When It Pays to Make a Balance Transfer

When It Pays to Make a Balance Transfer

In a perfect world, you’d pay your credit card bill in full each month. But, life happens — your basement floods, your daughter needs braces, your refrigerator dies — and before you know it, you’ve got a balance that you can’t pay off. Fast forward several years later, and you’re still carrying a revolving balance.

As a result, those balance transfer offers that show up in your mailbox each week sound pretty enticing. But you’re wary because you’ve always heard that they are simply a way for the card issuers to make even more money off of you. After all, many cards charge a balance transfer fee around 3 percent.  (This means that it’ll cost you $150 to transfer a balance of $5,000.)

But transferring a balance can get you out of debt. And not only can it get you out of the red quicker, but it can do so for less money, too. Here, three scenarios when it pays to make a balance transfer:

If you have good credit

When your credit is strong, card issuers are going to throw their best offers your way. So if you have a good credit score, it’s likely that you’re going to have your pick of 0% APR balance transfer offers to choose from. Transfer your balance to one of these cards and take advantage of the promo period, which typically offer 12 to 18 months to pay off your balance interest free. Remember though, the goal is to pay off the debt and save on interest while doing so,  so you’ll want to avoid charging anything on the old card after you clear the balance with a balance transfer.

If you have an extremely high interest rate

Are you paying 20 percent or more in interest on your plastic? If so, you have to ditch it ASAP. With that high of an interest rate so much of your payment is going towards interest that it can feel next to impossible to pay off your balance.  Transfer your balance to a card with a 0% APR introductory period  (or one with a low teaser rate) and work to pay off the balance within the promo period. If you can’t completely ditch your balance during that time, transferring it can still make sense — provided that the regular interest rate is lower than what you’re currently paying. To avoid any surprises,  be sure to read the fine print before you apply and make sure you know what the interest will revert to after the promotional period ends.  Remember to keep it open and use it now and then to keep the monthly reporting on your credit file to keep your "A" rating.  It is an odd fact lately, that the credit monitoring websites are stating that the number of credit and loan accounts on your credit report is graded as well. They are stating that whether open or closed, 22 accounts will get you an "A" rating with the new FICO scoring system.  Every account, good or bad, stays on your credit report for 7 years, so 22 accounts showing on your report is not impossible.

If you’re carrying a balance on several cards

It goes without saying that keeping track of the due dates of several credit cards can get confusing. And if you’re not diligent, you can easily miss one of them, leaving you on the hook for a costly late fee. Make your life easier by consolidating all of your balances on one card — with only one interest rate and due date to remember. And if you do tend to carry a balance on your cards from month-to-month, use the promotional period to focus on paying it off.

A balance transfer credit card can be a great way to pay off credit card debt and save on finance charges. The goal is to save on the interest and get out of credit card debt altogether. Once you have paid off your balances, focus on only charging what you can comfortably afford to pay off — in full — at the end of each month when your credit card bill arrives. By doing so, you’ll never have to worry about credit card debt and you’ll never pay a dime in interest.

If you're ready to obtain higher credit limit cards with balance transfer options, please visit:  www.FreeDebitCardStore.com

5 Reasons Why a Credit Card Is Better Than Cash or Debit Cards

In all of my years in the credit industry I’ve never heard anyone use the word “love” to describe a financial services product. That is until I heard someone use the word to describe his feelings toward his debit card. I felt bad popping his bubble when I explained why a credit card is so much better than exclusively using a debit card or, even worse, cash. Here are five big reasons why a credit card is better than cash or debit cards.

1. Try traveling efficiently with a debit card or cash.

The next time you check into a hotel ask the check in agent how much they’ll pre-authorize on your debit card? Most hotels will hold the entire amount of your stay plus more for incidentals. That means the held amount will not be available to cover other transactions. The pre-authorization of funds also applies when you rent a car as well. If you’re paying with cash you better have the entire amount of your stay available to immediately hand over to the check in agent. Point being, credit cards make it easier to travel.

2. What happens if you lose it?

When you lose your cash, either because of theft or an accident, who are you going to call to replace it? There is no one to call.  But, if you were to lose a credit card all it would take is a call to your credit card issuer and it’s very likely a replacement will show up by the next business day. In most cases card issuers will “FedEx” or “UPS” a new card so you don’t skip a beat.

