SolveYourProblem eLearning Series:
Help Me Improve
My Dreadful Credit Score
(
26 pages )
Keep Your Credit Score Safe
If you have a lower credit score that you would like, odds
are that the score is caused by some small financial mistake
or oversight you have made in the past. Not every person
with bad credit has a low credit score caused by something
they did, though. Sometimes, other people’s criminal activity
can affect your credit score. There are a few tips that
can keep you and your credit safe form online and financial
predators:
Tip #8: Look out for identity theft.
Many
people who are careful about paying bills on time and having
minimal debts are shocked each year 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 get access to your accounts or
identity.
For
example, someone with your PIN numbers can remove small amounts
of money from your bank account each month or someone can
use your name and personal information to get credit cards
in your name and use those credit cards with no intention
of paying back the money. You are stuck with the large debts
and the poor credit score.
To
prevent identity theft, always check your account statements
carefully each month. Report any suspicious activity or any
charges you don’t recognize at once. Also check your credit
report regularly and immediately investigate any new credit
accounts you do not recognize - this is the best way of detecting
and acting on identity theft.
If
you have been the victim of identity theft, report to the
police at once and get a police statement. Send copies of
this to your bank and credit bureaus. Better yet, get the
credit bureaus to attach the report to your credit report,
if you can. Close all your accounts and reopen new ones.
You should not have to pay for someone else’s illegal activity.
Tip #9: Practice safe banking, safe
computing, and safe business practices.
To
stay safe from identity theft, always follow safe banking
and financial practices:
1)
Keep account numbers and PIN numbers safe. Cover your account
and PIN numbers when using debit at the store and refuse
to give your PIN number to anyone. Avoid writing down your
PIN and account numbers - you never know when this information
could fall into the wrong hands.
2)
Only do business with businesses you trust.
3)If
you get applications for credit cards in the mail that are
“pre-approved” rip up the applications and enclosed letters
before discarding them. No, this is not paranoid. Identity
thieves sometimes go through garbage in order to find these
forms so that they can fill them out and steal your identity.
4)
If you use a computer, install good firewall and antivirus
protection system and update it religiously. Better yet,
take a course in safe computing at your local college or
community center. You will learn many good tips for keeping
all your information safe while you are online.
5)
Never buy anything online from a company you do not trust
of from a company that does not have encryption technology
and a good privacy policy.
6)
Even with all computer precautions, avoid providing private
information through email or your computer. Be especially
cautious if you get an email from your bank asking you to
verify your information by clicking on a link - this is a
popular scam that comes not from your bank but from criminals
posing as your bank. Ignore the email and phone your bank
about the message.
7)
Be wary of unsolicited emails, phone calls, or mail advertisements.
Most are from legitimate companies but there are companies
who promise you a credit card over the telephone only to
charge your existing credit card without sending you anything.
Similarly,
letters will sometimes promise you specific items or services.
Once you send in your credit card information (usually to
a post office box) you hear no more from the company. If
you need or want to buy something from a company, be sure
to check the company’s standing with the Better Business
Bureau first.
Send
a money order instead of a check (which had your account
number) or your credit card information. If you do use a
credit card, report any unusual charges or any payments you
made for a product that did not arrive to the credit card
company.
In
some cases, they can stop payment or refund your money as
well as take steps to keep your credit card number safe.
8)
Be wary of offers that seem too good to be true. If you get
an offer for a ten million dollar check - for which you need
to put down $5000 as a “sign if good faith”...if you get
an offer for a free state-of-the art computer - if only you
provide your account information... take a deep breath and
consider before sending in your money and your information.
Offers
that are too good to be true always are. Scam artists often
rely on your belief in others and your trust to make money.
They depend on the fact that you will be so excited about
a product or service that you will throw good judgment out
the window. Prove them wrong.
When
faced with an offer that seems too good to be true, do some
research on the web, through the Better Business Bureau,
or ask the person making the offer some questions. Never
take someone up on an offer that you have been given unsolicited
unless the company and the offer both check out.
9)
Read the fine print. Some services or companies will have
tiny print in their contract or agreement that allows them
to charge you extra hidden fees or that allows them to retract
certain offers. If you get an offer through email or the
mail, make it a habit to read the fine print.
10)
Be alert for a sudden disruption in your mail service. If
you do not get mail for some time, contact your post office
and ask whether your address was recently submitted for a
“change of address” service. It sounds strange, but it’s
true.
One
way that criminals steal identities is to change your address
at the local post office. They redirect your mail to a post
office box number and steal your mail looking for personal
information such as bank statements, pre-approved credit
card applications, and other pieces of mail they can use
to steal your identity.
They
use this information to pose as you with lenders and run
up huge charges in your name. Simply keeping an eye out on
your mail can help you keep your credit score safe.
 
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