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.
Identity Theft Protection
Identity
theft
occurs when someone takes your personal details and uses them to
commit fraud. This can include your Social Security number, bank
account, credit card details and other personally identifying
information. Once they have your information, thieves can empty
your bank account, apply for new credit cards and loans, take
out cell phone contracts, even apply for a job using your name.
Identity theft is a serious crime. The victim has to prove
that they are not responsible for the fraudulent transactions.
It can take years to undo the damage to your credit history.
When it comes to identity theft, prevention is the key.
Video: How do you know if you're a victim
of Identity Theft?
How the thieves steal your identity
There are many ways to steal someone’s identity. One common
way is to steal the victim’s purse or wallet. Once they have
your driver’s license, address and credit cards, the thieves can
drain your bank accounts and max out your credit cards within a
matter of hours.
Some thieves go through dumpsters looking for personal
details like bills and bank statements. These documents display
your name, address and account information. This is enough for
the thieves to steal your identity.
Even if you don’t throw away your bank statements, thieves
can still get a hold of them simply by going to the post office
and filing a change of address form. All of your mail will then
be redirected to the thieves’ address. Alternatively, they can
steal your mail directly from your mailbox.
The newest trends in identity theft focus on the internet.
Many people use their computer to do their shopping, pay bills,
even apply for credit cards. Thieves can take advantage of this
in different ways. The most common type of fraud is called
phishing.
The victim will get an e-mail that appears to be from his bank,
or from a site like eBay or PayPal. The e-mail will ask the
person to click on a link and fill in some personal data.
Neither the e-mail nor the link have anything to do with the
company they claim to be from. Instead, the victim is handing
his personal details over to the thieves.
Protect yourself from identity theft
Video: Identity Theft Warning Signs
Every year, close to 10 million Americans become victims of
identity fraud. But it’s not unavoidable. Here are some things
that you can do to protect yourself from this horrible crime.
Do not carry your Social Security card in your wallet and
only give out the number if you’re sure that it’s safe.
If your wallet is stolen, notify your bank and credit card
providers immediately. If any fraud has occurred, contact all
three credit bureaus so that they can make a note of it on your
file. Then if someone does try to take out a loan in your name,
it will trigger a security alert.
Carefully shred all of your personal documents before throwing
them away. This includes junk mail like unsolicited credit card
applications.
If you do get a
suspicious e-mail,
do not click on any of the links. Instead, go directly to the
company’s website and check whether or not it’s legitimate. Your
bank will never e-mail you asking for your PIN or other private
details.
Use a good virus checker and a firewall to protect your
computer from being infected with viruses that can steal your
details.
Additional Resources
Equifax
800-525-6285
P.O. Box 740241
Atlanta, GA 30374
Identity
theft
occurs when someone takes your personal details and uses them to
commit fraud. This can include your Social Security number, bank
account, credit card details and other personally identifying
information. Once they have your information, thieves can empty
your bank account, apply for new credit cards and loans, take
out cell phone contracts, even apply for a job using your name.
