How To Finance-Solution Here

Keep Your Credit Score Safe

A criminal is a person with predatory instincts who has not sufficient capital to form a corporation. ~Howard Scott

If you have a lower credit score than you would like, odds are

that the score is caused by some small financial mistake or

oversight you have made in the past. Not every person with bad

credit has a low credit score caused by something they did,

though. Sometimes, other people’s criminal activity can affect

your credit score.  There are a few tips that can keep you and

your credit safe form online and financial predators:
Look out for identity theft.

Many people who are careful about paying bills on time and

having minimal debts are shocked each year to find that they

have low credit scores.  In many cases, this happens as a result

of identity theft.  Identity theft is a type of crime in which

people take your personal information and steal that information

to pose as you in order to get access to your accounts or

identity.

For example, someone with your PIN numbers can remove small

amounts of money from your bank account each month or someone

can use your name and personal information to get credit cards

in your name and use those credit cards with no intention of

paying back the money.  You are stuck with the large debts and

the poor credit score.

To prevent identity theft, always check your account statements

carefully each month.  Report any suspicious activity or any

charges you don’t recognize at once.  Also check your credit

report regularly and immediately investigate any new credit

accounts you do not recognize - this is the best way of

detecting and acting on identity theft.

If you have been the victim of identity theft, report to the

police at once and get a police statement.  Send copies of this

to your bank and credit bureaus.  Better yet, get the credit

bureaus to attach the report to your credit report, if you can. 

Close all your accounts and reopen new ones.  You should not

have to pay for someone else’s illegal activity.
Practice safe banking, safe computing, and safe business

practices.  

To stay safe from identity theft, always follow safe banking and

financial practices:

1) Keep account numbers and PIN numbers safe.  Cover your

account and PIN numbers when using debit at the store and refuse

to give your PIN number to anyone. Avoid writing down your PIN

and account numbers - you never know when this information could

fall into the wrong hands.

2) Only do business with businesses you trust.

3)If you get applications for credit cards in the mail that are

“pre-approved” rip up the applications and enclosed letters

before discarding them.  No, this is not paranoid. Identity

thieves sometimes go through garbage in order to find these

forms so that they can fill them out and steal your identity.

4) If you use a computer, install good firewall and antivirus

protection system and update it religiously.  Better yet, take a

course in safe computing at your local college or community

center.  You will learn many good tips for keeping all your

information safe while you are online.

5) Never buy anything online from a company you do not trust of

from a company that does not have encryption technology and a

good privacy policy.

6) Even with all computer precautions, avoid providing private

information through email or your computer.  Be especially

cautious if you get an email from your bank asking you to verify

your information by clicking on a link - this is a popular scam

that comes not from your bank but from criminals posing as your

bank.  Ignore the email and phone your bank about the message.

7) Be wary of unsolicited emails, phone calls, or mail

advertisements.  Most are from legitimate companies but there

are companies who promise you a credit card over the telephone

only to charge your existing credit card without sending you

anything. 

Similarly, letters will sometimes promise you specific items or

services.  Once you send in your credit card information

(usually to a post office box) you hear no more from the

company.  If you need or want to buy something from a company,

be sure to check the company’s standing with the Better Business

Bureau first. 

Send a money order instead of a check (which had your account

number) or your credit card information.  If you do use a credit

card, report any unusual charges or any payments you made for a

product that did not arrive to the credit card company. 

In some cases, they can stop payment or refund your money as

well as take steps to keep your credit card number safe.

Be wary of offers that seem too good to be true.  If you get

an offer for a ten million dollar check - for which you need to

put down $5000 as a “sign if good faith”…if you get an offer

for a free state-of-the art computer - if only you provide your

account information… take a deep breath and consider before

sending in your money and your information. 

Offers that are too good to be true always are.  Scam artists

often rely on your belief in others and your trust to make

money.  They depend on the fact that you will be so excited

about a product or service that you will throw good judgment out

the window.  Prove them wrong. 

