Identity Theft And Your Credit Score

In most cases, lower credit scores are caused by a financial mistake or oversight you made in the past. However, not everyone has a low credit score caused by something they did. Sometimes identity thieves will assume your financial identity in order to steal from you, and in the process they lower your credit score.

Many people who are careful about paying bills on time and having minimal debt are shocked to find that they have low credit scores. In many cases, this happens as a result of identity theft. Identity theft is a type of crime in which people take your personal information and steal that information to pose as you in order to gain access to your accounts or identity.

For example, an identity thief with your PIN number can remove small amounts of money from your bank account each month, or use your name and personal information to apply for credit cards in your name. This can leave you stuck with a poor credit score and large debts.

11 ways to prevent identity theft:

1) Carefully check your account statements each month. Immediately report suspicious activity, charges, or credit accounts you don't recognize. Contact the fraud departments of the three major credit bureaus and have them place a fraud alert on your account, including a statement that creditors should call you for permission before opening a new account in your name.

2) Contact creditors associated with any accounts that have been tampered with or opened fraudulently. Talk to someone in the fraud department and follow up in writing.

3) Immediately report lost or stolen bank and credit cards. If an identity thief has changed the address on an existing credit card account, close that account immediately. Do the same with bank accounts, and when you open a new account, insist on password only access. If your ATM card has been lost or stolen, make sure that you get another one as soon as possible with a new PIN.

4) Shred any identifying information before you recycle it or place it in the garbage.

5) Do not respond to online or telephone requests for your personal information.

6) Install a firewall on your computer. This is like locking your computer. Use anti-virus and anti-spam software.

7) Carry only necessary identification with you in your wallet or purse. If possible, take only one credit card with you. Know what is in your wallet or purse in the event it is stolen or lost.

8) Regularly change your PIN & passwords. Don't use numbers that might be easy for a thief to guess.

9) Keep current on your credit report, and check it regularly to ensure it is accurate.

10) Contact the Social Security Administration If you think an identity thief is using your Social Security Number to apply for a job.

11) Contact the department of motor vehicles if you think an identity thief is using your name or Social Security Number to obtain a driver's license.

To prevent identity theft, always check your account statements carefully each month. Immediately report suspicious activity, charges, or credit accounts you don't recognize. This is the method of detecting and stopping identity theft. Also, immediately report stolen or lost credit and bank cards.

If you think you have been the victim of identity theft, report it immediately to the police and get a police statement explaining what happened to you. Send copies of this to your bank and credit bureaus. Ideally, you should have the credit bureaus attach the police statement to your credit report. You might need to close your accounts and open new ones. Ask your bank, creditors, or a legal professional what to do in this situation. If someone made purchases in your name using a credit card, the credit card company will most likely absorb those costs if you can prove you were not the one who made them.

Consider purchasing identity theft insurance, as the costs of dealing with identity theft out of pocket can be very high.


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These strategies are designed to protect you from identity theft. They are provided by Credit Repair Now.net, the web's #1 resource for powerful credit repair strategies. This article has been created to both support you in keeping your financial identity safe, and to teach you how to repair your credit score.