Identity theft is a very serious problem across the planet. It is the fastest growing type of crime in North America and it is affecting thousands of people every day. It is also one of the most preventable types of crimes because so much can be done to keep you from being a victim. You can prevent car jacking by locking your doors, but that is all you can do. With identity theft, there are literally dozens of ways to keep yourself from losing your identity to a thief.
The problem may be that people do not understand how widespread the problem is or how much it has affected economies across the planet. Here are some statistics to show you just how bad identity theft is and how much it can hurt your credit and the economy.
In 2006, identity fraud cost the United States $15.6 billion In 2006, the average fraud per person was $1,882. In 2003, only 15 percent of victims found out that they were hit with identity theft because of the proactive actions taken by a business. The average time it takes for a victim to resolve the problems created by identity theft is 330 hours. Nearly three-quarters (73 percent) of identity thieves use the information they obtain to get a credit card in the victim’s name. The emotional impact of identity theft has been found to be similar to violet crime.
A significant example of how bad identity theft can get for a person comes from a Ms. Brown who told a U.S. Senate Committee Hearing that one person impersonated her and did the following:
Bought $50,000 in goods and services
Completely destroyed her credit rating.
Engaged in drug trafficking in Ms. Brown’s name.
Had a warrant put out for her arrest in Ms. Brown’s name
Created a prison record in Ms. Brown’s name
Was booked into prison under Ms. Brown’s name.
Elsewhere in the world, there is significant damage caused by identity theft. In Australia, identity theft costs about AUS$4 billion per year. In the United Kingdom, identity theft costs the economy of the UK 1.2 billion Pounds each year.
Identity theft is a serious problem that more people need to be aware of. It can not only cost you your credit rating, it can ruin your life. Like Ms. Brown who was nearly arrested because someone was committing crime in her name, you could find that losing your identity is not as simple as a lower credit rating. You have to take time to explain to companies you did not buy from them. You have to have your credit errors repaired and that can take months, and you have to ensure that the identity thief is caught so that they don’t keep using your credit. It is much easier to be proactive and not allow yourself to become a victim of identity theft. It is easier than you think to stop identity theft in its tracks.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Monday, June 29, 2009
Thursday, June 11, 2009
Credit scores broken down.
Only a few people actually know their credit score, which is unfortunate, and it seems even less know what their credit score means. Many simply say “I have good credit”, or “My credit is decent” but do they know what the actual score means? When they say they have a credit score of 651, is that different from saying a credit score of 551 or 751? If people knew more about their credit scores, it is likely they would be more careful with their credit as a result. Since many people don’t know what those numbers mean, we will break down credit scores going from bad to good.
If you have a credit score that is 300 to 400 then your credit is abysmal. There is no other way to put it. You have destroyed your credit either through poor credit management, foreclosure or bankruptcy. You have a long road to climb to get your credit back to where it should be and you are not getting any type of loan, credit card or mortgage any time soon.
If you have a credit score that is 401 to 500, then your credit is very poor. You are not going to be getting credit and if by some chance you did, you will have a very high interest rate. Generally you will have this type of credit score if you have been late many times with bills, are using up most of the credit that you have, or have suffered defaults on loans or bankruptcy. While not as bad as 300, you still have a lot of work to do to fix your credit.
If you have a credit score that is 501 to 600, then your credit is fair. You can get some loans but you will have higher interest rates because of your slightly poor status with your credit. If you had perfect credit and suffered a bankruptcy, then your credit score will be in this range. Generally it is not too hard to start improving your credit from here with keeping your bills current, not using too much credit and ensuring no defaults on loans.
If you have credit score that is 601 to 700, then you have good credit. This is where the majority of people are with their credit. You can get pretty much any loan you need and the interest rates will be favorable. You still have some work to do with your credit score but you can easily get there with paying your bills on time. You want to be at least in this range with your credit score.
If you have a credit score that is 701 to 850, then you have excellent credit. You can get any loan you want and you will have very favorable terms and low interest rates. You just need to keep your credit clean at this point and you will be enjoying good credit for the rest of your life.
By knowing where your credit lies in terms of credit scores, you can then begin improving it or maintaining it.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
If you have a credit score that is 300 to 400 then your credit is abysmal. There is no other way to put it. You have destroyed your credit either through poor credit management, foreclosure or bankruptcy. You have a long road to climb to get your credit back to where it should be and you are not getting any type of loan, credit card or mortgage any time soon.
If you have a credit score that is 401 to 500, then your credit is very poor. You are not going to be getting credit and if by some chance you did, you will have a very high interest rate. Generally you will have this type of credit score if you have been late many times with bills, are using up most of the credit that you have, or have suffered defaults on loans or bankruptcy. While not as bad as 300, you still have a lot of work to do to fix your credit.
