Recent headlines proclaimed news that a ring of criminals bilked restaurant customers of at least a million dollars in a sophisticated fraud scheme. Unlike similar identity theft crimes, the targets were not the unsuspecting, elderly whose naïveté make them vulnerable, but members of the upper echelon of society, those often regarded by the average Joe as somewhat untouchable.

The culprits operated out of posh New York City restaurants, and, using handheld skimmers, were able to steal credit card information from clientele who carry the country’s most prestigious and most exclusive credit cards such as the American Express Centurion Card®. The information was then transferred to a computer and used to create bogus credit cards, which were eventually used to purchase high-end, luxury items that the criminals sold on eBay®.

Reactions to the story have ranged from the cavalier indifference of the younger set who tend to believe in their invulnerability to the fear-filled questions of those who are both less comfortable and less familiar with the technology of our computer age. “If those wealthy enough to own cards such as the Centurion Card (commonly referred to as ‘The Black’ card, which is a ‘By Invitation Only’ card with an initial fee of $5000 and an annual fee of $2500 just to posses), don’t know enough to avoid being scammed, then how will I ever be safe?” is a thought many have had.

With credit cards, as with life, there are no sure-fire guarantees, but whether you are part of the jet set or are working hard to make ends meet on a monthly basis, there are steps you can take to protect yourself from credit card identity theft.

• Keep a hard copy of all credit card information
• Use credit cards, not cash or debit cards
• Limit the number of credit cards you carry
• Use only one credit card for making online purchases
• When making purchases with a credit card, never let the card leave your sight
• Inspect ATM’s, gas pumps, and other machines designed to scan your card before completing a transaction

Protecting yourself starts with keeping a hard copy record (this is not a file you want saved on your computer) of all the credit cards you own, their account numbers, expiration dates, and the customer service number to call in case the card is ever lost or stolen.

Actually, using a major credit card such as VISA®, MasterCard®, or Discover® for purchases is itself a protection. If you are carrying cash and have your wallet stolen, the cash is gone. Period. However, when you report your card as lost or stolen, most credit card companies have liability limits, often as low as $50.

Your purchases, made with a credit card, are protected as well. If you go on a shopping spree, leave your purchases in your vehicle overnight, and a thief breaks in and steals your merchandise, most credit card companies will cover that. Again, if you pay in cash, well, maybe you could work something out with your homeowner’s insurance policy if the deductible isn’t too high and if you’re not afraid of premium increases due to a claim.

Because of the liability limits set by most major credit card issuers, using a credit card for purchases, including dining out, is much safer than carrying a debit card. Debit cards are generally linked directly to a bank account. Once a criminal has debit card information, that information is generally used to immediately empty the account to which the debit card is linked. Although there are now federal laws in place that give consumers some amount of protection in the case of fraudulent electronic withdrawals, there are many stipulations, especially in relation to the time in which the theft of a card was reported, and hundreds of stories of individuals battling their bank for months if not years to get stolen funds reimbursed.

Limiting the number of credit cards you carry with you to one or two is another wise move. This protects you both if your wallet or purse is physically stolen, but it also protects you from having information stolen electronically. As technology has advanced, many credit cards carry Radio Frequency Identification (RFID) that allows customers to pay for their purchases without ever letting go of their credit card by simply holding the card close to the point of sale reader. Visa’s payWave® and MasterCard’s PayPass® are examples of this technology. Just as the RFID imbedded in the cards can allow for contactless purchase, a thief with a reader can also steal that information without ever having to physically touch your credit card. Although this theft would be a little more difficult to achieve because the criminal would need to be 1 to 4 inches away from your card, the best protection is to limit the number of cards you carry and therefore the amount of information that could be stolen.

In like manner, limit your susceptibility to having credit card information stolen when making purchases online by using only one credit card for online shopping. In fact, some people not only limit their online shopping to one card, but also limit that card to being used exclusively for their online shopping and nothing else. Of course, when making purchases online it is best to shop only at well-known, reputable merchants, be sure the transaction is completed through a secure website, (the web address should begin with https://) or to consider using a third party, such as PayPal, to complete transactions with companies other than recognized major stores.

