If you don't keep an eye on your credit and credit reports, you could be in for a big shock.
The amount of interest you pay on credit cards, mortgages, and personal loans is based on your credit report. You need to make sure it is right and accurate.
What is a service that checks your credit?
A. Many companies now offer credit monitoring services for a fee because identity theft is becoming more of a problem. Some people like to check their credit reports and personal information for free on their own, while others pay for a service to do some of the work.
A credit monitoring service will keep an eye on your credit report, keep track of certain kinds of changes, and send you activity reports. For example, if someone tried to get credit in your name, a service could let you know. Some services will also give you more copies of your credit report or help you fix problems that you find on your report.
When you think about whether or not you need a credit monitoring service, you should ask:
Does this service check my credit with Equifax, Experian, and TransUnion, the three biggest consumer reporting agencies? These companies may have different information about you, so it's important to look at all three reports.
Will the service let me know right away if there are any changes to my credit files? How will I find out?
What exactly will I get for my money? Does the fee cover daily credit monitoring, all three credit reports, credit scores, help with solving problems, or insurance coverage for costs related to recovering my identity?
How can I keep an eye on my credit?
A: Check your credit report often to find mistakes or fraud as soon as possible. Keep an eye out for entries that are not yours. This can be helped by your new right to a free credit report.
You don't have to order reports from all three CRCs at the same time. Instead, you can order one report every four months from a different CRC. So, you'll get three reports in a year and be able to check your credit report more often for changes or problems. You can also buy your credit reports at any time for about $9 each.
Protecting Your Private Information
Q: How can I tell if my credit report shows signs of fraud or identity theft?
A. Your credit report may show that someone is using your name, Social Security number, credit card number, or other information that can be used to find out who you are. Keep an eye out for these:
- new credit card accounts, loans, or other financial commitments that you didn't make;
- inquiries you didn't make;
- bad debts on accounts you opened or on accounts you didn't open;
- legal actions you're not aware of.
Q. What should I do if someone steals my identity?
A. Call any of the three major credit reporting companies' fraud departments and put a fraud alert on your credit files.
The alert means that creditors will contact you before they open new accounts or make changes to existing accounts. Whoever you talk to must tell the other two.
Close any accounts you think were opened or taken over by thieves.
Use the "ID Theft Affidavit" to dispute new accounts that shouldn't have been made.
File a police report.
Send a copy of the report to your creditors and anyone else who might need proof that the crime happened.
Send a complaint to the Federal Trade Commission (FTC).
The FTC keeps a record of cases of identity theft so that law enforcement can learn more about the crime and how it affects victims.
