If you’ve ever made a major purchase like a home or automobile, you should know how important credit reports are to your life. Credit reports are used for much more than just checking your ability to pay a debt. Many service companies (apartments, auto insurance, cable TV, etc.) check your credit reports before they approve your application. Potential employers are likely to check your credit reports before they make the decision to hire you. Credit reports are the single most valuable tool for you to find out if you’ve become the victim of identity theft.

Your credit report score is a number ranging from 330 to 830, calculated based on a complex and high-protected algorithm. The higher your credit score, the better your credit. A good credit report score makes it more likely that your loan or credit application will be approved, and it makes it more likely that you’ll get a favorable interest rate on money borrowed (whether through a loan or credit card). Three companies (Experian, TransUnion, and Equifax) are the major credit report bureaus that collect and maintain information on your borrowing and repayment history, and they provide reports to your potential creditors upon request. U.S. citizens can by law request one free credit report each year, and you can sign up for a fee to maintain more regular access to your credit reports at all three companies.

What Information Do Credit Reports Contain?

Credit reports contain very detailed information about you including your legal name and any aliases you may have used, current and past addresses, employment history, and date of birth. They also contain details on your credit status that includes:

- Current and past payment status (for example, number of payments over 30, 60, 90 days) on individual loans and credit accounts

- Total number of open and closed accounts, including the credit limit and account balance

- Whether payments on our accounts are current or delinquent

- Public record information like bankruptcy, local court records, liens, judgments, and child support records (This information that can stay in your record for up to 10 years.)

- Specific credit inquires made when we applied for loans or credit accounts in the past (kept very current)

- Detailed account history for each account (kept very current) indicating both on-time and overdue payments

- Credit card debt limit, account balance, and payment history (for active, open, AND closed accounts)

- Your credit score

What is Identity Theft?

Identity theft is a serious crime where someone else uses your personal information (name, social security number, home address, etc.) without your permission to commit fraud or other crimes. The federal government estimates that as many as 9 million American’s identities are stolen each year. Identity thieves may use your credit report score and record to rent an apartment, obtain a credit card, open a telephone account, or get approval for a major loan (like a mortgage).

When the identity thief fails to pay for the goods or services he has obtained, default on payments will show up in your credit report. This not only lowers your credit report score, but the creditors will most likely come to you to pay off the debt. People don’t usually know this is happening unless they spot an unauthorized charge on a credit card or see unknown credit inquiries and accounts on their credit report.

Some people are able to resolve identity theft problems fairly quickly, but others spend years and thousands of dollars trying to restore their good credit report.

How Does Identity Theft Occur and What Can I do to Prevent It?

While there are a wide variety of ways thieves get your personal information and steal your identity, here are some of the most common methods:

1. Dumpster Diving – The identity thief goes through your garbage to find bills or other mail with your personal information. One way to prevent this is to shred any paper with your name, address, or any other personal information. Be very careful about what you throw out. Once it’s in the garbage, it’s an open book.

2. Skimming – Some technologically-saavy identify thieves can steal your credit card numbers while they are being processed at the store. This is particularly easy when you make online purchases. While you can’t protect yourself from all of these attempts, you can use secure sites when entering credit card or bank information on the internet. Though it’s probably not generally approved of, you can easily use false address and telephone numbers to discourage use of your private information. Be sure and check your statements as soon as they come in for unauthorized orders are charges. And if you do much online banking or bill-paying, you can check your accounts regularly online for charges you didn’t make. Be careful and cautious in using ser IDs and passwords to make purchases or apply for credit on internet sites.

3. Phising – An identity thief may pose as a bank or credit card company and ask you to verify personal information. They may do this through an e-mail that looks as if it has come from a trusted business, through a spammed e-mail asking you to follow an innocent-looking link to their not-so-innocent website, or they may catch you off guard with pop-ups or instant messages requesting personal information. They may even use the telephone to get this information from you. NEVER give your personal information out to anyone you don’t know. Before verifying private information with an online service, check to make sure that the company you deal with is really the company that sent the request.

4. Changing your Address – Identity thieves have been known to divert mail by submitting a change of address notice with the post office, thereby diverting your personal credit information to them. This is one area where maintaining and checking your personal information with companies on the internet may allow you to spot such fraudulent attempts.

