Protecting Yourself from Identity Theft - Part 3

Protecting Yourself from Identity TheftPart 3 by Michelle Black

Chances are that you either know someone who has been a victim of identity fraud or you have been a victim of identity fraud yourself.  Either way, I’m sure that the following statement will come as no surprise to you: Identity fraud sucks!  It is something that you want to protect yourself against and avoid at all costs.  Since identity fraud is about as much fun as a root canal I’ll jump right into another tip on how you can help to avoid this ever growing problem.

#3:  Shred, Burn, or Otherwise Destroy “Thief Prone” Documents!

What is a thief prone document?  A thief prone document is something that a “dumpster diver” – that’s a thief who actually steals sensitive documents right out of your trash – could take from you in order to commit identity theft.  Examples of thief prone documents include credit card statements, bank account statements, and any other paper which lists your social security number, date of birth, or other personal information.

Make it a habit to shred, burn, or otherwise destroy these personal documents instead of just tossing them into the trash can.  Remember, if a thief cannot make out your credit card number then he or she cannot steal it!  This little change will go a long way towards protecting your identity, your credit, and your good name from people who would love nothing more than to take advantage of you.

Check back with us next week for more great tips and tools to keep would-be identity thieves at bay.  Following the preventative steps outlined in this series will drastically reduce your chances of being victimized.

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Protecting Yourself from Identity Theft - Part 2

Protecting Yourself from Identity TheftPart 2 by Michelle Black

I said it yesterday, but it is worth repeating: identity theft occurs every 2 seconds in the United States of America! The reason I find it worth repeating this shocking statistic is because you need to know how BIG of a problem identity theft has become in this country and why it is so important to protect yourself.  If an identity thief steals your social security number and opens as little as one single credit card account in your name it can have a HUGE impact upon your credit scores.  That’s all it takes – one single little fraudulent credit card being opened, maxed out, and not paid – to drop your credit scores like a rock!  So, here’s another way to guard against identity theft.

#2: Make Copies of Your Credit Cards. One of the easiest, simplest ways identity thieves can steal from you is by stealing your current credit cards (or even just your credit card number).  Using your personal credit card these thieves purchase items in your name and leave you with the bill!  I personally know a woman who had this very scenario happen to her. Little did she know at the time, Mrs. Young had a receipt with her credit card number stolen.  The thief actually had a machine she used to create a new credit card with Mrs. Young’s card number! Additionally, the thief made a false driver’s license containing her (the thief’s) picture but Mrs. Young’s name and address.  Because the fraud was so extensive, several thousand dollars were charged to the card before Mrs. Young even became aware of the problem!

Another form of credit card theft is just that – actual theft of your credit card (not just a receipt containing your credit card number).  If your credit card is ever lost or stolen the very first thing you should do is to call your credit card company immediately.  A way to make this process faster, and easier on yourself, should the situation ever arise is to make copies of your credit cards and ATM card – front and back.  Be sure to store the copies in a safe place so that they cannot be stolen either.  However, if you have the copies already made then you will be prepared to act quickly should your credit cards ever become lost or stolen.  Without these copies it could take you hours to locate your card statements or look up the contact number online for each of your individual credit card companies in order to report the loss.  Be proactive and you could potentially save yourself a ton of trouble and time! Plus, the more quickly you act in a situation where fraud is concerned, the less likely it is that you will be stuck with the bill for someone else's dishonesty.

More tips on identity theft protection are soon to come! So, don’t forget to “tune it” again this week for more helpful information.  If you have been a victim of identity theft or have any other credit related questions, please feel free to contact us. We would love to assist you and answer any questions you may have!

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Protecting Yourself from Identity Theft - Part 1

Protecting Yourself from Identity TheftPart 1 by Michelle Black

Let’s face facts.  This world is full of dishonest people.  Shockingly, it has been said that identity theft occurs every 2 seconds in the United States!  HOPE has helped many people, of all ages, ethnicities, and professions to deal with the aftermath of identity theft over the past 10 years. In that time I have found that identity thieves are not selective – anyone can be a target!  In this blog series I will give you some ways to protect yourself before identity theft happens and tips on what to do if you have already been a victim.

#1: Check Your Credit Report for Fraud! To begin, the #1 way you can protect yourself from severe identity theft is to be aware! It is very important to monitor your credit report for fraud and inaccuracies. HOPE recommends that our graduates check their credit report at least twice a year (after completing the HOPE Program) to protect themselves from credit bureau error and identity theft.  In truth, checking your credit report at least twice a year is sound advice for every single American to follow.

Legally, you are entitled to one free credit report per year at www.annualcreditreport.com.  (Note: if you have already gotten your free credit report within the last 12 months, there are many websites online available where you can purchase your consumer credit report for a fee.)  Once you have obtained your credit report from each of the 3 credit bureaus – Equifax, Trans Union, and Experian - comb through it to search for signs of identity fraud.  If you find evidence of current accounts or collection accounts which you never applied to open then you may be a victim of identity fraud.

Hopefully you will not find any suspicious activity on the report; however, if you do, please feel free to contact our HOPE credit experts at 704-499-9696 or via email.  We can schedule a personal credit analysis appointment with you on the spot to help you learn your options and legal rights. Then, you can decide if working with HOPE would be the best choice for you to resolve any credit issues on your report.  All analysis appointments are 100% pressure free! There is absolutely no obligation for you to join HOPE because you speak with a credit expert, but at least you will be aware of all of your options.