Whether grocery stores, gas stations, or your favorite fashion outlet, many retailers now have card scanners that allow the consumer to swipe their own card. Never having your credit card leave your hand, or at least your site, is the best way of protecting yourself. Portable credit card scanners, like those used by the culprits in the NYC restaurant scam, are available to anyone for less than $100. Holding onto your card is your best guarantee against similar theft. Of course, we all dine at restaurants where the friendly wait staff kindly inform us the when we are ready, they will be our cashier. Take the initiative to protect yourself by letting them know you would prefer to take the invoice to the cash register yourself. Remember, the customer is king, and if there is a problem, a quick, friendly chat with the manager will result in your card staying in your possession.

Even if you aren’t a computer whiz, you have a responsibility to educate yourself. Use the internet to become aware of what scanners or skimmers used by crooks look like. Also research images of pin-hole cameras used with skimmers on ATM’s. Get in the habit of visually inspecting machines you are intending using with your credit or debit cards, especially if that machine, such as an ATM or a gas pump, is outside, accessible, and not in full vision of an employee the entire time it is accessible to the public. If anything looks suspicious, don’t use the machine, and report your concerns to the bank or business. They would much rather deal with a false alarm than learn too late that their customers became unwitting victims.

In this age of computers and seemingly daily leaps forward in technology, protecting yourself and ensuring the safety of your family, including protection from credit card/identity theft, comes down to the same things as it did in the years and decades before television was invented and credit cards heard of: preparation; clear, logical thinking; being aware of surroundings; and personal resourcefulness.

According to MSN Money, approximately 75% of Americans are receiving an income tax refund. The IRS states that the average refund is $3129, which is a much higher average than even a decade ago.

So what is the average American doing with all that extra cash? Surveys conducted by the banking industry indicate a good share of Americans plan to save their tax refund while a smaller percentage will use their refund to pay off debt. The majority of Americans, however, tend to view their income tax refund checks as a sort of windfall and plan on spending the cash.

Considering the depressed, or a least extremely recessed, economy of the last few years, it’s not surprising that many Americans are contemplating sticking a little cash away for a rainy day. In fact, many financial gurus suggest that every family should establish an emergency fund with enough easily accessible cash to cover at least three to six months of living expenses. Investing in short term CDs or a money market account would make the funds available should an emergency arise. A refund check for over $3000 would be a good beginning to establishing an emergency fund and significant peace of mind just in case the economy is not out of the woods yet.

Some Americans aren’t ready to put their refund checks into savings just yet. Having been hit hard by job loss or job reduction or other economy driven factors, a sizable percent of the American population has racked up more consumer debt than any previous time in history. The banking industry survey indicates that 19% of Americans intend to use their tax refunds to address debt. A loud cheer went up from financial advisors across the country at this news!

Financial counseling centers suggest one of the best approaches to establishing or re-establishing firm financial footing is a systematic approach to paying off debt. Although people may be tempted to spread that tax refund out to pay part of the doctor bills, part of a loan, and part of a couple credit card bills, many advisors, say the most effective way to get out of debt is to focus all of your additional payments on paying off your smallest bill first. Then take the normal monthly payment from that paid debt and add it to the normal monthly payment of the next smallest debt, continuing in that pattern until you are debt free. Addressing the smallest outstanding balances with a 2010 income tax refund is a great way to get a jump start on being debt free!

Surprisingly, a large number of people electing to spend their refund rather than save it or use it to pay bills have also cited the recent economic conditions as the motivation behind their decision. Tired of the tightening the belt posture, these Americans tend to view the refund check as a kind of bonus money. Projects that have been put on hold until times are better or larger purchases that have been too expensive for the normal budget are likely targets on which to use the cash returned by the IRS. Other Americans are tempted to take a break on a vacation that they otherwise wouldn’t be able to take.

If you are one of the majority of Americans planning on spending that nice refund check, a little research could help that money go a bit farther. Now might be the time to consider applying for a rewards card that will stretch your refund. Whether you are a do-it-yourselfer or plan to hire a contractor to start that remodel, add on a new deck, construct a shed, or build a pergola in the backyard, check out credit card offers that have a additional cash back on special categories that rotate throughout the year. Discover® Card, Citi® Platinum Select® Dividend MasterCard®, and Citi ThankYou℠ Card are all offering 5% cashback on purchases from home improvement or lawn and garden stores through the end of June.