5. Old-fashioned Theft – Hold on to your wallet, your purse, mail, pre-approved credit offers, checks, or tax information. Once an identity thief has possession of your belongings, they can easily imitate you and abuse your good credit report.

6. Pretexting – Another technique that is difficult for you to control is the practices of obtaining your personal information from the companies you deal with. The identity thief may pretend to be conducting research to get information the establishment would not otherwise divulge. Once he has your personal information, he may call your bank, pretending he’s lost his checkbook or other important information like your investments. Pretexting is against the law, but you may be the last to know when it’s happened.

The single most important thing you can do to keep your own identity safe is to be aware of all activity on your accounts and to make regular reviews of your credit reports. They will contain the information you need to know if someone else is meddling in your business and using your identity for their benefit. The sooner you know something’s going on, the more quickly and effectively you’ll be able to stop it and have your credit reports corrected. Allowing abuse of your credit report to gone on for months or even years can create a serious, costly, time-consuming effort to win back your good reputation.

What Should I Look for on my Credit Report for Evidence of Identity Theft?

Review your credit report carefully as soon as you receive it. Pay close attention to the report of inquiries about your credit. If you have specifically applied for a loan or opened a new account, you should find a credit inquiry from that company. But additional inquiries may indicate that someone else is making applications using your name and information. If you find such inquiries, immediately contact the inquiring creditor and the credit report agency.

Immediately notify the credit reporting agency if you find errors like a closed account that shows as open or a paid-off balance that appears to be outstanding. You may have to provide documentation to support corrections, and you may have to make the same contact several times to assure the correction is made. But be persistent. Your credit report is a direct reflection of your financial dealings. Creditors and credit report agencies are obligated to report correct information.

Check every credit statement you receive to verify that you know about and approve all charges it contains. Make sure it reflects recent payments, too. Contact the creditor quickly and follow-through to make sure your account information is accurate and up-to-date.

A little common sense and a lot of precaution will help you avoid identity theft and bad credit you didn’t earn. Keep up with your accounts. Review credit reports regularly, and be sure to follow-up when they contain errors. You’ll find the rewards of your effort in your credit report score!

By: Abhishek Agarwal

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It can happen to anyone. The phone rings and a collection agency demands that you pay past-due accounts for goods you never ordered. The supermarket refuses your checks because you have a history of bouncing them. But you have always paid bills on time. What has happened?

If you’re a victim of identity theft, you could be left with bills, bad credit and the hassle of dealing with financial agencies and police departments to clear your name.

The crime of identity theft is on the rise. Recent surveys show there are currently about 9 million victims each year. Using a variety of methods, criminals steal Social Security numbers, driver’s licenses, credit card numbers, ATM cards, telephone calling cards, and other pieces of individuals’ identities such as date of birth. They use this information to impersonate their victims, spending as much money as they can in as short a time as possible before moving on to someone else’s name and identifying information.

There are two types of identity theft.

- “Account takeover” occurs when a thief acquires your existing credit account information and purchases products and services using either the actual credit card or simply the account number and expiration date.

- “Application fraud” is what some experts call “true name fraud.” The thief uses your SSN and other identifying information to open new accounts in your name. Victims are not likely to learn of application fraud for some time, because the monthly account statements are mailed to an address used by the imposter. In contrast, victims learn of account takeover when they receive their monthly account statement. This guide discusses strategies for reducing the risk of both types of fraud.

Generally, victims of credit card fraud are liable for no more than the first $50 of the loss. (Truth in Lending Act, Fair Credit Billing Act, 15 USC sec. 1601) In most cases, the victim will not be required to pay any part of the loss. But debit card users have less protection against fraud. Not only are individuals’ checking accounts wiped out, debit card users could be liable for the total amount of the loss depending on how quickly they report the loss to the financial institution.

Take these steps to reduce your risk of becoming a victim of identity theft:

1. Reduce the number of credit and debit cards you carry in your wallet. We recommend that you do not use debit cards because of the potential for losses to your checking account (see above). Instead, carry one or two credit cards and your ATM card in your wallet. Nonetheless, debit cards are popular. If you do use them, take advantage of online access to your bank account to monitor account activity frequently. Report evidence of fraud to your financial institution immediately.

