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It’s truly astounding. When you apply for a credit card online that offers “instant approval,” that credit card company can zip around the internet in the blink of an eye and pull up your information electronically, know almost instantly whether you are a good credit risk, what balances you are carrying on your existing credit cards, and whether you have a history of on-time payments. (Sure, sometimes they need to take a few days to make a decision, but in general, they move pretty fast).
How do they do that? Is there some repository of information out there somewhere on the internet – maybe in a place that an identity thief might also be able to access just as quickly? Well, don’t panic. Your banks and credit card companies are keeping your information safe. In fact, the online credit card companies are not even talking to those companies directly. They get their information from the credit bureaus, and there are three of them: Experian, Equifax and Transunion.
These three credit bureaus are in the business of tracking and recording your behavior with credit from the time you open your very first credit account. They know whether you have a history of making your payments on time, whether you have ever defaulted on a loan, or if you open or close a credit account or loan. that information is noted in a document called a credit report, and each of these agencies has compiled their own credit report on you. From the information on your credit report, they also create a three digit number, known as a “credit score,” which represents your creditworthiness. Like the high score in a video game, your credit score lets other people know how well you can play the credit game. So when online credit card companies look online for information about you, this is generally the score upon which they will base their decision to extend you credit.
The best way to maintain a good credit score is to make your payments on time, pay off your credit cards and don’t carry high balances from month to month. As you can see, your credit score and credit report are important tools used by creditors to determine your creditworthiness.
Are you interested in finding out what your credit score is? Try a free credit scoreat GoFreeCredit.com – they’re a secure and credible source.
FAQs
Installing malware or spyware on your device
This harmful software can steal sensitive data from your devices and share it with hackers. One common type of criminal software — called a keylogger — records everything you type. This includes credit card numbers, passwords, emails, and more, and sends them to the hacker.
Can credit card companies track IP addresses? ›
When you alert your credit card company of an unauthorized charge, it may assign a team of investigators to look into the transaction, depending on the scope of activity. The investigators start with analyzing the transaction timestamp and IP address to verify if fraud has actually occurred as claimed.
How do credit card companies know where you are? ›
Banks and credit card companies use advanced tracking and monitoring systems to detect and analyze unauthorized transactions, and they can often trace the origin of fraudulent activity by examining transaction patterns, merchant locations, and digital footprints.
How did the company get my new card info? ›
Turns out, Capital One as well as other major credit card issuers, will share a customer's new credit card number with a merchant. "It's a service to make sure the customer doesn't miss a payment just because they got a new card," said LendingTree chief credit analyst, Matt Schulz.
How did fraudsters get my credit card details? ›
Scammers steal credit card numbers in a variety of ways, such as through phishing attacks, hijacking payment forms, intercepting public Wi-Fi, and more.
Can the bank find out who used my credit card online? ›
Can You Track Someone Who Used Your Credit Card Online? No. However, if you report the fraud in a timely manner, the bank or card issuer will open an investigation. Banks have a system for investigating credit card fraud, including some standard procedures.
Can credit card companies track your phone? ›
Credit-card issuers are tackling fraud by checking your phone's location against card purchases; if your phone is there, they figure, so are you.
What happens if you buy something with a stolen credit card online? ›
You, the consumer, typically aren't liable for credit card fraud, but someone pays the tab. So who foots the bill when a thief uses your credit card or its number to illegally buy stuff? The short answer is it's typically the merchant where you bought something or the bank that issued the credit card.
Do credit card thieves get caught? ›
Some estimates say less than 1% of credit card fraud is actually caught, while others say it could be higher but is impossible to know. The truth is that most credit card fraud does go undetected, which is a major reason why it's become a favorite among crime rings and fraudsters.
What information do credit card companies have access to? ›
Credit card issuers are in possession of all sorts of personal information that includes current and previous addresses, income, full name, and DOB. There is no harm there; it's normal for businesses to ask for personal information so they can verify your identity and determine your trustworthiness.
Nationwide consumer reporting companies
There are three big nationwide providers of consumer reports: Equifax, TransUnion, and Experian. Their reports contain information about your payment history, how much credit you have and use, and other inquiries and information.
What can credit card companies see? ›
Your three-digit credit scores are not the only thing that card issuers evaluate when deciding whether to approve your application for a new credit card.
- Credit scores.
- Number of delinquencies.
- Hard inquiries.
- Credit card utilization rate.
- Income.
- Credit history.
2 Answers. The most likely explanation is you gave Facebook your CC number at some point. Second most likely is you gave your CC number to a company that belongs to Facebook. No external company, like Google, would share your payment information with Facebook without your explicit permission.
How does a merchant know my new card number? ›
How Updater Services Work. Each month, merchants send a list of names and card numbers to their acquirer, or payment processor, who check their data against Visa, MasterCard, American Express and Discover, Lindeen explained. The acquirer lists the cards with updated information, and returns the list to the merchant.
Do websites keep card information? ›
This could include your credit card number, Card Verification Value (CVV)—a three or four-digit number on your credit card designed to add an extra layer of security—and expiration date. Once you've input this information and created an account, the website will save this credit card information.
Can credit card info be stolen remotely? ›
Can Credit Card Info Be Stolen Remotely? Credit card information can be stolen remotely with relative ease and in many different ways. Many data thieves are hackers who find ways to trick unsuspecting consumers into sharing sensitive data or who break into databases to grab financial information.
How to check if someone is using my identity for credit card? ›
One of the best ways to check if someone has been using your identity is to look at your credit report. Because your credit report has information about your credit accounts and credit applications, you can tell immediately if someone has tried to use your identity.
How did someone get my debit card info if I never used it? ›
Thieves can obtain your card number, expiry date, and security code using different techniques. They can use skimming devices placed on ATMs or point-of-sale payment terminals or phishing scams where they trick you into revealing your card details or hacking into databases that store card information.
What is the most frequent cause of stolen credit cards? ›
Credit card skimming, such as at a petrol pump. Phishing attempts, such as sending phoney emails or calling about phoney rewards or money transfers. Snooping around you at the cash register during checkout. Stealing your mail.