In addition, many card companies offer from 5 to 20% additional cash back incentives when you connect to retailers through the card’s website. For instance, Chase Freedom® Visa does as do some cards offered by Discover Card or by Citi. Most card companies offering online shopping have over 600 participating retailers. Not only can you order home improvement materials, this is a great way to purchase new computers or other electronic equipment or upgrade the systems you already own.

If you’re planning to use your 2010 income tax refund to get away on a much deserved and needed vacation, Delta has teamed up with American Express to offer new customers some pretty enticing incentives. Along with other benefits, the Gold Delta SkyMiles® Credit Card from American Express® gives customers the opportunity to earn 15,000 bonus points within the first three months of opening an account, and with the Delta Reserve Credit Card, you can earn 10,000 Medallion® Qualification Miles with your first purchase. Delta SkyMiles can be used to purchase airline tickets, hotel rooms, car rentals and more, allowing you to play just a little longer!

Perhaps the biggest ‘between the lines’ news in America’s response to the question, “What do you plan to do with your refund?” is that, in general, people are beginning to feel more positive and hopeful about the economy both now and in the months ahead. So go ahead and enjoy that “bonus money” whether you decide to save a little, pay a little debt, or spend a little!

As a young child, I spent a lot of time with my grandparents. Some of my fondest memories are of my grandmother telling me stories. One of the ever-present favorites was the fable “The Tortoise and the Hare.” How often I heard the axiom, “Slow and steady wins the race.”

As an adult, I’m amazed at how many times that axiom has popped into my mind and been a sort of guide in my decision-making, including decisions about credit cards.

The glut of credit card options can be overwhelming for anyone to wade through in a quest to make a wise decision about which card to apply for. Many reward offers are attractive. Equally appealing are the tempting zero-percent cards. However, for anyone with a fair amount of debt to pay down, a low interest card is a wise choice.

Let’s face it. Life has a way of landing us in unexpected circumstances. Whether a temporary job loss or a medical emergency or the break down of a large appliance or a vehicle, any one of us could find himself in a unexpected circumstance where a major amount of debt is incurred. Once we get back on our feet by finding another job or recovering our health, how do we address the new debt we suddenly find ourselves saddled with?

Why not a zero-percent card? A zero-percent card is a great option if you know you can pay off the balance by the end of the introductory zero-percent offer. Read the fine print before you select a zero percent card and be sure you understand what your interest rate will become at the end of the introductory period. Some zero percent offers have a steep interest rate after the initial offer. For instance, I needed to replace car tires the other day. I could save $90 if I opened a credit card account at the tire dealership. The card’s zero interest jumps up to a whopping 26.99% after the initial six months is over. An interest rate like that could add a lot to a debt load if one cannot pay off the card balance at the end of the initial zero-percent offer.

I believe my grandmother’s axiom comes into play. Wisdom would dictate looking for a low interest rate credit card that would allow me to intentionally pay down my debt at a steady pace each month without a punishing amount of interest charged on the balance.

In taking this steady approach to debt reduction, look for a card with a low interest rate. At the same time, check to see that the card has no annual fees. On top of no annual fee and a low interest rate on both new purchases and existing balance, if you can find a card that offers a lower initial interest rate for balance transfers, I’d consider applying for that card.

A low interest credit card I’d personally highly recommend is IberiaBank Visa® Classic Card. This particular card offers relatively low interest rates, a great six month introductory 1.99% rate on all balance transfers, and no annual fees. IberiaBank Visa® Classic Card just received top ratings in the Consumer Reports Top Low-Interest / Fees Cards of 2010.

If life has handed you unexpected debt or you’ve just decided to make an effort to become debt free, this low interest rate card would be a great one to transfer balances to. With normally low rates, a great introductory offer, and no annual fees, it definitely allows the consumer some breathing room while he makes progress in paying off debt in steady, monthly increments.

