What to do if you lost your credit card

Losing credit cards is the one of the worst experiences you can ever have. A lost or stolen card is very much open for all sorts of fraudulent charges, more so for the folks who have a high credit limit.

When your card gets lost or stolen, what do you do? Sadly, a lot of folks don't think much of it. But we have to be aware of the dangers a lost credit card can cause. Not only does it contain information about us, it also has the potential to ruin your financial reputation if the person who got hold of it would use the card to make charges for their purchases. What to do?

Report the loss A.S.A.P.

First of all, contact your bank or credit card company the moment you notice your credit card is missing. Drop whatever you are doing and call them immediately. Make sure you have the following information on hand to facilitate faster processing: your account number, the date that you noted the card was gone and the date and amount of your last transaction. Make sure that the company records will indicate that the card was "closed upon customer's request" to help prevent re-activation.

Financial experts also recommend following up with a letter containing the same details as above, including the date and time you made the call to report the loss. The letter serves as proof that the issue was reported should it be questioned.

How do you deal with unauthorized charges?

In most cases, most people don't realize that their card was used fraudulently until after it has happened. Federal law states that the maximum account you can be liable for is $50. Visa and Mastercard offer a zero-liability protection for stolen or lost cards. This means that you are not responsible for paying anything should there be unauthorized charges. Of course, this is so long as their conditions are met.

Even if the card was already reported lost to the proper authorities, keep a close eye on your account. Review your account statement every time it arrives. If you have an online portal for that account, check it frequently. As soon as you note a charge that you know you didn't make, report it immediately.

Prevent future loss

The best way to prevent this from happening again is to take steps to make sure that your card and information is secure.

Always make sure you know where your card is. If you have several cards, bring only the ones you need and leave the rest at home. Ask your family to do the same especially if you have shared credit cards.

Do not put your credit cards in your pockets. Not only are they susceptible to easily falling out with your every move, they can also be accidentally broken. More so if you've slipped them in your back pants pocket.

Ensure that the card slots of your wallet hold your credit cards snugly to prevent them from slipping out. Keep a list of important numbers and names in cases you need to report a lost or stolen card.

Owning a credit card should never be a burden. With proper and practical maintenance, plus a good budgeting system, having a credit card can be a enjoyable experience for you and your finances.