3. What happens if your credit card is stolen?

Credit Card Fraud is all too common and the perception is that it can leave a sinkhole in your bank account.  Thankfully that’s not true at all.  If your credit card is stolen or otherwise compromised you’re not going to lose one penny. The Fair Credit Billing Act caps your liability on credit card fraud to no more than $50, but you’re unlikely to even pay that much. All four or the major credit card networks (Amex, Visa, MasterCard and Discover) have zero fraud liability policies, which means you’re not going to have to pay anything if someone steals your card.

4. What if you want to build or rebuild your credit scores?

If you think cash or debit cards are going to help you build solid credit reports and credit scores, you’re sorely mistaken. Debit Card Transactions are not reported to the credit bureaus because they do not represent extensions of credit. This applies to prepaid debit cards as well—they have no credit building value, at all. Credit cards are the easiest way to build your credit, and you don’t have to take on any debt in order to do so. Using a credit card for garden variety purchases (gas, groceries, dry cleaning) and paying them off either before the due date or the statement closing date is a cheap and easy way to leverage the credit card’s convenience while building credit at no cost.

5. What else in your wallet is worth $30,000?

Have you ever heard the terms “portable capacity?” Portable capacity is a fancy way of saying high value, low drag. It’s not unheard of for credit card credit limits to hit or exceed $30,000. That’s a lot of buying power in plastic form. No way your debit card or prepaid debit card will ever have that kind of buying power. And, carrying around that amount of cash is, well…I don’t even need to finish that sentence.

The bottom line is this; the only value a debit card or cash offers is budgetary control. And if you’re responsible enough that you don’t need budgetary controls (because you can control your own budget) then debit cards and cash are an across the board loser. And while many attempt to vilify credit cards as being evil, a notion that always makes me laugh, there really is no better alternative considering the buying power, fraud protections, credit building benefits and convenience.

For the best prepaid debit cards, credit cards, Checking, Savings & Secured Credit Cards to build your credit, please visit: http://www.FreeDebitCardStore.com

Credit Card Fees: How to Avoid the Fee Traps and Save Money

When does a $5 purchase cost you $30 or more? If this has happened to you, it’s probably when you put in on a credit card and went over your limit or paid late. Paying credit card fees, though, is entirely up to you. If you want to avoid the fees and keep more money in your pocket, check out these tips.

1. Only Buy What You Can Pay in Full

The argument against this is obvious: “If I could pay in full, I would have just paid cash.” However, there are benefits to using a credit card and circumstances where a credit card is necessary, but in each of these scenarios the potential fees outweigh the benefits if the card is not paid off completely and on time. Remember, typically interest is only waived when new purchases are paid off. Cash Advances and balance transfers will still accrue interest that will need to be paid off to avoid a revolving balance.  So, quickly find out your statement date and make sure you pay off your purchase the day before your statement date so your balance does not show on your credit report for that month. 

Remember to keep your balance at only 20% or less, not 20.1% in order to keep your “A” Grade when FICO figures your score for the month.  Anything between 20% - 29.99% is considered a “B”, which isn’t bad, but when you charge 30% or more of your credit limit, you look like you’re having money problems and potential lenders will pass on extending credit to you or will only offer you high interest loans and credit cards.

2. Don’t Break the Rules

Paying late and charging more than your credit limit will not only hurt your credit score, they will hurt your pocketbook. Credit card companies play hardball with these fees and it doesn’t matter if you only charged a 47-cent stamp, if you’re over your limit, that stamp could end up costing you $40.47. Use tracking software or apps like Mint or Pageonce to have your limit and balance monitored as well as to receive reminders about when to pay your bill.

3. Be Aware of Transaction Fees

Credit cards come with offers like balance transfers and cash advances. These offers come with substantial fees. Read the terms carefully to see if interest saved on a balance transfer will outweigh the cost of the fee. As for cash advances, a good reason to use one of these doesn’t come to mind—the exorbitant APRs attached to the fees make these a foolish bet. However, if you insist on taking out cash advances, try to limit yourself to one large advance instead of several smaller ones to avoid extra cost.

