Protecting your personal credit from identity theft is a crucial part in becoming and staying financially successful. Identity theft is when someone, without you knowing, uses your personal information to apply for or obtain any kind of loan or credit. This can cause significant problems with your credit when the person who wrongfully used your information decides to default on the payment after actually receiving the monetary loan or using the credit cards that are in your name. After all, why would they make payments on borrowed cash that won’t affect them negatively if they default? It will only affect YOU negatively, and there is almost no way to prove that it wasn’t actually you who borrowed the money. So, how do you avoid getting caught in the identity theft trap that will crush your credit scores before you even find out that its happening?
There are a few ways to stay clear of having your identity stolen. Some are common sense, like cutting up your credit/debit cards after they expire or immediately cancelling them after you lost the cards. However, some other ways that are affective are not so known in the public world. First, don’t ever carry your social security card on you. You could easily be robbed or lose your purse or wallet. When this happens, the wrong person might come across your very private (or should be) social security number. With the wrong people in possession of your social, some can easily obtain credit or make fraudulent claims under your name, which will, in turn, destroy your credit scores or cause you to be the suspect in a crime.
Monitoring different accounts is also a sufficient way to protect yourself from identity theft. In case someone happens to gain access to your bank accounts or gain possession of your personal information, if they are spending money in your name or taking money from the ATM from your account, monitoring your bank account will catch this at an early stage, and most banks will work with you in seeing that you are protected from then on, as long as you notify them in a timely manner.
One of the most effective ways of protecting yourself from identity theft is monitoring your credit scores. There are different sites you can log into, and, typically for a monthly fee, you can monitor your scores and any activity that happens with your credit. Most sites will send you alerts via email, and even call you when something bazaar or unusual has happened on your reports.
If you get caught in the mix of identity theft, make sure you call your bank and credit card companies, and let anyone involved in the situation know that your identification has been stolen. Most companies and banks are very helpful in these situations, so make sure you take care of it immediately. Identity theft is inevitable in America, but if you are careful, you can prevent it.
Author: Kyle Gilbert
CreditScoreQuick.com your resource for free credit reports, credit cards, loans, and ground breaking credit news.
