Lately, I’ve noticed that there’s been a race by my credit card issuers to send me new ones to replace my old ones. It’s not because I’m wearing them out. It’s because there’s a change in credit cards you should know about that’s happening right now.
Credit card processing got a facelift thanks to new technology and a change in the law. New technology used overseas is now becoming the standard in the U.S. - the addition of a small silver chip on your credit cards. This tiny chip adds a code to the information on the magnetic strip when you use it to buy something so the magnetic strip on its own isn’t enough to be useful to a credit card thief.
Starting on the first of this month, merchants that have “old technology” can be held liable for taking a fraudulent card without using a card reader with the new technology so you’re also probably seeing new card readers at the stores you use as they are spending big bucks racing to replace their old ones. The new readers even work differently. You’ll “dip” your card halfway into the reader and it reads the chip and strip - a change from the old “swipe” through a slot.
Big retailers like
Online sales are bigger and bigger parts of buying every year, and it’s important to safeguard your card information wherever it’s stored online. Making credit card purchases from an unsecured wi-fi hotspot is asking for trouble and an easy way for a hacker in the room with you to snag your card information. Crooks can even use a wand to lift your card information as you walk by, so RFID blocking sleeves or wrapping your cards in aluminum foil can help combat that, along with knowing where your cards are at all times.
Your mailbox is a place where thieves can steal credit offers before you even know it. If you’d like to limit those pre-screened offers, you can choose to opt-out for 5 years by calling 888-567-8688 or by going to optoutprescreen.com. It’s also a good idea to call your card issuers and opt out of the convenience checks your card issuers send you, tempting a big splurge buy or balance transfer. Most charge a hefty fee up front that wipes out most of the interest savings, and crooks can swipe them from your mailbox. The FTC offers some good info on protecting your credit and personal information that are worth the quick read.
The best way to cut your need for security and stop card overspending is “just say NO” to more card offers than you need in the first place. Look at the cards you have. Which ones get used rarely, charge the most interest, and are the least versatile? Do you take on new cards for a one-time 20% off deal?
Consider asking up to three of your lowest interest issuers to lower your rate and/or bump your limit a little, and dump your high interest cards. Focus on the newest, high interest ones first. Your older credit cards might have valuable history that helps your score. Here are some additional tips on how to boost your credit score as you work down the number of cards you have.
Like a U2 song I love, most Americans can’t live with or without their credit cards. They tempt you to buy when your cash stash is a little short, but then they bail you out when your tire is flat on the freeway. If you pay them off automatically every month, keep a lid on how many you have and keep them out of the crook’s hands, you can actually benefit from having them.
