March 5th, 2013

5 Things You Can do to Protect Your Credit

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5 Things You Can do to Protect Your Credit

So far for National Consumer Protection Week we’ve covered 4 Ways to Keep Your Money Safe and How to Spot and Avoid Credit Repair Scams. Today we’re talking about what you can do to protect your credit from things like fraud and errors. Read on for five of our best tips.

Shred it.

Buy a shredder and shred any and all documents that contain your personal information, especially if you’re throwing them into publicly accessible trash bins. It’s unpleasant to think of someone going through the trash or recycling bin, but this is one strategy identity thieves can use to access your information. Shred junk mail, old credit cards, receipts and any old forms you’ve filled out. Make sure to do the same with documents that contain your kids’ personal information, too.

Exercise your free credit report rights.

This should be a no-brainer. We’ve talked many times about how you are entitled to a free copy of your credit report from each of the three credit bureaus once a year. Don’t skip this all-important step in keeping your credit safe. If you’ve never checked your credit reports, I recommend getting all three this first time. Head to AnnualCreditReport.com to do so. Check through all three reports and make sure to dispute any errors.

If you’re used to checking your reports once a year, spread out your three reports over the year so that you’re checking a report from one of the bureaus every four months.

Stay on top of it: Put a reminder on a calendar, whether physical or digital, so that you remember to check your reports when it’s time.

Monitor your credit report.

Since you can only get one free credit report from the bureaus each year, have an ongoing back-up plan. Make sure you’re monitoring your credit for free with Credit Karma and you’ll get email alerts when something important changes in your TransUnion credit report. You can also get alerts straight to your phone with the Credit Karma Mobile (free for iPhone and Android).

Stay on top of it: Each time you receive an alert, reconcile it quickly—don’t wait. If you’re notified that there’s a new hard inquiry on your credit, double check that it’s one you recognize.

Put a fraud alert on your credit reports.

A fraud alert tells potential lenders and creditors that they have to verify your identification by contacting you before extending a credit line or loan in your name. If someone else attempts to open a credit card with your personal information, a fraud alert should thwart him from doing so. A fraud alert is really best for people who have already been victims of identity theft or who are going on active military duty. For more information read What Is a Fraud Alert?

Stay on top of it: If you place a fraud alert with one of the credit bureaus, that bureau is required to tell the other two bureaus to put an alert on your file, too. In other words, you only need to place an alert with one bureau.

Keep your information safe.

Last week we talked about sticking with trusted sites and vendors when you’re shopping online to protect your account numbers. The same goes for your credit. If you’re required to enter your social security number to register for a service on the internet, make sure a few things are true:

  • The form for entering your personal information is secured. Look for the “https” at the beginning of the address or a lock icon in the browser address bar.
  • The site is certified by TRUSTe or another trusted company that verifies site security. You can usually find icons at the bottom of a webpage indicating what type of certificates the site has.
  • Other people trust the site. Take some time to do a quick online search for reviews and complaints before entering all of your information in a sign-up for, particularly your social security number.

Bottom Line: I’m not encouraging paranoia here, just a healthy sense of awareness. If you’re aware, you likely won’t be a victim. Put these strategies into practice and keep your credit yours.

Bethy

is the Social Media Manager and Writer at Credit Karma, where she’s been since February 2011. When she’s not writing about credit and finance all over the web, you can find her playing her guitar, catching the latest movie, training for her next race or just exploring the city of San Francisco. Say “Hi” on Twitter: @bhardeman.

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5 Comments

  1. Having good credit saves a TON of money on large purchases where borrowing is necessary (home loan, car loan, student loan, etc.). It really is good payback to know your credit score and keep copies of your credit report(s). It is easily one of the best investments I ever made.

    Steve at 8:05 am on March 6, 2013
  2. Check your report for changes of address. The first thing an identity thief needs is a physical credit card mailed somewhere other than your mailbox.

    Kevin @ Credit Bureau Insider at 2:33 pm on March 7, 2013
  3. Great list of ideas that were very informative! Thank you. In my recent search I also Googled the credit locker university and found that very helpful as well.

    Alex at 2:53 pm on March 27, 2013

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