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Easy Ways to Safeguard your Credit

Identity Theft

You’ve worked so hard to get an excellent credit score: you’ve paid your bills on time; you’ve kept your debts to a minimum; and you’ve kept your spending in check. It is therefore more important than ever to do what you can to safeguard your credit.

With identity theft running rampant in today’s society, it is crucial that you do what you can to protect yourself. And here’s how:

• Always take advantage of your free credit report. Few people know that they are entitled to a free copy of their credit report each year from all, three credit reporting bureaus (TransUnion, Equifax and Experian). Take advantage of this offer and carefully look over your credit history. Note that your credit history and credit score may differ quite a bit from one company to the next, so take the time to really review each of these reports. More importantly, immediately contact the appropriate credit reporting agency if you spot any errors or discrepancies.
• Always pay your bills on time. Don’t jeopardize your good credit score by failing to pay simple bills. Although they may always pay your credit card bills, mortgage and car note on time each month, many individuals don’t realize that delinquent utility bills can also hamper your good credit. So no matter what the bill, pay it on time, each and every month!
• Protect your personal information at all times. This may include shredding your bills, holding tightly onto your wallet when in public places and being selective regarding with whom you hand over your credit card. Many people unknowingly drop personal information in the garbage can and put their personal information – and their credit – at risk.
• Don’t shop online without setting up certain safeguards. Take care to only shop from trusted websites with updated security certificates, make sure your firewall and virus protection is up to date, and only use your credit card to shop online; not debit cards! Devote just one credit card for online shopping so that you can closely monitor the activity for unauthorized activity.

Should you Purchase Credit Card Monitoring Services?

Identity Theft

With all the scary stories of credit card and identity theft running rampant on the news these days, many of us feel rather vulnerable when it comes to your credit cards and the safety of our identity and personal information.

With that said, many consumers check their credit reports frequently as to ensure the safety of their identity. Many consumers also take it one step further and purchase credit monitoring services.

What are Credit Monitoring Services?

Credit monitoring services are paid services, through one of the three credit reporting bureaus: Equifax, Experian and TransUnion.  Credit monitoring services may also be provided through independent companies, such as Lifelock.

What do Credit Monitoring Services Do?

Instead of you, the consumer, checking your credit report for signs of non-authorized activity, the reporting agencies do it for you, with a price tag of around $60 to $180 per year. Credit reporting agencies, through credit monitoring services, monitor your credit report for any unusual changes and then alert you to these changes. The advantage of credit monitoring services is that you can catch any suspicious activity almost as quickly as it happens, thereby lessening your chance of being caught in an identity theft situation.

Lifelock, and companies like them, often go one step further when it comes to protecting your identity, as they review how your credit is being used and if your social security number has been compromised or used fraudulently.

Are Credit Monitoring Services Worth the Money?

According to a recent study by Javelin Research, the use of credit monitoring service has dropped off nearly 42 percent since 2008. Unfortunately, though, credit card and identity theft has risen dramatically during this time.

The truth of the matter is that most people do not think about identity theft until they have become victims themselves. Although consumers have several options when it comes to protecting their identity, paying for credit monitoring services may very well be the best defense against fraudulent credit card use and identity theft.

In addition to purchasing credit card monitoring services, you can also protect yourself by: shredding any and all personal documents; safeguarding your social security number and your social security card; and being selective about where and when you use your credit card.

How to Avoid becoming a Victim of Identity Theft

Identity Theft

Can you really avoid becoming a victim of identity theft? Perhaps not altogether, but there are several steps you can take to lessen your chances of having your personal identity hijacked.

There are perhaps two reasons why identity theft has become all-too-commonplace in today’s society: identity thieves are becoming more and more capable of using technology to access our personal information, and we use plastic for nearly everything.

We still want to enjoy using our credit cards and the freedom and flexibility that goes along with them, so here are a few tips that can help you avoid becoming the next victim of identity theft:

• Don’t abandon the use of your credit card, just become a bit more selective regarding where and when you use it. In other words, don’t shop from a website you don’t know and trust, and avoid using plastic in settings with which you are unfamiliar.
• Make it a weekly (or if you use your credit card frequently, daily event) event to check your credit card account. In other words, don’t wait for your statement to arrive to check the activity on your account. Thanks to the power of the Internet, we can create an account through the credit card company and check the activity on our card at any time of the day or night.
• Consider engaging a credit freeze on your credit report at all times. This will allow you to instantly become aware of any individual or lender that attempts to open another account or line of credit in your name.
• Check the security of your bank and make sure they have the most up-to-date fraud monitoring technology.
• Play it safe when it comes to your password, either for your bank card or your credit card. This may seem like a no-brainer, but it is vital to choose passwords that are not obvious. We often choose passwords that are easy to remember; unfortunately, these passwords are also ones that are quickly figured out by identity thieves.  Re-consider your passwords and change them, if necessary. In addition, if you think that your password may have been compromised, don’t waste time changing it, as it could spell trouble with your accounts.

