you’re making the life of a hacker or spam-artist by storing your credit card info on a retailer’s server. Remember that massive customer breach of Target not long ago? Sure, identity thieves can strike anywhere. But storing your information with a retailer is like standing in the middle of a war zone with a giant bullseye painted on your back. Better to take the time to input your card info for each and every purchase (this also helps curb impulse-buying, by the way).

6. Keep your PIN number safe.

This one is obvious, but bears repeating anyway. You should never ever EVER give out your PIN to anyone, ever. Not your parents, not your friends, not your priest or rabbi. Not even if God herself came down from heaven and demanded you hand it over. Sorry God, no exceptions here. The ‘P’ in PIN stands for personal. Make sure to keep it that way.

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7. Be wary at the ATM.

Thieves love to hang out at ATM terminals with devices that can snatch your card info – sometimes electronically. They use counterfeit cards with magnetic strips to clone your information and make fraudulent purchases. So be wary whenever you use ATMs. Always shield your PIN number from view, never accept help from anyone, and if a sketchy dude or dudette is hanging around the ATM machine, it might be best to move on to the next one.

8. Watch out for phishing scams.

A phishing scam is any scam that lures a potential victim into giving away personal information which can then be used to steal their identity. A popular example is the follow-up email from a retailer you recently made a purchase with. If you receive an email claiming there was a problem with your order, and you need to resubmit your credit card info or input the last 4 digits of your Social Security number, a red flag should go up. Any legitimate retailer that needs additional information to complete your order will ask you to return to the site and submit information on an encrypted page (and this information will never be your Social Security number). When in doubt, call the customer service number to speak directly with a representative.

While the whole idea of identity theft may seem scary and invasive, the fact remains that we live in a brave new world when it comes to personal information. More and more of our information is being stored in more and more places around the world, which makes it that much easier for thieves and spammers to acquire it. But don’t be discouraged, and don’t throw in the towel. While you can never completely eliminate the possibility that your information will be stolen, you can reduce the likelihood of such an event occurring. All it takes is a little awareness and a willingness to take the necessary precautions.

Featured photo credit: _Dinkel_ via Flickr via flickr.com

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8 Credit Card Security Tips You Should Not Miss

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Published on January 8, 2021

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

1. Pay More Than the Minimum Credit Card Payments

Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

2. Start With High-Interest Credit Card Debt

If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

3. Revisit Your Budget

Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

4. Avoid Using Your Credit Cards

Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

5. Start a Side Hustle to Boost Your Income

You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

6. Sell Your Used Items for Extra Cash

Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

7. Know When to Seek Help With Your Debt

Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

In extreme cases, the debt solution can be:

  • Debt relief – where your debt is partially or wholly forgiven
  • Debt consolidation – taking out one loan to repay others
  • Debt settlement – the creditor forgives a significant portion of your debt
  • Bankruptcy – legal process for seeking relief from some or all your debts

It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

Wrapping It Up

Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

More Tips on How to Pay Off Debt

Featured photo credit: rupixen.com via unsplash.com

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