After my husband’s wallet was stolen, we went through the nightmare of trying to figure out what cards he had in his wallet. We had already been notified by one of the credit card companies about possible unapproved use. I love that the credit card companies today are so quick to spot fraud. The downside of that is that they know more about our spending habits than maybe they should.
The person that took my husband’s wallet used two credit cards. We ended up canceling four credit cards since we weren’t sure which ones he was carrying. The thief spent over $90 filling up his gas tank and apparently a friend’s, using two separate cards, at the same gas station. $10.23 at Jack in the Box bought him some breakfast. The oddest thing to us was the $31.77, for running a background check on someone, that, fortunately, was not us. But I did have to call to make sure it wasn’t on us. He didn’t get much, but still, he wasn’t entitled to anything.
It was time to do something.
I had been thinking it was time to get rid of a few more credit cards before this happened. How about you? Do you have a large number of credit cards, some of which you could eliminate? Today may be a good day to start working on that, before they are stolen, whether physically or over the internet.
Consider that closing credit cards will affect your credit score. So this will be a process that may take months, even years, depending on how many cards you plan to eliminate. Do not close out all your credit cards at once. Suddenly closing four or five credit cards at one time will be a mistake in relation to your credit score. It will very likely lower your credit score and you don’t want to do that.
How important is a credit score?
Every time you apply for a credit card, automobile loan, line of credit, or home mortgage the lender will check your credit report and possibly your credit score. But wait, is a credit card really a loan? Yes, they give you an extended period of time to pay off your balance and charge you interest each month if you do not pay it off. Credit cards are most likely the highest rate of interest you are paying, sometimes in the 20% range.
That is one of the reasons that you want to try to pay your credit card(s) off each month. If you are paying less than the minimum payment each month, that will cost you additional late payment fees which really add up. Relying on credit cards to get by, should be your last choice since it is so easy to get behind and then pay excessive interest and late fees. Plus you will ruin your credit score by being late on a
Your credit score can also be used to determine if a landlord will rent to you. It could be pulled by your insurance company or a potential employer. You can get your credit report (not credit score) for free each year through http://annualcreditreport.com. The credit bureaus that are part of annualcreditreport.com are Trans Union, Experian, and Equifax. They will also sell your credit score to you for a small fee. You can request your credit report through each credit bureau once a year. I would space them out so that you can check your credit several times a year. Annualcreditreport.com is the only site approved by the federal government, so don’t be fooled by someone else offering you a free credit report. They may be scamming you for your personal information.
First Steps:
To start, remove every card that you can from your wallet. Keep them at home in a safe place or a safe deposit box at your bank. If you are carrying a credit card or two, make a list of all the cards you are carrying. The list should include the credit card number, the bank name, your name as it appears on the front, the expiration date, and a phone number to call them to stop any activity in case the card information is stolen. Keep the list in a file where you can easily locate it.
Before eliminating credit cards, you will need to pay off the outstanding balance. Begin by getting rid of all cards that work for only one store. Some credit cards make it easy when the store goes out of business. That happened with Mervyns, one of my first credit cards. I have eliminated most of my cards that are only good in one store, like Dillards, Macy’s, and Best Buy. Why carry cards for the stores that you don’t frequent often?
Next, I suggest cutting them up and putting each one in a separate envelope addressed to the credit card company. Write a letter explaining that you no longer want the card and you would like your account closed. Mail these out one at a time, at least six months apart. Or you could also call the credit card company and ask that they send you a confirmation letter. Once again, at least six months between calls. Keep a list of the credit cards you close. Keep the confirmation letter until you check your credit report and verify that it is really closed. And be sure to cut up the cards. I throw them in the trash but space the pieces out over a few weeks. Paranoid? Maybe I am.
Second Step:
I realize getting rid of your credit cards cold turkey may not be possible for everyone. Depending on the number of cards you have, you should work through the ones you use the least first. Then move on from there. Keep in mind that you will still continue to receive offers for new credit cards in the mail. Do not open them. Instead, shred them immediately Your goal is to reduce your number of credit cards, not add to them.
Another reason I cancel credit cards is if we get a card with a special promotion and know that once we have it for a year we will be charged an annual fee of roughly $100. I use the miles I’ve earned for a trip and say goodbye to that card. But you can’t do that too often either, because it could cause havoc on your credit score. However, I do not advise getting more credit cards until you have your current credit card situation under control.
Verify your charges each month.
I know there are people out there that pay their bills each month, without even reviewing the charges. They are prime targets for credit card theft. They might not even notice a few extra 100 dollars on their bill. I’m very thorough in checking my bills. If I don’t have a receipt for it and my husband can’t remember buying it, I will call. And most of the time it is our charge. We are fortunate that credit card companies do cover losses to a point. But, you definitely don’t want to be paying for something you didn’t buy or receive, because you paid your bill without checking it.
As soon as you are aware of something that has been purchased by someone fraudulently, call the credit card company. The sooner they can deactivate your card, the better for you in the end. You can be held responsible for the first $50 even if you let them know immediately. Be aware that if you are a procrastinator or you keep your bills in a pile to look at quarterly, after 60 days you may be responsible for the entire amount that was unauthorized.
Credit and debit cards.
Always be smart with your credit cards and your debit cards. Thieves will find a way to access both of them and drain any cash you have. If you can’t live without them, you might want to lower the credit card limits, just in case, one at a time over a period of time
We have whittled our pile of credit cards down to one that my husband carries and three that I do. When it comes down to it we don’t need the cards, it’s because of the perks that we continue to use them. There is something exciting about walking up to the checkout line in Costco with a cart full of food and miscellaneous, and being able to use the reward we have earned to pay zero dollars cash for everything in the cart.
Other ways your card information can be stolen
Just a few weeks after my husband’s wallet was stolen, we received a notification, by email, that our Lowe’s bill was ready for payment. There was a balance due. I knew I hadn’t charged anything lately. I really hadn’t. A thief used the internet this time. Orders were placed online for a nice, shiny new toolbox and other items. I called immediately. From the close of the billing cycle until my phone call the person had continued to buy more nice new stuff. Over $800 total.
Be aware of phone calls that claim they are with your credit card company or bank and they need to verify your information. This is a scam. Your credit card company and bank will never call you to verify your account number or the expiration date. They already have it. Hang up immediately.
Besides credit cards
Another unfortunate item to note, if your wallet is stolen, your credit cards are not the only things stolen. My husband also had a health insurance card, an HSA (Health Savings Account) card, his driver’s license, and his Senior Lifetime Pass to National Parks. https://www.nps.gov/planyourvisit/passes.htm The Lifetime Pass was the only thing we couldn’t easily replace, at least not at the price he paid, before prices increased in August 2017. The price went from $10 to $80. All the other cards were easy to replace, but it was an inconvenience.
Always try to pay your credit cards on time. This will save yourself money and help you maintain a good credit score. Do not keep any pin numbers in your wallet. Also, do not carry your social security card, medicare card, or birth certificate with you. Only carry them if you need them that day, for something like the paperwork to start a new job, and then return them to your safe place again.
As a side note, the person that stole my husband’s wallet was caught many months later. He was part of a ring that was doing this regularly. We could have gone into the police station to pick up my husband’s license, the only thing recovered, but by then he had already replaced it and the police had done something to it that made it unusable.
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