Is Someone Else Using Your Credit?

For the longest time, I have had a prompt in my calendar yearly to check my credit report.  Credit reports can be received free annually from the three major credit reporting companies – TransUnion, Equifax and Experian.  In the past, I would request my credit reports from all three companies at the same time on the website www.annualcreditreport.com .  There are numerous other sites that purport to offer free credit reports, but generally there is a catch – and a fee.  If you want to check your credit, be sure to use the right site.  Federal law allows you to get a free copy of your credit report once every twelve months from each of the three credit reporting companies. At a recent financial class I attended, the speaker suggested that rather than get all your reports at once, you should stagger them, so that every 4 months you would be checking the accuracy of your report from at least one of the companies.  Given the frequencies of data breaches, it makes pretty good sense.  Maybe you would like to put a prompt in your calendar every four months to check out your credit, rotating through the three companies. 

Once you have your credit report in hand (or on screen) you can check to make sure that there are no errors, or loans/credit cards in your name that you didn’t open yourself.  Two of my family members, I’ll call them Steve and Susan, have had their identities stolen in very different ways, but checking credit reports routinely might have tipped them off a little sooner to the problems.  In the one case, a “friend” had too much access to Steve’s financial information and was able to open new credit cards in his name, directing the mail to another post office box.  Luckily, Steve was informed about it by a mutual acquaintance who suspected what was happening.  When he requested his credit report, Steve was surprised to see how many credit cards were open in his name and their balances.  Yikes! 

Not only do credit reports show what lines of credit are open in your name and your balances, they also show payment history, credit limits and closed accounts.  Credit reports can be useful tool for those wishing to improve their credit, as they can see where they can make improvements. I have known people who have obtained their credit reports, changed their financial habits and improved their credit record after a couple years of diligence.  Improving credit after your identity has been stolen may take more time and involve a lot more hassle.

My family member, Susan, had her identity stolen by a co-worker, who unfortunately not only damaged credit in her name, but also has quite a rap sheet with law enforcement under Susan’s name.  Not only has the identity theft hurt her credit, but it has also cost her a few jobs.  She is in a profession that requires background checks and typically, employers are not inclined to hire someone wanted for drug running and prostitution; nor do they want to invest the time to wade through the identity theft situation to get to the real truth.  Imagine explaining those charges at an interview! 

Unless you check your credit regularly, you could also become victim to a thief who steals your name and your credit.  Whether you check yearly, or every four months, I encourage you put it on your calendar to guard your identity by checking your credit report.  

Resources for you:

Tips for Taxpayers, Victims about Identity Theft and Tax Returns
How to Place a Fraud Alert
Identity Theft