If you have a credit score that is 501 to 600, then your credit is fair. You can get some loans but you will have higher interest rates because of your slightly poor status with your credit. If you had perfect credit and suffered a bankruptcy, then your credit score will be in this range. Generally it is not too hard to start improving your credit from here with keeping your bills current, not using too much credit and ensuring no defaults on loans.
If you have credit score that is 601 to 700, then you have good credit. This is where the majority of people are with their credit. You can get pretty much any loan you need and the interest rates will be favorable. You still have some work to do with your credit score but you can easily get there with paying your bills on time. You want to be at least in this range with your credit score.
If you have a credit score that is 701 to 850, then you have excellent credit. You can get any loan you want and you will have very favorable terms and low interest rates. You just need to keep your credit clean at this point and you will be enjoying good credit for the rest of your life.
By knowing where your credit lies in terms of credit scores, you can then begin improving it or maintaining it.
If you or anyone that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Monday, June 8, 2009
How much debt should you have on your credit card?
Understanding everything that makes up your credit score can be a lot to take in. You have to figure out a variety of items, including how many bills you have been late on, how often you have tried to get credit, how many credit cards you have, how much you owe compared with how much you make and more. One thing that you can work on that will help your credit score is paying down your credit cards.
Most people think that you have to completely pay off your credit card, but the truth is that you only need to pay it down a little bit. So, how much should you pay down your credit card? Should you pay 90 percent off? Maybe 20 percent? What is the best amount?
Your credit cards have a lot to do with your credit score. If you fall behind on payments for your credit cards, then you will find your credit score drops, as well as your interest rate increases. If you owe too much on your credit card, your credit score will drop. If you have too many credit cards, or too few, your credit score will drop. They are great things to have when you have to purchase items, but they can be a pain too when they get out of hand.
So, to go back to the previous question of how much you should have on your credit card, generally if you can keep it to 30 percent and under, you will be in good shape. For example, if you find that your credit card has an credit limit of $1,000 and you owe $800 on it, then you have used 80 percent of your credit limit. That hurts your credit. However, if you have only spent $250 on it, then you have only used 25 percent of your credit limit.
To lower how much you owe on your credit card, there are two methods by which you can go by. The first is to actually start paying your credit card off. By saving money and cutting costs, as well as limiting how much you use your credit card, you can lower how much is on your credit report.However, there is a second way that you can lower the percentage you owe on your credit card without paying anything off. All you have to do, and make sure you have a good credit score, is to increase your credit limit. For example, if you owe $800 on a $1,000 credit limit card, you owe 80 percent. However, if you raise your credit limit to $10,000, then you will only have eight percent owing on your credit card.
Paying off your credit card is very important. All you have to do is to make sure that you do not owe too much on your credit card. Owing too much can hurt your credit score, and that can cause you to have higher interest rates. So try and increase your credit limit, pay off your credit card and limit how much you use your credit card.
If you or anyone else that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
Most people think that you have to completely pay off your credit card, but the truth is that you only need to pay it down a little bit. So, how much should you pay down your credit card? Should you pay 90 percent off? Maybe 20 percent? What is the best amount?
Your credit cards have a lot to do with your credit score. If you fall behind on payments for your credit cards, then you will find your credit score drops, as well as your interest rate increases. If you owe too much on your credit card, your credit score will drop. If you have too many credit cards, or too few, your credit score will drop. They are great things to have when you have to purchase items, but they can be a pain too when they get out of hand.
So, to go back to the previous question of how much you should have on your credit card, generally if you can keep it to 30 percent and under, you will be in good shape. For example, if you find that your credit card has an credit limit of $1,000 and you owe $800 on it, then you have used 80 percent of your credit limit. That hurts your credit. However, if you have only spent $250 on it, then you have only used 25 percent of your credit limit.
To lower how much you owe on your credit card, there are two methods by which you can go by. The first is to actually start paying your credit card off. By saving money and cutting costs, as well as limiting how much you use your credit card, you can lower how much is on your credit report.However, there is a second way that you can lower the percentage you owe on your credit card without paying anything off. All you have to do, and make sure you have a good credit score, is to increase your credit limit. For example, if you owe $800 on a $1,000 credit limit card, you owe 80 percent. However, if you raise your credit limit to $10,000, then you will only have eight percent owing on your credit card.
Paying off your credit card is very important. All you have to do is to make sure that you do not owe too much on your credit card. Owing too much can hurt your credit score, and that can cause you to have higher interest rates. So try and increase your credit limit, pay off your credit card and limit how much you use your credit card.
If you or anyone else that you know would care for more information regarding this post, feel free to visit http://www.creditrepairbydrjen.com
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