How Identity Theft Affects Your Credit Score & What You Can Do About It

 

According to Javelin Strategy & Research's 2018 Identity Fraud Study, there were 16.7 million occurrences of identity theft in 2017, a "record high," according to the research. Despite efforts to combat identity fraud, scammers have been able to attract an increasing number of victims, according to the report. Last but not least, identity theft has resulted in a total loss of $16.8 billion.

And if you believe you have a good chance, think again. In 2017, about 1 in every 15 people was a victim of identity theft. It's possible that you'll be a victim of identity theft at some point in your life, and if that happens, it can wreck your credit and make your life a living hell.

We'll look at how identity theft damages your credit, how to repair it, and what you can do to protect yourself in this post.

HOW DOES IDENTITY THEFT OCCUR?

In a word, identity theft occurs when a thief obtains personal information about you, such as your name, social security number, bank account information, or credit cards. They can obtain lines of credit in your name, make transactions on compromised credit cards, and even claim your tax refund once they have this information. This is done in a variety of ways, depending on the individual.

Thieves may be able to piece together all of the information they need to steal your identity by going through your trash. They have a habit of stealing your mail. In other circumstances, thieves utilize a practice known as phishing, in which they send you an email that appears to be from your bank or other reputable institutions, requesting that you update your username and password, but it's actually a ruse to gain access to that information.

THE IMPACT OF IDENTITY THEFT ON YOUR CREDIT

The most common technique for criminals to damage your credit score is to make transactions in your name and then fail to pay for them. If you already have bad credit, it could take years to repair the damage, making it difficult or impossible to obtain credit. Even if the theft is discovered and reported to the appropriate credit agencies, victims still face a difficult time repairing their credit.

When a criminal makes purchases in your name and then fails to pay, not only will the late payments appear on your credit report, but the account will almost certainly be turned over to a collection agency, which will result in yet another blemish. When people are the victims of identity theft, it's not uncommon for them to lose 100 points or more, even if they have good credit. Finally, the victim is frequently unaware that their identity has been stolen until it is too late. The creditor may sue the victim if these false debts are unpaid for a certain amount of time.

You can challenge this in court, but it will cost you money and take a long time.

HOW DO YOU GET RID OF THE PROBLEM?

The first step is to alert your credit card providers and bank as soon as you feel your identity has been stolen. Tell them what happened and start working on a solution with them.

The next step is to terminate any accounts that have been opened in your name and get any cards that have been hacked reissued.

Another action you can do is to use a fraud alert to put a freeze on your credit. This warning is valid for 90 days and requires lenders to take extra efforts to verify your identification before allowing you to open a new account. If the harm is more extensive, you can request a credit freeze, which prevents anyone from accessing your credit report and allowing them to register new accounts in your name.

It's also critical that you be alert and challenge any strange charges with your creditors.

When the damage to your credit is significant and complex, you may need to engage the credit repair services of a professional organization that specializes in repairing credit that has been harmed by identity theft. You can choose from a variety of internet companies or a law company that specializes in this type of service. Using the services of an agency may be the best option because it relieves you of the stress and load, and you may often achieve better results than if you went it alone.

WHAT YOU CAN DO TO PROTECT YOURSELF

Here are a few things you can do to lessen your chances of becoming a victim of identity theft.

  1. For online banking, use strong passwords.
  2. Avoid clicking on links in emails that request personal information.
  3. Keep an eye on your credit report.
  4. Before discarding personal documents, shred them.
  5. Never, ever, ever give out personal information over the phone.

RELATED ARTICLES:

https://thephenixgroup.com/credit-repair

https://thephenixgroup.com/the-case-for-hiring-a-credit-repair-company/

https://thephenixgroup.com/how-do-credit-cards-work




Comments

Post a Comment

Popular posts from this blog

Can Your Credit Limits Be Reduced?

Image
  It's typical to have your credit limit cut, even if you've been excellent with credit and completed all of your payments on time. Your credit score may suffer if your credit limit is reduced by a creditor. However, you should be aware that there are things you can do – both on your own and with the assistance of a credit repair firm – to minimize the harm to your credit and to correct the problem if this occurs. WHY WOULD YOU REDUCE YOUR CREDIT LIMIT? So, your credit card provider sent you a notice informing you that your credit limit has been reduced. It happens all the time, and while it's inconvenient since it restricts your spending power and damages your credit score, you don't have to accept it. WHY WOULD A BANK REDUCE YOUR CREDIT LIMIT IN THE FIRST PLACE? Banks may analyze outstanding risk, which is typically unused credit, during times of financial crisis or recession. In order to reduce the risk to banks in uncertain economic times, the bank may reduce your ...
Read more

Misconceptions About Credit Repair

Image
If you need to restore your credit, speak with a credit repair counselor. Many credit restoration firms can help you get rid of even your largest debts in a matter of months. A counselor will know better than you what measures to take and which avenues to pursue when consolidating debt and establishing fresh credit. Here are some of the greatest techniques to assess your credit situation...these are your choices: 1. The general derogatory bad items on your credit report will disappear after 7 years, while public record entries (judgments, tax liens, bankruptcies, and so on) will disappear after 7-10 years. 2. You can pay any sum less than 50% of the debt to each creditor or collection agency, which they will not accept. So, simply do the math. 3. You may employ a legitimate credit restoration firm like CreditRepairSweep.com to perform the job...in an industry where 90% of credit repai r organizations are scams, we take satisfaction in obtaining results for each and every client. You s...
Read more

The Benefits of Hiring a Credit Repair Firm

Image
  The good news is that we now live in a time when software can help us do almost everything. The bad news is that software can only go so far in replacing professional services. You can buy software for everything from filing taxes to boosting your credit score, but it's best to give your valuable credit score to pros when it comes to the latter. The main reason is that credit restoration software will demand you to do 99 percent of the work, and unless you are a credit expert, you will not benefit much from it. The following are some of the reasons why hiring a credit repair lawyer is preferable to employing credit repair software. TIME IS SAVED BY HIRING A PROFESSIONAL Repairing your debt can be a time-consuming experience until you realize that boosting your credit is as simple as making a request for investigation to one of the three credit agencies. When it comes to holding a creditor accountable for fraudulent reporting, lawyers may be required in some situations. You will ...
Read more