Years ago I had a friend who, before I met him, had unexpectedly found himself out of work. He and his family lived in a small town, and he had difficulty finding employment in his career field. While he was out of work for 18 months, his wife was only able to find part-time employment. The end result was foreclosure on their home. He was eventually able to find a position in another state, and he, his wife, and their four children began the adventure of relocating to the town in which I lived. It was interesting to be a friend-observer as they dealt with the limits foreclosure put upon them financially. The first couple of years after foreclosure were difficult for the family, but thankfully, they had made wise decisions and had good financial practices prior to losing their home so the recovery was not as hard as it could have been. I learned quite a deal through watching and listening to my friend and his spouse.

As anyone knows, going through a foreclosure will cause your credit score to plunge drastically, and the foreclosure will remain on your credit report for seven years. With a low credit score, you will be regarded as a high credit risk, and therefore, if you are seeking to open new credit accounts, the interest rates will be quite high. This will especially be true immediately following the foreclosure. However, if you can practice good credit habits consistently, you can begin to rebuild your credit score and, with time, ease the impact of the foreclosure.

The Credit Card Accountability, Responsibility, and Disclosure Act of 2009 aimed to give consumers some protection against unfair practices by credit card issuing companies. This means that your interest rates on already existing credit card debt should not increase because of your foreclosure. You may, however, experience higher rates on new debt. If so, there are steps you can take to lower those rates, but it may take time.

Interest rates are primarily based on your credit score and how great a risk you are perceived to be. After foreclosure, you will want to work hard on rebuilding your overall credit score but also work with individual card companies to maintain or establish good standing with them.

First, if your rates on new debt have have increased after foreclosure and you have had a history of on-time payments, especially if you typically pay more than the minimum payment, contact your credit card company and discuss the rate increase with them. Ask them to look at your payment history and, based on your good-standing with them, continue to keep your interest rate at the lower level. If the initial person with whom you speak does not give you a satisfactory answer, don’t be afraid to ask to speak with someone with more authority.

If you haven’t had a history of on-time payments, start today to establish one. Also, make a great effort to pay more than the minimum due each month. After six months of on-time payments, call the card company to negotiate your rate. Continue to build your good payment history and continue to make those calls to negotiate your rate every couple of months until you get the answer/rate you want. Not only will a good payment history and a history of making more than the minimum payment to your credit card company establish with that company that you know how to handle credit, it will help in rebuilding the score on your credit report.

Another practice to adhere to in this rebuilding time is to go without that which you cannot afford. If you are unable to pay off a new purchase by the end of the credit card cycle, do not charge it.

Work to make sure your credit card balance is well below your credit limit. Ideally, work to pay down your debt load to 30% or lower of your credit limit. If you have more than one card with an outstanding balance, do it for each card. You may have to focus on one card at a time. While you do, be sure you are making all the other card payments on time. When you have lowered your outstanding balance, it is another good time to call the card company and discuss your interest rate. Because paying down your outstanding balance lowers your debt to income ratio, there will also be a positive movement on your credit score.

It might be easy in a tough situation like foreclosure to give into some kind of initial panic and close all your credit card accounts. Doing so would not be wise. Foreclosure will, for a time, make obtaining new credit both difficult and expensive – because of the high interest rates. You have a much better chance of working for reasonable solutions or compromises with a company with whom you’ve had a history. Also, most people don’t realize that closing established credit card accounts can sometimes cause your credit score to drop slightly.

The above practices are pretty basic. It might take a time to see the results of these practices, but they are fundamental approaches to using credit and to recovering from a large economic setback such as a foreclosure. If you can hang in there through the initial tough period and be committed to making on-time payments, making more than the minimum payment, charging only what you can pay off at the end of the month, paying down your credit card balance to 30% of your credit limit, and calling your credit card company frequently to dialogue with them about your interest rates, not only will you be able to come to an agreement on an acceptable rate of interest, you will also be rebuilding a more positive credit score.

Listening to a steady stream of advice flowing from my grandmother’s lips during the entirety of my growing up years, you’d have thought she published the world’s largest collections of “Maxims to Live By.” Of course, if the world had listened to and followed her wise counsel contained in such memorable statements as “Neither a borrower nor a lender be,” I wouldn’t be writing this blog.

