Protecting Your Credit

Your credit has a definite impact on your financial lifestyle, often helping or hindering you in gaining the best interest rates, and even in qualifying for certain loans, mortgages or credit cards. Unfortunately, we don't live in a perfect society, and there are people out there trying to take advantage of you, or worse, steal your identity. Learning how to protect your credit information, and be aware of scams, fraud and identity theft tactics will help ensure that you and only you can affect and access your credit.

Helpful Habits
Many of the hints to protecting your credit seem obvious, but aren't always practiced. Get into the habit of being aware of your surroundings and being wary of others' motives. In general, be aware of how your Social Security number will be used, read all privacy statements and "small print" carefully and shred all personal documents before disposing of them. Although these practices can be tedious, they could save you from bigger headaches down the road.

Be especially careful with debit cards as they typically do not carry the same protection as credit cards. Further, always shield the keypad when entering your PIN at an ATM or in-store machine, and never write your PIN down on the card or similarly accessible location. Your conversations can easily be remotely listened to over cordless phones, so avoid giving out your credit card, or other personal information, in this manner. Other simple habits can help protect you, such as handing signed receipts to waiters and mailing bills in sealed mailboxes. Be sure to review your statements each month, as well as your credit report annually, and report any errors immediately.

Scams, Fraud and Identity Theft
The number and complexity of scams and frauds is growing each day, so how will you know whether an offer is legitimate or deceitful? As the saying goes, if it seems too good to be true, it probably is. The most common types of credit fraud are telemarketing and mail scams. Notifications that you've won the grand prize (to a sweepstakes you don't remember entering) or donations to fake charities are just a few of the ploys on the market to get to your money! Don't fall for it! If you suspect that you're being conned by a telemarketer, ask for their contact information and return the call to verify the company is legitimate. Double-check envelopes to ensure the company name is clearly listed and corresponds with the information of the actual institution. Don't accept free prizes if you must pay shipping to receive them, or call toll numbers to claim your prize. Not every good deal is a scam, but being careful can only protect you and your credit from potential deceit.

Identity theft is another crime that could damage your credit and cause great frustration. Furthermore, victims typically aren't aware that their identity is being used until it is too late! Thieves generally use a combination of your name, address, Social Security number, date of birth and/or your credit card number to gain access to your personal information and accounts. Once the thief has your information, they can open a checking account, obtain credit, start a cellular phone plan, secure a bank loan, apply for a job and charge anything to your credit card . . . all in YOUR name! Identity theft has become so prevalent that someone's identity is stolen almost every 75 seconds! While you cannot prevent it from happening, you can definitely minimize your risk of becoming the next victim! Shred all you documents, only give out your personal information to trusted companies via secure means, contact credit card companies if your bill doesn't arrive and always notify the police if important documents have been stolen from you. If you believe that you have been a victim of identity theft, be sure to file a police report as it is a crime! The Federal Trade Commission (FTC) will provide assistance to victims of identity theft under the Identity Theft Assumption and Deterrence Act and instruct you to contact the appropriate agencies. You should contact the creditors of any accounts that may have been opened or modified due to the fraudulent acts, as well as the three major credit bureaus to ensure that a victim's statement will be included in your credit report.