Taking charge of your credit card payments is the only way to benefit from the card instead of letting the fees bleed you dry.

Build Your Credit with a Secured Credit Card

Build Your Credit with a Secured Credit Card

“The only things certain in life are death and taxes.” Well, that might have been true in Benjamin Franklin’s day, but in the 21st century, you might as well add credit cards to that list. Some places, like hotels and car rental agencies, require a credit card, even if you plan on paying cash. However, if you’re new to credit or have to rebuild your credit after a major life event, like a divorce or job loss, you may not be eligible for traditional credit cards but you may be able to acquire a

secured credit card instead.

1. What is a Secured Credit Card?

A secured credit card is similar to a debit card but instead of being tied to your checking account, it’s tied instead to a cash deposit you’ve made to “secure” the card. If you put $500 on the secured credit card, you have a $500 credit limit. So why go with a secured card? Because unlike debit cards, secured cards report to the credit bureaus, so on-time payments, extra monthly payments and good behavior will build your credit score.   After a while, if you manage your account responsibly, your credit line may increase automatically without additional deposits.  Many secured credit card issuers have been known to change the status of your credit card from secured to unsecured after a specific amount of time paying on time, keeping your balance you carry around 30% of your credit limit and never going over your credit limit.  Once they do this, they typically refund your deposit to you in the form of a check.  Make sure you always keep your address and telephone information

up-to-date.

2. Where Can I Get a Secured Credit Card?

About half of the nation’s credit unions offer secured cards, so if you’re a member of a union, that’s a good place to start. One drawback with credit unions is that many only report to one credit bureau and if you’re looking to establish or rebuild your credit, you’ll want to make sure the card is reported to all three credit bureaus. If you’re not a member or your union doesn’t offer one, check out our recommendations for secured credit cards at the bottom of this article.  .

3. How Much Will a Secured Card Cost Me?

As with any credit card it pays to read the fine print. Annual fees, application fees, and monthly charges can eat up your entire balance, so make sure you shop around to find the best deal. Also, some things, like the application fee, can often be negotiable… so, negotiate.

4. How Much is the Normal Deposit?

Secured credit cards normally require an initial deposit in the range of $200-$2,000. This will be your credit limit, and over time, you may build unsecured credit on top of that.

5. Do All Secured Cards Report to All Three Credit Card Bureaus?

Having a credit card goes far beyond being able to buy shoes online. The most important part is that you’re building credit, and this can only be done if the issuer is reporting your on-time payments and other factors to the credit reporting bureaus. Some will not report, some will only report to one, and others send your information to all three. If you start receiving mailers from other credit cards after several payments, this is an indicator that they do report; however, it’s best to read carefully through the terms and conditions – or simply ask the issuer up front –and choose a card that does report.

6. How Long Will It Take Me to Qualify for a Regular Credit Card?

If you manage your new secured credit card impeccably, the credit card issuer will want to keep you as a customer. Typically after a year of good credit card management, the issuer will automatically initiate your move to unsecured credit.  If after a year your issuer does not automatically upgrade your account to a traditional unsecured credit account, give them a call and ask them to do so.

7. What Happens to the Deposit?

Whatever money you put down as a deposit gets put into an account of your choice, usually a savings account, money market or certificate of deposit. You will earn the same amount of interest on this deposit as you would if you had put it in a normal bank account. After you close your secured credit card, the deposit will typically be held for a couple of billing cycles to cover any stray charges. Ask the issuer for exact time periods.

8. What Are the Best Ways to Use a Secured Card to Build Credit?

Just like with an unsecured credit card, you’ll want to pay on time and keep your revolving utilization – the proportion of your balance in relation to the credit limit – as low as possible. Using the card regularly and paying in full will also show that you are a good credit risk. However, advisors warn to shed your secured credit card as soon as possible for unsecured credit. Even though secured cards may seem safer and encourage savings, because of their higher annual fees and interest rates, an unsecured card will be better in the long run. So, use the secured credit card as a stepping stone to build credit and learn responsibility, then move on.  If you have your secured credit card account for two years or more and it has been changed to a unsecured credit card, do not close the account before you negotiate a lower interest rate with no annual fee to keep you as a customer.  Closing your credit card accounts that have been in good standing for two years or more will cause your credit score to drop.  Yes, you can be penalized for closing a credit card account that you have kept paid on time and under the credit limit.  As odd as it sounds, it will take you a while to build your score back up after closing an account.