Because I enjoy the convenience of credit and debit cards, or perhaps because avoiding credit wasn’t a “lesson I learned early and harmlessly,” I have to face the fact that having my credit card or my credit card number stolen is a very real possibility as it is for anyone who carries credit cards. I’m not exempt just because I write this blog. However, knowing “an ounce of prevention is worth a pound of cure,” there are steps both you and I can take prior to having cards stolen that will help if that event ever takes place.

First, carry a minimum number of cards in your wallet and never carry a social security card.

Second, it’s recommended that you keep a photocopy of both sides of every card you own. This file of paperwork should be kept in a safe place separate from where you keep your credit cards. If an actual photocopy of every card seems like too much paper to keep track of, you could instead keep a one-page listing of the pertinent information. This list would include the name of the institution issuing your credit card, your credit card account number, and the phone number to call to report a lost or stolen card. This list needs to be on a hard-copy, paper format. (If you keep such a list of information stored on your computer, caution needs to be taken in doing so…but that’s another blog entry.)

When it comes to stolen credit or debit cards, “timing is everything.” A quick response to the situation is your best protection.

If the worst happens and your wallet is stolen, you immediately need to use your list to phone the companies that issued your stolen credit cards to report them as stolen. Timing is essential here. The Fair Credit Billing Act (FBCA) limits your liability to $50 on a credit card reported as stolen. The Electronic Funds Transfer Act (EFTA) limits the amount of your liability on fraudulent transfers or ATM withdrawals based on how quickly you report the ATM/debit card as stolen. If the loss is reported within 48 hours, your liability is only $50, but if the time period is more than 2 business days, you could be liable for up to $500. If you neglect to report unauthorized use of your ATM/debit card within 60 days of the bank statement showing the unauthorized access, you will be liable for the entire loss.

In dealing with stolen credit cards, it is best to document in writing everything that is done. Record the date and time of your phone calls to the credit card issuers. Be sure to record the name and ID # of the representative handling your report. Take notes on your phone call. After completing the rest of the steps necessary in dealing with the theft of your credit cards and wallet, summarize the content of your phone call in a written letter to the credit card company. Keep a copy of each of the letters you sent, and perhaps consider mailing the letters return receipt or signature confirmation. The point is to create a paper trail that documents your actions just in case anything comes up for dispute at a later time.

After reporting the stolen cards to the issuing company, file a report with your local police (or, if you are away from home, with the police where the theft took place).

Be sure to contact each of the national credit reporting agencies by phone. Report your stolen credit cards and request a credit freeze be put on your account. You will create a password that must be used to remove the freeze. If your identity has been stolen, this service will be free. Otherwise, each credit agency will assess a small fee both to initiate and to remove the freeze. Again, it is wise to document these phone calls and mail a follow-up letter summarizing the requested action to each of the credit reporting agencies.

Contact your state’s department of motor vehicles to report your license as stolen and obtain a new license. Be sure the license number is different from the number on the stolen license. Contacting the social security office is essential if you broke the rules and carried your social security card or number in your wallet. In this age of identity theft, it might be wise to speak with one of their representatives about the loss of your wallet even if you didn’t have your social security card tucked inside.

Once the immediate, initial wave of contacts reporting the loss of your credit or debit cards has been made, you should keep a vigilant watch on your bank statements, credit card statements, and other bills. If there is any unauthorized activity, report it immediately.

Being prepared and acting quickly will ensure you minimize your loss in the event of stolen cards. Like grandma always said, “Wise people are diligent.”

Seems like daily there are news reports concerning yet another case of identity theft or credit card fraud. Who are the typical victims? Are they the nice elderly couple down the street who are so trusting and big-hearted? Or perhaps the high school and college-age kids who believe they are invincible as they step out to conquer the world and make a place for themselves? Surely it isn’t the savvy white-collar business man who drives his Lexus by the house everyday on his way to work.

The truth is, none of us is exempt from the all-too-real threat of potential credit card fraud, which is a big part of identity theft. In reality, no one can guarantee that your credit card numbers won’t be stolen or that your identity won’t be accessed by a criminal. However, there are several pro-active measures we can take that will reduce our risk ratio.

