We all love going on vacation. It’s the time we give ourselves to forget about all of our worries and remove all stress. If you really want to enjoy your summer vacation, then take the precautions to protect yourself against identity theft before you head out. That way, you will be able to feel at ease and make the most out of your time off.
However, before we get to fully enjoy all those wonderful days coming ahead, we need to do some sort of preparation for not only the summer we love. In fact, thieves love stealing from others during this season as well. For them, people become more vulnerable during the warmer months since vacationers are more focused on relaxing rather than the security of their identities, and that is why criminals can so easily take advantage of the season. That being the case, summer is the perfect time for thieves to collect all the information they need to hijack an identity.
The good news is that you can do something to lower your risk in becoming a victim, even when you are on your summer vacation or travelling far from home.
Listed are some identity protection tips that will help minimize your risk:
Things you need to do before you leave:
- Contact your bank and your credit card company to let them know that you are travelling as well as to know where you would be travelling. That way, they can prevent any charges done from a different location. Instead, they would only allow charges made on your destination. If you have a good bank, then they would let you know if there have been charges that seemed to be suspicious.
- Limit the number of people you have told about your vacation or travel. Even though you might want to share everything about your vacation on your social media accounts, try to control it and instead, share it upon your return. Most of the identity thieves look out for people who are currently not in their homes especially during the months when people love travelling.
- Ask the post office to hold all mail for the duration of your trip. That way, you are assured that important documents would not be placed on your mailbox while you are away. Moreover, if it has been left sitting there for a long time, chances are other people could pick them up. It is also one way to avoid the piling up of mail in your mailbox, which gives the others, especially the thieves, a sign that you are currently not in your home.
- Only take the necessary documents and leave the others in a safe place if you are not going to use them during your vacation. Taking them all might only lead to losing them.
Things you need to do while you are on a vacation:
- Keep all your documents safe especially those containing sensitive information. Never ever leave your documents such as passports in the room you are staying in. Other people might also have an access to it. If the room has a safe, then better keep your documents there. However, things like your license should always be with you.
- Only use secured networks and never ever use an unsecured one such as a public Wi-Fi. Even vacation destinations these days provide an internet connection. However, not all of them are secured. Unsecured networks are much easier to hack. Moreover, acquiring sensitive information can be done without exerting a lot of effort. You should never access your online accounts unless the connection is secure and password protected.
- Check your bank statements from time to time. Whether you are on vacation or not, you should periodically check your bank statements. Discovering unauthorized charges would be faster that way, so be sure to use a secured internet connection.
- Never forget to set up a password to all of your devices as a precautionary measure in case one gets stolen or you lose it somewhere. Remote wiping is also a great idea. That way, if you can’t retrieve your phone, at least you are assured that nobody would get their hands on the information on your device.
By doing all these things, you will have a better peace of mind during your vacation.
The Fair and Accurate Credit Transactions Act, or the FACT Act, was passed in 2003 as an amendment to the Fair Credit Reporting Act. It’s passing gave consumers some powerful weapons in regards to being proactive against identity theft, yet many people don’t realize what benefits the FACT Act provides. From being able to get free credit reports from the credit bureaus every 12 months to being able to place fraud alerts on your credit reports to eliminating credit card numbers from receipts, consumers are able to get a lot of protections now that they weren’t able to have before.
Here’s what the FACT Act does for you:
1. You Get 1 Free Credit Report from Each Credit Reporting Agency Every 12 months
Through the FACT Act, the three major credit reporting agencies, which are Equifax, Experian, and TransUnion, set up the website AnnualCreditReport.com. This is an easy place for you to be able to request in writing a credit report from any or all of the credit reporting agencies. You are allowed one free credit report every 12 months from each agency, so many consumers choose to make a request for one every four months from just one of the agencies so that they have a more consistent review of their credit. Besides the website, you can also request your free credit report in writing by sending a letter directly to the credit reporting agency of your choice through standard mail.
