Credit 101 - Identity Theft Prevention

When it comes to home loans, or loans in general, your credit score plays an integral role. I often have clients ask how they can get their credit score up or fix errors on their reports. I have even had people contact me that have been victims of identity theft.

So to address this growing fraud issue, I wanted to start by giving some tips on preventative measures to protect your credit. Here are some things to consider-

1) Use Unique or Unpredictable Passwords

2) Secure Personal Information:

In your home

• Lock personal information in a filing cabinet or safe.
  


• If you're planning to be away from home and can't pick up your mail, call the U.S. Postal Service at 1-800-275-8777 to request a hold.


• Tear or shred your charge receipts, copies of credit applications, insurance forms, or anything else that may contain personal information.
  


• When ordering new checks, pick them up from the bank instead of having them mailed to your home mailbox.

On the phone/mail/Internet

• Identity thieves are clever, and have posed as representatives of banks, Internet service providers (ISPs), and even government agencies to get people to reveal their SSN, mother's maiden name, account numbers, and other personal information. Before you share any such information, confirm that you are dealing with a legitimate organization.
  

On your computer

• Update virus protection software and patches for your operating system and other software programs regularly. There are many good antivirus and spyware detection programs on the market right now.
  


• Do not open files sent to you by strangers, or click on hyperlinks or download programs from people you don't know. Be careful about using file-sharing programs. Opening a file could expose your system to a computer virus or a program known as "spyware," which could capture your passwords or any other information as you type it into your keyboard.
  

3.) Check Your Credit Report:
One of the most important ways to protect yourself against Identity Theft is to check your credit report status often. If you haven't checked your credit report lately you can do so with Equifax. Also, there are companies such as LifeLock, that specialize in the prevention of identity theft rather than the reporting of it and offer a $1 million guarantee.

In my next blog I will discuss further prevention techniques such as removing yourself from marketing lists, email lists and telemarketing lists.