“I don’t see as much money as I used to.  Like many Americans, my paychecks are directly deposited into the bank and for most of my purchases, I use a credit card.  Sometimes, I even catch myself putting five or six dollars on my credit card instead of paying cash.  I just don’t carry around as much currency as I used to.

 

There’s nothing wrong with this trend in our country as long as Americans are responsible about their credit, making certain to not overextend their finances.  It becomes equally important to protect your identity and your financial future by being aware of your credit history.

 

When you sign a lease, buy a car, and most importantly, purchase a home, your credit says more about you than any other factor.  It will determine everything from the interest rate on your home loan to whether you will be allowed by a bank to make the purchase at all.

 

It is your responsibility to assure the accuracy of the information used by these companies, which collect financial information about you – such as: Do you pay your bills on time?  How many credit cards do you have?  Have you ever defaulted on a loan?  The only way to find out, of course, is to get a copy of your credit reports yourself.

 

In the past, the information used by financial lenders to determine your credit score has only been available to you by writing the three U.S. credit agencies and paying a fee for their report.

 

Missouri residents will be able to request free copies of their credit reports starting March 1.  Once a year, each of the three credit reporting services will provide a free copy to the person whose social security number corresponds to the report.  After reviewing the information in the reports, you will then have the opportunity to write the agency and correct any inaccurate information on the report.

 

This program is part of an effort to put the vital information in the hands of the Americans who are increasingly dependent on the contents of their credit report to vouch for their ability to buy a home and make payments on a mortgage.

 

Things you should look for include wrong reports of late payments or underpayments, and any signs that someone has been using your identity to obtain credit cards in your name.  Identity theft is a difficult crime to detect without the aid of your credit reports.  It is vital, however, that Americans report any incidents of identity theft as soon as they find someone has been using their personal information to get credit.  In the case of one Maryland woman, over 100 aliases had been attached to her stolen social security number.  Each one had been used to sign up for a credit card or make a purchase of some kind.  Practically nothing had been paid for.

 

If identity theft happens to you, there are several important steps to follow.  The first is to contact the fraud departments of the three credit reporting agencies.  The next is to close the accounts that have been tampered with or fraudulently opened in your name.  The third is to file a police report, and the last is to file a report with the Federal Trade Commission.

 

Older Americans are often targeted for identity theft in “phishing” schemes, where a caller poses as a representative of a credit card company and tries to obtain credit card or social security numbers.  Just being aware of the dangers of giving out this information is usually more than enough incentive to keep our personal info under close guard.  Still, it is worth the ounce of prevention to have this conversation with elderly friends or parents.

 

When it comes time to buy your first home or refinance your mortgage, you will be glad you took the time to make sure your credit report was accurate.  The same is true later in life, when medical expenses begin to pile up.  Otherwise, that cash we rarely use may become the only currency available to you.

 

Learn more about the new credit reporting program at the Federal Trade Commission
(www.ftc.gov) or from Central Source LLC (www.annualcreditreport.com).”