There is a lot said regarding credit agencies on the television, the radio, and anywhere else where there is advertising, because there is a big business in providing people information about their credit scores. If you don’t understand this already there are three major credit scoring agencies – Equifax, Experian, and TransUnion. And today I want to discuss how to avoid getting in the dog house with these credit agencies due to no fault of your own. We’re talking about identity theft here.

Your credit rating is likely the single most influential factor in the lending process over which you actually have a large degree of control. I know that most people believe it to be the other way around and that their fate is intrinsically tied to these mysterious bureaus of financial data. It is the cumulative result of your borrowing decisions and past history of debt repayment, reflecting the degree of responsibility you have placed on your commitments. A credit file is a portrait of a consumer’s financial history with virtually every blemished exposed. Your credit rating is yours and yours alone, and must be guarded as the valuable commodity that it is.

Credit nowadays is a necessity, carrying with it the shadow of your past behavior. It is a necessary tool when trying to get a cell phone activated, new loan advanced, credit increased, car rented, flights books, or hotel rooms reserved, so it should be monitored closely.

10 Tips to Avoid Identity Theft

Now is a good time to discuss a growing and widespread fraud that is affecting many individuals personal security and destroying their credit reputation. Be aware that it could impact your life and your credit one day, and guard against it. It’s called “identity theft”.

This kind of fraud involves someone changing your mailing address to receive the credit card applications you normally receive in the mail. Once they have these mailings, they are able (over time with the following specific steps) to pretend they are you. With a credit card in their hands with your name on it, they can do many things, including destroying your credit rating in the process. If any statements stop arriving in your snail mail box, look into it right away!

Some people have experienced this type of identity theft so harshly that they have had to change their names to start a new credit history. Do not become naïve about crooked people out there who chose to earn a living stealing other people’s identity. They are using your stolen credit rating for the purpose of maximizing borrowing to the hilt, and then leaving you to deal with the problem (or bankruptcy).

Be very aware that you must closely inspect every line of all your monthly statements and that they arrive on time each month, or be suspicious. I recently learned of an unfortunate experience an individual had when they lost (or had stolen) their wallet. This US attorney experienced first hand how swiftly identity thieves actually are able to infiltrate personal information, obtain credit, and an identity. Within a week, the thieves ordered an expensive monthly cell phone package, applied for a visa credit card, and had a credit line approved to purchase a Sony computer, received a pin number from the Department of Motor Vehicles (DMV) to change his driving record information online, and much more.

10 Protective Measures Against Identity Theft

Here are 10 protective measures you can take to help secure your personal identity, and information, from these types of ruthless criminals.

1) The next time you order checks have only your initials, not your first and middle name, put on them. If someone steals your checkbook they will not know if you sign your checks with just your initials or your first name, but your bank will. Put your work phone number on your checks (not your home phone number) to further secure your personal life from someone using a reverse phone directory (a phonebook which is organized by phone numbers, and not last names) to learn your address. If you have a P.O. Box number, use it instead of your home address. Never have your social insurance number (SIN) printed on your checks.

2) Photocopy all the contents of your wallet, and keep this record in a safe place. If your wallet is ever stolen you will know exactly what was in it, including all your card and account numbers. Include a photocopy of your passport to this file for when you travel. Keep this file in a very safe place in your home, or safety deposit box at your bank.

3) Keep a list of all the phone numbers needed to call each card company in the event you need to call them to cancel their card. It is a common error that most people make, then find themselves fumbling through phonebooks and 1-800 numbers to cancel credit cards where they also have not kept a record of contact numbers, and account numbers. The sooner you cancel your cards the less time these theives have to drill into your personal affairs. Request your replacement card(s) be sent to your bank branch for your pickup. Don’t have them mailed.

4) If you experience missing statements in your mail, visit the post office outlet that services your community to ensure your address has not been forwarded to somewhere else without your knowledge. If it has been, notify the authorities immediately.

5) Try canceling your credit cards once a year and have a replacement card issued to you. This will prevent old credit card information from being used by thieves, or protect you from a thief who already has your credit card information but hasn’t used it yet. I know this sounds extreme but if you take extra steps like this, it’s very difficult for thieves and identity theft criminals to ever take advantage of you.

6) Make sure you file a Police report immediately in the community where your wallet was lost or stolen. This proves to credit providers you were diligent and is the first step toward an investigation should one be launched.

7) Call the main credit bureaus in your country (i.e., Trans Union, Experian, and Equifax) to have a fraud alert placed on your credit Bureau report. The alert means any company checking your credit Bureau report knows your information was stolen and they have to contact you personally to authorize any new credit. This prevents the identity thief from completing online credit applications in your name, as the adjudicator reviewing the application would review your credit report as part of their process and observe the alert. This step alone could save your identity, and stop the thieves in their tracks.

Change your pin and passwords regularly. Try to stay away from using numbers that a thief could easily try that they found in your wallet, i.e., your social insurance number, or birth date. If possible, incorporate combinations of letters and numbers into your passwords, especially for Internet banking. Identity thieves have also been known to transfer entire bank balances to other accounts, withdraw the cash, and then close the account to avoid detection. Don’t keep a copy of your pins or passwords in your wallet or purse – ever!

9) Buy a personal office paper shredder. They are not expensive and in your humble narrator’s opinion are necessary personal devices. Any document that contains personal information should be shredded before you throw it into the trash. This includes utility bills, bank statements, and other invoices you don’t retain your files. Identity thieves are not below stealing your trash if you put it out the night before. They may even steal it in broad daylight. Don’t make their job easy, because these bottom feeding dirt bags will go to any length to steal your identity. I remember back in the 1970s when my parents would do their tax return every year by themselves to save money, and they were burning all of their garbage that had any of their personal information written on it. They were way ahead of the curve on the identity theft problems.

Another thing you can do, if you have a fireplace, or firepit, you can go one step better by burning any papers that have your personal information on them. This is the ultimate “in your face” to identity thieves.

10) When you travel anywhere away from home (and this includes locally when you go shopping etc.) keep your credit cards and debit cards in different places and it’s a great idea to have a credit card with a very low limit on it when you are out and about. Always use the safe services in Hotel Rooms when you can, and hide all your important cards, and passports, etc., from the hotel staff (chamber maids and the like) when you are out of the room. I know it sounds ugly to suspect good and decent hard working people, but when it comes to identity theft and strangers you can’t be too careful. Don’t leave important cards and information in your car for passersby to see. If you can avoid it, don’t leave any credit cards, passports, and debit cards in your car at all. I have one credit card just for traveling, and hide my high credit cards at home in a safety deposit box, or a safe inside the house. A very big and heavy safe.

Continued in the Carol’s Borrowing Series Category of Clf.