Avoiding Identity Theft

When you have bad credit history, you have defaults recorded on your accounts. A default is basically a payment, or past due bill, that has not been paid. Defaults can involve anything such as insurance policies, bills, car loans, personal loans, and so on. If you have defaults on your record then you could be subjected to lawsuits, liens, judgments, and other complicated situations. So whether you are a student struggling to pay student loans, a renter struggling to meet monthly bills, or a homeowner battling to stay out of debt, your goal should be to get as many defaults as possible removed from your credit history.

Unfortunately, sometimes the credit bureaus make mistakes and we are charged with a debt that is not ours. You should never pay for a charge that isn’t yours, even if it means the default will be on your record a little longer. As soon as you notice there is a charge on your credit history that you didn’t approve, you must file a dispute with the credit bureaus. After they receive the dispute, they must proceed with an investigation. If a lender sees that you are disputing a charge on your account, they probably won’t hold it against you when applying for a loan. If the delinquent charge was made on a credit card, you also need to notify the credit card provider that a fraudulent charge was made on your account.

A default on your insurance policy can carry with it worst things than loosing your coverage. In an insurance policy there is a lot of fine print that could mean a lot more money will be needed from you. For this reason, it is important to read the fine print on all contracts that you sign. If you do get a default on your credit, making contact with your creditor is the best way to prevent further penalties. Defaults are not something that you don’t want showing up on your credit history, and if they are ignored they can cause further complications.

Sometimes defaults on your credit history aren’t your fault. This is the case if you become a victim of identity theft. Identity theft is one of the most scary, inconvenient things that can happen to a person, and unfortunately, it happens a lot more often than people realize. Never assume your identity is safe. If your identity is stolen, be prepared for a long, hard, road ahead. It will be difficult to get approved for something as simple as a credit card, or an apartment, because your credit with have the words “Fraud Alert” written on it. When a creditor sees a Fraud Alert on your credit, they don’t know where the fraud is coming from, so they probably won’t approve you for a loan. If your identity is stolen contact the credit bureaus and have them put a freeze on all your accounts. Then notify all your creditors that your identity has been stolen. After your identity is stolen, you will probably have defaults hit your credit history constantly. Just remember that you are a victim, and hopefully your creditors will see it that way too. Never stop fighting for your rights, and eventually you can even overcome something as horrifying as identity theft.

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