I have a friend who is a general contractor. He has encountered many, many remodel projects that were  initiated because of a minor problem that wasn’t recognized and dealt with early with just a simple repair. Often the problem itself could have been prevented if, in the original construction process, protocol had been followed and shortcuts had been avoided. After listening to him tell of an incident where he had been called to make what the home-owner thought would be a minor repair but that turned out to be quite a restoration project, I asked him how he discovered the source and extent of the actual damage not readily noticeable to the average person. His response intrigued me and has become a bit of a guiding principle in my life: “You have to think like water.”

The lessons I learned from my friend the contractor are principles I have applied to protect myself and my family from credit card theft. Principle one: Follow protocol. Principle two: Don’t take shortcuts – ever. Principle three: Think like a thief.

When I was young, my grandparents traveled in Europe. The only thing they really had to worry about was preventing the actual physical theft of their cash and traveler’s checks. My grandfather bought a money belt to wear under his clothing and religiously carried their money and checks in it. He knew the high rate of pick-pocket crimes in the area they were visiting and had friends who advised him that a money-belt was the safest way to go. My grandfather applied all three principles.

Today’s world is a bit more complicated than that of my grandparents, but there are still proven protocols we can use to protect ourselves from credit card fraud in today’s high-tech world. Obviously, we still need to be sure our cards are not physically stolen. It’s a wise idea to only carry a couple credit cards and an ATM card in your wallet. If you can force yourself not to, don’t carry a debit card. Debit cards are so convenient to use, but carry a much greater risk than a credit card. Generally, if a credit card is stolen, the Truth in Lending Act protects credit card holders from being liable for no more than $50 of the loss. Debit card carriers whose cards are stolen are at risk of having their entire checking accounts wiped out, and they have no protection. (If you use debit cards, access the card company’s on-line service to monitor your account weekly.)

The second thing we can do to protect physical access to credit card numbers is to buy a paper shredder and faithfully shred everything with any personal information. Everything. Every time. No shortcuts. A list of items to shred would include credit card statements, credit card applications, loan applications, pre-approved credit offers, credit card receipts, etc. In addition to shredding paperwork you are disposing of, spend the extra money to install a mailbox with a lock or contract for a PO Box to protect the paperwork you are receiving. Locked mailboxes aren’t fool-proof, but they are a deterrent.

The electronic age has presented many more threats to my credit card safety than my grandparents ever dreamed of. Awareness and diligence is a key to protection. Anytime your credit card leaves your hand, don’t let it leave your sight, and watch carefully the way the waiter or the retail cashier swipes the card. Hand-held devices called skimmers are used by criminals to store information found on a credit card’s magnetic stripe until a time when the criminal can download it onto a computer. It would only take a second to swipe the card with a skimmer before swiping it for your purchase.

One of the biggest targets for criminals intent on credit card theft is your personal computer. It is imperative that you install a firewall to protect your home computer from hackers. This is especially necessary if your internet connection is through DSL or cable. While you are installing a firewall, also spend the money for a good virus protection software and pay the subscription fees for regular updates. This protection will prevent worms or viruses from capturing information entered onto your computer and sending it out.

If you store files that contain sensitive personal data including credit card information, bank account numbers, investment information, or passwords, protect those files with passwords.

Criminals target naïve people. Keep yourself educated on recent scams involving the internet. Be assured that banks and credit card companies never, ever, ever contact customers through emails that ask for identifying information or account numbers. “Phishing” emails will contain your bank’s logo and other graphics and look like official correspondence. They will direct you click on a link that opens a page very similar to the bank’s online website where you will be asked to enter account information. Do not click on the link. Do not enter your information. Ever. If you have questions, call your banking institution or your credit card issuer.

In the same vein, do not give out your credit card information or any other identifying information (debit card, social security number, etc.) to anyone else soliciting it over the internet (or phone or mail) unless it is to a business you trust and unless you have made the initial contact with the company.

Be cautious about your online shopping. Only purchase things with a credit card online if you are positive that the reputable business is offering a secure transaction site. When you hit a “checkout” or similar button, you should be taken to a page that has a prominent graphic or dialogue box containing a notification of security. You can also glance at the url in your browser to see that the address begins with https:// – look for the “s.” You should never email your credit card information to anyone. Email can be hacked into. If a company does not have a secure site through which to complete a transaction, use PayPal or find another source for the item you wish to purchase.

