Banking

Replacing a lost or stolen credit card does not hurt your credit score, as the account age and other information is simply transferred to a new account.A stolen or lost credit card can hurt a consumer's credit score if the card is used, the cardholder doesn't report the fraud, and then fails to pay the charges.

In the event of the theft or unauthorized use of your credit card, federal law states that you're liable for a maximum of $50 in fraudulent charges. However, if you report the loss of your card before any fraudulent charges appear, you'll bear no financial responsibility whatsoever.

A simpler option that carries no risk or surprise: Take the card straight to the cashier, say you found it on the ground and leave. If you are in a location where that isn't possible, take it home, shred it and throw it away. You can also call the number of the back of the credit card. You don't have to give your name.

Credit card fraud that involves the theft of the card or the number typically has a prison sentence of 1 to 5 years. Identity theft is treated much more harshly with prison sentences up to 10 or 20 years.

When you are late in reporting a lost or stolen credit card, or do not become aware of unauthorized use until you receive a billing statement, your liability is limited to $50 per card by federal law. Federal law allows the issuer to ask you to pay up to $50.

What Happens After I Report My Lost Card? After you report your card as lost or stolen, your issuer will cancel the card and then mail you a new one with a new account number. Once you receive your new card, follow these 9 tips to prevent identity theft from occurring in the future.

Key Takeaways. Replacing a lost or stolen credit card does not hurt your credit score, as the account age and other information is simply transferred to a new account. Most credit card issuers will not hold the cardholder responsible for fraudulent charges.