During the first quarter of 2009, there was a reported 11.91% of identity fraud cases for every 10,000 credit applications. The figures further increased to 12.72% of identity fraud cases for every 10,000 credit applications during the second quarter. In the third quarter, the numbers again increased to 13.37% of fraudulent loans out of 10,000 applications. This represents an increase of 12.3% cases of fraudulent credit applications starting from January. According to CreditExpert spokesperson Darryl Bowman “The surge in cases of identity fraud is very worrying. As we get wiser to protecting ourselves from fraud, it’s clear that criminals are working even harder to steal our personal details so they can apply for credit.”

Some signs to watch out for which may already indicate instances of identity theft include strange e-mails, unexpected phone calls and missing post. You should all look out for these and be more careful where you give out your personal and credit information. Money editor James Daley further adds that identity theft is a growing problem that needs to be addressed as many people are worried about their financial safety, especially those who do a lot of banking and credit transactions online. A lot of the culprits can hack and gather information online and some of them even remain undetected for a long time before being caught.

In these cases, it is always important to be aware and informed about your credit. You can sign up with your bank’s online credit monitoring service which allows you to track your transactions in real time. Knowing these credit monitoring facts will help protect you and alert you if any dubious transaction is apparent. These days when the economy is not so good, it is essential that you always stay on top of your finances and this includes protecting your personal credit. Nobody wants to be a victim of credit fraud that is why information, awareness and protection are key.

Pay bills on time. This is perhaps the most important reminder for all credit card holders. Keep your credit balances as low as you can manage, including what most would call, revolving credit. It is also very important to be current and stay current with your payments, so you can monitor how much interest has been added to your credit card statement and also to stay in good standing with your lender. Remember that paying off an account will not erase the record from your credit report. If you have been having problems with previous credit history, always check with your credit reporting agency.

When checking your credit report, you can always do this on your own. Comb and read through the fine print. This is what many people fail to do. Credit reporting agencies such as AnnualCreditReport.com and organizations such as FreeScore.com provides credit report scores to their consumers.

Absolutely do not pay someone to search for a credit card for you. You can do this on your own, especially if you think that your credit score is in the higher range. Shop around and you will discover that there are a variety of credit cards that offer other services as well, such as prepaid calling cards for mobile phones, credit cards that allow their consumers to shop online or purchase products from a catalog, and credit cards that loan money to consumers for payment  in the future.

Change your spending ways and your attitudes and behaviors towards handling money. Know the difference between the things that you need and the things that your want. Keep track of your expenses, so you’ll see where your money goes, and which purchases are your whims and weaknesses. Instead of always purchasing something new, use your creativity and resourcefulness in order to recycle, reuse or repair your things and other stuff.

If you are in the dark about managing your finances, you can always get help from a credit reporting company.  They can offer you tips and ways on how to get credit monitoring information and the best way to keep your credit scores and balances in check.

In addition, it allows the consumers to keep track of errors that might have incurred in reporting purchases. This eliminates the hassle of rectifying such mistakes, which often takes days or weeks to iron out. Credit monitoring also provides regular reports from all the big three credit agencies Experian, Equifax and Transunion. It removes the need to send hard copy reports on your credit scores. Scouring through a mountain pile of reports and meticulously checking them can sometimes be a pain.

Now, the Congress has mandated an act which requires all three credit agencies to send free reports about consumers’ credit scores, at least once very 12 months. Consumers, can go to the website www.annualcreditreport.com, and check and monitor their credit information from Experian, Equifax and Transunion – all for free. This is the only website online that is authorized by the federal government to give gree credit reports. The problem, however, is that credit bureaus have still not stopped nor has it prevented them to pitch sales or market their services to consumers.

This issue becomes thornier when some credit agencies have posted hyperlinks on www.annualcreditreport.com, which leads consumers to their own websites, and traps them by letting consumers pay for their service for a fee. Some of these hyperlinks can cause confusion among consumers. For example, one client complained that while she was applying for a credit report for free, the link sent her to Experian’s website, and required her to gain access to unlimited reports about credit and credit scores, in exchange for a membership fee.