Beware of your children’s internet activities. Protect your computer from being able to download programs without password-approved permission (and don’t give your kids the password). There are many file-swapping or file-sharing programs on the internet that can be interesting or fun, but they are easy ways to expose yourself to hackers.

If we are as diligent about protecting our credit card numbers and personal information as thieves are about stealing it, if we follow established protocol and never take shortcuts or make exceptions to the rules, we can go a long way in reducing our personal risk of credit card fraud and identity theft.

In the past, it has been easy to handle different situations that may arise with your credit card company. The simplest solution has been to get a new credit card. However, with the newest credit crunch, this is no longer an option.

You do have several options if your credit card company cuts your credit limit. Don’t just “take it” because a lower credit limit can hurt your credit score. Here’s how you can fight back.

1. Fight back. First of all, fight back. If you limit gets lowered, call the credit card company immediately and try to negotiate a higher limit. Make sure you point out that you have a spotless payment history. They also need to understand that you used to have “healthy” debt to credit ratio. Don’t just talk to the first person you reach. Ask for supervisor after supervisor until you’ve worked your way up the ladder.

2. Pay it off. If your credit score drops because your credit card company lowered your credit limit, pay off the balance as quickly as possible. Your credit score probably dropped because there isn’t as much available credit anymore. Pay down the balance and get that ‘available credit’ open.

3. Request a limit increase. Just because you’ve taken a hit with one credit card doesn’t mean you have to take a hit with all of them. Call the other companies and request a credit limit increase. You have to be extremely careful with this, because if it backfires, it could damage your credit score more than help it. If the company does a “soft inquiry” by not pulling a new copy of your credit report, your score won’t be affected. However, if it does a “hard inquiry” by pulling a new copy of your credit history, it could lower your credit score for an entire year. If you can request a limit increase online, it is probably a “soft inquiry.”

4. Open a new credit card. This option isn’t for everyone. Your credit score has to be fairly good these days open another (just because your current credit card company lowered your limit). Your credit report will take a short-term hit because of the inquiry and the new line of credit.

5. Do NOT cancel the card. Many people make this mistake by trying to get even with the other credit card company. Don’t do this. Simply don’t use the card. Having that card available, yet empty, will help your credit score.

Don’t let your credit card company lower your credit limit without a fight. Take a stance. Follow these steps to preserve your credit score and available credit limit.

For me personally, the answer to that question is a resounding yes! Customer service isn’t just about talking with someone on the phone or at a counter and having them answer my question or conduct a transaction for me. It’s more about my overall impression of the entire experience; the atmosphere, the goods or services and the way I was treated makes the complete package, not just some salesperson sucking up to me to get a sale. I understand that not every person at every company has the capacity to perfrom at such a standard every time, but there are a few companies out there who just seem to get it right while others can’t.

Take for example two credit card companies – USAA and American Express. Both companies have received the highest rankings for customer satisfaction, one from Consumer Reports and the other from JD Power and Associates. Is this a coincidence that I have accounts with both of these companies? Not exactly. USAA is more by coincidence for me, but without surprise, while American Express is solely by choice. My experience with both of these companies has been excellent and it is no surprise to me that either of these companies receive high ratings from other customers and ultimately from organizations like Consumer Reports and JD Power and Associates. Using a credit card from American Express does come at some cost, but I knew that before I became a customer. To me that additional cost or slight inconvenience is more than worth it.

Just like you I’ve also had bad customer service experiences too. For many years I used cellular services provided by Sprint because I was getting a “great deal” (price) on my monthly bill. However, anytime I had a problems with my phone or service,  I had to go to a Sprint store where I expected to leave there completely frustrated with my blood near its boiling point. Sure the reps were nice for the most part, but no one could ever seem to really help me or fix my problem. Why I stayed with them for so many years, I don’t know, but I now recognize the money I saved on my monthly bill was not worth it at all. When the opportunity to switch to a different provider presented itself, I did so without hesitation. The money I saved resulted in a lot of frustration and an overall bad customer service experience.

So I beg the question, does customer service influence where you shop or which companies you use? For me the answer is clear, I would rather pay more, sometimes a lot more, to have customer service experiences like those I’ve had with USAA and American Express. Leave us your comments and feedback.