Our recommendations for secured credit cards are as follows and we update the list regularly:

Open Sky by Capital Bank                              $200 - $3,000. 17.5% APR. $29 Annual Fee.

Unity Visa by OneUnited Bank                 $250 - $10,000.  17.99% APR. $39 Annual Fee.

USAA Secured Platinum Card                  $250 - $5,000.     9.90% APR.   $35 Annual Fee.

USAA Secured Platinum American Express Card  
                                                                                $250 - $5,000. 9.90% APR. $35 Annual Fee.

First Progress Platinum Prestige MasterCard  
                                                                            $300 - $2,000. 11.99% APR.    $44 Annual Fee.

primor™ Secured Visa Classic Card   $200 - $5,000.       13.99% APR.    $39 Annual Fee.

primor™ Secured Visa Gold Card        $200 - $5,000.          9.99% APR.    $49 Annual Fee.

Tips for Understanding Your Credit Score

Tips for Understanding Your Credit Score

As you know, your credit score is important. How important? So important that an entire industry exists solely to monitor and report your credit score. 

So, what does your score mean? It tells lenders (companies who offer lines of credit) whether or not you’re good about repaying your debts and paying them back on time. If you pay on time and don’t carry a lot of debt, then you’re a good credit risk, and you’ll get loans, credit cards, mortgages and great interest rates. If you pay late and max out your existing cards, you either won’t be eligible for additional loans or you’ll end up with much higher interest rates.

Understanding Your Credit Score: Who Are the Major Players?

When it comes to credit reports and credit scores, there are three major players: Experian, Equifax and Transunion. These are the three credit reporting agencies, or credit bureaus, that collect information about your lending habits. These credit bureaus compile credit reports, which determine your credit score.

These reports include several factors:

-Your personal identifying information, such as current and past addresses and your Social Security Number.

-Credit accounts called trade lines, which is essentially a list of creditors who report your credit usage and payment history.

-Any public record information dealing with your finances, including bankruptcies, foreclosures, delinquent accounts, wage attachments, and anything from collection agencies.

-Credit inquiries (anyone who requests your credit report) for the last two years.

Understanding Your Credit Score: What’s in a Credit Score?

All the information on your credit report is measured and weighed, and the bureaus assign a score to your report for lenders to use. Each bureau has a slightly different way of determining your score, but they should all be fairly similar. Some factors that weigh into your credit score count more than others:

Payment history (35%). On-time payments mean a higher score. Late payments, delinquent or over-limit accounts, bankruptcies, and liens will significantly lower your score.

Debt-to-Credit Ratio (30%). This is also called “revolving utilization” and is specific to your credit card accounts. If your credit limit is at $1,000, creditors don’t want to see you maxing out the entire credit limit. Try to keep your total revolving utilization ratio as low as possible – 30 percent is good but 25 percent is better and if you really want to maximize your credit score, aim to keep your revolving utilization at 10% or less. This goes for your total revolving utilization and for each individual credit card. Maxing out your credit lines can lower your score. If you have an excess of available credit, ask your credit issuer to reduce the amount on credit lines you’re not utilizing.

 

Length of credit history (15%).  This shows how long you have been using credit and how you have managed your finances in the past. The longer your credit history, the better, so avoid closing accounts which have been opened longer, even if you don’t use them.

 

New credit accounts and inquiries (10%). This includes accounts you’ve opened recently, and recent inquiries from companies you have applied to for credit. Credit inquiries remain on your credit report for two years but are only factored into your credit score for the first 12 months. The main point to remember is that applying for a lot of credit in a short period of time can lower your score.

Diversity of Credit (10%). Having credit cards is a great credit builder, but lenders want to see that you can manage other types of credit as well, such as installment loans and mortgages.

 

Understanding Your Credit Score: Keeping Tabs on Your Credit Score

While creditors and credit bureaus are watching your credit, so should you. Experts recommend that you review your credit reports at all three bureaus at least once a year to make sure there are no inaccuracies. To order a free copy of your credit reports, use the federally mandated website at www.AnnualCreditReport.com or call (877) 322-8228.

