What To Do if Your Credit Card is Lost or Stolen

Losing your credit card is one of the scariest things that can happen to you and your finances, especially if you don’t know you lost it. Just imagine some spend-thrift hooligan running around the city charging gasoline, food and expensive electronics! Depending on your credit limit, the damages could be astronomical. However, there are some protection measures in place that will cover the cost of fraudulent purchases or unauthorized charges. You have to be sure to take all the right steps though. So, if you lose your credit card or know it was stolen, here are the steps you should take.

1.    Prepare for the Loss: One of the best things you can do is photocopy your credit cards, driver’s license, social security card, and other important cards, and keep that copy in a safe-deposit box or safe. Remember to photocopy the front and back of your credit cards, so you can access all data and phone numbers.

2.    Report the Loss ASAP: The minute you discover your credit card is lost or stolen, report it to your credit card company. Once you report it, you will not be held liable for any unauthorized purchases made from the point of reporting. You may be liable for up to $50.00 of fraudulent purchases prior to the reporting, but that will depend on the card and company. Some people do not like to report their card lost or stolen and cancel the card, because they are afraid they may have just misplaced it, and then have to go through the entire process of getting a new card. We recommend erring on the side of caution however. Call your credit card company the moment you know your card is lost or stolen, and give them your name, date of loss, account number, and date of last purchase. This way, they can separate the authorized purchases from the fraudulent (if any).

3.    Get a new Credit Card: When you report your loss to the credit card company, you will be prompted to get a new card with a new number.  Do so, or search for online credit card applications and get a new card with a different company.

4.    Contact the Credit Report Companies: Go online or telephone the top credit reporting companies. Tell them your card was stolen and to put a Fraud Alert memo on your report. This will help keep your credit score from being damaged. The numbers are:

i.    Equifax: 1-800-525-6285
ii.    Experian (formerly TRW): 1-888-397-3742
iii.    Trans Union: 1-800-680-7289

With these steps, you should be able to lessen the damages if your credit card is ever lost or stolen. Should you ever need a new card, you can find plenty of online credit card applications and apply for a different credit card for free.