As such, it is recommended that the Federal Trade Commission must prohibit such forms of manipulation and malpractice of credit bureaus which are selling and marketing their services. It is the right of consumers to checking credit reports for free, and this must be true at all times. Because a credit monitoring company has the obligation to protect consumers’ rights, most especially their credit monitoring information, credit agencies must be transparent about the services they are offering to its consumers, whether they are free or not.

Individuals with a lower credit score can still have a loan or credit lines; however, they also have the disadvantage of having higher interest rates. So how can you get a good credit score? Experts say that you have to be well-informed on everything that involved your credit. With this, you can have an up-to-date payment and lower balance rates which are the key factors in determining your credit score.

Aside from the monitoring information regarding your credit, companies like SpendOnLife and its partner MyCreditHealth offers a round-the-clock monitoring services. With this kind of service offered, consumers can be assured of complete and accurate information regarding their credit history. Errors and omissions can be dealt with early on so your credit score can now be updated with the three credit bureaus -Equifax, Experian and TransUnion. And this can only mean one thing, and that is a higher chance of having a passable credit score.

Another service that these companies offer is detection of fraud and identity theft. These companies provide alerts for credit information changes like record changes such as change of address, employment changes, new accounts and new charges. An alert is also sent off if credit inquiries, negative information and delinquencies are detected in your credit records. Credit reports are sent in monthly basis, so you could monitor your credit score standing and your progress. Credit reports are presented in a very-readable manner for you to know if you are now ready to approach lenders.

Get a high credit score and enjoy all the best deals  out there . With this in mind, you now have the chance of having that financial liberty. MyCreditHealth and SpendOnLife are just some of the companies that offers credit monitoring. You can visit their sites and know more about the services they offer. Know more about these credit monitoring companies and choose the one that best suits your credit needs.

With the three separate credit companies, you as a consumer can get three unique credit reports. These reports have similar information, but one or the other may contain bits and pieces that are not available publicly on your other reports. In order to maximize your credit report rate, a yearly check with all three companies is not out of the question.

To elaborate, a credit report is comprised of various parts. One part is the consumer information, which includes your name, date of birth, address, and employer. Another part is the history of your accounts, dating back as far as the first time you have opened a bank account, to when you may have taken out loans or applied for loans.

Another part of credit reports that is often overlooked is the creditor information. The nformation on a credit report from one of the three major companies will show you the information needed and how to get a hold of a licensed creditor, or in some cases, the creditors who are already handling your accounts and loans.

The objective of a credit report is to let you know how well you have handled your past loans, current loans, or any financial debt you have incurred. A credit report also has the added bonus of being able to show you if someone has stolen your identity and made loans under your name or similar crimes.

Regarding lenders and how they use credit reports, there are several bits of information that a lender can extract from a credit report. By reading this information, including a record of your past loan repayments, will help a lender to determine if you are a responsible borrower and repay your loans on time. The information on the credit report helps lenders determine whether or not you have a good track record with managing your finances, and to pick up on red flags such as past bankruptcies and other financial hardships.

If you as a previous borrower have an interest in seeing that your credit is secure, then a credit monitoring service might be the right choice for you. Some of the perks of having a credit monitoring service, like the 3 in 1 report offered by Credit Cards Professor’s free credit report, include being able to check your credit score with all three companies on a whim, and being assured and kept up to date with any changes to your credit score almost within a week.

A major reason to have a credit monitoring service is to use it to combat identity theft. Identity theft means someone is using your information to apply for loans under your name, or other methods of adding debt to an account other than their own. A credit monitoring service means that you can also rest assured that if any sudden charges or loans get added to your name, you will be made aware of them in a timely manner and be able to deal with them right then and there.

An interesting way of monitoring your credit report would be to request it from all three major credit report companies. Sounds familiar, right? Well, with this method, instead of requesting all three credit reports at the same time, you as a consumer would spread out your requests over the course of a year. It is recommended that every 4 months you review your credit report. An added bonus of this method is that you can avoid a credit monitoring service.

