What should older people bear in mind regarding their credit card?

As you get older, it's often a good idea to use a credit card in your everyday life. It offers good protection against loss or theft. Whereas lost cash is gone forever, credit cards can be blocked if lost. What's more, unauthorised transactions are reimbursed by your bank, provided you exercise due diligence and report the incident immediately.

For even greater security and to keep costs in check when using credit cards, older people should keep the following in mind:

Choose the right card

Credit card fees can vary greatly from one provider to another. To avoid burdening your budget with unnecessary fees, it's therefore worth shopping around. Choose a credit card that suits your personal situation.

For example, if you don't travel much, you don't need an expensive credit card that offers various types of travel insurance cover.

Monitor your budget

When you retire or reduce your workload, your regular income decreases. It's therefore all the more important to monitor your budget constantly and adjust spending to your current income. Limits can be used to set the maximum amount of money that can be spent per month with your card. This provides good protection against running up debt.

Many banks offer special apps for their credit cards which sort spending into periods and by category, making it easier to keep track. Migros Bank's One app gives customers detailed information about all of their transactions.

Increase protection functions

If you use a credit card, you should activate additional protection functions such as two-factor authentication. This is a procedure in which two separate proofs (e.g. a password and an SMS code) are required to confirm your identity and initiate payments.

Most credit card issuers require online purchases to be authorised via the provider's own app. Notifications for every transaction offer additional protection.

Because older people are often targeted by fraudsters, they should familiarise themselves with the latest security functions associated with their credit card.

Important: never provide your card details if prompted to do so over the phone, by e-mail or via text message! In the event of suspicious payment requests, it's better to call the helpline once too often than not frequently enough.

Barbara Russo is a client advisor at Migros Bank and an investment expert.