2. When using your credit and debit cards at restaurants and stores, pay close attention to how the magnetic stripe information is swiped by the waiter or clerk. Dishonest employees have been known to use small hand-held devices called skimmers to quickly swipe the card and then later download the account number data onto a personal computer. The thief uses the account data for Internet shopping and/or the creation of counterfeit cards.

3. Do not use debit cards when shopping online. Use a credit card because you are better protected in case of fraud.

4. Keep a list or photocopy of all your credit cards, debit cards, bank accounts, and investments — the account numbers, expiration dates and telephone numbers of the customer service and fraud departments — in a secure place (not your wallet or purse) so you can quickly contact these companies in case your credit cards have been stolen or accounts are being used fraudulently.

5. Never give out your SSN, credit or debit card number or other personal information over the phone, by mail, or on the Internet unless you have a trusted business relationship with the company and you have initiated the call. Identity thieves have been known to call their victims with a fake story that goes something like this. “Today is your lucky day! You have been chosen by the Publishers Consolidated Sweepstakes to receive a free trip to the Bahamas. All we need is your Social Security number, credit card number and expiration date to verify you as the lucky winner.”

6. Always take credit card receipts with you. Never toss them in a public trash container. When shopping, put receipts in your wallet rather than in the shopping bag.

7. Never permit your credit card number to be written onto your checks. It’s a violation of laws in most countries, and puts you at risk for fraud.

8. Watch the mail when you expect a new or reissued credit card to arrive. Contact the issuer if the card does not arrive.

9. Order your credit report at least once a year. Federal law gives you the right to one free credit report each year from the three credit bureaus: Equifax, Experian, and TransUnion. If you are a victim of identity theft, your credit report will contain the tell-tale signs inquiries that were not generated by you, as well as credit accounts that you did not open. The earlier you detect fraud, the easier and quicker it will be to clean up your credit files and regain your financial health.

10. Shield your hand when using a bank ATM machine or making long distance phone calls with your phone card. “Shoulder surfers” may be nearby with binoculars or video camera.

By: Thomas Wilhelm

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If you are worried about identity theft one effective way of protecting yourself against identity theft is to opt for a credit freeze. When you freeze your credit, no one can open new credit in your name and access your credit reports until the freeze is lifted.

A credit freeze will stop potential identity thieves from obtaining credit in your name since lenders aren’t able to verify your credit worthiness. A criminal may have all your valuable information like your social security number, even your account numbers and they still cannot apply for and get approved for additional credit in your name since a credit freeze locks access to your credit report.

Although it does protect you against identity theft, placing a credit freeze also means that your credit file cannot be seen by potential lenders, insurers and potential employers doing background checks, unless you give your consent. As a result, most companies will not allow you to open accounts since they can’t check your credit.

While potential creditors cannot view your credit, your current creditors will still have access to review your account or for collection purposes. You can also still order your own credit report even after the credit freeze, so you can verify that there is no identity theft going on.

To freeze your credit, you have to send a letter to each of the credit bureaus namely Experian, Equifax and TransUnion. Each credit bureau has a different set of procedures to follow so it’s best to get in contact with them first. Generally however, you’re required to send identifying information by certified mail along with payment for the credit freeze service. If you are a victim of identity theft, include a copy of the police report or complaint filed with a law enforcement agency.

The credit bureau will freeze your credit within 5 business days of receiving your credit freeze request. Placing a credit freeze will cost around $10 per bureau unless you have been a victim of identity theft, in which case you don’t have to pay.

When you place a credit freeze, the three bureaus will issue a PIN number that can be used to lift the credit freeze. Just log in to the credit bureau websites and enter your PIN number or provide your PIN to a potential lender if you are applying for credit. Lifting the freeze temporarily will cost you another $10 per bureau, even if you are an identity theft victim. However, permanently lifting a credit freeze is free of charge. Note that the credit bureau will lift the freeze within 3 business days after receiving your request.

In protecting yourself against identity theft, it’s good to be aware of all options available so you can better decide which one would work best for you. Certainly, credit freeze is one of the best options to consider when you want to prevent identity theft.

By: Bernard Pragides

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Crime like any other business is always constantly changing and evolving to the various nuances of the market and is one of the world’s best industries for relying upon new technology to better facilitate its goals. With the advent of the internet and the sudden massive increase in online banking and the increasing prevalence of financial and retail services being offered via the internet this has meant that criminals have now found a an entirely new captive audience in which to steal from. Identity theft is fast becoming one of the most significant and harmful threats to the online user, and the economic losses it results in both the victim and for the wider economy is staggering.

