It is important to protect your identity from others who might want to use it for financial gain. It can be time consuming and difficult to sort out any problems identity theft can cause.
You can have damage to your credit file and this can affect the rate you are offered in the future. It is not only your credit file that can be damaged but there is a whole raft of other problems that identity theft can cause.
Credit file damage
Your credit file is a record that allows other financial institutions to see how you have behaved in the past. They are looking to see how you managed your money and any debt that you have owned.
If you are going to purchase an item on credit, then check your credit file first to make sure that you recognise everything on it. This will alert you to any potential errors and miss-use of your identity.
To have a great credit score you will need to have paid any bills on time, this can be the first sign that you might have been subjected to identity theft.
Change of address
This concept might scare you, but there are instances that thieves will attempt to change your address with the post office, for mail to be re-directed to a different place. This is difficult to notice, only when bills and expected post fails to arrive might you become suspicious of your post being miss-directed.
If a person has access to your personal information from your own post this can lead them to apply for different forms of credit in your name. This could mean companies looking to you to pay back a debt you don’t own.
This is why it is vital that you keep your personal details safe; they are going to allow you to be able to protect yourself from identity theft. If you have mail, then you need to dispose of the evidence in the mail carefully.
It is important to at the very least to shred any personal information. I personally burn all my mail, unless it is something that I need to keep.
There are gangs of thieves that will happily go through your rubbish, looking for some pieces of information that they can use to steal finance from unsuspecting companies in your name.
It can be in a number of different areas: from credit cards, loans, store cards and even junk mail. These can all be used to obtain finance in your name and you are then left to sort out the mess.
It is possible that these companies could go to the courts looking for non-payment, which could be the first time that you realise there is a problem. It will take time to sort out the mess that you find yourself in; it could all happen with no fault of your own.
This is why it is important you protect your own identity, hopefully it is the only one that you will ever have, which is why you need to make sure you are not a victim of financial identity theft.