Online Credit Card

For many people, purchasing online is an everyday occurrence, for many others it is a constant fear. This article is a summary of some of the ways to protect you against online credit card fraud and identity theft.

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HERE ARE SOME TIPS FOR YOU ON HOW TO USE A CREDIT CARD ONLINE:

1^stNever send your credit card number by email. Programs exist that constantly search email communication for key words and number structures related to credit card transactions, including sending the number in parts. If no other means exist, just telephone the recipient and give the number over the telephone line.

2^ndAsk yourself whether the person or company you are dealing with has credibility and is someone you feel you can trust. If you are responding to a small ad, ask yourself whether paying by credit card is sensible. Why doesn’t the recipient use an intermediary service such as PayPal?

3^rdMake sure the website link is a secure one. Look for https:// at the beginning of the link, rather than http:// the secret lies in that extra “s” which signifies ‘secure’.

4^thCheck your credit card statements carefully, and inform your bank immediately of any doubtful transactions. Deactivate or suspend your credit card to prevent further fraud. Many countries have laws limiting liability in the event of fraud, but such limits may only come into use once the bank has been informed. 

5^thBanks and credit card companies will NEVER ask you to respond directly to an email communication, or through a link sent to you by email.

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Now that you know how to use credit card online, you must also bear in mind these tips on HOW TO IMPROVE YOUR CREDIT SCORE:

Credit reports are used by loan companies to help them determine whether or not you are a good risk and if you are likely to repay any loan taken out. There are some very simple steps you can take to raise your rating. Many of these actions are things not to do.

Ø  Obtain your credit report and score from a national credit bureau. The first thing you need to do is know where you are now, in order to know where you're going or want to go. Unlike your credit report, which you can get for free once a year, your score does not come free but it's a small cost and well worth paying for.

Ø  Resist responding to all those "pre-approved" credit card offers you get in the mail. This also includes offers sent to you online. It's easy to think along the lines of, "What can it hurt to apply? They say I'm already approved." The reality is that these easily approved credit cards can and do hurt. Each time one of the national credit bureaus receives an inquiry, your score goes down a few points.

Ø  Avoid jumping from credit card to credit card. If you "transfer your balance" - a scheme that doesn't hurt you, and gets you 0% interest on your balance for a period of time, sometimes as long as a year - don't close the old account. Your credit history looks better to the credit bureaus if you have long-standing, established accounts. This looks good even if many of your accounts are never used anymore.

Ø  Be stable. There are several ways to impress the stability of your life on a credit score reviewer:Buy your own home. Owning a home is viewed as considerably better than renting one. Although affordability of housing has changed in recent years, owning a home is still within the reach of many who save regularly and spend within their means.

Avoid moving around a lot. If you physically reside at the same address for a long time it is better for your credit history than if you move frequently.Get married. If you examine two people with very similar credit histories, the one who is married will have a markedly higher credit score than the single person. Strange, but true!

Ø  Rely on your seniority in age. This you really can't do anything about, being older, but at least there's something good about aging! Age is another personal characteristic that the credit bureaus factor into their ratings. Older is better.

Ø  Pay your bills on time, regularly. This is actually first in the order of things you must do to better your credit score. Each late payment dings your credit score and presents a picture of unreliability. You must determine that, going forward, you will be paying your bills on time. The biggest chunk of your credit score is based on your payment history.

Ø  Reduce your debt to credit ratio. The next big chunk of your score after your credit history is determined by the balance on your available credit. Seek to keep your balance at approximately 30 percent of limit, or less.

Ø  Dispute things on the credit report that are 'wrong'. You can generally get one 'bad thing' off each credit report every year. Keep at it consistently if you used to be a 'bad person', at least as far as the credit card companies are concerned.

Ø  Note that ‘paying off’ loans increase your score. Oddly enough, occasionally refinancing and trading in cars with loans on them 'pays off' loans, too. If you do refinance, do it for no points and a lower rate.

Ø  Get out of debt. Getting rid of as much of your debt as you can is the first and most important step in improving your credit.

Ø  Build up different types of credit. A "healthy mix" of different types of credit builds up you score better than does simply one type. For example: Let's say two persons have $10,000 total in total credit each, and both are making timely payments. One has only one credit card. The other has a credit card, a car payment and a bank line of credit (overdraft protection). The second person's score will often be much better than the first ones.

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