Although it does provide a good methodology of tracking your personal credit score, a credit monitoring service will more than likely not provide you with tips and tricks on how to prevent identity theft other than alerts. One bit of common sense to hang onto is that of closing any unused accounts with banks or lenders that you have open, which you have viewed on your credit report. Closing these ahead of time when they are not being used can lower your risk of identity theft.

Lastly, a good credit monitoring service will include an insurance against unexpected loans and debt incurred while your identity was stolen. This means that the credit monitoring service will provide you with insurance equaling up to or close to 10, 30, or even up to 40 thousand dollars worth of insurance against identity theft. Definitely more than just another added perk towards monitoring your credit!

Online shopping has advantages and disadvantages. Let us analyze and ponder them to see if that reluctance is justified. The main reasons why people hesitate when shopping on the internet is that they fear fraud or scams both with the product and with the credit card and also because even if the vendor is a legitimate company the product is not physically there for them to touch, compare, examine, etc. Of course, people who are hesitant about internet purchases are also hesitant about catalog purchases or phone purchases.

Some Advantages

When purchasing online it is much easier to compare prices and product specifications because the amount of available information exceeds what the vendors and salesmen can provide you when you visit a store or more importantly, the amount of information they are willing to share with you.

Also, the costs are reduced both for you since there is no need for you to travel to the store, spending time and money and for the merchant whose costs are reduced in terms of personnel, rent, electricity, etc. This cost reduction shows on the prices you can obtain for the products you see that are usually up to 20% lower on e-stores when compared to local merchants.

Disadvantages

The delivery cost issue may or may not be a disadvantage depending on how you see it. Truth is that with regular stores you just walk by, enter the store, select the product, pay for it and take it home. If you do not need to travel to it or if you can reach it by walking, then there are no costs in terms of transportation for small items. When it comes to furniture, house appliances and similar items, the delivery may be charged apart or the store may say it is on them but either way, you will pay for it (it may be included in the price).

With online stores, the problem is that there are always delivery costs unless the company has a spot where you can pass and collect the goods. Moreover, these companies usually hire third party’s transportation and that increases the costs. Yet, given that on e-stores you usually get lower prices, though you need to take the delivery costs into consideration when comparing, chances are you will still get a great price. Moreover, some credit cards provide insurance so you know that the product will be safe during transportation, no matter where you live.

The main disadvantage or worry that purchases on the web with credit cards present is fraud and identity theft. Though many security measures have been taken by credit card companies to avoid such events, the risk is still present and you should only use your card on sites you trust. Some credit card companies also offer insurance to protect you from this kind of fraud.

As regards to identity theft, the only advice we can give is to avoid providing personal data (especially the social security number) to unknown sites and to keep an eye on your credit report by requesting a copy from time to time to make sure nobody is using your personal information for other purposes than those authorized by you. There are also credit monitoring services you can hire that can alert you if such events occur.

There are four credit “dangers” you should always have on your radar. If you’re not careful, these situations can sneak up on you and lead to a credit disaster. So let’s be sure you know how to avoid them…

Unpaid bills

This may seem like a no-brainer, but you’d be surprised at how many people don’t realize that unpaid bills can hurt their credit. If you skip payments on anything from your mortgage or car loanto a $25 credit card paymentyour credit score can drop. Even late payments can negatively affect your score.

The biggest culprit for many people is an unpaid medical bill. It’s easy to see how it happens: you assume your insurance company is taking care of the bills and they don’t get paid. It’s usually a simple mix-up of what your insurance company does and does not cover.

Unfortunately, this confusion can result in a collections record on your credit report (and those stay on your report for at least seven years). So it’s important to fully understand your insurance coverage and make sure your medical bills are paid. And if a collections account appears on your credit report due to a mistake, be sure to work with the parties involved to get the issue resolved.

Identity theft

When someone steals your identity and goes crazy with your creditit can mean chaos for your credit report. It is a real problem these days. But if you know how to protect your identity, you have a better chance of protecting your credit.

