How to check for identity theft
Five Reasons to Look at your Credit Report Regularly
In much the same way a resume illustrates your work experience to prospective employers, your credit report gives prospective creditors (and in some cases employers and insurers too) a detailed picture of your credit worthiness. And, much like a resume, your credit history can determine whether you will receive the loan you are seeking.
Your credit report should be accurate, up to date representation of your credit history. But, since we do not live in an ideal world, your credit report (and score may contain errors that could stop you from obtaining the loan you deserve. Fortunately, you are able to keep your credit report accurate. Listed below are the five reasons you should check your credit report frequently:
Inaccuracies & Mixed Credit Files
Many inaccuracies with a credit report can be the result of simple human error, and are easy to correct with the credit bureaus. Of course, unless you order your credit report, you would not know of the error(s). Serious errors include late payments, payments not credited, and another person’s credit information mixed in your credit history.
On time bill payments is one of the most important elements of your credit history. From time to time, delays can occur when processing a check. Occasionally a posting error can result in a thirty-day late payment to your credit report. If a posting error has occurred, it is important that you call your creditor and explain the problem. Of course the only way to know that the creditor mishandled your payment in the first place, is if you obtained a copy of your credit report.
Identity theft is an important reason to request your credit report at least yearly. Identity theft can be an insidious crime. Credit thieves who assume your identity are able to open new credit accounts, divert your charge card statements to a different address, and stick you with bad debt without you ever knowing about it until the bill collectors begin calling. An identity theft can jeopardize your ability to obtain additional credit. Purchasing a copy of your credit report is the easiest way to catch a thief using your name and or social security number.
For anyone seeking additional credit should know that a credit inquiry is placed on your credit report. Credit inquiries add up and is often interpreted as a negative by creditors. That is why excessive credit inquiries may make credit more difficult to obtain.
Credit Fraud - Unauthorized Charges
Credit fraud requires the theft of your charge card account number to obtain unauthorized charges to your account. State and Federal law provide some protection from unauthorized charges; some creditors may still increase your interest rates or refuse to offer you a loan. Purchasing your credit report will help prevent against unlawful activity on your credit accounts.