Online Credit Card Fraud Prevention Mechanisms

Are you afraid to use your credit card online? Most credit card companies limit your liability for unauthorized or fraudulent charges to $50. You do not have this security with a debit card. Keep reading to discover a way to limit your liability for online credit card use to $0!

Databases that store your credit card number are frequently hacked. Just because you do not use your credit card to make online purchases, does not mean that your credit card number is not stored in a database that can be hacked.

I had an online purchase show up on my credit card once. However, in that case I think that the purchaser had incorrectly entered the credit card number, and just happened to have the same expiration date. So that is one reason that the three digit CW2/CID number on the back of the card helps identify the correct number was entered. To fix the problem, I just called the credit card company and explained that I had never shopped online with that retailer, and they reversed the charge.

I found another great way to protect yourself with online purchases that limits your liability to $0!

Discover Card has set up a zero dollar liability program. The way it works is they generate secure account numbers. Instead of using your real credit card number, Discover Card assigns you a secure number that is linked to your account through a secure database. When you shop online, you enter your assigned secure number.

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Never Live on Just Cash

Many of us blame credit cards for getting us into debt, which leads us to believe that credit cards are evil and should be eliminated from our lives. While the idea of not spending more money than you have is on point, the notion of eliminating credit cards is just silly. Consider the following points before deciding to live solely on cash.

VS.

Spending cash can’t make you cash like credit cards can.
You don’t get rewards or discounts for paying in cash. But you do get rewards such as cash back when you use credit cards. With rewards credit cards, you can even earn points for gifts, travel, gas etc. If there is something you are going to buy, then you might as well buy it with a rewards credit card and get rewards for making the purchase. Buying in cash doesn’t give rewards, but credit cards do.

Cash is unsecure.
If your cash is stolen, then it is gone forever. But if your credit card is stolen, then your money can still be secure by simply reporting your card stolen. Carrying around tons of money just isn’t a good idea.

Cash isn’t accepted everywhere.
More and more places these days aren’t accepting cash, such as car rental agencies. It’s always good to have a credit card handy just in case.

Cash doesn’t leave a paper trail.
By leaving a paper trail it’s easier to see where all of your money is going. Unless you’re great at writing all your expenses down, your credit card bill can be used as a simple way to document your expenses. Knowing where all of your money is going can help you budget your money for the future.

Living just on cash isn’t the solution to anyone’s money problems. Credit cards are great for helping you save money by giving you cash back or rewards when you use them. Just remember to not spend more money then you have.

Do you have an opinion about cash vs. credit cards? Share it with us by leaving a comment!

7 Ways for College Students to Save Money

1. Apply for financial aid, grants and scholarships (free money). Grants and scholarships are officially free money for college students. The most work you would have to do is write essays, collect recommendations or fill out applications. Just compare it to the real world, the work you do for scholarship money is less than the work you would do at a job for the equivalent amount of money. Scholarships and grants are easy, free money.

2. Get a job that will pay for your tuition.
Indeed there are jobs that pay more than just a salary. Certain employers will actually pay for your education. Look for companies that have positions related to your major.

3. Buy and sell books online.
The bookstore is always overpriced. You might as well purchase your books online since thousands of students are trying to get rid of their books at low prices. To get extra cash, you can sell the books you don’t need any more online to other students in need of them. Of course, one place to find and sell college books is on eBay.

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9 Tips to Raise Your FICO Credit Score

The fastest way to raise your credit score is to never let it fall. However, circumstances such as losing your job or medical emergencies can do you in. The fastest ways that you find to raise your credit score could backfire. The best advice is to improve your credit responsibly over time. So here are some pointers for raising your credit score:

1. Always pay your bill on time.
2. Always pay your bill on time. Sorry, but I can’t emphasize this enough. Even if you owe $5, pay it on time.
3. Lower your debt to credit limit ratio.
4. Close credit cards that are store specific. You should never have more than one of these, because they reduce your credit score. Each one you apply for can reduce your credit score by 20 points.

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What To Do If Your Identity Is Stolen

If your identity is stolen you need to act fast. Follow the steps below to stop identity thieves in their tracks.

Step 1: Call Your Bank

You are not liable for much (if anything) that is charged on your credit cards in the event of identity theft. Your bank account is a different story though. You can be held liable for any charges that were made before you notified the bank that your accounts had been compromised. So call your bank first, before you do anything else!

Tell them to cancel your debit cards and your checks. If necessary, have them completely close the account and open up a new one. You should also dispute any charges that were made before you called your bank. There is a good chance that you can get the charges credited back to your account. Your individual bank will walk you through this process. I had to do this myself when my identity was stolen, and it was simple, and quick. As long as you take this step first, you will be protected from the worst of the financial damage that an identity thief can inflict.

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How to Protect Yourself From Identity Theft

Identity theft is big business. In 2007 alone there were over 670,000 reports of consumer fraud and ID theft.

So how do you protect yourself? What can you do to prevent identity theft from happening to you?

While you may not be able to protect yourself from all cases of fraud or identity theft, there are a few simple things that you can do to help keep your information out of criminal hands. If you make these steps your regular habits, they will serve as a shield for your personal information, and make the possibility of identity theft a lot less likely.

Shred Your Personal Information:

Most of us already know that we should be doing this - but very few of us do! You can buy a cheap shredder at any office store, and run every single personal document through it before you throw it away.

Honestly, the possibility of an identity thief spending time sorting through your garbage is becoming more and more remote. There are just easier ways to steal someone’s personal information. However, it does still happen! So it’s still a good idea to protect your identity by shredding your documents and mail. Make sure anything with a bank account number, credit card number, social security number, or even your date of birth gets destroyed before it goes into the trash.

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Make Your Credit Card Company Work For You!

Right now the credit card industry is a little haywire thanks to the economic meltdown we’re in.
Companies are cutting people’s credit limits without notifying them, and in some cases, even closing credit accounts without reason.

So, what should you do? I say turn the tables! Make your credit card companies work for you, instead of the other way around! If you pay your bills on time and have good credit, there are tons of ways to get a better deal out of your credit card companies - all you have to do is ask.

Each and every one of the strategies below can be accomplished with a couple of simple phone calls to your credit card companies. The amount of money you can save should more than make up for the time you have to spend on the phone!

You will almost certainly have to talk to a customer service manager to get these types of deals, so don’t waste too much time with the representative who answers the phone - just ask to speak with their manager or supervisor.

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Easy Method to Quickly Start Budgeting Money

Budgeting your money is one of those things many of us dread to do. If you haven’t experienced it already, living paycheck to paycheck isn’t ideal. So, if you haven’t made a budget for your money yet, today is the day to start one. It isn’t as hard as many people think. Money Tree created a brand new software application that I believe will help beginner budgeters. Here are the benefits of this software as opposed to other methods of budgeting:

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