2. You Are Able to Place a Fraud Alert on Your Credit
If you suspect that your identity has been compromised, you can request a fraud alert to be placed onto your credit report through any of the credit reporting agencies. Once you have placed a fraud alert at one agency, this alert will then update to the other two. An initial fraud alert can last for up to 90 days, and when identity theft has been confirmed, this fraud alert can last up to 7 years. In addition, anyone who is actively serving in the military can have a fraud alert placed on their credit report for up to 12 months. You can learn more about fraud alerts through this informative blog post as well.
3. No More Credit Card Numbers on Your Receipts
If you keep your tax records for seven years or more, then chances are you can go digging into that box or file and find some point of sale receipts there. Chances are they contain your entire credit card or debit card number on that receipt. Fast forward to today where thanks to the FAST Act, all card numbers must be truncated to only display four or five of those numbers. Often it is displayed as XXXX-XXXX-XXXX-1234 these days. This was done because a fast majority of people simply crumple up their receipts and then throw them away in the nearest trash can… which was a very easy way for identity thieves to get their hands on a valid number. You’ll also notice that there aren’t any expiration dates on receipts any more as well, and this is for the exact same reason for truncating the numbers.
4. Help to Identity Possible Identity Theft
Sometimes referred to as the “Red Flags” rules, the FACT Act required the formation of regulations by the major Federal finance agencies involved in consumer finance to help people discover identity thieves as quickly as possible. This boiled down to three basic points:
It requires financial institutions or creditors to develop and implement an Identity Theft Prevention Program in connection with any account they hold and it must include reasonable policies and procedures for preventing, detecting, and resolving identity theft event;
It requires users of consumer reports to respond to Notices of Address Discrepancies that they receive when there is more than one permanent address for a consumer; and
It places special requirements on issuers of debit or credit cards to assess the validity of a change of address if they receive notification of a change of address.
These Red Flag regulations are intended as a measure to help keep you safe from circumstances that could be out of your direct control. Identity thieves have always held an arsenal of weapons that they can use to gain access to a victim’s identity – these implemented regulations are designed to help give consumers weapons to defeat identity thieves before they can strike.5. Blocking Information that Occurs Because of Identity Theft
An identity thief can create a lot of damage for their victims. It could just be from spending money on existing accounts, or it could be the opening of new accounts, maxing out those credit lines, and then not paying them. It could be that a false name was given when an identity thief is arrested, thereby putting an arrest on a victim’s record. It could even be pretending to be the victim in order to receive medical treatment and coverage, and then not paying for it.
Thanks to the FACT Act, the false information that is generated thanks to the identity thief’s activities is to be blocked from your permanent record once contested. This means that potential lenders will not be able to see any accounts in collection thanks to the activities of an identity thief, false judgements, or anything else that could have a negative impact on your application.
In addition to these five key points, it was also mandated that consumers have access to specific resources to gain the help they need should they discover that they have become the victim of identity theft. Despite all of these efforts, however, identity theft is still the fastest growing crime right now in the United States. Why? Because people simply haven’t taken the time to empower themselves with the knowledge they need to combat identity theft effectively. For some it’s because they feel invulnerable. For others it is because they just don’t care. Then there are those who just don’t realize that identity theft is a problem.
Until we all fight back against the identity thieves, there will always be new victims because identity thieves profit to the tune of $40,000,000,000 every single year. Be sure to request your free credit reports every 12 months, sign up for an effective identity theft protection plan, and take the fight to the identity thieves today.
One of the real problems with many of the types of crimes addressed on this website is that the punishment does not seem to be harsh enough from authorities.
By this, we mean that the punishment for credit card fraud and other forms of identity theft are almost certainly not severe enough to put others off trying their luck. One aspect that falls very clearly in favour of the criminal (if caught and if the case goes to court) is that to many it is a ‘victimless’ crime. Clearly, there are victims. But because most victims will recover the majority of their losses from banking and financial institutions, there is a perception that nobody was hurt.
As discussed elsewhere on this site, clearing up the damage to a reputation and financial position can take up to 2 years. That does not seem ‘victimless’ to us.