If you do find errors, each credit report will direct you on how to file credit disputes with each of the individual credit bureaus.

In the end, your credit score is your responsibility. Making the grade is a lifelong test on which you’re constantly being graded. Turning good payment and credit usage behaviors into habit should be a top priority.

5 Steps to Take Immediately If You've Been a Victim of Identity Theft

5 Steps to Take Immediately If You’ve Been a Victim of Identity Theft

Identity theft has topped the list of consumer complaints filed with the FTC for 13 consecutive years and there’s no evidence that this year it won’t make the list for the 14th. Just how many victims of identity theft are there each year? While we don’t yet have the figures for 2013,  a Javeline report puts the numbers from 2012 at 12.6 million. Factor in the more than 70 million Americans impacted by the recent Target and Niemen Marcus data breaches, and it’s clear why identity theft is a major concern for many Americans.

Identity theft takes many forms. Some of the most common include:

·         Credit card fraud

·         False applications for new credit

·         Fraudulent withdrawals from a bank account

·         Fraudulent use of telephone calling cards

·         Fraudulent use of an IP address in order to engage in illegal acts online

·         Fraudulent use of medical care

·         Social security fraud (for tax and employment fraud)

If you know or suspect that you are the victim of identity theft, there are steps you should take immediately to stop the theft and minimize the damage.

1. Put a Fraud Alert on Your Credit Reports 

A fraud alert puts a red flag on your credit report and notifies lenders and creditors that they should take extra steps to verify your identity before extending credit. To place a 90-day fraud alert on all three of your credit reports, you only need to contact one of the three credit reporting agencies (Experian, Equifax, or TransUnion). When you place the initial alert, they will automatically notify the other two agencies for you.

Another option—and a more effective identity theft prevention measure—is to place a security freeze on each of your credit reports. A freeze prevents creditors (except those with whom you already do business) from accessing your credit report(s) at all. New applications will automatically be declined. With a security freeze in place, you will need to take extra steps if you wish to apply for new credit. Each agency has a procedure for temporarily “thawing” your file in order to allow a legitimate application to be processed and unlike a fraud alert, you’ll need to contact each agency individually to place a freeze on each of your reports. See more information about security freezes here: Experian, Equifax and TransUnion.

When you place a fraud alert on your credit reports, you’re entitled to a free copy of your credit report from each of the three agencies. Be sure to obtain them. If you find fraudulent items on your credit report(s), the simplest way to begin the dispute process is to click the item while viewing your credit report online. Some items must be disputed in writing and with supporting documentation. Hard inquiries cannot be disputed, but may give you a clue as to where a thief has applied for credit in your name.

Initial fraud alerts are free and remain in place for 90 days. In some cases, security freezes and extended fraud alerts incur a small fee, but these services are free to victims of identity theft.

2. Contact Any Institution Directly Affected

For example, if you know your credit card was stolen, report the theft to the credit card issuer. If your checkbook was stolen, contact your bank.

For this step it’s really helpful if you’ve prepared a list of institutions and phone numbers in advance. You don’t have to write account numbers down on the list – that would be just one more way for a thief to gain access to your personal information. But do keep a list of what’s in your wallet, along with the contact information for each item.

3. Contact the Federal Trade Commission (FTC)

File an Identity Theft Affidavit and create an Identity Theft Report. You can file your report online, by phone (toll-free): 1-877-ID THEFT (877-438-4338); TDD (toll-free): 1-866-653-4261, or by mail — 600 Pennsylvania Ave., Washington DC 20580.

The FTC will provide you with information about what to do next, depending on what type of fraud was (or may have been) committed.

4. File a Police Report

To complete the Identity Theft Report, you’ll need to contact your local law enforcement office and report the theft. Be sure to get a copy of the police report and/or the report number. Both your police report and the FTC Identity Theft Affidavit combine to create your Identity Theft Report. Your Identity Theft Report will help you when working with the credit reporting agencies or any other companies the identity thief may have used to open accounts in your name.

5.  Protect Your Social Security Number

If your social security number was or may have been compromised, contact the Social Security Administration (800-269-0271) and the Internal Revenue Service (800-829-0433).