When faced with an offer that seems too good to be true, do some

research on the web, or ask the person making the offer some

questions. Never take someone up on an offer that you have been

given unsolicited unless the company and the offer both check

out.

9) Read the fine print.  Some services or companies will have

tiny print in their contract or agreement that allows them to

charge you extra hidden fees or that allows them to retract

certain offers.  If you get an offer through email or the mail,

make it a habit to read the fine print.

10) Be alert for a sudden disruption in your mail service.  If

you do not get mail for some time, contact your post office and

ask whether your address was recently submitted for a “change of

address” service.  It sounds strange, but it’s true. 

One way that criminals steal identities is to change your

address at the local post office.  They redirect your mail to a

post office box number and steal your mail looking for personal

information such as bank statements, pre-approved credit card

applications, and other pieces of mail they can use to steal

your identity. 

They use this information to pose as you with lenders and run up

huge charges in your name. Simply keeping an eye out on your

mail can help you keep your credit score safe.
Check your credit score regularly

You are more likely to notice problems and inconsistencies if

you check your credit score on a regular basis - at least once a

year and preferably three times a year.  Be sure to check your

credit rating with each credit bureau, too. If you notice

anything odd or anything you don’t recognize (such as a charge

account you did not open) report it immediately. 

Sometimes, these errors are caused by mistakes made at the

credit bureau, but they could be an indication that someone is

using your identity.  In either case, such mistakes could hurt

your credit score.  Fixing such errors improves your credit

score. 

If you think you have been the victim of identity theft, take

action at once:

1) Contact the three major credit bureaus and ask to speak to

the fraud department.  Explain that you have been the victim of

identity theft (or believe you may have been) and ask that an

“alert” be placed on your file. This will let anyone looking at

your report know that you may have been the victim of fraud.  It

will also mean that you will be alerted any time a lender asks

to look at your file - each time a lender does look at your

file, it may be an indication that the identity thieves are

trying to open a new account in your name. 

When the lender sees that the person applying is not you, they

will deny the thieves credit and in most cases the criminals

will stop trying to access your identity.  Most alerts on your

file last 90 or 180 days but you can extend this period to

several years by asking the credit agencies for an extension of

the “fraud alert” in writing. 

In some states, you can even ask for a freeze to be placed on

your credit score and credit report which will prevent anyone

but yourself and those creditors you already have from accessing

your file.  Any lenders the thieves contact to set up a new

account will be refused access and the thieves will not be able

to get any more money in your name.

You are entitled to a free copy of your credit report if you

have been the victim of identity theft.  Be sure to take

advantage of this offer so that you can check exactly how your

credit has been affected.  Dispute those items that are not

yours.

2) Contact the police.  Identity theft is a crime and you need

to file a police report (be sure to keep a copy of this report)

so that you can help the police potentially catch the criminals

responsible.  Contacting the police will also give you a paper

trail and proof that a crime has been committed. Keeping a paper

trail of the crime and your response will make it easier for you

to repair your credit if it has been damaged by identity

thieves.

3) Contact your creditors or any creditors that the identity

thieves have opened an account with.  Ask to speak to the

security department and explain your predicament.  You may need

to have your accounts closed or at least your passwords changed

to protect yourself.

You may also need to fill out a fraud affidavit to state that a

crime has been committed - be sure to keep a copy of this form

for your records. The security team of the creditors should be

able to advise you as to what you can do.  Be sure to note down

who you contacted and when so that you have records of the steps

you have taken to deal with the crime.

If you have been the victim of identity theft and you are deeply

in debt to creditors you never contacted, you will not be held

responsible for the charges - but you will have to prove that

you have been the victim of identity theft, which is tricky

since the thieves are using your name and claiming to be you. 

It is a frustrating experience because lenders will want to be

paid and you will want to avoid paying for charges you did not

run up.  Being persistent and keeping good proof that you have

been the victim of a crime will help to clear your credit score.

 In the meantime, however, you will be faced with a much lower

credit rating than you deserve and you may have to put off

larger purchases that may require a loan.

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