What is a credit report?
A credit report compiles your history of borrowing and repaying money in the form of loans and credit cards. It keeps track of when you opened each account, the amount you have borrowed, and the records of payments of up to ten years on each account. Your credit report will also include a credit score. A credit score is a number ranging from 300 to 850 that quickly tells a reviewer how well you handle your credit. The higher your score, the better you manage your credit!
Why is it important?
Banks, landlords, and employers can check your report. Companies look at your credit report to get insight into you. A good credit score will allow a person to save money through lower interest rates and premiums.
How can you improve your credit score?
- Always make your payments on time.
- Pay down revolving account balances
- Diversify the types of credit you do have.
- Dispute inaccurate information.
What is Identity theft?
Identity theft is when someone steals your personal information to benefit themselves. They might do this for several reasons; to use your credit cards, obtain a loan using your name, get a job, get medical care using your health insurance, etc. Fraudsters can use your identity by simply getting your name or address, bank information, social security number etc.
What to do?
If you suspect your identity has been stolen visit “IdentityTheft.gov” and click “Get Started” to file a report. The site will help you create a recovery plan, including assisting you with letters and forms to send to credit bureaus and other businesses, and track your progress throughout the plan.
What is a credit freeze?
As part of the recovery plan, the site may suggest placing a credit freeze. A credit freeze can be placed to stop all access to your credit reports. This is normally done when identity theft is suspected. You can place credit freezes through the three credit agencies, Equifax, Experian, and TransUnion. Once there is no longer a need for the freeze you can have it lifted, just follow the process you did to place it.