It’s important to talk to the SSA if you have reason to believe your social security number has been compromised, even if you don’t yet see any evidence of financial fraud. A thief could be planning to swipe your tax refund, or to obtain employment in your name.

In addition to these five steps, if you have reason to believe the identity thief may have submitted a fraudulent change-of-address to the post office or has used the U.S. mail to commit the fraud against you, contact the Postal Inspection Service, which is the law enforcement and security branch of the post office. Fill out the online form.

This list is not exhaustive. These are only some of the first few steps. Indeed, clearing the wreckage of identity theft can be a laborious and complex process. For more information about how to prevent or recover from identity theft, the U.S. Department of Justice and the Federal Trade Commission offer a wealth of information and will walk you through the steps.

How Do You Know if Your Identity Has Been Stolen?

How Do You Know If Your Identity Has Been Stolen?

Identity theft was likely the number one complaint to the Federal Trade Commission in 2012. I can state that with some conviction because identity theft has been the number one complaint to the FTC for the prior 11 years. The question most of us wrestle with is this…how do I know my identity has been stolen?

Ground Zero…Your Credit Report

The only reason you’d be the target of an identity thief is because you have an identity.  That’s your “value” to a thief and to them it’s as good as currency. And because identity theft is a financial crime, money or access to capital is the crook’s end goal.

We all have the ability to apply for credit. Add over 10,000 creditors in the U.S to the fact that most of us have average to above average credit reports and credit scores and you’ll see that access to easy credit isn’t terribly difficult. That’s not a secret and the fraudsters know this. That’s why your credit identity is always in the cross-hair of an identity thief.

Thankfully the credit reporting system is set up in such a way that consumers can immediately see if their identity has been used to apply for credit on behalf of another person. And while credit reports are not “real time” in their reporting of account information, they are in their reporting of changes to your identification information and credit related inquiries. This makes credit monitoring an effective tool to notify you when fraud has possibly occurred.

What Changes On My Credit Report Could Be Indicative of Fraud?

While it is certainly possible that changes to your credit reports does not indicate fraud, it’s in your best interest to be cognizant of any substantive change to your personal information.  Changes to any of following areas could mean identity theft:

Address Information:

If a new address hits your credit reports it could mean that a fraudster has applied for credit in your name but with a different address. Addresses are updated on credit files when new applications for credit are submitted. This is the reason monitoring the address section of your credit report is so important.

Inquiry Information:

An inquiry is a record of someone or some company pulling your credit report, and the date on which the access occurred. If a fraudster applies for credit in your name and the lender accesses your credit report a record of the access will hit your credit report immediately and trigger an alert from a credit monitoring service.

Account Information:

If a fraudster is successful opening a new account in your name then it’s very likely that account will be reported by the creditor to one, two, or all three of the national credit reporting agencies; Equifax, Experian and TransUnion. Again, the new account will trigger credit-monitoring alerts.

New Collections:

If a fraudster opens a new account in your name he or she is unlikely to make payments, which could result in the loan going into default and to a collection agency. And while the fraudster probably didn’t give the lender your telephone number, collectors have very effective ways of acquiring that contact information. If you start getting calls from collection agents attempting to collect a debt that you don’t recognize, it could be the result of fraud. At this point your problems are significant because you’ll be telling the collection agent the same thing that legitimate debtors in default are telling them…”that’s not my account.”

If you’re worried about becoming a victim of identity theft, you should at the very least check your credit reports on a regular basis. There are also free resources like CreditKarma.com & CreditSesame.com, where you can get your free credit report and free credit monitoring to help you pinpoint any unauthorized inquiries or new account openings that are often the first signs of identity theft.

10 Ways to Minimize Your Exposure to Identity Theft

10 Ways to Minimize Your Exposure to Identity Theft

You don’t help burglars break into your house by leaving the doors unlocked or hand over your car keys to an auto thief. Yet, every day, Americans share sensitive information that can be used for identity theft – an offense that is much more widespread and costly than property theft.

According to the most recent data available, 16.6 million victims of identity theft reported a total of $24.7 billion in direct and indirect losses in 2012. Those damages were far greater than the $14 billion lost from all other property crimes (burglary, motor vehicle theft, and genera theft) that year.

