Avoiding Identity Theft And A Bad Credit Rating

Identity theft is a growing problem worldwide and if your identity is stolen and

used for nefarious purposes this can have an enormous negative impact on your credit rating and this can prevent you from being approved for bank loans, credit cards and mortgages.

Stealing your identity is actually very simple. All that is needed is your credit card number and the card's expiry date and many of us routinely use our credit cards for online shopping or purchasing items over the telephone. Another way that credit card details can be acquired by criminals is from restaurants, garages and shops. Criminals have been known to use card swipe devices that will capture all of your card details enabling your card to be replicated. The first you will know about it is when you see purchases that you haven't made appearing on your credit card bills.

Another source of data that can be used to steal your identity is from your household rubbish. Your old credit card statements and bank statements are obvious sources of information that can be used to steal your identity. But utility bills for electricity, water and gas can also be used as a means of identification and this can then be used to establish accounts that would then be used to purchase items and services in your name.

To avoid having your identity stolen you must take care over what you throw out. Ideally, any sensitive documents should be shredded, or better still, burned. When using your credit card offline, in restaurants, shops and garages, never let the card out of your site. Watch carefully as the cashier uses your card and ask about any suspicious activity. Tell them that you are concerned about identity theft and want to know exactly how your card is being used.

When shopping online it's a good idea to have a credit card that is dedicated to this purpose. Be selective regarding the sites that you use. Only use reputable online retailers and always check that communications is secure.

Always pay close attention to your credit card statements and your bank statements and query anything that looks out of the ordinary. Criminals have become increasingly sophisticated in their use of stolen card details and can 'hide' purchases by making them at busy times of year, such as Christmas, and never purchasing many large or expensive items.

Identity theft has become a big issue for banks and financial institutions so it's worth approaching your bank and asking about the precautions that they employ to prevent criminal activity. Some offer services that will monitor your account and alert you and the bank to any unusual activity, such as large withdrawals or new accounts being established.

If you are the victim of identity theft the first thing you need to do is contact the police. It is essential that you file a police report in order for you to get support from your creditors. Contact your bank or your credit card provider and tell give them details of what has happened. They may freeze your account while issues are resolved and to minimise losses. They are all very experienced in dealing with credit card and bank account fraud and will do what they can to minimise the impact on your credit rating.

Taking a few basic precautions can help you to avoid identity theft and the impact that this can have on your credit rating.

by: Rex Swain

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