Identity theft as the name would perhaps first suggest is whereby a criminal illegally obtains a person’s personal details and then uses those details in order to engage in purchases or other retail services. The end stage objectives of identity theft range from petty larceny and fraud, to more worrying crimes such as mass scale money laundering. Because it is the victims details that are being used, the thief need only concern themselves with using the personal details for as long as possible before the authorities and or victim should happen to realize what is going on.

Identity theft is an issue that is especially dangerous via the internet in part due to the ever increasing so and desperate lengths that criminals and fraudsters will go to in order to steal a person’s personal details. One of the most common scams currently being used is so called “phishing” whereby a prospective victim is sent an email which claims to be from either their bank, PayPal or some other form of monetary or credit service.

The structure is typically the same, the victim is sent a rather pointed letter purporting to be from the respective agency concerning some issue with their account and with the email concluding that they should use a link contained within the email to change their password and username. As the unsuspecting victim goes to check the link they are then redirected to a phishing site which is made to resemble the relevant website, and which will actually log the details.

If you do happen to receive a suspicious email and it does contain a link to a webpage/site which you are uncertain about then hover the mouse arrow over the url, this will result in a small box appearing which will clearly display the real url and if the two do not match then it is obvious that the hyperlink has been masked and thus is fraudulent.

Such trickery can easily be avoided, banks as a rule do not email customers about such a sensitive issue over the internet for exactly this reason. If the email happens to be rather pushy or overly demanding, requiring you to change your details within a narrow time frame then there is a very high chance that this is indeed a fraudulent email.

Many email services such as yahoo mail and Hotmail already have very powerful and effective anti-phishing programs present within their services and so this will be typically enough to beat nearly all phishing attempts. Common sense and awareness are paramount to safeguard against you becoming a victim.

Whenever you do need to log onto a site where sensitive details will be used and submitted, make sure you are using a secured site. Secured sites are easily spotted because in the web address bar which contains the url for the relevant site will have https:// as opposed to http. That little s may not seem like much, but rest assured such sites will make use of very powerful encryption technology to dissuade and block dangerous users.

Viruses and more specifically key loggers are also another computer related danger, and a danger which can pose a threat because of their usage as a tool for committing identity theft. Key loggers are programs that will record all of the keys pressed by a user with such data then stored and sent discreetly to the creator who can then check for passwords and other pertinent details. Key loggers are classified as a virus (also known as a Trojan horse) and so any reliable antivirus program will be enough to help protect you from this particular threat.

Key loggers and spyware are most commonly found in porn sites, mp3 sites and peer to peer networks where people file share copyrighted material. If you do use these sites, please make sure that you have adequate protection running in the background so as to safeguard against any such risks. Prevention is better than the cure and with internet security and safety never have truer words been uttered so you may want to refrain from using such potentially dangerous sites.



By: Nicholas Boler

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Free debt consolidation advice is generally granted subject to your eligibility and based on your credit report and credit score. Credit report details reveals your current and recent credit history, where as the credit score reflects your credit worthiness based on your past records. The information on your credit report is always therefore taken into consideration while deciding your loan request.

 

The Free debt consolidation service looks into your past credit records i.e. as to whether you have been repaying your debts regularly without default. Such details  are readily available with agencies   primarily dealing in maintaining credit records of individuals.That is why it is always advisable to check your credit history from at least more than one agency to arrive at the authenticity of these credit reports.  This will also make you sure that you are not a victim of identity theft or to any other type of fraud.

 

Student debt consolidation is similar to Free debt consolidation, but it is generally granted to students, at lower interest rates though in reality means debt consolidation. Students opting for higher studies but still paying for their past educational loans do need such loans and thus, making it a good and necessary choice for any student in need of funds to pursue further studies. The process involved in seeking such loans is quite simple and more so an attractive option, as you save hundreds of dollars because of low interest rates.

 

 Christian debt consolidation in no way is different from Free debt consolidation, but this option is meant for people or families whose loan term has over extended on account of high interest rates, medical expenses or unemployment or any such factors where the person is unable to repay thus resulting in high credit card usage or other unsecured debts. This option generally for really deserving cases and no home equity is required. When you use our Christian debt consolidation service you will pay significantly less and have more money for yourself each month.

