Credit Secrets & Tips Blog

Most of you use credit or debit cards to pay for online purchases.  I encourages you to take steps to make sure your transactions are secure and your personal information is
protected.

Although you can’t control fraud or deception on the Internet, you can take action to recognize it, avoid it and report it. 

Here’s a few tips:

1. Use a secure browser software that encrypts or scrambles the purchase information you send over the Internet to help guard the security of your information as it is transmitted to a web site. 

Be sure your browser has the most up-to-date encryption capabilities by using the latest version available from the manufacturer.  You also can download some browsers for free
over the Internet.

When submitting your purchase information, look for the lock icon on the browser’s status bar, and the phrase “https” in the URL address for a web site, to be sure your information is secure during transmission.

2.  Check the site’s privacy policy before you provide any personal financial information to a web site. 

In particular, determine how the information will be used or shared with others. Also check the site’s statements about the security provided for your information. 

The statements may includes “Privacy Statement”, “Acceptable Term of Use”(AUP), “Anti-Spam Policy”, and “Disclaimer”.

Some web sites.  Disclosures are easier to find than others. Look at the bottom of the home page, on order forms or in the About or FAQs section of a site.  If you’re not comfortable with the policy, consider doing business elsewhere.

3. Read and understand the refund and shipping policies of a web site you visit, before you make your purchase.  Look closely at disclosures about the Webster’s refund and shipping policies.

Again, search through the web site for these disclosures.

4. Keep your personal information private. Don’t disclose your personal information your address, telephone number, Social Security number, bank account number or e-mail address unless you know who’s collecting the information, why they’re collecting it and how they’ll use it.

5. Give payment information only to businesses you know and trust, and only when and where it is appropriate like an order form. 

Never give your password to anyone online, even your Internet service provider.  Do not download files sent to you by strangers or click on hyperlinks from people you don’t know.
Opening a file could expose your system to a computer virus or a program that could hijack your computer.

6.  Keep records of your online transactions and check your e-mail for contacts by merchants with whom you’re doing business.  Merchants may send you important information about your purchases.

7. Review your monthly credit card and bank statements for any errors or unauthorized purchases promptly and thoroughly.

Notify your credit or debit card issuer immediately if your credit or debit card or checkbook is lost or stolen, or if you suspect someone is using your accounts without your permission.

On your first attempt to get credit, you may face a common frustration: sometimes it seems you have to already have credit to get credit.

When you apply your credit, some creditors will look only at your salary and job and the other financial information you put on your application.

But most also want to know about your track record in handling credit–how reliably you’ve repaid past debts.

If you have no credit history, it may take time to establish your first credit account.  Here are 5 ways you can begin to build up a good credit history:

(1).  Open a checking account or a savings account, or both.
 
These do not begin your credit file, but may be checked as evidence that you have money and know how to manage it. 

Cancelled checks can be used to show you pay utility bills or rent regularly, a sign of reliability.

(2). You might borrow a small amount from your credit union or the bank where you have checking and savings accounts.

Some banks may approve your credit application even if you do not
meet the standards of larger creditors.
(3).  Apply for a department store credit card. Repaying credit
card bills on time is a plus in credit histories.

(4).  Ask whether you may deposit funds with a bank to serve as
collateral for a secure credit card. 

The banks will issue a credit card with a credit limit usually no greater than the
amount on deposit.

(5).  If you don’t qualify according to your current credit rating, you may ask someone co-signs a loan to established credit history for you.

Because a co-signer promises to pay if you don’t, this can substantially improve your chances of getting credit. Once you have repaid the debt, try again to get credit on your own.

Most important, before you apply for credit, ask whether the creditor reports your credit history information to credit bureaus.

Most creditors do, but some do not. If possible, you should try to get credit that will be reported. This builds your credit history.

If you’re turned down, find out why and try to clear up any misunderstandings.  There maybe reasons other than lack of credit history. 

Your earning may not meet the creditor’s minimum requirement or you may not have worked at your current job long enough. Time may resolve such problems.