How Identity Theft Impacts on Your Credit
Copyright © 2008 StraightCreditCounseling.com
Would you know what to do if you opened a department store credit card bill after only using it a few times for minor purchases and discovered that your most recent statement included hundreds of dollars in charges from a store branch that you never visited? When contacting the store, you discovered that somehow the store messed up by allowing a fraudulent customer to charge items on your account even without showing proper identification. Frightening to say, but the most recent statistics demonstrate that more than 27 million Americans have been victims of identity theft. The thieves use personal information they have collected fraudulently to make purchases on your credit cards, withdraw money from your bank accounts and obtain new credit cards. The damage to your credit can go through the roof and could potentially take months or years to rebuild.
How Identity Theft Impacts on Your Credit
Perhaps it wasn’t through a store or business that identity theft occurred, but instead your wallet or purse was stolen. If that’s the case, immediately cancel credit and debit cards and ask for replacements because your credit is now in jeopardy. Also, contact your bank and stop payment on any lost or stolen checks. Although the situation wasn’t your fault, the hardest part of identity theft is that your credit rating is going to suffer and until the charges are paid in full and the account is closed or reinstated, you will probably go through a difficult time due to a poor credit report. Based on the poor credit report, you could be denied application for credit, or be refused a refinance application.
Act Quickly If You Have Been a Victim of Identity Theft
An identity thief often gets away with their actions, leaving the victim to pick up the pieces. In as many as 95% of these types of crimes, the perpetrator is never caught, so needless to say, identity theft is a very serious matter and should be handled quickly. If you suspect that you have become a victim of identity theft, it’s important that you act immediately by paying attention to the warning signs. Some of the most obvious signs to look out for include the following:
- A company you generally do business with alerts you to the fact that your personal information has been disclosed and fraudulently obtained
- You receive a bill from a credit card account that is unfamiliar to you
- You see charges on your credit card bill that you didn’t make
- You are contacted by a collection agency about a debt you never made
- Your bank or credit statements have not arrived on time
- Your credit report shows inquiries you never authorized
- You are refused a credit card loan because of unauthorized debt on your credit report
What You Should Do if You Suspect Identity Theft
If you find you are confronted with potential identity theft, the first thing you should do if you suspect identity theft is to file a police report with your local law enforcement agency. Be sure to keep a copy of the report since many banks and credit agencies will not look into the situation without a police report. Next, you should contact the three primary credit reporting agencies including Equifax, Experian and Trans Union. Tell them you suspect identity theft and have them put a freeze on your report. Also request a copy of your credit report regularly and look for any unauthorized activity or any inaccuracies. Contact creditors by phone and in writing to cancel accounts.
Three Primary Credit Reporting Agencies
When making a report to the credit reporting agencies, usually when you alert one, that reporting agency will alert the others. But to be on the safe side, the following are the addresses and phone numbers of each credit report agency:
Equifax
P. O. Box 740241
Atlanta, GA 30374-0241
1-800-685-1111 (request report)
1-800-525-6285 (report fraud)
www.equifax.com
Experian
P. O. Box 2104
Allen, TX 75013-2104
1-888-397-3742
www.experian.com
Trans Union
P. O. Box 2000
Chester, PA 19022-2000
1-800-888-4213 (request report)
1-800-680-7289 (report fraud)
www.transunion.com
About the Credit Counselors at Straight Credit Counseling
We at Straight Credit Counseling do everything we can to help individuals and families get back on track and totally out of debt. Credit Counseling services offered by Straight Credit Counseling helps individuals repay their debts by using careful budgeting and management of money strategies. A qualified counselor offers advice on how to manage outstanding debt as well as answering various credit questions. If you are ready to improve your credit, the team at Straight Credit Counseling is available to conduct a no obligation consultation. To arrange for a session by phone, please feel free to e-mail us at info@StraightCreditCounseling.com. Contact us today and rest in the knowledge that your credit report will soon be one that you’re proud to present.