People generally have different misconceptions about credit cards. It is important for you to make good credit card decisions. Make sure you don’t make these costly credit card mistakes.

1. Minimum Payments. Paying only the minimum payment can be extremely costly. You will end up paying a lot of interest if you don’t pay off your credit card each month. You will also become enslaved to your credit card balance, never being able to get out from under it.

2. Cash Advances. Credit card companies make you think that cash advances allow to get free money. When they don’t advertise is how much interest you’ll be paying each time you take a cash advance. Most times, you’ll be paying over 25% for each advance.

3. Budget with Your Card. Don’t make the mistake of thinking that you can buy whatever you want now and pay for it later. This is an easy way to get way over your head in debt. Stick to your monthly budget. If you use your credit card, especially to earn rewards, make sure you have the money in your checking account to back it up.

4. Late Payments. Never make a credit card payment late. You will be charged a late fee and end up paying a lot more for that tank of gas than you intended. Always pay off the entire balance on your credit card a few days earlier. This will get you in the habit of making good credit card decisions.

5. Understand. Make sure you read the fine print and understand exactly what you are getting into. Know what introductory rate you’ll be paying, what the rate will be after the introductory period, what the late fee is, what your due date is, etc. When you apply for the credit card, you are entering into a contract with the credit card company. Make sure you know what the contract means.

6. Too Many Cards. Don’t get too many cards. Lenders do not look favorably on a ton of open revolving accounts. If you need one or two credit cards, get them. But, be careful you don’t have so many cards that you can’t keep up with each one.

7. Monthly Statement. Your monthly statement is your opportunity to review your credit card balance with a fine toothed comb. Review each statement carefully and make sure every charge is correct. This is also your opportunity to watch for identity theft. Your monthly statement is given to you for a reason. Read it carefully.

Be sure you are making good credit card decisions. In order to have good credit now and down the road, you need to be smart with your credit card. Don’t make any of these costly mistakes, and you’ll be on your way to great credit in no time.

Credit cards can be a good thing if you know how to use one. These are ways that credit cards can make your life better:

1. Accumulate reward points for free merchandise. Get a reward credit card and get free stuff. Each time you use your credit card, you’ll accumulate points that can be redeemed for discounts on gas, movie tickets, restaurant gift cards, and more.
2. Buy now, pay later. Credit cards give you the option to make a purchase now and pay for it later. This is a great benefit, especially for emergencies or help with cash flow.
3. Accepted virtually everywhere. Credit cards are generally accepted everywhere. This is great when you are running low on cash.
4. Easy to carry. A credit card takes up less room than a wad of cash does.
5. Online shopping. Pretty much the only way to buy things online is by using a credit card. Your credit card comes in handy if you do a lot of online shopping.
6. Build credit. Using your credit card wisely is one of the best ways to build your credit. This will show lenders how responsible you are and make them more willing to loan you money.
7. Teach responsibility. Credit cards can teach you responsibility because you have to account for each purchase you make in order to stay out of debt.
8. Teach money management. Credit cards are a great way to teach you how to handle your money. You have to carefully budget your money and your purchases.
9. Variety of payment options. Many times, you can chose different payment options. You have the flexibility to chose your due date and payment amount.
10. Online monthly statements. Most credit card companies offer an online program where you can view your credit card activity. This helps manage credit card purchases tremendously.
11. Not having to carry cash. Isn’t it a pain and a hassle to carry cash all of the time? Credit cards make it so easy to swipe and sign.
12. Good Customer service (most of the time). You can’t call a customer service department if you have a question about the cash you carry. You can, however, call in regards to your credit cards and credit account.
13. Earn cash back. You can earn cash back through a percentage of your purchases. This is a great way to combat rising inflation too.
14. Give you a buffer until payday. Credit cards help get you through until payday, especially when unexpected circumstances arise.
15. Tool for tracking your expenses. It is so easy to track expenses and purchases now with different tools that the credit card companies offer. Most companies have an online tracking system. Many also offer a year-end statement that categorizes all of your purchases from the entire year.

These are just a few of the ways that credit cards can make your life better. Credit cards can be an unmatched tool that can assist you on your quest for financial freedom.