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What if there were two of me?
From Spencer Corzine
Protect yourself from identity theft
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Most of us spend hundreds of hours and thousands of dollars each year to protect our lives, homes, vehicles and children from crime. But are you spending the couple of hours every year that it takes to protect yourself from the fastest growing crime in America? Identity theft according to a September 2003 report by the Federal Trade Commission has affected 27.3 million people over the past five years. Almost 50% of the victims did not even know their information was stolen. There are steps you can take to protect your identity akin to purchasing insurance on your home and teaching your children not to speak with strangers.
Your credit report is a history of ALL credit transactions, loans and late payments retained by one of the three main reporting agencies. (Experian, Equifax, Transunion) Included on your credit report is a list of open credit cards and loans, closed accounts, delinquencies, total available credit, length of your credit history and more. Your credit score (FICO) is based on the information in your credit report and for most people scores will range from 500-800.
Credit reports and scores are available for a nominal fee by visiting the three main reporting agency websites or www.myfico.com. Beginning in September of 2005, you can access a free copy of your report annually by going to annualcreditreport.com or calling 877-322-8288. Not all free credit reports are the same so be aware of fictitious solicitations offering a free report.
There are two reasons to review your credit report on a regular basis. If you will be applying for credit or a loan in the next twelve months improving your credit score may secure a better interest rate. An improved score may also lower your auto and homeowners insurance rates. The second reason to look at your report is for protection from identity theft. Identity theft is someone using your name, date of birth, social security number and other personal information to apply for credit in your name without your permission. According to a study performed by the Identity Theft Resource Center it takes an average of 600 hours to get back your credit and good name if you are a victim. Not only will identity theft leave you feeling vulnerable but until it is cleared up you may have trouble applying for a loan and be hounded by creditors.
Upon review of your report, there are steps you can take to protect your data and identity. First review the report for accuracy. Look for credit cards that you do not recognize or payments marked late that you know were paid on time. If you notice discrepancies notify the reporting agency and the creditor immediately. Closing unused cards can also help protect your identity but since part of your credit score is based on the length of your credit history, closing a card may actually reduce your score. The most important thing you can do to protect your identity is to run your report on a regular basis and look for anything fishy.
Keep track when applying for new credit or loans even if you do not open the account. Cross reference this information with the data provided on your report. Most of the credit reporting agencies have a monitoring service that will notify you of changes in your report for a small monthly fee. Another way to protect your identity is to reduce the number of pre-approved credit card offers received in the mail. This can be accomplished by going to www.optoutprescreen.com or calling 888-567-8688.
Identity thieves believe in equal opportunity and it does not matter to them if you have a thousand dollars or a million dollars. Running your credit report at least twice a year is a great way to combat the thieves. One way to remember to run your report is to link it up with a task you do on a regular basis. For example, when you change your clocks and test smoke alarms would be a great time to take 30 minutes and run your report.
Additional information about credit reports and identity theft is available at www.myfico.com and ftc.gov/freereports.com.
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