Credit Reports

In today's world, good credit is extremely important. Buying a car or house depends on having a good credit score. Credit ratings are even used by some employers when deciding who to hire for a job.

Unfortunately, the task of monitoring one's credit report can be a source for identity theft itself. One of the most common scams for identity thieves is to send email or mail offers for sending a person a "free" copy of their credit report. To get that free report, a person has to give over the very personal information that allows someone else to steal their identity and ruin that credit.

The Big Three

When it comes to tracking a person's credit score, there are three security firms that know more about most people than they do themselves. These are the companies who legally look over our shoulders and track just about everything we do, financially. They also are the firms lenders and other companies rely on when they want to know about us.

The big three credit reporting bureaus are Equifax, Experian (formerly known as TRW), and Trans Union. All three operate in basically the same way and all of them have records on just about everyone. By the end of 2005, every consumer in the United States will be able to obtain a free copy of their credit report annually. This measure has been put in place to try and stem the increase in identity theft by encouraging consumers to examine their report.

Good and Bad

Security experts urge people to get a copy of their report annually from these reporting agencies. This is a sure way of uncovering fraudulent information that has made its way into one’s report. It also is the first step to take in reporting and correcting an identity theft. While it sometimes can be a complicated and lengthy process to get incorrect information fixed, it is a lot better than letting that information go uncorrected.

Because checking up on credit reports is so important, it has become a way of stealing identities. Most people get either emails or letters offering to provide them with copies of their credit reports for free. According to law enforcement agencies, nearly all these offers are bogus. They are intended to get someone to hand over their Social Security numbers and other personal data for just the type of crime the respondents are trying to guard against.