When financial
institutions are deciding to
give you credit or not, they often refer to your credit report. Your
credit report contains important information about you:
where you live,
how you pay your bills, borrowing/credit history, employment
information, if you have been sued, if you have filed for bankruptcy,
etc. Basically, your credit report is given to any financial
institutions, such as banks and lenders with your consent, when you are
contemplating getting a loan or a mortgage.
Even though your credit report may seem to
be in safe hands, it is crucial that you check credit history.
You
should do this at least once a year from the three national credit
reporting agencies. It is possible that each agency may have different
information and you and your credit.
All three companies (Equifax,
Experian and TransUnion) offer one free credit report annually. By
checking your credit history, you can possibly save yourself a lot of
hassle in the long run. Not only will you be able to maintain your good
credit, but also avoid identity fraud.
In addition to the items listed above, your
credit report contains information that you wouldn’t want any
old Joe to look at: your mailing address, Social Security Number, phone
number, birth date, etc.
Just imagine what someone could do with this
information. Identity fraud is a growing crime around the world and it
can seriously damage your credit report. Frauds don’t plan on
paying back what they borrow, so having late, delinquent, or unpaid
payments or bills can hurt your credit report.
It’s vital for you to observe what
is going on with your credit report. Check credit history for
“red flags” that may help you determine if you have
become a victim of identity theft. Some of the red flags to watch for
include:
1. Many loan applications made in a fast
sequence at various lending agencies.
2. A lot of hits on your credit report for loan and credit applications
over a lot of time. Thieves sometimes work in slow ways as not to
create any alarm.
3. Any applications in a different location from where you live,
particularly out of state.
To protect yourself from being a victim of
this horrible crime, check credit history at least once year. If there
is anything on your report that looks odd, you can report your
suspicions to a local police station.
To prevent identity theft and fraud from
happening to you, shred your old bills and credit card applications.
And if you deal with financial institutions online be very careful.
Check credit history annually and report and suspicious behavior to the
police and credit reporting agencies.