Credit Report and Id Theft
Consumer Information Your credit report by the big three Credit Companies is changing. VantageScore is a new consumer credit risk score that was developed through the utilization of information from the three companies. Some risk models are unable to score a significant percentage of consumers due to insufficient credit information. VantageScore returns more predictive scores on consumers with limited credit histories, thereby reducing the need for creditors to go through a manual review process and impose their own personal methodology to determine credit worthiness.
Limits score variability across credit reporting companies:
Leveled credit characteristics across the three national credit reporting companies ensure that any score differences for the same consumer are attributable to content differences, not the scoring algorithm. Scorecards were scaled consistently across each credit reporting company to create a score range from 501-990 that accommodate natural A, B, C, D, and F grade intervals: 901 – 990 = A
801 – 900 = B
701 – 800 = C
601 – 700 = D
501 – 600 = F Superior risk prediction:
Advanced segmentation techniques were used to create a stronger, more robust model. This results in a stronger separation of good and bad accounts and the ability to classify more bad accounts into the worst-scoring ranges. Effective Risk Management:
VantageScore is able to more effectively provide predictive scores on thin-file consumers which delivers more useful risk management for this segment. Effective Risk Management:VantageScore is able to more effectively provide predictive scores on thin-file consumers which delivers more useful risk management for this segment.
Identity theft …a growing problem, effecting over half a million Americans, according to Federal Trade Commission. Identity theft occurs when someone uses your name or personal or credit information to conduct fraudulent transactions. 42% of all complaints received by the FTC involved identity theft… Victims may be denied credit or medical benefits…have their wages garnished…find liens placed on their property…or even arrested for someone else’s crime. The most common ID theft complaints are for credit card fraud… phone and utility fraud… bank fraud… employment-related fraud… government document or benefit fraud… and loan fraud. The Federal Trade Commission estimates that victims spend an average of 175 hours trying to clear their names. Having your purse or wallet stolen is the most obvious way that a thief takes you identity. But about one in five victims knows the identity thief as a relative, roommate, neighbor or co-worker…according to the FTC ID Theft Data Clearinghouse report. These ”friends” walk off with personal information you innocently leave on your desk, in your file cabinet or briefcase. “Dumpster divers” rifle through your discarded credit card receipts. Play it Safe
Clearly theft can come from anywhere…but by taking some important actions you can make it harder for thieves to “clone” your identity. Contact creditors if you haven’t received your bills. Identity thieves may file a change of address notice to reroute your mail to them. Scrutinize your credit card and other financial statements to ensure all transactions are yours. Immediately report anything unusual. Shred or tear up credit card receipts, unused “convenience checks” and ATM receipts. Don’t give out your credit card number, Social Security number or bank account information over the phone or on the Internet unless you initiate the contact or have a business relationship with the company. Put a lock on your mailbox and deposit your mail in a postal mailbox… rather than leaving it in your own for the carrier to pick up. Order copies of your credit report at least once a year… and check for unauthorized activity. The three major reporting companies are Experian, Equifax and Trans-Union. Carry only credit cards and identification you actually need… “Audit” your purse or wallet… and remove unnecessary items such as multiple credit cards. Shop and conduct financial transactions online only if you’re sure the site or your browser encrypts or scrambles, data….Newer versions of Explorer and Netscape come equipped with 128-bit encryption. On web sites, look for a security statement or a lock symbol… often in the lower right corner of the browser window…to indicate that the site encrypts data. Create unique passwords and personal identification numbers…PIN’s…that don’t use publicly available data… And never keep these passwords in your wallet. Take Action
If you do think you may be a victim of identity theft act quickly… The thieves will! Contact your local police department. Creditors may require a police report as proof of a crime before absolving you of wrongful debts. The Fair and Accurate Credit Transactions Act (H.2622)… which passed the House… provides for more effective ways to put fraud alerts on your credit reports… and makes it easier for banks to distinguish and block fraudulent changes to your credit. Cancel your credit and debt cards… get different account numbers and passwords. Close your checking account and open a new one… Report stolen checks to check verification companies such as Chexsystems www.chexhelp.com or Telecheck www.telecheck.com. Contact the fraud units of each of the major credit reporting agencies, banks, credit card companies, and utilities about the possibility of identity theft. Ask credit reporting agencies to place a fraud alert on your account and send you a copy of your credit report. Make a written request that credit reporting agencies correct any errors you find in your report. Document your actions… including the name and phone numbers of people with whom you speak. Be prepared for creditors to ask you to fill out fraud affidavits. An example is the ID Theft Affidavit form available through the FTC web site www.consumer.gov/idtheft... which is endorsed by a growing list of companies. This site is also full of other useful ideas for reducing your exposure to identity theft and if the worst happens… to clearing your good name.
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