Are you taking steps to cut down on your risk? You should start with the following: shred everything with your name on it before you throw it away…only use your credit card on websites you know are safe…don’t carry your Social Security card in your wallet…and consider paying your bills online or with automatic payment (less mail for thieves to get their hands on).

You should also consider signing up for credit monitoring. It’s an easy way to keep a close eye on any changes to your credit.

Divorce

After the hassles of going through a divorce, the last thing you need is to have your credit suffer because your ex-spouse is racking up credit card bills or missing payments. So get your credit report and make sure all joint and co-signed accounts from your marriage are closed or refinanced as soon as you can.

Judgments

The verdict is in: most judgments such as small claims, civil suits and tax liens are guilty of tainting your credit standing. These can remain on your credit report for seven years or longer. And that can make it harder for you to get the best interest rates on loans.

You see, credit doesn’t have to be scary. The more you know, the easier it is to stop things from sneaking up on you.

Late Payments
This is one credit issue I see all the time. If you are late on a obligation that reports to the credit bureaus I assure you that your score will drop around 75 to 100 points. Timely payments account for 35% of your overall FICO score. This particular factor in your credit score is the biggest factor of all.

Amount Owed
If you have credit card debt, and the balanced owed vs. the allowed credit limit is more than 30%, your score is affected. The amount owed accounts for 30% of your overall FICO score. You should keep your credit debt well below 30% of the allowed credit limit.

Length of Credit History
Once you are granted some credit the FICO score model looks at how long you have been in good standing with your credit. If you have a good history with your creditors, you can count on it helping your overall credit health. The length of your credit history accounts for 15% of your score.

Mix of Credit
Mix of credit accounts for 10% of your FICO score according to Fair Isaac. So you need credit cards, installment loans, auto loans, department store credit, etc…… The rule of thumb is to have at least 3 to 4 lines of different types of credit to get the best overall score.

New Credit
New credit accounts for 10% of your FICO score. The FICO score model does not like to see you applying for too much credit. Too many hard credit inquiries will affect your credit score. The rule of thumb is around 3 to 4 different types of credit.

Identity Theft & Credit Monitoring
Make sure you are pulling a copy of your free credit report regularly. With the identity theft problem it is recommended to set up some type of credit monitoring with immediate alerts. So if something happens you will know about it quickly.

Co-Signing
Co-signing is a big problem as well. We don’t recommend co-signing for anyone. If a family member or friend does not have the credit to buy, the best thing they can do to get credit established is to get a couple of secured credit cards. This is the fastest way to improved credit health. With a little history, usually 12 months of good payment history the creditors will open the doors of credit.

Last fall, BlueCross BlueShield of Tennessee reported that 57 laptops were stolen. This compromised thousands of phone calls and about 300,000 screenshots of personal information viewed during the calls, according to a report in BusinessWeek.

Most of the information pertained to BlueCross BlueShield identification numbers, names and date of birth.

The company identified more than a half million customers affected by the breach. It has spent about $7 million trying to resolve the issue, including sending hundreds of thousands of letters and putting in more than 110,000 work-hours to review compromised material.

“We are determined to prevent any future thefts and potential dangers to our members, as well as the substantial financial damages which this theft has caused BlueCross,” the company said in a letter to its customers.

In a separate incident, a laptop was stolen from the company’s gastroenterology clinical services unit at the University of Florida. It contained information regarding patients’ Social Security numbers, names, addresses, medical records and medical procedure codes.

This information had been downloaded onto the computer by a Shands employee who believed the computer was encrypted. The employee has since been disciplined and reeducated on security policies at the company, according to the report.

Shands spokesperson Kim Rose said the incident reemphasized the importance of protecting information.

“We always work to educate employees on our privacy policies,” she told the newspaper. “This has given us another reminder.”

Identity theft is among the nation’s fastest growing crimes and affected more than 11 million Americans last year, according to a report by Javelin Strategy & Research. Credit monitoring is one way consumers can protect themselves against fraudulent activity. They may also want to take measures to protect documents pertaining to medical and credit information.