How Credit Cards Can Protect You

People sometimes are weary of using credit cards as they’re afraid of fraud, scams, and even theft. While it’s best to check with your credit card company first, most credit cards do protect you in some ways. Here’s how credit cards can protect you:

Way 1: Fraud

Most credit card companies protect you from fraudulent purchases making you not liable in these cases. If you believe there has been fraudulent expenditures made from your account, contact your credit card company as soon as possible.

Way 2: Loss or theft

In the event of a lost or stolen credit card, you’re covered if purchases are made on your card not by you. If you lose your credit card, call your credit card company as soon as possible to disable transactions from that card. They’ll replace your credit card shortly afterwards.

Way 3: Disputes

Credit card companies can solve disputes by you and the merchant if you are not completely satisfied with the transaction for a valid reason. They can also revoke the payment made by you, if again, for a valid reason.

Way 4: Account freeze

Your credit card company will place your card frozen if there are suspicious transactions on your credit card i.e. over your limit transaction or a suspicious overseas purchase.

Way 5: Credit limit

You can always lower your credit card limit if you feel the need to, thus protecting yourself from not over using it.

Way 6: Receipts

If you’ve lost a receipt, your credit card bill will show a record of your purchase history. This helps you manage your transactions and bills much easier. It may also be helpful when filing your income taxes for proof when you’re writing off deductibles.

Way 7: Forgotten cash

If you left your money at home or just don’t have enough, credit cards can be a savior. Many times people don’t carry a lot of cash on hand, making credit cards helpful when your cash is insufficient or forgotten.

Way 8: Purchase protection

Some credit cards offer a 90 day purchase protection insurance. This protects you from purchases that are damaged, lost or stolen upon delivery. Not too many people actually use this service because they are unaware that it is offered, check with your credit card company.

Way 9: Emergency

In case of a financial emergency, credit cards can be used to withdraw money (cash advanced) when it’s needed. Some people may have the mindset of credit cards being their safety blanket for financial emergencies. This shouldn’t be the case and should be the last resort.

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