How to maintain credit card security

Maintaining credit card security is paramount to preventing identity theft, avoiding fraudulent charges, and protecting your credit score.  Keeping your credit card information in secure locations will partially mitigate the potential risks of identity thieves stealing your information and using it for purchases, to obtain credit under false pretenses, and/or to sell it to others.  Any of these items could also negatively affect your credit score.  Follow the tips below to maintain credit card security and protect your credit card information.

First, you should create a summary of all of your credit card information. You can do this in a spreadsheet on your computer or in a notebook.

Credit card information to include in the summary:

• Name of issuer (bank, credit union, etc.)
• Issuer contact information (customer service phone number--especially important to report lost/stolen cards, mailing address)
• Account number (if you lose a card and receive a replacement, you will need to update the account number)
• Expiration date (when you receive a new card, update the expiration information in your summary)
• Security code (three digit code on back of card)
• Website address
• Website login information (user name, password, security questions and answers)

If you choose to maintain your credit card information in a spreadsheet, you should consider password protecting it (just don't forget the password you used!) This is especially important if more than one person uses your computer and/or your login does not require a password.

If you choose to maintain your credit card information in a notebook, keep it in a secure location, such as a fireproof and waterproof safe or a safety-deposit box. The combination to the safe and/or key to the safety deposit box should also be stored in a secure location.

Now that you have the information stored, let's turn to the physical credit cards themselves. For those you use on a regular basis, keep them in your wallet or pocketbook. If you lose your wallet, you should consult your credit card information summary and call customer service to cancel your card, check for any fraudulent charges, and request a replacement card.

For credit cards that you use infrequently, such as department store cards, you can place them all in a business card holder wallet and store in a secure location. A fireproof and waterproof safe, safety deposit box, and/or box that thieves would not likely consider (i.e. a food storage box in the pantry) are all sufficient.

Many credit card issuers will allow you to view your statements online, and you can download the statements each month onto your computer. If you choose to do so, back up your hard drive regularly, and store them in a location that is password-protected to enter.

If you choose to receive paper statements, then you can place them in file folders and/or in sheet protectors in a binder. You can organize by month (all credit card statements received in a month are placed in the same folder/sleeve) or by credit card issuer. If you keep them in file folders, you should store them in a fireproof and waterproof file drawer that can be locked (keep the key in a safe place). If you keep them in the binder, it should also be stored somewhere that can be locked (desk drawer or larger fireproof waterproof safe) and/or not obvious (in a binder marked as something else, possibly recipes, on a bookshelf with many other binders).

After each credit card use, save the receipt (in a file folder or plastic sleeve). When you receive the statement, compare the charges on the bill to the receipts you have saved. If there is a charge for which you do not have a receipt and the name looks unfamiliar, call the credit card company to determine if it was a valid or fraudulent charge.

If you wish, you can staple/clip all of the related receipts to the credit card statement (do NOT do this for tax-related receipts, such as charitable contributions or eligible medical expenses).

You can keep other cards in the business card holder wallet along with your credit cards.  If you do so, you may want to update your credit card information summary, in case the entire business card holder wallet is lost or stolen.

Suggestions for other types of card information include:

• frequent flyer cards for airlines
• reward cards for hotels/lodging and/or dining
• reward cards for shopping (especially if you have a card attached to your keychain)
• medical information cards
• phone cards
• library cards
• gasoline cards

Even if you do not see any suspicious charges and/or haven't lost your credit cards, you should review your credit reports annually.  You can do this for free, and since each of the major credit reporting bureaus (Experian, Equifax, and TransUnion) are required to provide you with one free report per year, you may want to request one every 4 months.  

If you see any credit cards or credit lines on the report that are not on your credit card information summary, contact the credit reporting bureau to request more information (credit card issuer name may have changed) and/or place a fraud alert on your report.

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