Protecting Yourself From Identity Theft

HOW TO PROTECT YOUR INDETITY
Identity theft is the fastest growing crime in America. It occurs when someone obtains your personal information (Social Security Number, credit card numbers, etc) and uses it to fraudulently apply for credit, make purchases, or withdraw money from your accounts. It seriously jeopardizes your finances and credit standing.

Follow these steps to minimize risk:

• Don't routinely carry social security cards, credit cards you rarely use, or any other non-essential items that contain personal information. Limit the number of credit cards you have and cancel any inactive accounts. Any one of these can give an identity thief access to information and personal data. For example, with your Social Security Number, an identity theif can apply for a credit card or driver's license, access your personal recorsd, and assume your identity.
• Never leave your purse or wallet unattended at work, at restaurants, at health fitness clubs, in your shopping cart, or at parties. Never leave your purse or wallet in open view in your car, even when locked.
• When someone contacts you over the phone or internet, never give them any credit card, financial institution, or social security information.
• When you contact a company, make sure you know the company and the representative before providing any personal information.
• Destroy all checks immediately when you close a checking account. Destroy or keep in a secure place any courtesy, cancelled, or unused checks that your financial institution or credit card company mails to you. Immediately report lost or stolen check to your financial institution.
• Shred all your important papers that you no longer need, especially pre-approved credit applications that you recieve in your name and other financial information that could provide access to your private information. Shred your credit and debt card receipts, too.
• Carefully monitor financial statements (bank, credit union, credit card, investment, etc.) so that you man detect any unauthorized charges or withdrawals as soon as possible. Immediately report unauthorized use to your financial institution or credit card company.
• If regular bills failr to reach you, contact the company to find out why.
• Memorize your passwords and personal indentification number (PINs). Never keep your PIN with your ATM/debit or credit cards and never give out your PIN to anyone. Shield the ATM keypad when entering your PIN. Always request your debit and credit card reciepts and/or carbons, and take your receipts with you.
• Photocopy or list all credit and indetification cars you carry with you. Include both the front and back as wel as corresponding customer service phone numbers so you can quickly contact the issuers to inform them of lost or stolen cards. Keep this information in a secure place (not in your wallet or purse).
• Don't put outgoing mail in your mailbox. Take the time to drop it into a postal service (especially bill payments). Identity thieves can obtain personal informatino by stealing outgoing mail.
• Order a copy of your credit report and check it for accuracy. You can do this online by visiting www.annualcreditreport.com. The law requires each bureau to provide you with a free copy of your credit report once every 12 months if you request it.

Although there's no foolproof way to protect yourself from identity theft, these safegaurds make it more difficult for an identity thief to steal your personal information. It's worth the effort to take the precautions.

WHAT TO DO AFTER IDENTITY THEFT?

If you suspect that you're a victim of identity theft (i.e., you notice unauthorized transactions on your credit card or financial institution statements), you need to act as quickly as possible to minimize the damage to your finances and your credit standing.

Here are the steps to take:

• Immediately contact every financial institution you do business with to inform them ofyour situation and to secure your accounts.
• Contact all three major credit bureaus to report the theft:

Equifax............P.O. Box 74024, Atlanta, GA 30374

1.800.525.6285

Experian..........Consumer Fraud Assistance P.O. Box 949 Allen, TX 75013

1.888.397.3742

TransUnion......Fraud Victim Assistance Division P.O. Box 6790 Fullerton, CA 92634

1.800-680.7289

• As for a Fraud Alert to be placed in your file
• As for a Victim's Statement that tells creditors to call you before opening a new account or changing an existing one.

Rebuilding your Credit

SENSIBLE STEPS FOR CREDIT REPAIR
Your credit standing is important. A good credit score lets lenders know how "credit worthy" you are and influences their willingness to give you a credit card, mortgage, or other kinds of loans. Your credit report shows these institutions how you've managed your financial responsibilities in the past. Included in credit report is information about where you work, where you live, and how faithfully and promptly you've paid your bills in the past. Other relevant information that can be found in your credit report includes tax liens, liens filed against your home, levies, court judgements, and other public records including bankruptcy.

Credit is more available today then ever before. Stores advertise "no payment" plans, credit card applications arrive in the mail, and more Americans are using credit to buy things now and pay later. Living with debit is becoming a way of life. But poorly managed credit can become a slippery slope landing you deeply in debt facing a long road to recovery.

HOW TO REPAIR BAD CREDIT
Many people who have overextended themselves feel hopeless about their situation. Recovery is not easy, but it's possible. Here are a few tips that can help you get back on track.

• Be Wary of credit repair clinics ~ Many people think this is the only option they have and take advice that isn't in their best interest. These clinics make bold promises about erasing bad credit and turning your life around in a short period of time. Remember, if it sounds too good to be true, it probably is. The fees a credit repair clinic charge can be substantial and they may use tactics you don't approve of. There is nothing a credit repair clinic can legally do for you that you cannot do for yourself free of charge.
• The Federal Trade Commissions has issued the following caution to consumers about these types of clinics: "Not only CAN'T they (credit repair clinics) provide you with a clean credit record, they may be encouraging you to violate federal law. If they ask you to make false statements on a loan or credit application, misrepresent your Social Security Number, or advise you to get an Employer Identification Number from the IRS under false pretense, you'll be committing fraud."
• Get good advise ~ As a member of a credit union, you have access to free information and guidance from a credit union representative. They can help you develop a debt plan, work through specific debt problems, and help you prevent financial problems in the future. You might also find help at your local community college or by talking to your employer.

BE PROACTIVE

• Contact your lenders ~ Many lenders will work with your to set up a different, more manageable payment schedule.
• Order a copy of your credit report ~ You can do this online by visiting www.annualcreditreport.com. The law requires each bureau to provide you with a free copy of your credit report once every 12 months if you request it. Once you have your report, check it for accuracy.

CHANGE THE WAY YOU MANAGE YOUR MONEY

• Pay bills earlier ~ Late payments can negatively impact your credit report and cause you to get behind with your monthly bills. Rather than waiting until the last minute, begin paying your bills as early as possible. When you have extra money, use it to make additional payments that will allow you to pay the debt off earlier than scheduled.
• Pay with cash ~ While your paying off your debt, make a commitment to stop using credit cards altogether. This will help you change old habits and force you to only purchase what you can afford.

Recovering from bad credit takes time, persistence, and a commitment to clear up past obligations. There's no magic solution, but there are resources available to help you succeed. Preparing a debt repayment plan and following it faithfully are the best ways to rebuild credit.