Stop Credit Card Fraud

Tips to prevent Fraud (adapted from www.hints-n-tips.com)

• Sign new cards immediately and then destroy your old card.
• Shred old credit card statements. These have your name, address and often your card number. If you throw these out then shred them first. This prevents the common practice of criminals going through the trash to find receipts and stealing your identity\
• Never fax your credit card number. Anyone can pick this up at the other end and you may even accidentally send it to the wrong person. Avoid doing this if possible.
• Use caution when giving your credit card number out on the phone or on the Internet.Also never give any personal information to an unannounced caller. With your name, address and some documents from your rubbish people can steal your identity.
• When buying online look for an Internet address that begins https:\\. The “s” stands for a secure connection and a small padlock symbol should appear in the bottom right hand corner of your screen. This should mean that it is safe to use your card
• Call your credit card company instantly if you suspect trouble. All credit card companies have 24 hour lost and stolen help lines. Call as soon as you realise your card is missing or you find a wierd transaction on your statement! Your credit card company will block your cards from being used and should stop you from being responsible for any charges thieves incure.
• Take advantage of any security features your card offers. Many newer cards have the option of including your photograph on the card. This is excellent protection and is highly recommended.

Credit Card Tips - Use your card to save bank fees

This tip is only for the well disciplined with their finances

Instead of withdrawing money from your savings account to make purchases use your credit card with interest free days to make all your purchases. At the end of the month pay off your credit card in full. This will save money as you will not have to pay any bank fees for transactions. If your credit card is a rewards card using it this way also has the added bonus of giving you rewards points for all those dollars spent.

Credit Card Tips - Other "hidden" fees

Lets be honest not many people read all the way through the terms and conditions of their credit cards. Lately there has been a rising trend of "hidden" fees and penalties. Your financial institution may charge you for:

• making a late payment
• exceeding your credit limit
• having a second card on the same account
• replacing a lost card
• duplicate or extra statements
• taking cash advances
• making an overseas ATM withdrawal
• converting currency when buying overseas

These fees can cost anywhere from a few dollars to hundreds of dollars so it is advisable to try and find out what these things will cost you before you accept the card.

Credit Card Tips - Can low interest cards work

If you are one of the many people that does not pay off the full amount on your credit card each month then increased credit card competition can work for you. Today many low interest rate credit cards are hitting the market and the more competition the lower interest you will pay. There are also balance transfers avaliable on many of these cards at a low or no interest rate and transfering debt from your old card can be a great way to take control of the debt (as long as you pay it off before interest is charged again). As always be careful of any hidden fees and charges on these types of cards.

Credit Card Tips - Annual Fee Waiver?

There are some banks and financial institutions that offer to remove your annual fee if you spend over a certain amount or if you have a home loan or extra savings with the bank. This means that you can choose a card with a rewards program and all the benefits and features you need and not be forced to pay a huge annual fee just for the privilege of having it. Remember though don't spend extra money just to save the annual fee - only use the card as you usually would!

Credit Card Tips - Do you need those rewards

There is no doubt that annual fees for credit cards are increasing – and the highest fees are on the cards with a rewards program. Currently there has also been a trend to reduce the amount of rewards points that are being offered meaning that you are paying more to be part of a reward program. Make sure you are not paying for a reward program that you don't want and a card without reward program that does not have a annual fee might be a better option. If you do want the rewards always make sure that the awards points you earn each year are worth more than the annual fee you are paying for the card.

Credit Card Tips - Avoid Cash Advances!

I often have people asking me about cash advances. They explain that they are really handy when you need some cash and that they still have the 55 days interest free to pay them off. This is what I tell them:

The Interest-free period on your credit card accounts do NOT apply to cash advances. In almost every case, you will pay interest on that cash you took out right from the time you grab it from the ATM. Some banks even charge a fee of 1.5 per cent of the withdrawal. That's a $15 fee straight away on a $1000 credit card cash advance.

I often get promotional material from my financial institution telling me I can have so much cahs straight away. The best way not to get sucked in to this little ploy is to throw your credit card pin away (burn it or something) before you learn it - then you can't get a cash advance anyway!

Credit Card Tips - Help I have fallen behind in my payments

Even the most responsible of people can get into trouble at times. I know many lovely people that simply aren't good at managing their finances. If you have fallen behind in your credit card payments there are some steps to take that may help you in your situation

1. Don't hide it
Banks and other credit card companies hate it when people try to hide the fact that they can't make their payments. Instead of waiting for them to send a nasty letter or call you asking what is going on, give the credit card company a call and explain to them you can't make the payment on time. Some will give you an extension to pay the bill and others will lower the interest rate until you can pay it off.

2. Cutting Back
If you are in trouble then you need to consider cutting up those cards or using your credit card sparingly (if you have good self control). Making your own lunch or coffee can often save you more than you think!

3. Get Some Advice
Find someone who is registered to give out financial advice and get a plan drawn up to get you out of debt.

Good luck managing the beast!

When honesty pays off - Personal Loan Tips

I guess we have all done it, fudged the figures, told someone they look great in that when they don't or promised to visit your grandma when you had no intention, but sometimes being honest with your lender can really pay off.

If you are honest about why you really want your loan your bank / financial instutution will sometimes be able to offer you a different loan that might better suit your needs and circumstances. These specialised loans can often save you money on the regular "personal loan" product in which all kinds of things are lumped together.

Car Loan Tips - Don't blindly accept dealer finance

Sure - dealer finance might be easier to get and be much less hassle, but always remember to compare what they are offering you with finance options from your bank or other financial institutions. Dealer finance may be more restrictive and have hidden fees and charges that you do not realise until it is too late. You may even end up paying more in interest.

I am sure you Aussies reading this have heard about a certain dealer who offers motor finance that has been ripped to pieces by A Current Affair lately (although I don't recommend watching this show!)

Personal Loan Tips - Shop Around

When applying for a personal loan there are many options available to you. Don't take the first one you come across. The big banks all offer personal loans, but also consider community banks, credit unions and other smaller financial institutions. These smaller companies often want your business and will have special deals and lower rates in certain cases. Don't be afraid to make some enquiries and tell you bank that you can get a better deal elsewhere. They might say fine then do it or they might just make you a better offer!

Peronal Loan Tips - Avoid Unsecured Loans

When you take out a personal loan for a car/boat/holiday try and make sure that you avoid taking out an unsecured loan if possible. If you can put up some security for your borrowings then you will, on most occasions, get a lower interest rate.

The best option is a home equity loan, or redraw extra repayments, this allows you to borrow against the equity built up in your own home or an investment property. This can get you finance at up to 5 percent less than a car/personal loan.