Stolen credit cards always require immediate action from the card holder. Why? This is because it is a race against time between you and the thief. The longer it takes for you to report the crime, the more time he will have to make purchases on your card.

When you have your card or your entire bag stolen, it may take you quite a while for you to compose yourself and plan what to do next. Here are helpful tips on how to deal with credit card theft to avoid any further damages in the near future.

1. Notify your bank as early as you can.

Unless you report to the bank that your credit card has been stolen, it would continue to remain open and every single purchase made within that time period would be charged under your name. So after you lose or get your card stolen, report it immediately as soon as you can.

Thieves could purchase as much as several thousands of dollars under your name if you delay the report. Banks usually have toll free numbers that you can call and 24 - hour customer service representatives that you can talk to in case such an incident happens.

2. Choose a credit card with liability protection.

For credit cards within the United States, they usually offer a liability protection plan that allows you to only pay $50 for any unauthorized purchase regardless how big the amount was charged under your name. Some banks even will completely waive the $50 in cases where the charges were proven as fraudulent and with the proper documentations from you. Some international credit cards also offer this type of liability protection so if you plan on getting a credit card soon, take this precautionary step and ask your credit card company if they offer this option to their customers.

3. Review your billing statements (for stolen credit card number only).

The credit card number itself can allow thieves to make purchases even without the physical card in their hands. But you may never know if someone has that information from you. What you can do is regularly check your credit card billing statements. If you see any suspicious records or purchases you never made, then report this immediately to your credit card company. Even if your credit card has a liability protection, this will not cover stolen credit card numbers and the purchases made under these circumstances.

When you report this kind of incident to your bank, make sure you have these information ready: your account number, the date of the incident and if this was the first time you reported the theft/ loss or not.

So for precautionary measures, always do all these tips in the fastest time possible. Close the card to prevent any further purchases made on your account. Once you report this and the card has been used, law officers can easily track the location where the transaction was made and hopefully catch the culprit in time.