Consumer Credit Collector News - Return to Menu

Pay Dirt: What's in your wallet?

Kara McGuire, Special to the Star Tribune

April 15, 2005 - One night after repeatedly viewing a Capital One commercial asking me what's in my wallet, I found myself combing through my billfold.

The findings: entirely too many receipts; a couple of credit and debit cards, insurance cards, gift cards, my driver's license and a couple of bucks.

There was also a random collection of business cards, some discount cards, membership cards. An aging student ID. Clearly, I should clean out my wallet more often.

But what should be in there? And perhaps more important in this era of identity theft, what shouldn't be?

After talking with consumer advocates, lawyers, identity-theft experts, and risk-management mavens, I came up with a list.

What to carry

Driver's license, or state-issued ID. Duh!

Debit cards. Thanks to the debit card, I no longer carry my checkbook. Lisa Freeman of Consumer Reports magazine says debit cards are especially handy for young people whose bad credit, or lack of credit, means they can't get a credit card.

Credit cards. They typically offer more protections than debit cards. Having a credit card makes some situations much easier, such as when you're renting a car.

As for how many cards to carry, Ilyce Glink, author of "Real U Guide to Bank Accounts and Credit Cards," suggests having a couple of cards open and using them regularly over having every kind of card under the sun. Just make sure your credit limit's high enough so that you never charge much more than 30 percent of that limit. That hurts your credit score.

When shopping for a credit card, Glink says, look for no fee, a low regular APR interest rate, low fees for late payments, and a generous grace period (the amount of time you have between buying that sweater and having to pay for it).

Insurance. Everyone who drives needs at least the state minimum required car insurance. You'll also want to keep a roadside assistance card in your wallet. Some insurance policies cover emergency towing. So do other providers, such as AAA and automakers.

Health insurance of some kind. Even if it's just a high-deductible, catastrophic policy, you should get coverage and carry the card with you at all times.

Health care directives. Since we're thinking about risk, I wanted to mention health care directives, the topic of a recent column. You should write up a health care directive stating what your medical wishes would be if you couldn't speak for yourself and appointing someone to make decisions on your behalf.

Michael Sampson, an attorney at Lindquist & Vennum, suggests typing up a little card and sticking it in your wallet stating that you have a health care directive and who has it. That way, if someone finds you lying on the side of the road after a terrible car accident, they'll know you have your wishes in writing, Sampson said.

Gift cards. If you have any gift cards left over from the holidays, use them fast. Or at least check the terms of the cards. Store cards are usually much better, but Freeman suggests reading the fine print and to "write down the card's ID numbers" and keep them in a safe place. That way if you lose your card, you'll have better luck receiving a replacement.

Deal cards. A card-carrying deal diva and coupon clipper never leaves home without membership or discount cards that will save money. For example, my Minnesota Public Radio membership card gets me 2-for-1 meals. My zoo membership partners with other nonprofits to get me discount tickets. If you're a student or a senior, you can shave enough off the cost of a movie ticket to pay for popcorn.

Cash. Here's some wisdom I've learned from my folks. Keep $20 in your wallet so you can take a cab home. (I don't always do that because my cell phone's almost always with me, but I should. Just in case.)

What not to carry

John Kirkwood has seen his share of stupid moves during his years of investigating financial crimes for the Secret Service.

People who write their PIN numbers on the back of their ATM cards, for example. Or those who keep lists of family members' Social Security numbers in their wallets.

He says Social Security cards, bank account numbers, PIN numbers -- all sensitive information that crooks would love to get -- should never be kept in your wallet.

"Even if it's an old driver's license, a criminal can turn it easily into a false ID," Kirkwood warns.

The same goes for passports -- unless you are traveling abroad, of course.

What's the best way to protect your information from getting into the wrong hands? Don't let your wallet out of your sight. Don't leave it in a car. Or if you do leave it in the car, hide it before you get to your destination, since shifty-eyed crooks are probably watching your car when you get out.

Making copies

Kirkwood's most valuable advice is to make front and back copies of all your cards. Not only will it help law enforcement officials if your wallet's stolen, it will make it much easier for you to call the credit card companies to have those cards canceled.

And what wallet would be complete without snapshots of the family, a photo of Fido, or a favorite vacation destination?

Michael Branham, a certified financial planner at Cornerstone Wealth Advisors, says to use these images to remind you of your goals and what's important in life.

"If you envision yourself on a sunny beach in retirement, you could have a picture of a Hawaiian sunset. Or if you have thoughts of sending your kids to college and you have education goals, you'd have pictures of your kids."

Kara McGuire, 28, works in St. Paul on the staff of American Public Media's personal finance radio program, "Sound Money."