Chances are you will either lose your credit cards or get your credit cards stolen at least once in your lifetime. It does happen. Whether you leave your purse or wallet somewhere and forget it or run into a thief or mugger on the street, there is a good chance of losing possession of your credit card.

Although getting your credit card stolen or taken from you is probable, it is still a serious situation. If someone has possession of your credit card, they have control of your personal finances. There are horror stories of innocent people who have had to go through debt counseling and debt consolidation because of stolen credit cards.

Since nobody wants to be in this position, it is important to know what to do if you lose possession of your credit cards. If you follow these 4 steps upon losing a credit card, you stand a much better chance of not ending up in financial peril.

1. Cancel your credit cards.
Call your credit card company or companies and immediately cancel any and all credit cards. This is imperative because if your credit card is still active and in the hands of someone else, they can still be used. The quicker you cancel your credit cards, the less of a window someone else has to use it. This is why it is important to call as soon as possible so your credit card company can terminate the card(s).

2. Document your actions.
The second step is to create substantial evidence of your stolen credit card and the following actions taken. This gives you legal security by creating a “paper trail” of evidence. Mail your credit card company or companies stating that you called them to cancel your credit cards. Be sure to include the date and time of the phone call and who you talked to if possible. Certify all send letters so you receive a return receipt. This ensures that the credit card company received your report, thus giving them legal liability.

3. Call the police.
If your credit card has been stolen, always report the theft to your local law enforcement agency. This might sound like a no brainer, but many people forget this step. First off, you want the person who stole your credit cards to be apprehended so it doesn’t happen to anyone else. Secondly, your credit card companies may request a police report for a stolen card.

4. File a complaing with the FTC.
Filing a complaint with the Federal Trade Commission is crucial if someone has used your credit card without authorization. This organization can help you deal with your identity theft and give you options on how to rectify the situation. Hopefully, you don’t have to deal with this kind of severity, but this should definitely be kept in mind.