Deflate Your Credit Card Rate

In 2002, there were approximately 500,000 identity theft victims costing banks and credit card companies about $5 billion because they ultimately pick up the tab. The average victims will spend $1,374 and 175 hours cleaning up their credit report. Identity thieves rob more than 500,000 Americans every year. These steps will help you reduce your risk of identity theft.

Enforcing Your Rights

1. Closely protect your Social Security Number because it is the key to your credit report and banking accounts and is the prime target of criminals.

2. Monitor your credit report as it contains your Social Security Number, present and prior employers, a listing of all account numbers, including those that have been closed, and your overall credit score. After applying for a loan, credit card, rental or anything else that requires a credit report, request that your Social Security Number on the application be truncated or completely obliterated and your original credit report be shredded before your eyes or returned to you once a decision has been made. A lender or rental manager needs to retain only your name and credit score to justify a decision.

3. Shred all old bank and credit statements and "junk mail" credit card offers before putting them in the trash. Where possible, use a crosscut shredder.

4. Remove your name from the marketing lists of the three credit reporting bureaus to reduce the number of pre-approved credit offers you receive.

5. Add your name to the name-deletion lists of the Direct Marketing Association's Mail Preference Service and Telephone Preference Service used by banks and other marketers.

6. Do not carry extra credit cards or other important identity documents except when needed.





Credit card transfers


Be very careful why you do credit card transfers. Credit card fraud happens quite regularly, especially id theft. That is why you should be very careful using credit card information. Read more...



7. Photocopy both sides of your license and credit cards so you have all the account numbers, expiration dates and phone numbers if your wallet or purse is stolen.

8. Do not mail bill payments and checks from your home mailbox because they can be stolen and washed clean in chemicals. You should take them to the post office.

9. Do not print your Social Security Number on your checks

10. Order your Social Security Earnings and Benefits statement once a year to check for fraud.

11. Examine the charges on your credit card statements before paying them.

12. You should cancel all unused credit card accounts.

13. Never give your credit card number or personal information over the phone unless you have initiated the call and trust that business. Don't give a bank account number or Social Security number to any person or company you have doubts about. A company that has only a Web site or mailbox drop should raise suspicions.

14. Don't leave credit card receipts lying around.

15. Subscribe to a credit report monitoring service that will notify you whenever someone applies for credit in your name.

Credit Card Applications - Getting Approved

The Internet is replacing more traditional methods of scamming individuals, including the phone and mail. Of the complaints that weren't related to ID theft, half had some connection with the Internet. Consumers were contacted online, responded to Web ads or made a questionable transaction entirely on the Internet. Of the consumers who complained about fraud, only 23% were contacted by phone. Nearly 20% of suspected frauds were done through bank debits, according to the Federal Trade Commission.

It has been reported that 700,000 people were victims of identity theft in the United States in 2002 based on Federal Trade Commission figures. A new survey by Gartner indicates that as many as 7 million Americans feel that they have been subjected to some form of identity theft.

Recently, the country's top 100 financial institutions have approved a “uniform affidavit,” a single report that banks and credit card companies would accept from identity theft victims rather than require multiple statements.

Credit card companies don not bear all the costs of the fraud. When a credit card is obtained through identity theft is used to buy products, the retailer that sold the goods often takes all the loses in addition to a $10 to $100 transaction fee, despite the fact that the credit card issuer sent out the card and provided authorization codes for approved purchases.

The non-profit Identity Theft Resource Center indicated that Capital Bank, CitiBank and Chase are taking proactive steps by contacting credit rating firms to verify the identity of the person seeking credit.

Credit Repair for Credit Scores