Personal Finance Advice

A personal identification number (PIN) is used in a wide variety of instances within personal finance.  You probably have a PIN for your ATM card so you can access funds and check your balance using an automated teller machine.  You may have a PIN to access your banking information online or over the phone.  Some creditors require a PIN before you can make any changes to your account, including making a payment.

How do you get a PIN? In some instances, the financial institution issues the PIN to you.  The PIN is generated using a computer system that assigns random numbers to people without any pattern or identifying factor to the sequence of numbers.  PIN numbers usually range from three to six numbers, with four numbers being the most common grouping for PIN numbers.

In other instances, you are asked to assign a PIN to yourself.  This may occur when you first open an account or when a new debit or credit card is issued to you.  In most cases, you will be asked to enter your desired PIN into either an automated telephone system or instead into a keypad that is located at the financial institution. 

It is not common practice for a representative to ask you to create a PIN and then to tell the representative what PIN you created.  Most financial institutions try their best to separate the creation of your PIN from any representative because of the potential problems this may cause.

If a financial institution issues you a PIN that you don’t like, or that you have a difficult time remembering, they may allow you to create your own customized PIN as long as you can prove that the account is yours.  This is often accomplished by obtaining your signed request for a new PIN and then comparing your signature to your original signature from when you first opened the account. 

Since your PIN allows you instant access to your account information, here are some things to keep in mind about this number:

Keep it secret.  Don’t give your PIN number to anyone else because doing so grants that person instant access to your information and funds.

Don’t advertise it.  Never write your PIN on your credit or debit card or anywhere in your wallet.  If someone steals your wallet then stumbling upon your PIN will make it much easier for the thief to use your card or get into your account.

Make it difficult.  Don’t use a PIN that would be really obvious to other people, such as the last four digits of your Social Security Number or your apartment number.  All a person would need is a lucky guess and your account is up for grabs.

Keep it numeric.  Don’t base your PIN on the letters associated with numbers on a keypad.  There is no guarantee that the numbers and letters will correspond on every keypad you encounter.

Use a memory trick.  You don’t want to forget your own PIN because it will be a hassle to get it changed.  Figure out a way to remember the sequence of numbers without having to write them down.

It’s a great idea to consolidate all your PINs if possible by using the same PIN for each credit and debit card you have, but only if you can keep this number a secret from everyone else.  This will mean fewer PINs to remember and you will be less likely to get the numbers mixed up.