Your credit history refers to your past history of borrowing money, repaying that money, your employment history, bill payment history, and other factors. Your credit history become an important consideration factor when you apply for credit; hence, maintaining a good credit history is essential for you to get the best deal when you are apply for a credit.
Every year, there are hundred thousands of victims a year fall prey to someone stealing their identity and the number is increasing annually. Thus, the first step in protecting your credit history is protecting your identify. If you lose your identify and your identify is used by the identify theft for any purpose that can damage your credit worthiness, it can take several years to regain it. Thus, it’s your responsible to ensure your identify is safe and your identify can be easily stolen and it is up to you to take measures to protect it.
Many people blame the networked computers and internet as the cause of identify theft, but in fact identify theft is really a low-tech crime. Most of time, it is due to people’s carelessness that give the opportunities for other people to steal their identity. Very often people don’t even know that someone is using their name, social security number, or other identification until they are turned down for a loan or a mortgage because someone using their identify has damages their credit-worthiness. This is why the first thing that you can do to protect your identity is the check your credit report, at the very least biannually, even when you are not applying for credit.
How’s Your Identity Get Stolen?
Identify theft may call up credit bureau posing as Auto dealer, mortgage lender, landlord, employer or insurer and ask for your complete copy of credit report with all your account number printed on it. Once they get your information, they can use it for any purpose that may harm your credit ratings. Hence, it is important for you to check your credit report and report to the authority for any abnormal shown in your credit report.
Most of us like to throw junk mails into trash with shredding them first. The pre-approved credit card offer letters that you throw as junk mails can be easily taken by other people near you. The person may take the offer, fill it out with their address and then use the credit card when it arrives, ignore the bills and ignore the calls from creditors. The bad credit goes on your credit report under your name. You can avoid this theft by shredding all your junk mails before you toss them into the trash.
If you find out that someone has stolen you identity, it is important for you to act as soon as possible to notifying all the related authorities. Keep records on all the document, phone calls, and name of people you talk with because the credit card companies and credit bureaus might need these in their investigation. You also might want to put a fraud alert on your credit report by writing to credit bureaus. The fraud alert will stay in your credit report for 2 years.
You identify can be easily stolen and it can take several year to rebuild your credit ratings once it has been destroyed by the identify theft. Thus, you need to protect your identify and ensure your credit report show your actual credit-worthiness.