Identity theft is an unfortunate reality for consumers. What can consumers do if suspicious their personal identification is being used fraudulently?
What is a Fraud Alert?
A fraud alert is attached to your credit report and initiates creditors to directly contact you during an application process. The alert indicates your personal information is at risk. A creditor then must verify you are truly applying for the line of credit.
While a fraud alert makes creditors verify your application, it is not nearly as effective as a credit freeze.
How does a credit freeze work?
Credit bureaus cannot access your credit report when a security freeze is placed on your report. You must contact all three credit bureaus to place the freeze. When a security freeze is placed on your report, thieves will not be able to achieve any lines of credit simply because creditors won’t be able to access a credit report to approve the application. When you want to legitimately apply for a line of credit, you would use a personal pin code in order to release your credit report to the creditor-temporarily. A security freeze will last as long as you want it to, you place it and you lift it.
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Most people do not understand or even know that their credit score affects their insurance rates. You can take two people with the same age, driving records, neighborhood, cars and family members and each one could have a different insurance rate. The reason would be the FICO score. Insurance companies use the FICO score as a way to determine your rates through their own systems of scoring. Your neighbor with the exact same conditions could have a higher FICO score because of good credit, while your score is lower because of less than perfect credit.
ReplyDeleteI tend to agree that consumers are to a degree at fault, they see the word free, and just jump in without reading the fine print, then they complain afterwards.
ReplyDeleteWe must all start taking responsability for our actions
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