Are Credit Cards Safe to Use?

Buy now pay later seems to have become the slogan of our generation. Credit cards have made it possible to have everything you want - without waiting till you save up the money to get it. But there's a dark side to credit cards as well - a side that's left far too many people up to their ears - and deeper - in unexpected credit card debt. In addition, there are all the scares about identity theft and credit card fraud, which have led many people to question whether credit cards are safe to use.

The answer, say experts in finance and credit, is yes, as long as you take some precautions both in applying for a credit card and in safeguarding your cards when you use them. Here's some practical advice from credit card UK experts to help you use your credit safely.

1. Always read the fine print.
   When you're comparing deals before applying for a card, be sure to read through all of the terms. That great APR could be offset by a hefty annual fee, or the interest that you save by transferring your balance outweighed by the balance transfer fees charged by your old card. Keep your eye on the bottom line to make sure that you're not getting shafted in one area to make up for the savings in another.
   
2. Make your payments on time.
   Nearly every company charges a late fee if your payment reaches them past the due date on your account statement. Depending on your membership agreement with the credit card company, late payments can land you with a whopping 29% APR making that bargain card a credit millstone around your neck.
   
3. Check your statements AND your credit report regularly.
   Be sure to go over your account statement regularly and carefully. Keep your eyes peeled for any charges to your card that you don't recall making. It's the most common first sign that someone has got hold of your personal information. The same holds true of checking your credit report. Check for enquiries into your credit report at least every 6 months or so to be sure no one has tried to open a credit card account in your name.
   
4. Never take your eye off your credit card.
   You're safest options for shopping with your card are merchants that use a card reader at the point of sale where YOU insert the card so that your card never leaves your hand. If you must hand your card over to a cashier, keep your eye on it to be sure that no one is copying down the details off your card. The new Chip and PIN card system will eliminate a great deal of this type of fraud - up to 80% is the current estimate. Still, it never hurts to be safe.
   
5. Keep your PIN safe.
   Your PIN and Chip combination is unique, and it's meant to serve as an identifier that the person presenting the card is authorized to use it. Never give your PIN to anyone. Other safety tips - don't write your PIN down and keep it with your card and shield the keypad from others' sight when you're punching in your PIN.

You'll find all the best credit card UK offers at moneyeverything.com, where you can also find all the information you need to make informed choices when applying for a credit card from UK card distributors. Be sure you read all there is to know to keep your credit safe.