For the police, if the ‘value’ of the crime is small, there is often little incentive to chase the trail and try and make a conviction. The media will often round on local police officers that chase small and often petty crimes hard, when there are murderers out on the streets. Because of this, there is a real sense that small cases waste police time. If that is the situation, then clearly adequate punishment for credit card fraud is still a long way away.
Are You Worried About Your Personal Data?
In researching this subject for this site, your author has read that many areas of the United States have semi-official numbers in place to determine whether they investigate a financial crime or not. It seems that offences much below US$100,000 will be unlikely to receive much – if any – attention. There is no doubt that a sound economic reasoning and logic underpins this number. The value of police time, court time and the cost of sentencing and imprisonment make small crimes unworthy of attention.
However, should you have been on the receiving end of this, and now be ‘short’ (lets say) US$80,000, it would seem very serious. It may be that much of this money would eventually be returned by the credit card company, but it would still be a very stressful situation.
At this point, it might be worth pointing out that if the cost of a crime is reimbursed to a victim, then that cost will be passed on to all customers in some way. This might be in the form of higher charges, less ‘free’ benefits and gifts or higher insurance premiums, but somehow we will all pay. This seems just as unfair as the cost being met by one victim, but this is the way of the world.
In contrast to all these costs, the criminal – if caught and prosecuted – is often looking at light levels of punishment. Why? No actual physical harm was likely to have been caused to the victim. These crimes rarely involve an assault or attack. There will probably not be any damage to property either. In addition, it might be that a substantial amount of the crime cannot be proven to have been taken by this criminal. That means that while they might have obtained tens of thousands, they may have only been caught in the act with a few hundred or thousand. The courts can only convict and punish for what they see and know to be true.
What Is Bank Identity Theft?
Firstly, you will be pleased to hear that this isn’t a situation in which banks try and defraud customers. Though there are occasional reports in the press about rogue members of staff in a bank that are copying customer information to sell on to criminals, it is, thankfully, rare.
It would be reasonable to say that in any position which deals with sensitive information, some people will succumb to the temptation. That is just human nature.
Instead, bank identity theft is generally carried out by criminals who are impersonating a bank. This might be online or by telephone. They are doing this in the hope that the customer will provide details of account numbers, sort codes and passwords to them. The criminals will then use this information to make transfers out of bank accounts and into accounts they have established.
From there, the stolen money will be removed or transferred again and the criminal will disappear. Needless to say, the bank accounts used by the criminals are often established in false identities and in far away countries where it is difficult for the police to investigate.
From the perspective of you, the bank customer, it is vital that you do not give your account information to anyone who calls by telephone and tells you that they are from your bank. At least 99% of all banks in the western world will never call you to do this. If you receive such a call, you are almost certainly being targeted by a fraudster.
If this happens, it is time to get serious about your information security immediately. Check your credit file as soon as you can. It is vital to find out whether other accounts have been opened in your name. You can get a free copy of your credit report or if you use credit monitoring (https://www.stopidentityfraud.org/credit-monitoring-services/ ), you can most likely find it on your online dashboard with the company you signed up with.
A Mathematical Certainty
In terms of the internet, this is known as “phishing”. Emails that look like they are from a bank, using an email address that seems to be similar will redirect you to their own website that looks exactly like that of the bank. These websites often have forged security certificates to help them bypass browser security functions. A percentage of people will follow the link and input their bank details to log in.
It is believed that there are actually several hundred thousand of these websites online. They are generally hosted in another country – often a Pacific or Caribbean island – in a corner of the internet that is difficult to regulate. It is widely believed that a significant percentage of all phishing activity originates from Russia.
As far fetched as this may sound, by spamming generic email lists with emails that look to be from major banks, the fraudsters can play a numbers game knowing that a small percentage will follow their process and hand them their information. They are using tried and tested direct marketing techniques for nefarious purposes.
Internet fraud and identity thieves are as numerous today as they have ever been and are regularly taking advantage of the most cutting edge technology in order to steal law-abiding citizens’ money. Many of the people who get caught up in these schemes and thefts are senior citizens, and they are often even sought out and specifically targeted by experienced fraudsters. They exploit these seniors’ decline in mental quickness and their trust by befriending them and then later turning around to scam them through the use of false investment opportunities, sweepstakes, or by using numerous other tactics.