 

You can even avail Refinance debt consolidation, using your home as equity to secure a consolidation loan. In fact, this is the safest way to eliminate high interest debt. By using your home for collateral, you can greatly improve your chances of acquiring a low interest loan, and you can borrow more than you would be able to through a personal loan.



By: Arvind

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It is often thought that bankruptcy, collections and ChexSytems records are the end of an individual financial history. This is a common misconception which needs to be addressed before going any further. We are all humans and as such, we face ever changing social influences which sometimes affect our financial situation, a good example could be: missing mortgage and credit card payments, overdrawing checking accounts due to the ailment of an uninsured family member is one of several common reasons why good and honest people find themselves in such predicaments.

The example above depicts two serious problems which can be solved by having the right information. When someone misses a credit card, personal loan or mortgage payment, the creditor/company reports a payment interruption to the credit bureaus (Experian, TransUnion and Equifax), each one of these bureaus has its own way to calculate credit scores based on carefully formulated mathematical formulas. Once this report is posted to a person credit report, the credit score fluctuates and the credit score is the main piece of data Financial institutions base their decisions upon, when it comes to loan and line of credit approvals.

Obtaining a credit card, even though your credit is less than perfect, is not that hard. These credit cards can be used to re-established or rebuild bad credit but it is important to keep in mind that the interest rates will be higher. Another option available to individuals looking for a credit card under these terms is to get a prepaid debit card or credit card, where the account requires an initial deposit which determines the credit line available.

Similar to credit bureaus, ChexSystems keep records of individuals who have overdrawn their checking account and a considerable amount of time has gone by without repayment.

When it comes to debit accounts which have been cancelled and reported to ChexSystem a customer can open another account through a non-ChexSystem/Telecheck institution. Second chance checking accounts are also available to address such problem.

It is always extremely important to be on top of our daily finances to avoid complications. Free and affordable tools such as free credit reports are also available to help improve our credit and avoid identity theft issues, but if the moment comes when you need to use any of these resources it is a great relief to know that they are available regardless of how bad the situation may be.



By: IC

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A bad credit score used to make it impossible for individuals and families to borrow money for home and car financing. Today, there are several companies which not only give individuals with bad credit unsecured loans but actually cater to people who have extremely low credit scores.

If you are interested in an unsecured loan there are a number of issues to explore before applying. The first and most important step is knowing how bad your credit score is. The easiest way to get your credit score is to go to a credit agency. However, there are banks and mortgage companies which offer their customers a free yearly credit report – all you have to do is ask.

The interest rates offered to you can be effected by bad credit scores or no credit at all. There are many websites which offer an instant credit report for a small fee. Another reason to check your credit score is it may not be as bad as you think it is. Often credit ratings are simply misunderstood by individuals.

In process of receiving your credit score be sure to check your credit report for improper information. Credit reports can be the first indication of credit card fraud or identity theft. Both of which can leave individuals and their families emotionally and financially devastated.

Once you have your credit score you can use any one of the online loan evaluators. These calculators will allow you to figure out how much money you can borrow and the interest rates that are available to you. It is important to make an informed decision when picking a loan provider. While television advertisements and newspaper ads can be tempting, it is better to research a number of established and reputable loan organizations.

Many “get money now” companies have hidden costs and penalties which consumers are not aware of until after they sign the papers. Looking around for loan companies online is a great way to save money and time. Many lenders have online applications which can be filled out for free. Once you have made your list of possible lenders it is a good to have specific criteria for choosing your loan company.

Besides choosing a company that has a good business reputation choose one that is going to offer you the best deal. This does not always mean the lowest interest rate. Other things to consider are the time period for repayment, penalties if you pay the loan off to quickly, what are the late fees, is the interest rate variable or fixed, and what is the APR.

Unsecured loans usually let an individual borrow less than a secured loan. The interest rate is usually higher for an unsecured loan.

One of the benefits of going with an unsecured loan is it is usually approved quicker which means you get the money faster. This is because secured loans need property to secure it. Property must first be evaluated to see how much it is worth.

Unsecured loans are a great way for individuals who do suffer from bad credit to improve their credit rating, consolidate debt, take vacation, or cover unexpected medical expenses.



By: Mika Hamilton

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