Where Identity Theft Takes Place and what you can do to Protect Yourself

Identity Theft

Identity theft can take place almost anywhere, thanks to advances in technology and the increasing diligence of identity thieves. Because of the growing problem of identity theft in America, there is a good chance that, you, too will become the victim of identity theft at some point in your life.

However, even given the rampant incidences of identity theft, there are precautions you can take to better protect yourself from becoming a victim. One of the best ways to prevent identity theft is to simply become aware of the many ways in which identity thieves have found to steal your identity.

Here are some of the ways identity theft happens:

• Rooting through your trash – Yes, this is one of the most common ways identity thieves get a hold of your credit card information. The easiest way to ensure that a thief doesn’t come in contact with your personal information is to shred everything before it hits the trash.
• Fooling you through email – Many identity thieves are sending bogus emails to a great number of people, posing as their creditor and asking for information to verify an account. Always remember that your credit card company will never send you an email asking you for any type of personal information.
• Fooling you through the Internet – The next time you shop at your favorite online retailer, make sure the website address is legitimate, as there have been identity thieves that have actually produced copycat websites that look just like a trusted website, but are set up to do nothing more than steal your credit card information.
• Stealing your purse or wallet –  It begs repeating, but it is vital that you keep your wallet or purse close at hand anytime you leave the house. Most identity thefts merely take advantage of a good opportunity; namely, an individual that leaves his or her wallet or purse unattended.
• Skimming your credit card information – The next time you hand over your credit card to a waiter or sales clerk, pay close attention to where they are taking your card. Small devices, called skimmers, now enable identity thieves to quickly scan your credit card information before you even know it.

How to Protect your Child from Identity Theft

Identity Theft

You’ve probably done all you can to protect yourself from identity and credit card theft. But did you know that you also need to protect your children?

It’s true! Studies show that up to 7 percent of all reported cases of identity theft are targeted at children. However, this statistic may be much higher, due to the fact that many families do not find out about the problem until the child becomes of age and applies for credit.

One of the biggest problems lies with social security numbers. Because a child’s social security number is dormant when they are a minor, identity thieves use them to create phony lines of credit and credit card accounts. Many times, they are able to get away with this for years.

With that said, there are a few things that you should do to help protect your child from identity and credit card theft:

• There is typically no reason to give out your child’s social security number. Question anyone (even their doctor) that wants to use their social security number as their identification number. In addition, always remember to destroy any document that contains their social security number.
• Remind your children to never give out any personal information to anyone, either on the phone or online. Identity thieves count on children giving up this information freely, so take the time to teach your child about guarding his or her personal information.
• Don’t check your child’s credit report unless you suspect foul play. This may seem counterproductive, but the fact of the matter is that checking your child’s credit report activates their credit report, which then could enable identity thieves to more easily access to their information.
• Any type of solicitation with your child’s name on it could mean trouble. If you begin receiving credit card offers or calls from collection agencies, immediately run a credit report to check for any suspicious activity.
• Immediately contact the appropriate authorities if you suspect a problem with your child’s credit. Contact the Federal Trade Commission’s identity theft prevention website at www.ftc.gov.

How to Prevent Credit Card Fraud and Identity Theft

Identity Theft

Do you have the knowledge to help prevent credit card theft?

Unfortunately, many of us do not, which therefore leaves us quite vulnerable to a credit card thief. It is important to understand that credit card thieves are constantly finding new ways to steal other individuals’ credit card numbers and identity. Although we can’t always protect ourselves from credit card thieves 100 percent of the time, there are many things that we can do to help ourselves from becoming an easy target:

• Don’t let a clerk walk away from you when you are making a retail purchase. If your credit card is out of sight it can spell trouble in terms of credit card fraud and identity theft. If possible, request that the clerk remain at the counter with your credit card at all times.
• Never give out your credit card information over the phone unless you have initiated the phone call and you have researched the company’s credibility. Remember: a company will never, ever initiate a phone call and ask for any of your personal information, including credit card numbers.
• Never give out your personal information or credit card information through an email. And never, ever provide information of this kind if a company solicits you by email claiming to be your bank or credit card company.
• Never give out your credit card information on a website that isn’t secure, or one that you don’t fully trust. It is best to always shop with trusted retailers on the Internet and to make sure that your computer’s antivirus and firewall protection are comprehensive and up to date.
• Invest in a good shredder and take the time to shred all of your personal documents, including credit card statements and credit card offers.
• Don’t carry around a wallet full of credit cards. Instead, carry only the credit cards that you will need and keep the rest at home.
• Check your credit card statement carefully and immediately report any activity that you don’t immediately recognize. Remember: many credit card thieves will charge only small purchases so that many credit card customers won’t catch them!

How to Best Protect your Identity while Vacationing this Summer

Identity Theft

Summertime is upon us, and so is travel. If you are heading out for a long weekend or a dream vacation this summer, you will likely utilize your credit cards in one way or another.

With credit card usage, however, comes the risk of identity theft. One thing’s for certain: you don’t want to get caught in a financial pickle while enjoying your summer vacation, so here’s what you can do to protect yourself and your identity:

1. Take the majority of your credit cards out of your wallet or purse and carry only one or two credit cards that you plan on using during your holiday. If your purse or wallet should be stolen it will make your life a whole lot easier to call just one or two credit card companies than a dozen. While you’re at it: take your social security card out of your wallet and store it in a safe, secure place, as there is never any reason to carry it around.
2. Before embarking on your vacation, contact your creditors and let them know about your travel. If you let your creditors know the dates you will be traveling, it will avoid the frustration and confusion that comes along when they detect charges that are out of the ordinary for you and freeze your credit card.
3. Don’t let your mail sit in your mailbox for an extended period. The last thing you need is someone gaining access to your personal credit card statements because you didn’t collect your mail for days. Instead, ask a trusted neighbor or friend to collect your mail while you are away or contact the post office and put a stop on your mail until you return.
4. Keep all receipts from your credit card expenditures while you are away so that you can check your bill for discrepancies or errors.
5. Put away the debit card while vacationing and instead use your credit card. If an identity thief gets a hold of your debit card, your checking account can be drained in a matter of minutes. Although you will likely be protected from unauthorized charges on your debit card, it would pose a lot more of a problem to have your bank account money stolen than it would be to have unauthorized charges on your credit card.

Thwarting Identity Theft with Credit Report Checks

Identity Theft

It only takes a minute for a credit card thief to steal your identity, but it may take months or even years to clear you name and deal with the ramifications of identity theft.

According to Javelin Strategy and Research, nearly 11 million adults were victims of identity theft in 2009 alone; an increase of 12 percent from the year before and a 37 percent increase from 2007. Unfortunately, many victims of identity theft don’t even realize they are victims until they apply for a loan and are turned down or they receive their credit card bill with thousands of dollars in charges on it.

Under the Fair Credit Billing Act, you are only responsible for up to $50 in unauthorized charges on your credit card, provided you report the charge within 60 days. However, today’s identity thieves often go much further than just charging up your credit card. They may steal your social security number, driver’s license number and begin taking out loans and credit cards in your name. What’s worse is that they may be able to go unnoticed for a long period of time before you even realize what is going on.

Your Best Line of Defense

Because of this, one of your best lines of defense when dealing with identity thieves is to closely monitor your credit report. You may also choose to place a fraud alert on your credit report with all three credit monitoring bureaus – Experian, TransUnion and Equifax – if you think that your personal information was compromised.

A fraud alert will stay on your credit report for 90 days, during which a creditor will not issue you any credit without first verifying your identity. A fraud alert will prevent any other person from opening any type of credit in your name without your knowledge. Victims of identity theft may also choose to place an extended fraud alert on their credit reports, which will be in effect for seven years.

Keeping your Guard Up

However, to protect yourself on a daily basis, it is always best to pay close attention to all statements that come to your home, including bank statements and credit card statements. It is also a good idea to order a copy of your credit report for all three credit reporting bureaus at least once a year.

You can request free reports from all three bureaus once a year, so take advantage of this opportunity.

Destroying Credit Cards the Right Way: Optimizing Protection from Identity Theft and Fraud

Identity Theft

If you have a credit card that you no longer plan to use, you probably want to destroy it. However, you will want to do it correctly, taking precautionary measures to protect your identity and your credit rating.

