How to Use the Most Overlooked Safety Feature of Your Credit Cards

I'm one of those people who will lose pretty much anything if I forget to put it right back where it goes each time I use it. Unfortunately, this even extends to my credit cards.

If you've never experienced the sheer terror of, "Crap, where is my credit card?!" -- well, you're not missing out, because it's awful. And it only gets worse each minute you can't find your card. Pretty soon, you're convinced you left it at the store or were pickpocketed on the subway.

Often, it shows up in a weird place, like in the freezer or under your bed. But by then, you may have already reported it gone to the issuer, leaving you with a useless piece of plastic and a two-day wait for your new card.

But what if that wasn't the case? You don't actually need to cancel your card right away. Instead, you could just freeze it.

Freeze before you cancel

Credit card freezing has to be one of the most overlooked safety features added to credit cards (and many debit cards) in ages. Basically, you can put a "pause" on your credit card, telling the issuer not to allow any transactions on the account.

(Note: This isn't the same as freezing your credit reports. Freezing your credit stops people from opening new accounts in your name. Credit card freezing only impacts a single credit card account.)

You can freeze your card in just minutes through your issuer's mobile banking app. Some apps even have the button right on the main screen when you log in. (Others will bury it in a couple menus, but it should still be easy to find.)

If you freeze your card and someone tries to use it, the transaction will be rejected. This will continue until you unfreeze your card.

Keep in mind that freezing your credit card doesn't impact your balance. You'll still need to make your required payments, and interest will still accrue on any unpaid balance.

Unfreeze in minutes

In the best case, you find your lost card somewhere safe. Maybe it was just under your keyboard for two days (real-life story), or perhaps it fell between the seats of your car after the trip to the drive-thru.

If you found your card somewhere safe -- i.e., where you don't think its security was compromised -- you can just unfreeze your card and go back to using it like normal. The process is the same as freezing it; head into your card's mobile app and click "unfreeze."

Accepting the loss

Unfortunately, sometimes you have to accept that the card is gone for good. If it's been a week and the card hasn't turned up, it might be time to bite the bullet and report it as lost to the card issuer.

As soon as you report the card, the issuer should cancel it. (Note: Just the physical card itself will be canceled; your credit card account will still be open.) Then the issuer will mail you a new card with a new number and expiration date.

Upon arrival, you'll need to activate the new card. Don't forget to update your card information for any bills that may automatically draw on the card, such as your utilities or subscription services.

Losing your credit card is never a good feeling, even if you find it later. But you don't necessarily need to call in the troops over a misplaced card. Freezing your card while you hunt it down can save you a lot of hassle when you find the card in the couch cushions or under the dog bowl. You can always report it lost at a later time if you can't find it.