Fix Bad Credit - Looking out for identity theft
If you have a lower credit score than you think you should have, it’s possible that the lower 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. Sometimes, other people’s credit history and even criminal activity can affect your credit score.
Many people who are careful about paying bills on time and have minimal debt are shocked to find that they have low credit scores. In some 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 to get access to your accounts or identity.
As an example, someone who has stolen 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. When this information gets back to the credit agencies, your credit score is lowered.
To prevent identity theft, always carefully check your account statements each month. Report any suspicious activity or any unrecognizable charges immediately. Also check your credit report at least once a year 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 it to the police at once and get a police statement. Send copies of the statement to your bank and credit bureaus. Better yet, get the credit bureaus to attach the report to your credit report, if possible. Then, close all your accounts and reopen new ones. You should not have to pay for someone else’s illegal activity.
fix bad credit