In the current era of mass communication and the computer era, identity theft has become a more serious problem because the transaction involving your personal information is becoming more automated.
In addition to the old method of digging credit card bills and identifying document fragments through residential waste, identity thieves can now access the Internet through social engineering capture passwords and entice people to send such details to them.
As you might expect, the impact of identity theft on your life can be debilitating both financially and psychologically.
Destroy your credit history
A more subtle consequence of identity theft is what it can do to your credit scores in the future, after the initial discovery. While most credit cards have strong rules to forgive any allegations you have made in the case of identity theft, it can take a long time to complete when a lot of corrections are needed to track the impact of the culprit. 39; action
Since these charges have been registered for a period of time before you discover the theft, these unfavorable behaviors accumulate in your credit file and take weeks or months to resolve after the theft is determined. Any important things you may need to do during the transition, such as obtaining a home loan or a car loan at a preferential rate, must wait.
One way to address this possibility is to regularly monitor your credit card account and immediately correct any suspicious allegations - no matter how small. After all, nearly 6 million households became victims of credit card fraud in 2010, which may avoid more serious violations by monitoring credit accounts more frequently.
Another viable option is the protection provided by insurance, which can recover any losses faster when your credit score is re-adjusted.
Identity thieves make false historical records on your credit file
In addition to increasing the credit utilization of your primary account, if you use too much credit and your credit limit is too high, your FICO score will be lowered and the identity thief will accumulate the late payment fee - of course, this will also lower your credit. The score is final. Since you usually don't realize that someone pretends to be you, the harmful effects can pile up.
You know, every query for which you open a new credit line or may increase your existing credit line counts your credit score after too many credit scores appear. Although the infrequent requirements will not have an adverse effect; the constant will eventually push your FICO score down.
This so-called hard query sends a signal to the loan and credit card company that you are not very responsible for money management because you may be buying credit.
The possibility of preparing identity theft by investing in insurance can greatly reduce all the resulting financial losses - and eventually reverse it completely.
In short, when you find that your credit file has been compromised, the first step you should take is to remind all three credit reporting agencies and ask them to suspend your account.
Then submit an identity theft report and start looking at your information to find obvious changes and any open accounts you don't remember. Identity theft is a rising crime, but there are some options for you to protect.
Orignal From: Identity Theft - The impact of identity theft on your life
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