Identity theft is a lot more serious as it seems. We hear about people being victims of identity theft crimes everyday in the news, newspapers, on our ride to work-everywhere. People are recently starting to acknowledge the grave threat that this crime poses. Identity theft is probably the worst crime that another individual can inflict to another individual. With the increasing number of identity theft victims, the number of identity protection grows with the trend. These programs offer security and careful monitoring of an individual's credit reports which significantly reduces the risk of being a victim. Thus, another measure that can be taken against identity theft is: Always Monitor your Credit Report.
What is a credit report?
Credit reports are very crucial documents because they contain very valuable information about your financial life. Your credit report will provide you with the totality of your credit information which has a very significant effect on your chances of getting a new car, a new loan or a new credit card. Other than affecting that particular aspect of your life, your credit card report also reflect your payment history. It would tell anyone how you repaid your loans and whether you've been diligent enough to pay them on time. Another information that can be provided by credit card reports are the amount of credit that is still available for you and how much you need to pay each month for your loans and mortgages. When a creditor has all these information, they can easily decide if they will grant your loan or not.
Why is protecting my credit report important?
If you are serious about protecting your identity from theft, then you really have to consider monitoring your credit card reports. For instance, if you apply for a car loan, the car company will first make a credit inquiry on you to check your credit status. This inquiry will then be reflected on your credit reportings. For that reason alone, if an identity thief tries to apply for anything under your name-car loans, mortgages, jobs-and the company makes a credit check, that will be clearly visible in your credit report. If you do not monitor it closely, then when your identity is stolen, you will never know it unless you're already in debt.
The law mandates that each individual consumer should be provided by the three credit bureaus with one free credit report annually. Anyone who is wise enough will ask one credit report from one credit bureau every four months. This way, he or she will be able to monitor their credit reports ever four months, and not just once a year.
It is important that you monitor your credit account so that if any inconsistencies occur, you will be able to take action immediately. The identity theft can be stopped and no further damages will be incurred. It's not enough that you get your credit card report. It is also imperative that you read through the pages and that see is there are companies reflected that you do not remember contacting. If there are, then it's always a possibility that somebody else is contacting them for you. Be very careful.