Credit Card Safety [video]
/transcript
(1) Use a credit card over a debit card.
(2) Set up account alerts for that credit card.
(3) Be sure to only buy from reputable sites online.
3 tips - let me go into more detail.
When you have a fraudulent charge on the credit card, that is the credit card company's problem.
You notify them, they can take care of it. It does not get deducted from your bank account balance.
With a debit card, that money comes straight out of your bank account, so you've now lost it. You need to fight to get it back and it can lead to other issues, especially if you have a low balance in your account.
The other is to set up account alerts so that you get a text message whenever there is a purchase made with your credit card.
Years ago, we did not have this set up and we happened to be looking at our credit card statement around Christmas time. We weren't the best at looking at it, but my husband noticed a couple of weeks prior, maybe two to three weeks prior, there were thousands of dollars of computer equipment purchased with our credit card. So we were able to take care of that with the credit card company. However, that really scared us that it took us so long to notice and that that could happen.
So we were able to set up account alerts and it's not as much of a pain as I thought it would be. You get the text message. I'm in the habit of just glancing at it, making sure that it is accurate, and then moving on with my day.
The last piece is just being careful where you buy online.
That credit card that was stolen in our case, was from a purchase we made at a discount swimsuit site. So we were preparing for a 10-year anniversary trip to Hawaii. We were buying swimsuits for our 3 girls at the time, went to this discount site, and that is where our credit card information was stolen.
So use a credit card over a debit card, set up account alerts, and be sure to buy from secure sites online.
Linda Rogers, CFP®, EA, MSBA is the owner and founder of Planning Within Reach, LLC (PWR). Originally from New Jersey, Linda services clients throughout San Diego county and nationwide. She leads the design of PWR's investment portfolios which utilize broad, low-cost investments that integrate environmentally, socially, and governance (ESG) factors.
Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.