The first step you  should take is to contact the credit card company and ensure that the account is closed or canceled. Some people fail to do this and those who do remember need to know that it can take some time for the request to be processed. In the meantime, the card might still be able to be processed, incurring more debt for you, often at a higher interest rate, was your cause for canceling due to a change in terms and conditions. Follow these tips to ensure that your credit card is properly destroyed and you are protected. Don;t just toss it into the trash!

Scissors

It’s a tried and true method, but you do not want to cut that card just any old way. It is easy for a thief to piece cards back together and get the information they need. In this day and age, thieves can easily ruin your good name with online and telephone purchase, without ever having shown the card to a merchant.

Cut your card into tiny pieces. Be sure to cut through the numbers, cross cut, cut through the signature and make it next to impossible for anyone to piece it back together or to want to go to the effort.

Shred It

A document shredder that is designed for credit cards and cds, as well as paper can effectively do the job too. These cut the cars both vertically and horizontally, into teeny pieces, ensuring no one can get their hands on your information.

Erase the Magnetic Strip and Microchip

These are the information centers of your card. Cutting them is a great idea, but take it one step further for added protection. Before you begin to destroy the card itself, take a few extra seconds to run a strong magnet over the strip. In fact, do it a couple of times, just to be sure!

Bag It

Even though the card is destroyed, bag it separately from the rest of your trash. You may wish to double bag it and then put it in the bottom of your outgoing trash. While thieves do tend to dumpster dive, they are not likely to dig through a lot of messy stuff (like your kitchen refuse) or grab for things that are not readily identifiable. If they do find it, they have little chance of using it anyway.

Recycling

Recycling is a commendable practice to add to your lifestyle. However, tossing both your credit cards and important papers into the recycling bin without having first destroyed them is not a smart idea. These things are sorted by human beings. This means your info can be seen, and face it, there is no way for you to know who is honest and who is not. If recycling is your choice, destroy it, bag it and then toss it in the bin.

Flame Broiled

If you are worried that none of the above methods can really afford you foolproof protection, burn your credit card. Yes, it’s going to smell and it will make a mess. However, a flame broiled card is a sure way to keep your identity and your good credit safe.

Credit Card Interest Rate Hikes and Opting Out

Identity Theft Introduction

Credit card companies often exercise their right to raise interest rates for any reason at all. Even with an immaculate credit score and history and a long-term account in good standing, you might not always be free from that coming rate hike. Fortunately, all consumers have to be notified of this increase in rates before it goes into effect so they can be prepared. Most, but not all, credit card companies have an opt-out option that allows you to forgo these interest rate increases, but what doe it mean and what should you watch out for?

Opting-Out

In a nutshell, opting-out means you will send the credit card company written communication telling them your wishes to opt-out of the coming rate hikes. Be sure to check your terms and conditions closely to ensure that your company does, in fact, offer this option. Typically, you will be allowed to continue paying within the current terms and conditions until your balance is zero. However, many companies will most likely want you to pay off your balance in full or as quickly as possible and your card might be canceled, since you have declined the change. This gives you the opportunity to find a card more fitting to your wants and needs. However, you want to be careful and watch your step. There are some mistakes you just don’t want to make when opting-out of a credit card interest hike.

Don’t Continue to Use the Credit Card

If you inform the credit card company of your intention to opt-out and then continue to use the credit card in question, your use will nullify your wish to opt-out and your account will remain open. You will now be subject to the new interest rate. When your write that letter stating your intention to opt-out, set that credit card aside or get rid of it. Do not use it again.

Paying Bills

If you have some or all of your bills set up to be paid automatically using the credit card you are opting out of, be sure to change this information immediately and set up other arrangements. You do not want your bills to be late or not paid, and if your card were to be used, the nullification of the opt-out applies and you will be subject to those higher interest rates you wanted no part of in the first place.

Also, be sure that any company or retailer that you shop with online has all of your billing information updated. If the card you opted out of is stored in their system and accidentally used, it could mean voiding your opt-out and incurring higher rates. Make sure everything is up to date and all should go smoothly.

The Card

Protect yourself from fraud and identity theft by shredding or cutting up the card you are opting-out of, as opposed to just tossing it into the trash. You can also recycle your card using nifty craft ideas. Read up to protect your personal information and identity and take every precaution. Should this happen, and you are able to provide proof, the credit card company is not likely to hold you liable. However, you want to focus on prevention rather than solutions to the problem, if you can. It will save you a lot of time, effort and hassle.

Remember, you don’t have to sit back and accept the new rate increases from your credit card company. You can opt-out. Just be sure to follow the protocol to protect yourself, your finances and your credit score in the process.