Understand How Credit Monitoring and Identity Theft Services Actually Work?


Many people think that keeping close track of credit scores is only useful for when you want to get a loan. But there are actually other reasons that it is a good idea to monitor your credit score closely. One of those reasons is to help protect you from identity theft or fraud. By keeping a close eye on your credit scores you can catch an error or fraudulent activity early on. It doesn’t keep you from being vulnerable to fraudulent activity, but it does minimize the damage and helps make it a lot easier to clean up if it does occur.

How do I check my credit score?

There are three basic companies in the that compile financial information on you. This information tells them how good you are at managing your credit and payments. The three companies include:

·Equifax

·Experian

·Callcredit

All three of these companies are obligated to provide you with a credit report since it contains your financial information. You may go online to access your credit report directly from the site. Or you can request a written copy of it. Your report will give you an overview, or a snapshot of your most recent credit information.

Call credit which goes by the brand name of Noodle offers you free access to your credit report. It’s advisable to get your credit report form all three of the primary agencies. This is important especially if you haven’t checked your credit report for a very long time. There are several reasons why it’s good to get a credit report from all three of the companies:

·Your credit score can change from time to time

· Different agencies receive credit information from different sources

· This information can overlap

What information will I find on my credit report?

There are several different types of information you’ll find on your personal credit report.

·Personal information which has been compiled from various applications you’ve completed. (Name, address, DOB, current and some previous employers)

·Your credit history which includes how many credit accounts have been opened in your name and details of each account. This includes any inactive or even closed accounts. You will see your payment history on any open accounts.

·If credit agencies have made any enquiries about your credit you will see where they requested the information.

·If you have any court judgments, house repossessions or bankruptcies on your credit it will be available on the report for up to six years.

·The details of any other individuals who are linked to you financially, or anyone you’ve obtained credit with.

Why do I need to check my credit report?

It’s important to check your credit report often and at least once every year. There are some very good reasons why you need to check your credit report.

. It’s free! Your credit report has a direct effect on your financial standing and credit transactions.

· It is important for helping you rebuild your credit or maintain a good credit standing.

· Knowing what’s on your credit report gives you better control over your personal finances and makes them easier to manage.

· It can be the first indicator that you’ve been the victim of identity theft.

·You can catch any mistakes quickly since you will find them early on.

· It’s important to know when your credit report was updated last.

Benefits of Monitoring Your Credit Information

There are several instances when others can freely view your credit reports. Basically anyone who has an allowable purpose is allowed to see your credit report. Some examples include:

· An institution that is a potential lender

· Potential landlords

· Companies that provide insurance

· Employers and potential employers can check your credit report with your written consent

· Companies that you pay to monitor your credit for early signs of theft or fraudulent activity

· Government agencies can usually only view specific portions of your credit report

· Anyone who you have given permission in writing to obtain and view your credit report

·  It can help protect your from identity theft.

There are also other companies that are not free, but they give you advanced identity theft protection. To choose the best of them, check here. These are the best lists that are updated regularly.

Top Credit Monitroing Services by The Simple Dollar

Top Credit Monitoring Secrives by Elite Personal Finance

What is identity theft?

Identity theft is when your personal information is stolen by someone. They then proceed to take actions with your credit. They will basically pretend that they are you and they perform financial actions such as:

·Opening new lines of credit in your name and use them

.Take out a loan in your name but then not pay on it

·Rent out a flat

·Use your information to access your bank account records

·They may even commit crimes in your name.

· Write checks on your bank account or drain your bank account

· Buy cars in your name

· File for bankruptcy in your name

These actions are all done at your expense. They can damage your credit rating as well as your reputation. It can wreak havoc in your finances and cause all types of damage that is devastating to you. Without even knowing it you can end up owing thousands of pounds by the time you catch on to what they have done.

An identity thief can gain access to your personal information through a variety of ways like…

·Getting your information off your mail by going through your rubbish

·Stealing your purse or wallet

·Filling out a change-of-address form to redirect your mail to them

·Posing as someone who can legally obtain your credit report and gaining access

·Getting your personal information when you share it online by using unsecure sites

.“Skimming” your credit card information when you make a purchase

·  Having access to your personnel records at the workplace

How can I protect myself from these types of crimes?

There are several precautions you can take to protect your personal information:

·Don’t put too much of your personal information up online on social sites.

·Keep your computer’s firewall, anti-spyware and anti-virus programs up to date.

·Do not share your personal identification numbers (PIN) or passwords with others. Do not write them in a place where they can be seen by others

·Create very strong passwords and PINs. Don’t use information that is easily obtained such as your children’s birthdate or your birthdate. Always use a good mix of both upper and lower case letters, punctuation marks, and numbers. It’s a good idea to use passwords containing at least 10 characters.

·Do not reuse a password or a PIN for multiple accounts.

·Shred any financial documents prior to throwing them away.

·Keep a very close eye on your credit report by monitoring it or hiring a company to watch it closely for you.

It will take a conscientious effort on your part to ensure your information is not misplaced or stolen. There are sometimes that it might occur even when you work hard to protect your information.

What should I do if my information is stolen?

By checking your credit report on a regular basis you can prevent identity theft many times. If there is a breach in your information or suspicious activity on any of your accounts it is easier to clean up if you catch it early on. It can take about 500 days (that’s nearly a year and a half) to discover it’s been stolen otherwise. Your credit can be damaged and you’ll have a horrific mess to try and clean up to repair your credit and your reputation. If you think your identity has been, stolen take these steps:

·Check all the details of your credit history and all the accounts in your name to ensure they are accurate.

·Call the police if you think your identity or information has been used in a fraudulent manner.

·Contact the three credit agencies. They know how to help victims recover.

. Contact your credit cards or the lenders who have extended you credit and tell them your information has been stolen.

· Inform the post office so your mail is not misdirected.

As you can see, it is vitally important to monitor your credit reports for a lot of reasons.