1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will identify you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair
Isaac).
2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% -
30%!
3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have at least 2 credit cards and 14% of them have 10 or more credit cards.
What is identity
theft?
Identity theft occurs when someone steals your personal
identification details, like your name and Social Security
number, and uses them to commit financial fraud. Once they get a
hold of your information, the thieves can clear your bank
accounts, apply for credit in your name, even get jobs using
your Social Security number.
Identity theft
cases can takes months, or even years to resolve. It can destroy
your credit score, making it difficult for you to borrow money.
In some cases, you may even suffer a long-term financial loss.
Video: How to prevent thieves from stealing
your identity
Common signs of identity theft
The most obvious sign of identity theft is unfamiliar
transactions on your accounts. If you see a charge on your
credit card that you did not make, it’s likely that someone else
has stolen your card details and is using them to steal from
you. Another sign of identity fraud is an inaccuracy on your
credit report. It may be that your name or Social Security
number are incorrect, or there is a record of a loan that you
did not apply for. A third sign is mail that comes to your house
but is not addressed to you or to a previous tenant. A thief can
be using your address to apply for credit cards, cell phone
contracts, etc.
How do thieves steal your identity?
There are many ways for thieves to steal your identity. The
most common way is by stealing your wallet. Once the thieves
have your name, address and credit cards, they can quickly empty
your bank accounts and max out your credit lines.
Another way is by stealing your mail. This can be done
directly, with the thieves stealing from your mailbox. They can
also fill in a change of address form at the post office and
have all of your mail rerouted to them.
If you throw away documents with personal details on them,
like bills and bank statements, the thieves can use this to
commit identity fraud. They will go through your garbage looking
for anything that can be used to steal from you.
A more recent form of identity theft happens online. Trojan
viruses can collect all sorts of personal data from your
computer’s hard drive. In some cases, victims inadvertently give
the thieves all of the information they need by clinking on a
link in a “phishing” e-mail and filling in their personal
details.
What can you do to protect yourself form identity
fraud?
Identity theft
is not inevitable. There are a number of easy ways to protect
yourself.
Check your bank and credit card accounts on a weekly
regular basis to make sure that all of the transactions are
legitimate.
Check your credit reports
at least once a year. You can request a free copy from the
three credit bureaus: Experian, Equifax and TransUnion.
Shred all of your personal and financial documents
before throwing them away.
If your wallet is stolen, notify your banks and credit
card companies immediately. If fraud has occurred, notify
the three credit bureaus. They will put a note on your file.
Do not open junk e-mails. If you do open an e-mail and
it seems suspicious, do not click on any of the links.
Instead, go directly to the company’s website and check
whether it was sent legitimately.
Use a good virus checker and firewall to protect your PC
from unwanted intruders.
Equifax
800-525-6285
P.O. Box 740241
Atlanta, GA 30374
Identity theft occurs when someone steals your personal
identification details, like your name and Social Security
number, and uses them to commit financial fraud. Once they get a
hold of your information, the thieves can clear your bank
accounts, apply for credit in your name, even get jobs using
your Social Security number.
