What to do if your credit card is lost or stolen?

Having your credit cards lost or stolen is a very stressful experience. Aside from the hassle of ordering new plastics, you may have to deal with unauthorized transactions and huge credit card bills. Fortunately, you can limit the damages to your credit and minimize financial losses if you know what to do.

What would happen if you lost your credit card? Everybody hopes that it will never happen to them, but you know – never say never. If you couldn’t find your plastics, don’t panic – and don’t just sit at home in hopes that sooner or later you will find them. 

Make a diligent and thorough search of your home, car, office, and all other places you have visited between the last time you remember using your plastics and when you discovered they were missing. If you truly can’t find your credit cards, it’s time to take measures. 

The first thing you need to do is to report the loss to your credit card issuer. Many people don’t know the telephone of their bank because it is typically stated on the back of their credit cards. In order to avoid these problems in future, make photocopies of the fronts and backs of all your cards in advance. 

The card numbers should be visible on each copy. Add emergency phone numbers of the banks to contact them if needed. Make several photocopies and keep them in your office and home. When you travel, take the numbers with you. Having this information handy will make a credit card theft less stressful. 

Report the loss to your credit card company as quickly as possible. Don’t wait a day or even a minute because stolen credit cards are often used for making a lot of purchases within a couple of hours. Most companies maintain a 24/7 customer assistance service to deal with such emergencies. You should tell the following: 

•    your account number
•    when you noticed your card was missing 
•    the last authorized transaction, if known
Make notes of the date and time of your call and the name of the persons you speak with. Alternatively, if you have online banking account, you may be able to report your missing credit cards via the Internet. 

Most banks will immediately cancel your lost credit cards and issue you a new replacement card with another number and expiration date. You will need to re-set all your automatic payments, but it will help you avoid potential financial losses!

Your financial responsibility 

If your credit cards are lost or stolen, you are protected with the Fair Credit Billing Act (FCBA). It states that if a thief uses your cards before you report them missing, your maximum liability for unauthorized transactions is $50 per card. You may be asked to sign a statement under oath that you did not make the purchases in question. 

A lot of credit card issuers offer zero liability for unauthorized transactions. Ask your creditor if such a benefit applies to your account. It will cover your losses if someone fraudulently uses your plastic. However, there could be some exclusions. For example, your account must be in good standing. 

    If your credit cards were stolen along with your documents, you can become a victim of identity theft. Ask each credit reporting agency to put out a fraud alert on your credit report. You should also monitor your credit reports to detect any fraudulent activity. If you see any accounts you didn't open, inquiries you didn't initiate, or unexplained debts, contact the credit bureau to have them cleared.

Credit cards are among Top 5 things you would hate to lose, somewhere between your house keys and your children. We hope that you will never experience it. But if you do, you have enough tools to minimize your losses!