Be sure to check back tomorrow for more preventative steps to help you avoid becoming a victim of identity fraud.  There are ways to protect yourself and I can’t wait to share more of them with you!

If you are not already a member of the HOPE Online Community, be sure to follow us on Facebook and Twitter!

Authorized User - the Good, the Bad, and the Ugly!

Updated September 27, 2017

There has been a major debate going on for sometime about the legality of authorized user accounts and how those authorized user accounts affect your credit report.  Let's start with the basics.  What exactly is an authorized user account?  For the purposes of this article, we will only be discussing credit card authorized user accounts.  You are considered an A/U (authorized user) on a credit card when the primary credit card holder requests for you to be added to their existing account.  You do not have to sign anything to be added as an A/U to an account because you are typically not legally responsible for the debt.  However, the payment history for the account will usually show up on your credit report - good or bad.

Being added as an A/U to a credit card will almost certainly affect your credit scores, one way or the other.  For example, if your boyfriend adds you to his VISA card and then maxes out the credit card balance and makes a few late payments your credit scores will probably drop - hard! Negative account history, late payments, and high credit card balances will drop your credit scores too since you are an A/U on the account.

However, if your mother adds you as an A/U to her 20 year old Master Card (which has a zero balance and has never had a single late payment) then your credit scores could be affected very positively. All of the good payment history from that account could potentially show up on your credit report, driving your credit scores upward - fast! Obviously this is a very appealing prospect for people looking to raise their credit scores. Still, before being added to another person's credit card account as an A/U there are a few things to consider very carefully:

1.) Avoid loan fraud like the plague! There are some very shady companies out there offering to add you as an A/U to a stranger's credit card account. This is known as tradeline renting and it's a big no-no. 

First, you pay a fee to the third-party company and then they give your information (name, date of birth, social security number) to a complete stranger in exchange for the stranger adding you as an A/U to their existing credit card account. The stranger receives a fee for adding you to their card and the third-party company keeps the rest of the money you paid them as profit. 

In truth, this practice can potentially raise your credit scores quickly. However, the problem with this scenario is that if you apply for a loan after being added as an A/U to a stranger's account you could very likely be guilty of loan fraud, wire fraud, mail fraud, and a number of other crimes. While is it perfectly legal to have a friend or family member add you as an A/U to their account, you should definitely avoid being added to a stranger's account.

2.) Authorized user accounts can hurt your credit too. If you are considering asking a friend or family member to add you as an A/U to an existing credit card account be sure that you are asking someone who is a very responsible bill payer. Grandma (with her 40 year history of never making a late payment) may be a better choice than your college roommate (with his 2 year total credit history).  

Also, if you are being added to an account, it is better to be added to an account with a low balance than to one with a high balance. Don't forget, a credit card account where an outstanding balance is revolved from month to month could hurt the card holder's credit scores even if they make every payment on time. (Click here for more info.) If you are added as an authorized user to a card with a high balance it will likely hurt your credit scores instead of helping them.

If you have found today's article insightful or helpful, please feel free to share the link with your friends and family.  Please feel free to contact us directly if you have any questions about authorized user accounts or other credit related issues you may be facing.  

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Michelle Black is an author and leading credit expert with a decade and a half of experience, a recognized credit expert on talk shows and podcasts nationwide, and a regularly featured speaker at seminars across the country. She is an expert on improving credit scores, budgeting, and identity theft. You can connect with Michelle on the HOPE4USA Facebook page by clicking here.

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Should I Try to Fix My Credit Report On My Own?

The question that you are faced with when deciding to work towards a healthier credit report is, "should I try to fix my credit report on my own or should I get some professional help?"  First of all, please allow us to give you a big congratulations! The first step towards achieving clean credit is the decision to try.  You have already made the most important step!  Now, it's time to figure out the logistics. You should know that it is 100% legal for you to work on your credit report alone, with no professional assistance.  If you come across a "credit repair" company that does not inform you of this fact, be sure to run the other way as fast as you can!  "Credit repair" has a very bad name, for a good reason.  There is a ton of scam within the "credit repair" industry.

However, just because you can work on your credit report alone does not necessarily mean that you should.   Remember, it is your legal right to represent yourself in a court of law but most people would rather have an attorney in their corner, especially if faced with a serious charge.  Another example that comes to mind, in light of the recent series of storms in the southeast, is that you legally have the right to replace your own roof if it was damaged by the elements.  Unfortunately, if you are not professionally trained and do not have experience in the roofing business then you will probably just make a bigger mess of things if you try to work on the project alone.  The same is true of credit restoration.  Do-it-yourself credit repair is often a disaster.  In the 10+ years since HOPE has been in business we have seen many people actually make their credit scores worse rather than better by trying to clean up their credit alone, without an experienced professional to guide them.

HOPE has designed a unique, one of a kind, credit education program to help our members achieve healthier credit and to learn how to maintain that healthy credit for a lifetime!  Active HOPE members receive the following benefits for no additional fees:  personalized budgeting assistance, negotiations with creditors, individual credit report analysis, and much, much more! Over 80 HOPE members have graduated our program with credit scores healthy enough to buy a home in the last 4 months alone!

We would love to invite you to schedule a personal credit analysis appointment with us (in person or over the phone) today to see what it will take for you to achieve the healthy credit you desire to have.  Analysis appointments are completely pressure-free and there is NO obligation to join the HOPE Program after speaking with a HOPE Credit Specialist.  Please give us a call today at 704-499-9696 to reserve a time for your one on one credit analysis.  We would love to hear from you!

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