No matter how much you spend this year you should do it on plastic. As part of our annual tradition CardTrak is offering a list of Holiday Tips. This document is also available free to anyone by sending a stamped, self-addressed envelope to CardTrak’s Holiday Tips, Box 1700, Frederick, Maryland 21702. The tips are also available through our new World Wide Web site on the Internet, http://www.cardweb.com.
1. Make a shopping budget and stick to it.If you regularly carry a balance: What is the annual cost to service your card debt ? Determine your approximate monthly balance and multiply it by the current interest rate you're being charged, then add the annual fee. Now divide the annual cost by the average balance. If this number exceeds 16% you're paying too much. Select cards with the lowest annual cost.2. Use a credit card, check/debit card or cash/ATM card in lieu of cash as often as possible during the 1995 holiday shopping season. Payment cards offer the highest level of convenience and security. Refunds and credits are handled with minimal delay and paperwork. Messy cash transactions are minimized.
3. If possible, apply for and use a bank credit card offering a rebate or give-back program. Most give back programs offer rebates of 1% to 10% on purchases. Rebates come in the form of cash, air miles, automobile discounts, free gasoline, telephone service credits and free videos. Smart consumers can maximize rebates by consolidating all holiday spending, including groceries, on one rebate card.
4. Understand the costs associated with using your cards. What interest rate are you being charged ? What is the cost of obtaining cash or using checks through a credit card ? Is the "skip-a-payment" holiday option offered by many issuers for you ? Review your cardholder agreement for pricing terms.
5. Most credit card issuers offer special discount coupons through statement stuffers. Clip and save these coupons for holiday purchases at national retail stores.
6. Protect your cards as if they were cash. Criminals think of credit cards as money, and you should, too. Treat a credit card with as much care as you would a $1,000 bill.
7. Before leaving home on a shopping trip, select only the credit (or cash/check cards) you'll need, and leave all other cards in a safe place. Carry small amounts of cash.
8. Make sure salespeople record credit card (and cash/check card) purchases accurately before you accept your receipt. Many sales clerks are temporary employees and may be inexperienced at handling credit or debit transactions; others may be rushed by holiday crowds and thus prone to mistakes.
9. During the holidays, you will undoubtedly make more frequent trips to grocery stores, movie theaters, fast food restaurants and gasoline stations where both credit and cash/check card acceptance is greater than ever. Always make sure that you take your receipt with you as in these busy locations, casually discarded receipts can be used by thieves to make fraudulent charges against your account.
10. Make certain the credit card handed back to you by a store clerk is your card. If charge slips with carbons are used, check that the clerk tears or splits the carbon sheets before you leave the store, otherwise your card account number could be obtained from the slip and used fraudulently.
11. Do not give your credit card number to a merchant to "validate" a check. Although merchants might ask you for this information, you have a right to refuse to give it. (In some states it is illegal for a merchant to ask for this information.) Criminals can use a valid credit card number, along with the signature and address located on the front of the check, to create a counterfeit credit card or to commit telemarketing fraud.
12. Do not reveal any personal information when you use your credit cards. According to VISA and MasterCard regulations, merchants cannot require you to provide any personal information, such as your address or telephone number, as a condition to accepting your card; they may require only a valid card and your signature.
13. Save sales receipts and check them against your monthly statement. If you see a charge you don't recognize or if you notice any inconsistencies, write your credit card provider right away.
14. Make a record of credit card account numbers and telephone numbers for reporting lost or stolen cards. In fact, it's a good idea to make a list of everything you carry in your wallet, including credit card numbers, and keep that list in a safe place.
15. Be careful in giving out your credit card number over the telephone. If you are not familiar with a firm, get its full name and address and contact the Better Business Bureau to check it out. Fraudulent telemarketing is a significant and growing problem.
16. When mailing in your monthly credit card payment, take it directly to the post office or a mailbox. Some thieves have been known to take these envelopes out of home mailboxes, appropriating the account number for fraudulent purchases.
17. Report a lost or stolen card to the issuer immediately. If your card is lost or stolen, and is used by another person to make an unauthorized purchase, you can be held liable only for a maximum of $50.
18. Know who has access to your cards. If your credit card is borrowed by a family member (spouse, child, parent), with or without your knowledge, you may be responsible for their purchase.
19. If you become separated or divorced and your spouse is on your credit account, you may still be liable for your spouse's purchases. Be sure to change the status of your credit cards when your status changes.
20. Make a New Year's resolution to evaluate all your credit cards. If you always pay the balance off in full each month: Are you getting the most bang for your buck ? The marketplace is full of cards with special usage incentives. Select the one with the greatest personal value to you.
