Once a stranger finds your lost credit card, you may never know the consequences. In a worst case scenario, your lost card can open up opportunities for thieves to make unauthorized charges, consumer your credit limit and accumulate as many purchases as they like. These and other damages can be done even before you, as the legitimate cardholder, are able to report the loss. Here's what you should do to limit further losses.

Reporting the loss right away

Whether your card is just missing, lost, or totally stolen, the first thing to do is call your credit card company about what happened. The earlier you do this, the smaller the possibility that your account can be damaged. Even before you start searching for places you've been and recalling the things you've done, you should first report the lost card immediately. You can be wasting your time, because thieves can consume your credit limit as quickly as possible. When you notify your card company about the incidence, they'll be able to trace fraudulent transactions sooner than later and rectify all unauthorized activities under your account.

Back-up your report with a formal letter

After reporting the loss, write a formal letter and email it to your credit card company. Indicate your name, account number, as well as the time and date of incidence. It's always better to have a back up for the unexpected things that happen to your credit card.

Monitor your activities

Consumers who have been victimized of identity theft know the importance of monitoring their credit to ensure that all fraudulent transactions have been reported and the damages have been corrected. It's important to correct all information and discrepancies that appear on the report, because the longer those inaccuracies stay in the report, the longer they are to be resolved.

Dos and don'ts of credit card

• Don't bring multiple cards with you – credit cards are usually stolen along with your wallet or purse. Reporting a lost card and emailing your credit card company is already time consuming, so what more if you have different lost cards to report? Even if you report the loss of the first card, chances are, thieves can already be using your other cards to make unnecessary transactions. Unless it is absolutely needed, bring only one credit card at times.

• Don't share your credit card to others – even to your family members. Unless you have a joint account, it is unnecessary to lend your credit card to others to pay for their purchases. Domestic identity fraud is a crime that can happen within your own home and the suspects are mostly family members or close friends.

• Do: keep your cards safe – If necessary and possible, keep your credit card separate from your wallet, to prevent future losses. However, if you're not used to taking care of various valuables, just keep an eye on your wallet every time.

• Do: monitor the status of your account – always check your credit card status and activities every month. Even though you haven't lost your credit card, there are other ways id thieves can defraud you. Therefore, reviewing monthly statements is necessary to detect delinquent charges.

• Don't write your credit card number and password on a piece of paper – Keep this sensitive information to your memory and never put it into writing. Doing so increases your chances of getting defrauded.

• Do: check where you swipe your card – skimming devices can be attached to credit card swipers in gas pumps. Other skimming tactics involves scrupulous attendants making double swipes of your card to copy its information to a third party. The magnetic strip on your credit card is their usually target, because it contains user account information.