Using credit cards is fine. But what happens when you lose it? Losing plastic money can be a nightmare for most individuals, especially if it has been stolen, rather than misplaced. An individual needs to take certain steps in such cases. Here are some things that are important for the investor.
Dial for deactivation
An individual should have the number that can be dialled to deactivate the card in case he or she loses it. This has to be done as soon as the loss of the card is known because this will ensure that the lost card is not misused by anyone else. Once the call has been placed and instructions for deactivation given, the credit card cannot be used and hence the person is protected against unauthorised use. Therefore it helps to keep the number for this service handy. This is especially true if they are travelling outside where they might not have access to the normal sources of information that they normally have at home.
A cardholder can also take an insurance policy that will cover for the loss of the card. There are specific conditions in the insurance policy, which say that the loss for the individual will be covered from a specific point of time after the loss of the card to a specific time, which will limit the extent and the type of the loss that is present on the card. Depending upon the condition of the insurance policy cardholders are protected to a certain extent against the loss that can otherwise have a large financial impact on them.
Very often, a cardholder is required to file an FIR with the police station. This can be a requirement of the insurance procedure or it can be some additional act that has to be undertaken, which will ensure that the person is protected only in genuine cases. When this is the situation then the person will have to complete the requirements and follow the process accordingly.