The average American home has at least one household bank credit card and recent estimates place that figure at 81% of households. The growth of the credit card industry continues even as other sectors of the economy seem to be slowing down.

Reasons vary for obtaining a credit card but many people use credit cards as a manner of convenience—both in shopping without needing cash and tracking purchases. Many credit card companies offer a summary of spending in various categories such as groceries, restaurants, airlines, etc. which can assist customers with personal accounting.

The convenience of credit cards is tempered with the risk of using them. Even if you guard personal information very closely, there is the risk of identity theft and fraudulent credit card activity. Careful monitoring of credit card activity in tandem with frequent credit report checks can help you avoid falling prey to a criminal.

How to Protect Yourself

Identity theft is prevalent today and each year almost 500,000 Americans are victims of this crime. Criminals are able to gather personal information about a person and then either compromise existing household bank credit card accounts of even establish new accounts for the purpose of purchasing items in your name. The way this information is obtained varies but a few common pitfalls are listed below.

A phone call or email asks for personally identifying information
Do not fall for a person who asks you for your account number, social security or other sensitive information in order to verify your account. If a legitimate financial institution needs to contact you, they already have this information. Feel free to ask them to read your number to you in order to verify. If the person refuses, this should be a red flag and you should immediately end the contact. Additionally, you can ask to speak to a supervisor or get a phone number where you can return the call at your convenience. Being proactive will scare criminals away in many cases.

Do not respond to offers of free prizes
Many times, unscrupulous people will offer a free vacation, car or cash prize but need your account information to process your winnings. Never give this information out and if you think you are really a winner, ask to come to the office in person to hear the terms of the contest.

Frequently check credit card statements and monitor credit reports
Make it a practice to look at credit card statements online weekly. Any fraudulent activity will be spotted quickly and will bolster your case with the bank who issued the card. Credit report monitoring is also helpful to ensure no one has opened new credit accounts in your name. For a small monthly fee, there are many companies who will contact you with any changes in your credit report. This can make credit report monitoring even easier.

Credit cards offer great convenience to consumers and that is one of the reasons to obtain one. By paying attention and protecting personal information, consumers can avoid many of the pitfalls that accompany credit cards. If you own a household bank credit card, you need to be vigilant to avoid becoming the victim of identity theft and other financial crimes.