Did you know that identity theft is theft is the number one consumer complaint in America? More than eleven million people were affected by identity theft last year and all indications point to increasing numbers this year of credit and identity fraud.
Don’t feel helpless – you can take direct action to protect yourself and your credit score, and you can do it today. The number one way to fight identity theft is to review and monitor your credit report. You can try this yourself, which will take considerable time and effort (as well as lag time) or you can turn to a credit monitoring service and let it do the work for you.
Credit report monitoring services are beneficial in a number of ways. First, let’s look at the basics and how credit monitoring works. There are three credit bureaus: Experian, Equifax and TransUnion. Identity theft happens swiftly – in a matter of hours, an experienced digital thief can steal thousands of dollars from you and swing a wrecking ball through your credit that can take months and even years to repair. Trying to stay on top of your personal accounts and all three bureaus with the right frequency can be a huge undertaking. The three bureaus do not share information. Because some businesses only report to one bureau, you must monitor all three at all times to make sure your credit report and resulting credit score is accurate
Credit monitoring services have the software, tools and experienced professionals to monitor your credit for you regularly and swiftly. For example, every time a credit check is made against your existing report, the monitoring service will notify you. Did you know that too many checks into your credit can negatively affect your credit score? Credit monitoring helps you know if unauthorized parties are looking at our credit report. This is also a first step in preventing thieves from opening up accounts or lines of credit in your name without permission.
Credit monitoring services also provide detailed reports to you that lets you know exactly when and where any unauthorized access to your credit accounts occurs, helping you create a traceable trail of activity that can help you get your money back and also help law enforcement if necessary.
Another benefit of credit monitoring is that it catches legitimate mistakes in your payment history. Quickly addressing a mistake on your report with a business that misapplies or fails to record a payment is much easier than trying to straighten it out months later. Don’t wait until you are making a major purchase to find out that one of your revolving credit accounts has dinged you for a late or missed payment!
Your best defense against identity and other credit misuse is consistent credit monitoring. The smallest error, left uncorrected, can damage your credit score and your ability to get additional credit and favorable interest rates.
Credit monitoring services take the guesswork, legwork and time out of watching your own credit. Stay safe! Let us look out for you!
ShareCredit report monitoring services watch your credit activity for you and alert to any unusual or suspicious activity on your credit, based on your typical buying habits, consumer behavior and payment history. Credit monitoring can help with early detection of identity theft, letting you know to respond more quickly to any activity that is outside the norm or any suspicious changes in your credit. With identity theft and Internet fraud on the rise, many and more people are turning to credit monitoring as a way to combat online threats.
These services range from $50 to $180 a year depending on what you want to monitor and the service provider.
Here’s what happens…
Once you sign up with a service, you will receive an e mail alert every time there is activity on your credit report. Activity can include payments, late payment notices, credit inquiries, large purchases and new loans or accounts. You’ll also receive notification of new public records, employment, addresses, and fraud alerts.
The FTC, who receives and watches consumer complaints, reports that identity theft is now the number one consumer complaint in the U.S. It also claims that identifying and stopping identity theft can take up to 14 months, which can wreak havoc on an innocent consumer’s ability to obtain credit, get insurance or even get a new job. By monitoring credit daily and weekly, you can lessen your risk and exposure to fraud before it becomes a huge issue.
The keys to credit monitoring are consistency and frequency. Most suspicious activity is reported to you within 24 hours. In addition, improvements to your credit file will be sent to you, which can be especially helpful if you are working on repairing your credit in order to buy a home or make another large purchase.
When will I receive credit alerts?
You’ll be notified when your credit report shows:
If you’re going through a credit repair process, it can be cheaper to monitor your credit score through a service rather than ordering your credit score every month. Watching your credit score lets you know if what you’re doing for your credit is actually helping. A credit monitoring service can help you keep an eye on your credit after your social security number has been stolen and the thief is opening accounts in your name. Keep in mind, however, even in this situation, there may be less expensive and even free alternatives like freezing your report or putting a fraud alert on your credit report.
