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Information on credit scores

Information on credit monitoring

Information on IDTheftSmart restoration service

Information on identity theft and how to stay safe

Information on credit scores

What is a credit score?

A credit score is a number that summarizes the historical credit information on a credit report. The number reflects the likelihood of becoming delinquent on a loan or credit obligation in the future. There are three independent credit bureaus; Experian, TransUnion and Equifax.

What information goes into calculating a credit score?

CreditCredit scores use information from three key areas of your credit report: account information (such as credit cards, auto loans, student loans and mortgages), public records (such as tax liens or bankruptcies), and inquiries (requests by lenders to view your credit). Information such as race, gender, where you live, and marital status are not used in credit scores.

Why don't I have a credit score?

Credit scoring models cannot generate a score without enough credit information. If you have little or no credit history, you will probably not have a credit score available.

Who calculates credit scores?

When a lender requests your score, it is calculated by one of the three credit reporting agencies. The credit score is one of many pieces of information the lender may use in evaluating your credit application.

How often do credit scores change?

Your credit score changes as your credit report changes. Therefore, it can change often since new information is added to your credit report all the time.  However, a significant change in your credit score within a short amount of time can be an indication that your personal information has been compromised.

Who... or what... decides if I get my loan?

Banks, credit card companies, auto dealers, retail stores and other lenders decide if you get your loan. Most businesses that issue credit or loans use credit scores to quickly summarize a consumer's credit history, saving the need to manually review an applicant's credit report and providing a better, faster decision. Although many additional factors are used in determining whether or not you receive the credit you applied for - such as an applicant's income versus the size of the loan - a credit score is a leading indicator of one's basic credit worthiness. Credit reporting agencies do not make lending decisions.

Can I use a credit score as leverage for a lower interest rate when seeking a loan or line of credit?

It is never a bad idea to work with issuers and lenders to reduce your interest rate. You definitely have more leverage if a credit score puts you in the low risk range. However, because there are many different credit scores, the model used to calculate the score you obtain, and the score itself, may be different than the one the lender uses in making its decision. For instance, you may get a generic credit risk score from Experian, but an auto lender might use its own custom scoring model with a different scale, so the numbers won't be the same but will likely represent a similar level of risk.

Do lenders and creditors look at all three credit reporting agency reports and credit scores calculated using information from each report before approving a credit or loan application?

Not always. Most mortgage lenders will look at reports from all three credit reporting agencies and credit scores calculated using information from each; but other lenders may use reports and scores from two, or just one of the credit reporting agencies.

Does having too many credit cards affect a credit score?

Having too many credit cards with either high balances or large amounts of credit available can negatively impact risk scores depending on the overall credit history.

If my spouse had bad credit before we were married, will that affect a credit score?

If you hold a joint credit account, have co-signed a loan or have authorized use of another person's credit, these items could affect a score if they appear on your credit report. It's important that joint account holders or authorized users understand that their credit behavior does affect the other joint account holder or main account holder.  A credit account held solely in the name of your spouse, child or any other family member cannot impact your credit score. However, in community property states, all debt acquired during a marriage is considered a joint debt, regardless if the account is joint or in the name of an individual spouse.

What are the best ways to achieve a better credit score?

The best way to maintain a good credit score is to make sure that all of your loan payments are made on time. If you have made late payments in the past, you can still improve your credit score by making sure that all future payments are made on time. The older the late payments are, the less important they become. You can also improve your credit score by disputing the late payment(s) with the credit bureau. If they do not have proof of the late payment, they are required to remove the negative mark.

How long does negative information stay on my credit reports?

The length of time negative information can stay on your credit report starts from the time you were first late on a payment or the date the account went into collection. Most credit information stays on your credit report for up to seven (7) years, regardless if it is negative or positive. An exception to this is bankruptcy information, which can be reported for up to 10 years. This said, the credit grantor or credit bureaus have the right to remove negative information at any time.

Does co-signing for a loan affect a credit score?

Absolutely. By cosigning, you are accepting full responsibility for the debt if the other person does not pay as agreed. A cosigned account will appear on both your credit history and the other person's. All loans and credit card accounts that appear on your credit report will impact credit scores.

Do late payments affect a credit score?

Paying bills on time is generally the single most important contributor to a good credit score. Being late on any bill, for any length of time, is a possible indication of future non-payment of debt and is almost always viewed negatively by lenders. Any late payments will remain on your credit report for up to seven years.

Information on credit monitoring

What is credit monitoring?

Typically, a credit monitoring service will notify you if anything unusual or suspicious appears on your credit report. We have found credit monitoring services to be a great way to protect yourself from identity theft and fraud. The sooner you can detect something is amiss with your credit, the faster you can stop any serious damage from occurring.

Should I use a credit monitoring service?

Credit monitoring will monitor your credit reports for activity and alert you to changes; prices and services vary widely. Many of the services only monitor one of the three major credit bureaus. As with any product or service, make sure you understand what you're getting before you buy. The key value of monitoring services is to protect your identity from ID theft because you will have up-to-date information should your information change.

Why is it important to monitor your credit on a regular basis?

Monitoring your credit can help you save thousands of dollars and be your first line of defense against identity theft.  Since the information in your report determines your credit score, and your credit score often determines the interest rate you will be charged, you want to make sure you monitor your credit so you get the credit you deserve! Plus any unusual changes to your score can reflect suspicious activity.

