The credit, of course, is the excess amount that is given to us by someone in the name of help and that we are bound to repay it. This is the actual meaning of credit. Then what does credit mean, when comes to credit reports and ratings? It is nothing but the credibility, a person`s ability to use the given credit wisely and smartly.
So credit is credibility and is not for luxury. When you go for a credit card, understand that you are trying to build a good credit report by using the card wisely and not that it has been given to you for your lavish spending. It is just a medium for you to build up on your credit scores and not just for using it as and when you feel like for any amount.
The simple and basic rule of credit is live with what you can afford to. If you have thoughts that holding a credit card would inject some extra pennies every now and then into your pockets and that you can spend them as and for what you wish for then you are wrong.
A living has to happen within the affordable limits and following this is the best way to achieve the 800 + credit score.
When comes to credit cards and credit ratings, we always tend to talk about how we can build them, how we can maintain the scores and aim for a better and higher credit etc.
But have any of us thought of what the hidden perils are in using the credit cards for online purchases? There are some dangers lurking in using them for online shopping. But this is where the problem arises. Something by the name identity theft happens.
Now, what is this identity theft? This is nothing but stealing the identity including the financial information about a person through the online purchases made by him. The existence of hackers is a problem in almost all the areas and fields.
Online shopping is one very common and prominent happening in everybody`s life. So it has become even easier for the hackers to breach the account details of a person making a purchase online. They try and get hold of the card details, the account details and finally make you paupers and debtors for the amount actually not spent by you.
A credit report is something that talks about your credibility. Now you might have been maintaining a good score here and if you find them going from bad to worse without your involvement then understand that there has been an identity theft in your account and that somebody else is using your money inturn putting you in troubles avoid fraud.
There have been many such cases reported and the innocent customers end up with a bad credit report spoiling all their dreams and plans of going for a loan from the banks and financial institutions. This breach has no warnings, no control and hence a customer has to be very careful in using his credit card only for sites that have been legally established. With this very important information, the hackers also go to the extent of opening new accounts in any numbers finally to make the real user the victim. And what the victim suffers the most is a big hit on his credit report.
Avoid frauds by going for some online measures that would ensure to keep you and your identity safe online. The latest tool that has been rated as the best in protecting the credit card holders from losing information to others is the Identity Guard. This is something that is secured by a password and also has security vaults. When ever a person`s credit card information are getting stolen, there is an alert sent to him notifying him about the mishap. So this way you will be able to save your cards and also avoid the situations that would result in a bad credit rating for you.