Monday 30 January 2012

Fraud Alert: A New Tool To Protect Your Credit

By Rey Arceo


There's excellent news for anyone who concerns that their money information has fallen into the wrong hands. Buyers now have a new tool at their disposal; they can place a "Fraud Alert" on their credit file.

Crime Alerts help prevent anybody from opening new accounts in your name. They act as a red flag on your credit history, detectable only when firms access your file to possibly extend you credit. To put an alert on your account, call one of the three credit reporting agencies and ask them to flag your credit log for crime. Within 24 hours, a warning will be attached to your credit history and your name will be removed from pre- approved credit and insurance applications for 2 years.

Types Of Fraud Alerts

An "Initial Alert" will be active on your credit score for 90 days. Use this if someone has gained access to personal information that could be used to open accounts in your name, for example your Social Security number or your birth-date. Once an initial alert is in place , potential creditors will have to verify your identification prior to extending credit, so you must provide them with a phone number where you can be simply reached. The warning will really help to ensure that you are the only one opening accounts in your name.

An "Extended Alert" is recommended if your identity has been taken. With an extended alert, your credit file will remain guarded for seven years. Additionally, your name will be removed from lists promoting prescreened credit offers for five years. To qualify for an extended fraud alert, you'll need to provide evidence of ID theft,eg a police report.

Active duty members of the military are suitable for a "Military Crime Alert." This alert permits members of the army on active duty to prevent anyone from opening accounts in their name while they're overseas.

Useful Hints

Experian, Equifax and Trans- Union (the three credit-reporting agencies) share information, so after calling one company, the other 2 will be alerted.

If you want to sign up for a loan in the period that your credit history is on alert, tell your bank.

To remove a crime alert, you'll need to send requests in writing to one of the three credit- reporting agencies.

Want to know more about how to improve credit score? Visit our site to learn more.




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