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Report credit fraud. You can prevent credit fraud, identity theft and scams if you secure your documents, review your credit report, and report fraud the instant it occurs.
To see if you're the victim of credit fraud, check your free credit report.
Credit obtained fraudulently may go undetected until the charges become past due and creditors come looking for you. To find out what credit has been placed in your name, order a credit report and look for unexplained activity.
Report credit card fraud and identity theft to all police and sheriff's departments within jurisdiction. Credit card companies and banks may require you to show the report in order to convince them of your innocence. If they don't believe you, they may hold you responsible for bounced checks, charges made in your name, etc. Give the police/sheriff's department as much evidence as possible, and get a copy of your police report. Get the direct phone number to your detective or the official taking the report.
If you're the victim of internet fraud, contact the FBI internet fraud center
Identity theft protection
Pay attention to your billing cycles and contact creditors if bills don't arrive on time. It may mean that someone is intercepting your mail.
Cancel all unused credit cards so thieves can't get those account numbers from your credit report.
Keep your Social Security card, birth certificate and other identifying papers in a safe place, not in your wallet. Stash a list of your creditors, along with phone numbers, in the same place in case your credit cards are stolen.
Pick up newly ordered checks at the bank to avoid having blank checks in your mailbox.
Check your credit report annually. Report any suspicious activity immediately.
Make sure no one can see you punch in your PIN or password at the ATM or retailer, or your telephone card number at a pay phone.
Keep documents with personal information, such as canceled checks, in a safe place and shred them or tear them up when you don't need them anymore. Documents that you should shred or tear up include charge receipts, copies of credit applications, bank checks, ATM receipts and insurance forms.
Suspect you're the victim of identity theft?
Contact creditors about questionable items and close accounts you believe are fraudulent or have unauthorized transactions.
Call the fraud department at each of the major credit bureaus to ask that a "fraud alert" be placed in your file, so that lenders will be alerted to the fact that you may be a fraud victim. Ask that the fraud alert state that you do not want new credit extended without contacting you first, and ensure your name/address/phone number are all correct.
Contact the local police to file a report. Keep a copy in case you need it later as proof of the crime.
Report credit fraud to the FTC, which will store the information in its database so it can be accessed by law enforcement agencies. The FTC can provide information on steps victims should take and sometimes will refer cases to other government agencies or private organizations for further action.
Fraud and Scam Tips - Knowing some information about fraud and scams can help prevent you from becoming a victim. Many consumers have become victims of credit card scams and fraud without even knowing it for a while. Keeping your credit card information secret can stop criminals before they ruin your credit.
Read our latest article regarding fraud, and join our online financial newsletter so you can receive alerts. Bad Credit
Seeing your credit report can help you take control, when credit is less than perfect. Being able to improve it, begins with knowing what problems exist. It is estimated that millions of people have scores below 500 and about 25% of credit reports have a significant error. People who review their scores and reports often, are able to identify errors and correct them to maintain their credit history.
Being able to identify any information that is causing bad credit is a must for being able to repair credit. Checking all three credit scores and reports, and seeing all the recorded information can help with the process. Once you have the reports, go through the information carefully and look for problems like late payments. Consider calling those creditors and ask for a payment plan that works for you, this helps you avoid negative information from late payments. Payments must be paid in a timely manner.
It usually takes getting a hold on the family budget, and put a stop wasteful spending. This is often the only way to have more money to pay down bills. Another way is to go out and get a second or third job to get the money, and this can make for a tired lifestyle. One of the biggest areas that lowers scores, is reports of late or delinquent bills. Just starting on this problem can help repair scores.
A good do-it-yourself credit repair step is to decrease the amount of debt-to-credit ratio. This is important to maintain a good score. Another area to tackle is, not to make any changes on credit cards or bank accounts, or apply for too much credit all at once. It is good to be viewed by lenders as responsible or stable. Having too many inquiries on reports could raise some concern.
For people who are not able to rebuild credit, trying to do it their way, there are services that help people attempt to reach their financial goals. Some offer members affordable monitoring and access to the three major credit agencies. These companies help consumers understand their credit scores and reports, and some allow unlimited access to credit scores. They may provide tips and educational information about managing credit. There is plenty of information on the Internet, and credit products like cards to rebuild credit for people who need credit to repair credit. A healthy credit score can save money, when it comes to getting approved for loans with good interest rates and terms. Personal Credit
Personal credit scores are based on standards of the major credit rating bureaus: Experian, Equifax, and TransUnion. Lenders average the fixed score from each of these to determine a borrower’s eligibility and terms of financing. The rating system looks at several factors and gives a points rating to each one. Positive and negative factors can affect the score.
Factors that can affect credit scores:
* Payment history accounts for about 35% and the way debts are paid, for example if they are paid in a timely manner or paid late. It reflects the number of past due items and how long they were delinquent, or if there was any collection activity. Another factor is any public records like bankruptcies, liens, and wage garnishments.
* Current total debts accounts for around 30% and considers the total amount of debts owed. This is the number of accounts and each balance owed and it influences FICO scores. Credit bureaus will look at outstanding debts in relation to the available credit. Getting out of debt by paying down debts can help raise scores over time.
* The length of credit history is a factor concerning the amount of time accounts have been open and the account activity.
* New credit is any recent accounts established. This also includes any credit inquiries indicating attempts to get new lines of credit.
* Types of credit considered is the total number of the types of credit that has been secured. This includes revolving debt on credit cards and retail accounts.
Some lenders may not view past performance as a guarantee of future performance. This is not always true as a credit rating is an indicator of past borrowing and repayment performance. This can give lenders an idea of how likely it will be for a borrower to repay a new loan in full, on time. They use a consumer's credit rating to determine their risk in loaning money.
A person who has a good credit rating may not have to pay high interest fees or may not have to give a large down payment. Personal credit scores are used to determine whether to loan money to small businesses and corporations. Factors like age, race, ethnic background, religion, sex, and marital status, do not influence scores. Employment history, current employment, wages, and assets are not taken into consideration as part of FICO scores, yet some lenders may look at these areas when evaluating a person's credit worthiness.
Qualified borrowers have a FICO rating of 750 or better, yet people with a score of 650 may be able to get a loan that has higher interest rates. These scores can change monthly to reflect any changes to the criteria used to determine the score. If a loan is paid off it could improve scores. If a bill is not paid or bankruptcy is filed, it could lower scores. Monitoring scores can help identify any problems that may need correcting. AnnualCreditReport.com is the site to visit to request a free credit report, and get credit information almost immediately, but it can take longer when not using the Internet. Credit services can help monitor FICO scores but it usually requires a monthly fee. |
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