Recently, I had the
rare experience of losing my credit card after a visit to a certain
colored box for a movie. This is the second time I've ever lost a
card. Unlike the first, its absence eluded me. The bank called after
someone turned it in at the branch, only a few hundred yards from
this colored box. To my relief, the last charge was the movie. They
invited me to retrieve the card. I declined.
I told the banker to
destroy it. I would order another. Why? My father taught me to avoid
even minor threats. Sure it's unlikely that whomever found my card
copied the sixteen-digit account number and three-digit card number.
Doesn't matter; I'll never have to know because I ordered a new card
with a new set of digits. What's the benefit of retrieving the card?
Convenience. The cost? Theft. What's the cost of getting a new card?
Inconvenience. The benefit? Security. I will say this just once
because I could say it at every point: financial security is the ship
that keeps us afloat in society; you cannot be too careful with the
integrity of its hull.
A few ideas about
plastic:
Don't sign. Instead
of signing the back of your card, write the words 'see ID.' Once it's
a habit, it doesn't take any more time to produce your ID with your
card when making purchases but it makes it difficult for criminals to
access your credit, should they find a card that has yet to be
reported lost.
Pay down, not off.
Instead of paying off the card with the smallest balance, pay the
minimum on all your cards except the one with the highest interest
rate. With that card, pay it off or as much as you can as soon as
possible. Carry the largest balance on the card with the lowest
interest rate. And it goes without saying, never miss a payment or
pay late – it's too expensive.
Pair your cards.
Pair your cards to your costs. For example, use one card for gas and
groceries; one for online purchases and reservations; another for
large acquisitions; etc. Resist the urge to have an 'emergency card'
that lies dormant; credit agencies do not look favorably upon them.
Personal fiances suffer when too many credit lines are open at any
given time but it is good to have enough active lines to pair
different cards with different expenses. This not only helps with
budgeting and flexibility but fraud. Credit-card companies like to
see predictable buying habits. When something unpredictable happens,
they are easier to work with and often the first to spot the fraud.
Credit-cards are the
common, daily oil of our financial machine – the engine of the
ship. If we don't pay attention, the fluid becomes grimy, gritty,
dirty, useless, and then potentially dangerous if the engine heats up
and breaks down – bankruptcy. But if we take a few extra moments
each day to be mindful of this important yet mundane aspect, we keep
the oil clean and the engine running smooth, getting us where we want
to go.
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