If you have never worried about your credit score before you should now. With identity theft becoming an increasing problem and interest rates rising your credit score is becoming more important. If you aren’t worried about your credit score you should be concerned about your reputation. Employers sometimes pull credit reports and it can affect your ability to obtain a job. Auto insurance companies pull credit reports to determine how much to charge you for your car insurance. If you credit score is low you pay higher premiums. You could also be made to pay a debt you didn’t authorize if someone has stolen your identity.
Identity theft criminals are now purchasing homes, cars, and taking vacations with other people’s identity. Your bank account could get tapped into and they could even obtain a driver’s license in your name. It’s frightening to think you could be arrested for something someone else has done in your name. You become liable for all of the activity that happens in your name and proving it wasn’t you is a difficult task.
Identity theft criminals are becoming smarter and finding new ways to obtain your information. They don’t just dig through the trash anymore. Shredding your statements and personal information isn’t enough. Some criminals will try to obtain your information online, over the phone, and even hacking large companies databases. They are also obtaining information by putting in a change of address at the post office so they receive your mail.
A new way they are stealing information is when they “skim” your credit card with a device they can store the information and process it later. Apparently they don’t have to take your card anymore they can just run the device past your purse or wallet. That is why it is becoming essential to pull your credit report each year and review the information.
If you’ve had a break in at your home file a police report, notify the credit bureaus, and your lenders. You can file a consumer statement on your credit report and have them watch for any unauthorized activity. You can cancel your stolen credit cards and after much red tape recouperate most of your losses but if someone obtains enough information about you they can do a lot of damage.
The best place to check your credit report for free is annualcreditreport.com. It is the only “authorized” source to obtain your free credit report according to the Federal Trade Commission. You are allowed one free credit report each year by law according to the Fair Credit Reporting Act.
You can request your free report online, by phone 1-877-322-8228 or by mail. Send your request to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348. You do need to fill out the online form and submit that with your request. You can get a copy of all three credit reports at once. The three credit reporting agencies are Experian, Equifax, and Trans Union. Once you get your report review it carefully and make any necessary updates and changes.