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Figure 22.3Online Credit Card Tipsl Don’t give out your credit card number online unless the latest security protocolsare in place and you know and trust the company in question. To ensure thesecurity of your account, your credit card information should be encrypted usingthe latest technology.l Don’t trust a site just because it claims to be secure. Before using a secured transactionsite, check out the encrytion software it uses. Some sites may claim to beencrypted when they actually are not. If you are not sure, ask for an alternatemethod of payment.ONLINE CREDITCARD TIPSPeople are defraudedsometimes when theyuse their credit cardsonline. How do youthink this occurs?l Read the fine print. If you receive an offer for a pre-approved credit card or if someonesays they’ll help you get a credit card, find out the details first. You need toknow what interest rate you will be paying and for how long. Some credit cardsoffer low rates that are raised after a certain period of time or special rates thatapply only to balances transferred from other cards. You also need to know aboutany annual fees, late charges or other fees, and whether there are grace periodsfor payment before interest is applied. If the terms of the offer aren’t provided oraren’t clear, look for a credit card somewhere else.l Shop around. Interest rates and other terms vary widely. There are also differenttypes of cards, such as secured cards that require a deposit to cover any charges thatare made, cards that can also be used as telephone calling cards, cards that allowyou to charge something and pay later or deduct the charge from your bankaccount immediately, and cards that can only be used to charge merchandisefrom a catalog.l Don’t pay fees up front to get a credit card. Legitimate credit card issuers don’t askfor money up front, unless you’re applying for a secured card. If you are applyingfor a secured card, make sure you understand how your deposit will be used.Don’t pay someone to help you get a credit card; if you have good enough credit,you can get one yourself.l Use your credit wisely. Many Americans are in debt because they have taken onmore credit than they can handle. Don’t apply for more cards than you absolutelyneed, and don’t charge more than you can afford. To maintain a good credit rating,pay bills promptly. Avoid interest charges by choosing a card that offers a graceperiod and paying the entire balance due each month. If you cannot afford to payyour entire balance, pay as much as you possibly can.l Get help if you feel you’re in over your head. Consumer Credit Counseling Service,a nonprofit organization, provides low or no cost services to consumers who needa plan to repay debts and improve their credit. To find the nearest CCCS office, calltoll-free, 1-800-388-2227.If you need advice about an Internet or online solicitation, or you want to report a possiblescam, use the Online Reporting Form or Online Question & Suggestion Form features on theCCCS Web site, or call the NFIC hotline at 1-800-876-7060.Chapter 22: Borrowing Money and Buying on Credit 491