1-You spot potential identity theft or fraud right now.

“How much damage could one thief really do to my credit?” 

********The short answer is: a lot.*******

—When your personal information is exposed to someone who means to exploit your finances, the potential negative implications are endless. 

—An identity thief basically has a blank check in your name, and will spend it as selfishly as they choose. 

***Warning signs to watch out for on your credit report can include:

• Names you don’t recognize

• If you see an address that's unfamiliar

• Credit accounts you didn't apply for

• Activity on credit cards you have not used recently 

• Unknown Social Security numbers

• Questionable bank accounts or unfamiliar bank names

• Credit lines you didn’t open

• Hard inquiries you didn’t approve

• Be your own credit watchdog and keep a mindful eye on your credit report to fend off malice.

***How does fraud happen?

The most common types of fraud today include:

• Identity theft: stealing someone's personal information, such as birth date, Social Security number, addresses, and phone numbers to apply for credit.

• Phishing scam: Sending emails as a vendor or government agency that contains links  or attachments containing malware to steal login credentials.

• Malware: software that secretly records you keystrokes to steal usernames and passwords for accounts.

• Documents: forging documents, such as licenses, passports, birth certificates, contracts, invoices, and credit applications.

• Others frauds: Including tax fraud, charity scams, auto accident fraud, mortgage fraud, and credit card and bank account fraud, to name a few.

 

2-You discover and dispute mistakes on credit reports earlier.

• Informations or accounts errors

• Name misspelling

• Incorrect date of birth

• Incorrect Social Security number (SSN)

• Wrong phone number

• Wrong address 

• Review your list of accounts, balances, payment history and account status.

• A payment that was mistakenly reported late by a lender can badly damage your credit.

• Incorrect payment status (+30-60-90 days…)

 

3-You improve your Credit Score quickly.

—Checking your credit report and score regularly can help you see where you might be able to improve. 

—This is important if you plan to take out a loan, get a new credit card, rent an apartment or sign up for a new utility account.

—A good credit score can help you get a lower interest rate on a loan or credit card, and potentially reduce or eliminate a utility or rent deposit. 

—Your credit scores are based entirely on the information in your credit report, so reviewing your report to see where you may be able to reduce debt and ensure information is current and correct can go a long way toward helping your scores

—Car insurance, utility bills, etc. — Poor credit can have lasting effects on areas of life you may have never considered. For example, credit scores factor into auto insurance premiums in nearly every state. The same goes for utility deposits. 

—Many industries use your credit score as a measurement of your risk when it comes to paying your consumer debts. (Life insurance, house insurance)

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