ShareIf credit is “David”, then you must be prepared to face the challenges of not one, but three “Goliaths”. Fortunately here the Goliaths are your friends who want to test your capacity of paying back credit. If you receive satisfactory results, both David and Goliath win. There is a lot of mystery surrounding the work of the credit bureaus. This article will serve you with a basic outline.
v What are credit bureaus – There are three national credit bureaus in form of Equifax, Experian, and Trans Union. They are often referred to as the Big Three. They collect and store credit information on approximately 200 million consumers. They do not use this information for their own purpose but supply them to credit grantors on a fixed basis. Credit bureaus are also known as Credit reporting agencies. They do not make lending decisions but it is their job to provide the information to the creditors.
v Functions of credit bureaus – Credit bureaus collect information about consumers’ financial dealings and serve that information to those who ask for it such as credit grantors, employers and insurance companies. The credit bureaus charge annual fees as well as a fee for each credit reports requested. Most national and international creditors, such as banks and department stores, are registered with all three bureaus. The information is collected from sources like these and is updated. The credit bureaus also collect and retain public record information, as well as information from any small manual contributor.
Major sources of information and Types of information collected are as follows:
1. Consumers – When you fill out application forms for credit
2. Major credit grantors and collection agencies – They send their files to the Big Three regularly. This file contains the account number, amount of balance that you owe them and a nine point scale about punctuality of payment.
3. Public records – They provide information on matters like bankruptcies, legal judgments, foreclosures and registered agreements.
Based on the information collected by the credit bureaus, creditors try to measure your creditworthiness. If your credit report indicates that you have maintained your credit well, your chance of having more credit is high. On the other hand, if your report reflects a poor credit history, then you may be denied credit or pay back terms may pinch your pocket a bit more. So information especially pertaining to financial dealings is very vital in the credit report.
v Free copies – Under FACT Act, you can ask for a free credit report from each of the nationwide credit bureaus that is Equifax, Experian, and TransUnion. They are required to give you a free copy of your credit report when you request for one, once every 12 months.
You can demand for a free copy of your credit report
1. Within 30 days after you were denied credit
2. If you are unemployed
3. If you are planning to apply for jobs in the next 60 days
4. If you are being paid by public welfare assistance
5. If you think that your credit file has some errors resulting from fraud
v How to contact the Credit Bureaus – You can contact credit bureaus at their respective websites. They can provide you with quick and easy steps to know your credit score and receive your credit report.
Equifax – www.equifax.com
Experian – www.experian.com
TransUnion – www.transunion.com
v 3 Common myths about Credit Bureaus – There are some information circulated by persons who do not fully understand the credit bureaus or the credit reports. This often leads to rumors.
1. Credit bureaus tell creditors whom to lend and whom not to – The truth is credit bureaus collect and send the information. They are not involved in the decision making process in any capacity.
2. Anybody can access your credit report from the credit bureaus – The Fair Credit Reporting Act (FCRA) orders that credit information is accessible to others only for certain allowable uses. In fact, you can easily know who has received a copy of your report or inquired about it.
3. Once the credit bureau collects some information that is final – You are at liberty to place an explanation on the credit bureau report. In fact you can tell your side of the story on any dispute item or information.
So you see credit bureaus are not that bad after all. They help you to get credit reports which can get you credit, when you need it most.
ShareGone are the days of hefty pockets with cash-filled wallets. Plastic money has made life much easier. But, like every day has a night, overt use of plastic money is followed by the rising risks of identity theft. Every alternate person in the US using cards runs the risk of identity theft. It is seen that many people are not aware of this theft until and unless their loan approval gets stuck somewhere and they are bound to collect Credit Reports.
Identity Theft: A short brief
In short, identity theft is the illegal act of misusing your confidential, personal information in order to get access to your bank accounts. This act is done deliberately to victimize a person thereby taking advantages of his finances. Needless to say, the consequences of such act can be detrimental as it is meant to be.
Although, there can be many kinds of such theft, still credit card identity theft is the most common in US now. In spite of Government efforts, more than 9.3 million individuals are victimized, by this offense, per year, according to a latest study.
Factors leading to rise in Identity Theft
Even a few decades ago identity theft was not considered to be a social threat. But during the last couple of years the spread of this crime has become so alarming that it is time for law makers to revise existing laws to put a check. Needless to say that the crime prone minds are the master minds behind such a crime. However, the contributions of the Creditors can’t be overlooked. Growing tendencies to do business through automated systems are opening newer vistas for individuals to commit identity theft, easily. In a business model where no personal contact is needed even for loan approvals, it becomes a child’s play to guess a few digits and alphabets to put in as SSN, details of driving license and thereby crack the automated system.
Identity Theft: Can there be an end?
Many people forget that identity theft can directly affect credit scores, thereby shrouding your financial career with clouds of uncertainty. Although it sounds absurd, still it remains a reality that Identity theft can be prevented by small personal efforts. So, from the next time you sign a check keep the following things in mind:
Your identity is precious…why let others steal it? Protect it with care and enjoy financial freedom.
Credit report monitoring is one of the best tools to help you protect your identity.
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