It is an awful feeling that you get when you realize that you can't find your credit card. The first thought may be that it has been stolen and you immediately want to take action. What do you do?

The very first thing you do is to report the loss of your credit card to your credit card company. Do not assume that you misplaced it and that you will find it later. The longer you wait the longer the potential thief or person who finds the card will have to use it. Almost all companies have a toll-free number and 24-hour service that can deal with the loss of your card. They will cancel your card immediately and issue you a new one.

If you do have unauthorized charges the maximum liability under federal law is $50.00, if you call and report your card lost or stolen. If you do not report it, then you will be responsible for all charges made to your card, especially if not done within 60 days. The credit card companies recommend reporting the card within 2 days to be covered as much as possible. If the loss involves the credit card number, but you still have the credit card on hand, then you will not be responsible for any charges made.

After the loss of your credit card, you should study your billing statements thoroughly. It could show unauthorized charges for a few months to come so you want to make sure that every time you find one, you report it immediately. Be able to tell the card issuer the exact day you noticed the card missing and when you first noticed the unauthorized charges. Also, make sure to speak with the billing department and not just the customer service agent as you want to have a record of speaking with someone who can actually do something about it. It is always best to follow up any conversation with your credit card company with a letter detailing everything you have discussed on the phone.

The best way to avoid losing your credit cards or having the credit cards stolen is to protect them. Every time you use your card you should check later when you get home that you still have all of them accounted for. It is easy to misplace them or drop them when you are shopping all day, but as long as you check for them then you'll know very quickly if your credit cards have been lost or stolen.