Identity Theft Could Steal Your Credit Rating - By: John Rasor

If you aren't checking your credit report regularly, "you" could be wracking up bills and late payments that will plunge your credit scores to the bottom of the barrel.

Identity thieves have two primary methods of using your identity that will quickly destroy your financial reputation: Using your existing credit cards and Opening new credit accounts.

You've read that you shouldn't close unused credit card accounts because the more available and unused credit you have, the better your credit rating. That's true, but owning that credit card you don't use could cause you a lot of grief if you aren't careful.

Smart thieves check credit reports - and if they have your identity, all they have to do is find an account you aren't using and have "your" address changed. Next, they'll report a lost or damaged card and ask to have a new one issued - in your name, at "your" new address.

They may well use it and make the minimum payments for a short while. They may even look like model customers for a while, until the cash advance checks begin to arrive. Then, after they've taken the card to the limit, they'll quit paying.

Meanwhile, since you weren't using that card, you didn't expect a monthly statement, so you didn't notice.

You might notice, however, because soon your other credit card issuers will begin reducing your credit lines - damaging your credit score even further.

Thieves, with your personal information in hand, can also open new accounts - even purchase new cars or buy a home full of new furniture.

So what can you do to protect yourself? Several things: Keep a list of all your accounts. Get set up to check each account - including your bank accounts - on line Check those accounts regularly Order your free credit report right now, and sign up for updates Enroll in an alert service, so you know when anyone makes an inquiry or there's a change to any of the information on your credit report - such as your address.

Identity Theft protection has become a necessity just like auto and medical insurance. Its for those events in life that you can't afford like suddenly finding out you've got $100,000 in consumer debt that you had no knowledge of.

In our electronic world it is impossible to completely prevent identity theft, but you can take steps to catch it quickly and prevent it from turning your life into a nightmare.

About the Author

http://www.creditscorecowboy.com is the #1 source on the planet for a free credit report, identity theft software and a blog with a wealth of information writtten by lending professionals that know about credit and what determines ones creditworthiness.

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