Information on ID TheftSmart restoration service

What is ID TheftSmart identity theft restoration service?

This revolutionary program delivers hands-on assistance from seasoned experts - IDENTITY restoration to your pre-theft status should your identity get stolen or abused. SHOULD YOUR IDENTITY BE COMPROMISED - WE GO TO WORK RIGHT AWAY TO PREVENT FURTHER DAMAGE AND TO RESTORE DAMAGE ALREADY DONE.

I've heard of other restoration services - how is yours different?

Other companies may say they restore your name but in fact THEY DON'T. These services simply assist YOU though the RESOLUTION process. YOU NEED to manage the process. YOU NEED to fill out the forms.  With this service, a licensed investigator is assigned to your case and they take it from there. They don't just guide you through the process - they do almost all of the work.  Once you sign up for this service and authorize the work to be done, your investigator acts on your behalf to restore your name to pre-theft status. Your investigator will manage your case and the process for you - so you can get on with your life while your licensed investigator works on your behalf. With this service, you could save up to 600 hours of time you would incur if you did the work yourself.

How is this different from restoration assistance that is offered by many credit monitoring services?

These services are valuable in that they give guidance as you work through the process. These services typically give you templates and forms but you must complete them and file properly with the proper agencies. With ID TheftSmart, most of the work is done by us (except as disallowed by law).

Information on identify theft and how to stay safe

How could identity fraudsters get my personal information in the first place?

It depends. Fraud artists can bribe employees of banks or credit card companies who have access to confidential records, or they can pose as an employer or landlord to get a copy of your credit report, or simply steal a wallet, purse or your mail. One of the most common ways that information is snatched is through lost credit cards. All of those techniques are more frequent than any methods using the Internet.

Once my information is nabbed by a crook, how is it typically used?

Plain-vanilla credit card fraud is the most common way information is used. It gets more serious when criminals use your information to open up new bank or credit card accounts, take out a loan or obtain mobile phone service. Often, you won't realize until much later that you have become a victim, because the criminals don't use your home address for statements.
A more worrisome technique involves someone posing as you in person: Obtaining a driver's license with your name but with their photograph and giving your name to the police during an arrest, for example. If you miss the court date, a warrant will be issued for your arrest.

How about my credit cards and ATM cards--am I legally liable for their use if they're stolen?

For ATM cards, the answer lies in a federal law called the Electronic Fund Transfer Act. If you report the loss within two business days after you discovered it, your losses are limited to $50. Wait 60 days, and you could be responsible for $500. If even more time elapses, you might not have any legal recourse. Check your bank statements regularly. However, all the major credit card companies have said that they have instituted "zero-liability" policies that mean they will not hold their customers responsible for any amount at all. The Federal Trade Commission has suggestions on how to avoid credit card fraud.

How can I protect myself?

Remain vigilant. That means reviewing your credit reports at least once a year. By signing up for monitoring services you will notification of changes to your accounts. Or for optimum protection, IDTheftSmart provides monitoring and restoration in the event of a breech.

Some other common sense tips:

  • Be careful with the passwords for your bank, credit card and utility service accounts.
  • When using online services, make sure to type in the correct URL for the site you want to visit.
  • Never click on links in an e-mail or on a Web site that you don't know to be reliable. These could be part of a phishing scam, which typically use forged e-mails and faked Web sites that pretend to belong to trusted service providers like a bank.
  • Putting a lock on your mailbox and not placing outgoing mail in an unsecured mailbox is smart.
  • Use a paper shredder for sensitive information -- identity fraudsters have been known to rummage through garbage or steal mail.

What should I do if I think my identity has been misused?

If you have signed up for ID TheftSmart - just call us we will investigate the issue. Immediately, a fraud alert will put in your credit file with the three major credit bureaus (Experian, Equifax, TRW). An initial fraud alert stays in place for 90 days. If there is an alert on your record, businesses have to take extra steps to verify your identity when issuing credit. A credit card company could phone you, for example.  Once you've created the fraud alert, review copies of your credit report to make sure that all the accounts listed are yours.

Should I give out my Social Security number?

Sometimes. Your employer and financial institutions have a legitimate reason to ask for it. But many other companies use the SSN as a convenient way to give you a unique ID number in a database. In those cases, you may not be required to divulge it. The Social Security Administration advises: "You should treat your Social Security number as confidential information and avoid giving it out unnecessarily."

How can I tell whether e-mail claiming to be from my bank or credit card company is actually a "phishing" scam?

There's often not an easy way: The current, insecure design of Internet e-mail permits scammers to pose as legitimate businesses. Some smarts tips include questioning whether the e-mail's purported urgency really makes sense. Unless you're sure of their legitimacy, avoid clicking on links in e-mail that seem to be from banks or credit card companies. Instead, manually type in the Web site's address in your browser.

There are tools that can help you detect phishing scams. Comodo offer VerificationEngine to authenticate the home logo of over 200,000 of the largest sites including most banks. This is a free plugin you can get http://www.comodo.com/products/free_products.html..

What should I do to protect my computer from Trojan horses, viruses and worms that could be used to get into my personal files?

Comodo offers extensive suite of free desktop security solutions designed to protect against all forms of malware. To see all our free solutions, including Comodo Firewall Pro, an award winning firewall, please visit, http://www.comodo.com/products/free_products.html