What is your credit score? Has it changed recently? Is your credit score considered to be low, or is it nice and high? If you don’t know the answers to these questions, you might be at risk for identity theft. One great way to protect your family from identity theft is to be extremely careful about whom you share personal information with. But, even the most careful person can become a victim of identity theft. The best way to protect your family from identity theft is by being keenly aware of your credit score, and to know what, exactly, is on your credit report.
Identity theft is the term used when someone who is not you uses your personally identifying information. This could be your name, your social security number, or your credit card number. This information might be used by a thief who wants to take out a large loan in your name, that he or she will never pay back. Or, your credit card number might be used by a thief who wants to buy an expensive item, or to take a long vacation, but doesn’t want to actually pay for it herself. Bad things happen with the lenders discover that no one is making any payments on these loans.
What happens? The lender might contact collectors, who will begin calling you up demanding that you pay your bills. This can come as quite a shock if you know that you were not the person who took out those loans, or who ran up your credit card. The lenders will report the non-payment of these loans to the credit bureaus. They are required to put this information onto your credit report. Now, your credit score has been damaged. Rebuilding your good name will take time. As you wait for things to be corrected, you might be turned down for mortgage or vehicle loans. The next credit card you apply for might come with a higher interest rate than you actually deserve. This can bring hardship to your family.
How can knowing your credit score help protect your family from identity theft? Keeping a close watch on your credit score is an excellent way to know if your score has suddenly changed. You are entitled to one free credit report every 12 months from each of the big three credit bureaus. Go get one! Knowing what is on your credit report also provides protection. Look over these items carefully. If there is something on there that was not initiated by you, make sure you report that to the credit bureau immediately, before more damage occurs. If you like, you can purchase a protection service for your spouse, and for your children, from a credit bureau. Let them help you monitor things.
Image by Don Hankins on Flickr