Take Precautions to Avoid Credit Card Debt & Fraud

Banks and Credit card companies provide services to their customers in order to earn money by helping their customers. They have no problem with the customers who have good credit rating. Since they want to make more and more money, it is beneficial for them if their money is in the pipeline.

When we accept and use credit card, we owe certain responsibilities. We need to deal in such a way that our working does not end up in deteriorating credit card rating. Let us see what we can do to deal effectively with credit cards. This is necessary to avoid the financial trap and black hole.

First off, when filling up the credit card membership form read each and every term and condition carefully. You should not hesitate in asking questions from the sales person who attend you. You should make sure that there are no hidden charges.

When they have been issued a credit card, you generally start using it and the credit card company sends monthly statement. Make sure to read each and every entry minutely. If you have any doubt, contact the credit card company immediately and ask questions politely which they are supposed to reply.

First, try to repay the small bills on time, within the same month. If for some reason you do not pay the bills and make minimum payments, make sure that payment is made on time within the due to date to avoid any late fee. Late fee is generally quite high. One should try to avoid late fee. If the payments are not made timely, credit card issuer can charge increased rate. This is one of the main reasons of piling up of credit card debt. This situation needs to be addressed to carefully.


Some people have the habit of carrying on credit card balance month after month. They feel that paying small minimum amount is easy. But if you calculate after a year, you will notice that you are payment more than double the amount and it is no wisdom payment hard earned money just in interests. It is therefore advisable to avoid carrying forward balance and accumulation of credit card debt. The same situation becomes reason to affect your credit card rating. Once your credit rating goes in negative, it becomes difficult to gain it back at least immediately.

If you have any grievance with the credit card issuer company, you can promptly take up with their representative in writing on talk on phone. But don’t just sit. It may give them impression that you are satisfied with the monthly statement. Whenever any discrepancy is noticed, the same should be brought to their notice promptly.

If for any reason you find yourself in credit card debt trap, it is advisable talk your credit card authorities immediately to arrive at a settlement. Explain the genuine reasons and they may help you in lowering the interest rate or turn the credit card into loan account which you can pay monthly.

Keep your credit card and secret pin numbers safely, better if you do not keep a written record of PIN numbers. It is enough if you cram and remember. In case of loss of credit card, the incident should be reported to concerned authorities promptly in writing as well as on phone.

These are some of the tips if kept in mind your credit card rating will always remain high and you will have no problems with credit card companies.