“What is identity theft?”? you might ask. It is defined by the Federal Trade Commission (FTC) as “fraud committed or attempted using the identifying information of another without lawful authority.”? In other words someone steals your personal information like your social security number and tries to pass themselves off as you. Thieves can obtain loans or credit cards, assume your persona and/or commit crimes as if they were you. You may think identity theft only happens on rare occasions or only in movies, but this criminal activity is becoming more and more prominent, prompting intelligent individuals to protect themselves.

So, how do you protect yourself from this type of crime? The primary action is prevention. You shouldn’t live in fear but you should use well thought out precautions.

Preventative Measures

Do not readily give out your social security number. One instance that comes to mind is when you register at the emergency room. They give you a short form asking your name, social, and your symptoms. There is no reason to write your social, they’re going to ask for your insurance and personal information later. Registrars oftentimes leave these lying around in plain sight of others.

Your children’s information is also at risk. If your doctor’s office gives you paperwork asking for their social, don’t give it to them. All they need is your insurance numbers to file claims. Just because you are in a professional setting doesn’t mean the receptionist or cleaning crew aren’t criminals. I know this might sound like I’m going overboard, but if they don’t “need”? this information don’t give it to them.

Credit card numbers, pin number, passwords, and residence information should also be protected. Cover up the numbers on your cards when you are swiping them at the supermarket. Put your back to the people behind you when you’re entering your pin. Never share your pin number or passwords with anyone and be creative when choosing them. Don’t use obvious numbers like your birth date, family name, or address number. These are the first things thieves try. If your cards are stolen, thieves are likely to have your driver’s license with your address and birthday on it.

Think about how many websites ask for your name, address, credit card number three-digit code found on the back of your card, and the expiration date? Keep your credit cards locked up at home. Carry only the cards you will use when you go out. Separating them in one wallet and your driver’s license and cash in another is a great idea and keep one or the other in your pocket or jacket. Pick pockets might get one, but without the other, it is more difficult to use your cards. Always sign your credit cards on the back with “ask for photo ID”? to prompt cashiers for proof you are the cardholder. Most cashiers will then ask for a driver’s license, but not always. In that situation, it is perfectly appropriate to bring this to the attention of the cashier or manager; they may be ignorant to your purpose. Just consider this as your way of helping others who use this precaution.

Unsolicited mail for credit card offers, credit card statements, and doctor bills should be guarded. Use a mailbox that can be locked. You can also request paper statements be stopped and instead have them mailed to your e-mail. Why? This type of mail hold information like where you bank, account numbers, among other personal information. By asking these to be e-mailed, you will need to log-on to secure websites. User names and passwords are necessary for anyone to obtain this type of information.

When it comes to unsolicited credit card offers, loan offers, offers to refinance or take equity out on your mortgage, sign up with the FTC’s national “Do Not Mail Registry”?. This will massively reduce bulk mailings. Purchasing a shredder and shredding this type of mail is another means of protection. If it has your name on it and you don’t need it, shred it.

What about your tax returns, financial files, unused checks, and credit cards not being used? Keep them locked up in a fire-proof, combination safe that is bolted into the ground somewhere obscure in your home. Is this really necessary? My answer is an emphatic “Yes!”? Think back to your pickpocket, did he get your wallet with your driver’s license and address? If so, who is to say they are not a burglar as well. They’ve checked you out and now they want more. It’s just plain stupid to leaves these items laying around your home waiting to be used for their benefit.

Identity theft is something real we have to deal with today and you are not an exception. Thieves are lurking everywhere waiting for the opportunity to become you and unfortunately, you will be left with the burden of their actions.

Have you seen your credit report recently? Chances are you haven’t. You may not even know the relevance or significance this report has, well here’s to opening your eyes.

Your credit report is your financial history in regards to lending and spending habits. You may not be looking at your credit report but others have and probably will in the near future. You may not know it but everyone from new employers, insurance providers and banks all look at it, and you need to know what they’re looking at!

Why Should I Care About My Credit Report?

The impact a clean or tarnished credit report can have is more wide spread than you would think. It can affect anything from car insurance rates, to interest rates on loans or standard Lines of Credit to something as trivial as a denial on services such as cell phone coverage. The worst part of all of this, inaccuracies on a credit report are not as rare as you would think.

In 2004 a survey by U.S. PIRG, (Public Interest Research Groups) Found that 1 in 4 credit reports found errors serious enough to result in denial of credit. 1 in 4! How can you fix your report if you have not seen it. Your report includes information regarding from credit cards, balances and anything financial. Sometimes mix ups occur with people with similar names or addresses, and since lenders have no obligation to share information, reports can be missing information all together.

It’s been estimated that 60% of those looking for a loan have not seen their report, and many have errors. This could be a threat to a possible mortgage.

How Can I Obtain My Own Credit Report

Equifax, Experian and TransUnion are three companies that work in credit reports, they gather information and then sell it back to you for a price. However, you are entitled to one free credit report per year per company. With some exceptions if you are; victim of identity theft or denied for insurance or loan app.

AnnualCreditReport.com is the easiest way to gain access to your reports. There are other sites, but this one is proven safe and why wander into unsafe territory, especially since to receive your report you must enter sensitive information such as your Social Security Number along with birth date and any other information they choose to ask to verify your identity.

Once you have been accepted you choose the company you wish to receive your report from, Equifax, Experian or TransUnion. You verify more information to confirm your identity. Once verified you will be taken to your report. If you are not computer savvy you can call 877-322-8228 instead to get your report, this could take up to 15 days however.

Anything Else I should Be Aware Of?

Beware, each company will be trying to up sell you along the way. They are a business after all. It does cost about $10 for each report after the first one. Another thing you may be interested in is your credit score. This is a number that ranges from 300-850 based on your credit report. It basically is an interpretation of what your credit reports means to a company, this is an important piece of information to know as numbers are easy to relate to. Keep the number high and you know your credit is good. Here’s to keeping that number up.

If you like so many other consumers are trying to eliminate credit card debt, you more than likely have been told to consolidate it. Consolidation is when you combine your debt in a manner that is more affordable and that can reduce the amount of time you are paying it off.

There are two ways to go that follow: transfer debts with higher annual percentage rates (APR) to lower APR cards; transfer your debts to a new zero percent or lower interest card; and combine all your debt with a low rate, simple interest loan. We will only look at the first two options.

Obtaining a lower APR is your goal and there are two ways to do this.

First contact your current credit card companies and ask if they can lower your interest rate. They will often offer you lower interest rate, minimum payment plan than the minimum payment you currently have. You also need to stop using the card while you pay it off. They will typically do you this if you have paid your minimum payments on a regular basis.

If you can’t negotiate with them, mention that you will be transferring the amount to another card and that you will be closing your account with them. This sometimes helps them open up to other options or the agent might transfer you to a billing agent with greater resources in the interest of keeping your business.

Investigate the current APR on your cards and shift your debt to lowest rate cards. It is important to spread you debt out on several, if the amount will bring you over your credit limits.

The last option, you have to be mindful with. Apply for a zero percent, introductory rate credit card. The catch is this is an introductory rate that will last anywhere from six months to a year. They also normally put a lower credit limit than your total debt and the post introductory APR will be astronomically higher than the cards you have debt on. Your best bet with this form of consolidation is to remember the cut-off date and start all over again with a new zero percent credit card.

For either of these methods to really work, don’t accumulate more debt, make payments on time, and add some money to your minimum required payments. By doing this, you’ll be out of debt sooner and happier because of it.