Credit Card Basics: What Happens When Your Card Is Stolen

When your credit card is stolen (something that can happen a lot especially when you’re using the card while traveling), you need to report it immediately. If you don’t notify the credit card issuer and someone uses it to purchase goods, you will likely be held responsible for up to $50.

While you can always just shrug the $50 off (it’s a small price to pay for the loss), it may not end the same way for the credit card issuer who can incur serious damages if the thief uses your card to accumulate substantial sums of purchases.

In such cases, you’ll likely be asked to show proof that the card was really stolen and you’re not just scamming the credit card company. Most likely, you’ll need to file a police report of the theft. If substantial amounts are at stake, the credit company may even launch their own investigation - a process that can eat serious amounts of time and create plenty of inconvenience.

Failure to report it immediately can also lead to bad marks in your credit report, especially when the thief uses the card to obtain further information about you. Identity theft is seriously rampant and a damaged credit can take you a long time to fix.

To be on the safe side, report any theft or loss immediately. Most card issuers offer a 24-hour toll-free call center that you can call for such emergencies. Additionally, follow-up the phone call with a written report of the incident and send it to the credit card company.