What effect does CC fraud have on credit score?

Discussion in 'Other Credit Card Programs' started by Scottrick, Dec 4, 2011.  |  Print Topic

  1. Scottrick
    Original Member

    Scottrick Gold Member

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    I just called in to Citi today to report two fraudulent charges on my new Citi TY Premier card. I haven't even gotten the first statement yet, and there was ~$100 charged somewhere in Long Island over Thanksgiving weekend. Never mind that I've never been to Long Island, haven't been to New York in over six months, and have charges from my trip to California before, on, and after the same dates as those NY charges.

    Anyway, I've never had to deal with CC fraud before. I did what I could by notifying Citi. But I plan on applying for one or two more cards in a couple of weeks (SPG Amex or Amex Gold). Does anyone know how a fraud report will affect my short-term credit score?
     
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  2. TAHKUCT
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    TAHKUCT Gold Member

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    I just lost my Chase card about a week ago and did get a replacement card. No change in my credit score as of yet. However, I did not have any fraudulent activity on my card. Turned out, I have left it at a local restaurant :)
     
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  3. kenbo
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    kenbo Silver Member

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    I don't know if fraudulent charges will have any impact on your credit score. I had a few charges a couple of years ago. The charges were removed and that was the end of it. I never heard back from the credit card company after that and my score was, and is, still fine.
     
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  4. FlyingBear
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    FlyingBear Silver Member

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    None. If the credit card company deals with it appropriately, there will not be any marks on your report. Even if mishandled, it takes some time for it to appear on your report. To make sure, before applying for your cards, check your credit report.
     
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  5. misterbwong

    misterbwong Silver Member

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    Ditto FlyingBear. Even after the agencies say it will be taken off, BE SURE they are taken off by getting a credit report. There have been instances where a mistake was said to have been taken off but was not in reality.
     
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  6. deant
    Original Member

    deant Milepoint Guide

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    A couple of years ago we had some fraudulent charges on one of our credit cards. We reported the fraud and the CC company deleted the charges. They did require that we submit formal paperwork disputing the charges but that was all. After about a month we received notification that the charges were permanently removed.

    Just watch your CC statement and make sure that the charges are removed and you have no balance on the card.

    By doing this, we never showed as a late payment so there was nothing negative on our credit report.
     
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  7. andy12

    andy12 Silver Member

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    Agreed. I've had fraudulent charges on credit cards as well. As long as you report it timely, your liability is limited (and most credit card issues won't even hold your responsible for any of it). The card issuer will just credit you back for the charges, close the account and reissue the card under a new number. If I recall correctly, Citi is good about reporting the new account as a change on the old account - therefore, the credit bureaus don't even record a new account - it takes the place of the old account so you keep the payment history as well.

    The credit bureaus typically won't have a fraud alert placed if it was just a fraudulent charge (i.e. Citi won't even tell the bureaus), so you could be fine with your upcoming applications.
     
  8. okrogius

    okrogius Silver Member

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    The only potential is that most banks as part of this will cancel your card and issue new a one. That does involve changing the card number, and thus generally is a new account as far as it appears on your report. However, if done correctly that new account should be backdated to the correct opening date - meaning no long term impact (of course YMMV if that happens and how rapidly).
     

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