That data comes from the Department of Justice in its Victims of Identity Theft, 2012, report published in December. It found that identity theft losses were more than four times greater than losses due to stolen money and property in burglaries ($5.2 billion), and eight times the total losses associated with motor vehicle theft ($3.1 billion).

What’s more, this data is from 2012 – the most recent data available from the Department of Justice. We won’t know 2013’s numbers for another year, but considering the massive data breaches that targeted several large retailers just four months ago, these numbers will likely be even higher.

With these facts in mind, here are ten measures you should be taking right now to protect your personal information and provide your best defense against identity theft:

1. Shred important documents

Identity thieves love waste baskets and dumpsters. These receptacles can be a great resource for fraud, so it’s important to destroy all of your important documents with a crosscut shredder, which slices and dices, to ensure they’re completely obliterated.

2. Watch your cards

This means actively monitoring your credit and debit card accounts to check for any unauthorized charges or transactions. Don’t wait until your statement arrives to check for unusual activity or unauthorized charges. If you spot any unauthorized or unusual charges, contact your bank or credit card issuer immediately.

3. Check your credit reports

Your credit report is often the first place you’re likely to identify potential signs of identity theft. By law, you’re entitled to a free copy of your credit report from each of the three credit reporting agencies once every twelve months. The Fair Credit Reporting Act gives you this federally mandated right, and if you’re not taking advantage of it – you should be.

4. Monitor your credit

Checking your credit report once a year is a given, but monitoring it regularly is one of the most effective ways of catching the first signs of identity theft. Think of your credit as the canary in the coalmine. By keeping an eye on it with regular monitoring, you can quickly spot the sorts of discrepancies that signal identity theft. Most monitoring services provide real-time alerts to help you pinpoint possible signs of fraud before they cause major damage to your credit reports and scores. And while most credit monitoring services will cost you a small monthly fee, by taking advantage of free resources like CreditSesame or CreditKarma, it doesn’t have to cost you a dime. 

Our choice for a paid credit monitoring service with alerts has always been: www.PrivacyGuard.com.  For $1 initial introductory price (14 day trial), you can download and view your tri-merged credit reports.  If you decide to continue your service, it’s only $14.95 per month and well worth the small investment.

5. Use strong passwords

Make sure you protect all of your important hardware and sensitive accounts by using a strong password. Experts suggest you create passwords by mixing uppercase and lowercase letters with numbers and symbols. It’s also a good idea to change passwords regularly and never use the same password on all your accounts.  It may be convenient for you to use the same password containing the name of your cat and the numbers of your house, but anyone that knows personal information about you could quickly figure out your password and be tempted to help themselves to your credit.

6. Don’t take the bait

Never respond to phishing emails, or unsolicited emails of any kind, asking for personal data or information, and never click a link in those kinds of communications. If there is an offer you would like to pursue, conduct your own Internet search before doing so and follow the links you find from it.

7. No card carrying

You’d be surprised by how many people carry their social security card around with them in a purse or wallet. This presents a tremendous opportunity for identity theft. A social security number can be used to apply for credit cards, open a bank account or get a loan. Obviously, you don’t want yours out in public unless it needs to be. Find a safe place for your social security card and keep it there.

8. Lock and block

If you are going to send sensitive information over the Internet, make sure to use encryption software that scrambles the data and keeps it safe from prying eyes. You should also make sure to look for the “lock” icon in the status bar of your browser when sending data. This is an indication that you have a secure connection with the recipient.

9. Don’t be too social

Everyone loves to talk and share news about themselves on social media. But too much information isn’t just an annoying catch-phrase. It can also be a problem. An identity thief can learn enough about your life to answer challenge questions on accounts and get access to money and other personal data. Never post your full name, date of birth, address, phone number, Social Security number or account numbers on any publicly accessible site, and be sure to limit access to your networking pages.

10. Recognize security differences

A secure website is not the same thing as a secure network. An encrypted website only protects data you send to that site. Don’t mistake a secure website for an unsecured network. This is especially important when using a wireless network or free Wi-Fi in a coffee shop, airport or other public space, which are prime targets for identity theft.