Consumer Bad Credit Guide

Welcome to the consumers guide to bad credit!




Preventing Identity Theft


Identity theft is an act of using a individual's personal information, such as their name, account number, driver's license, health insurance card, or Social Security number, without their permission to use the assumed identity to commit fraud or theft. This stolen identity is then usually used to obtain loans or credit card accounts. This can lead identity theft victims left with bad credit and destroyed reputations.

There are precautions that can be taken for preventing identity theft such as the following:

Keep track of personal information and only share the information with companies that is known and trusted. Don't carry your Social Security card in your wallet or write your Social Security number on a check. Give your Social Security number only when absolutely necessary. If your state uses your Social Security number as your driver's license number, ask to substitute another number. Do the same if your health insurance company uses your Social Security number as your policy number.

To deter an identity thief who may pick through your trash to steal your personal information, always shred and destroy your charge receipts, copies of credit applications, insurance forms, physician statements, checks and bank statements, expired charge cards and credit offers you receive in the mail. It is also recommended that you deposit your outgoing mail containing personally identifying information in post office collection boxes or at your local post office, rather than in an unsecured mailbox. Try to remove mail from your mailbox as soon as possible and if you are planning to be away from home and can't pick up your mail, contact the post office and request a vacation hold.

If you make a purchase on the internet, buy only from secure Internet sites. Look for the closed lock icon to appear at the bottom of your browser or "https" to display in the URL to check the site's security status.

Place passwords on your credit cards and bank accounts. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your Social Security number or your phone number, a series of consecutive numbers, or a single word that would appear in a dictionary. Combinations of letters, numbers, and special characters make the strongest passwords.

Keep your personal information in a secure place at home, especially if you have roommates, employ outside help, or are having work done in your house. Share your personal information only with those family members who have a legitimate need for it. Keep your purse or wallet in a safe place at work and do the same with copies of administrative forms that have your sensitive personal information.

Report all lost or stolen credit cards immediately. If you applied for a new credit card and it has not arrived in a reasonable time, call the bank or credit card company to find out if it has been mailed and when. Call your creditors if your bills do not arrive on time. A missing credit card bill could mean an identity thief has changed your billing address to cover their tracks. Make sure to contact credit card companies and financial institutions in advance of any change of address or telephone number.

Following the simple tips and advice on preventing identity theft, you can make it much more difficult for a thief to steal your identity and give yourself some peace of mind from being a victim.