The best way to protect yourself and your loved ones is by understanding how these criminals operate and the methods they employ in order to get the job done. Luckily, there are many specific things to look out for that can indicate that someone is attempting to commit identity theft or fraud. If you are a friend or family member of a senior citizen, read over the following red flags to look out for in order to help protect them against fraud:
- Large increases in debit or credit card usage.
- Large withdrawals from savings, particularly if it’s an inactive account.
- Overdraft fees or bounced checks.
- New debit or credit cards that come in the mail.
- Forged signatures.
- Check numbers that are out of sync.
- The senior is confused about their account balance.
- Caregivers receiving too much pay.
- Increases in monthly expenditures.
- The senior speaks about a lottery or sweepstakes they’ve won.
- The senior states they’ve provided personal info through email or over the phone.
- While the above are some good tells that may well indicate scams or fraud being committed, it’s also important to understand the nature of the attacks themselves and take a proactive approach to guarding yourself or your loved ones against such attacks. Let’s take a closer look and see what types of scams are most common and what ways are best to guard against them.
Phishing attacks are generally sent out in the form of an urgent message to a ton of different people at the same time. This is where the “fishing” term comes from, as even if the majority of the people who get these messages ignore them, anyone who does fall for the “lure” can net the scammer a huge profit. They’ll often be messages that will tell the receiver that there’s something wrong with their account and will ask for personal information in order to reconcile the issue. They’ll often come through email and can look very convincing. Many times they’ll use spoofed websites of banks, payment companies, or financial institutions. For example, your bank might have the website address “www.mainstreetbank.com” but a phisher might use something that looks like “www.ma1nstreetbank.com.”
Emails aren’t the only methods, as there are also scams that revolve around phone calls or even text messages. In order to avoid phishing attempts, review the following steps:
- Be critical of any email asking for personal financial information, particularly if it says it’s an urgent matter.
- Avoid filling out forms through the email itself. Instead, always try to put your financial information into secure sites or over the phone after calling them directly.
- Don’t follow any links that you receive through text message or email.
- If you’re entering any private financial data, always make sure it’s a secure site.
- Log into each of your online accounts at least once per month.
- Review your credit card and bank statement regularly.
- Keep your internet browser up to date.
Not all identities are stolen over the internet. Some are stolen in person. If you find yourself in a situation that seems almost too good to be true, it probably is. Let’s take a look at some common scams that senior citizens and other people regularly fall for:
The victims of these scams are told to be the middleman for a donation drive. They’ll be asked to deposit large checks into their account, keep a small cut for themselves for the trouble, and then forward the rest of the money into the fraudsters account. The money they’re “depositing” into their account doesn’t actually exist or sometimes even belongs to other victims.
Working from Home
A victim sees an advertisement promising them big bucks for working an easy job from the comfort of their own home. They’ll have checks deposited into their bank account and are told to wire 90% of it back to the fraudster and keep the remaining portion for themselves. Like with the above example, this money often doesn’t even exist, so the actual money that gets sent belongs to the victim.
The victim gets involved with an online boyfriend or girlfriend who tells them to deposit a check or money order into their account and then wire them the money. These checks are bogus so the boyfriend/girlfriend ends up getting money from the victim’s own pocket.
While the above are common examples, there are endless scenarios that a fraudster can use to steal a senior citizen’s money. It’s best to proactively protect yourself from them rather than hoping to do damage control after your identity is already stolen. Let’s take a look at some of the best ways to go about doing this:
- Regularly review your bank accounts and financial statements.
- Sign up for security alerts through your mobile or on your email account.
- Monitor your credit score to check it for unauthorized activity.
- Keep private information private – use direct deposits and keep all financial records secure under lock and key.
- If you are a victim of fraud, contact your financial services company immediately and notify them of the problem.
Senior identity theft is a very real thing that does affect countless individuals every single year. By taking a proactive approach in protecting yourself or someone you know, you will be able to minimize your risk. The most important thing is to be skeptical of strangers promising you money for little or no effort or of messages urging you to send them your personal information.
The problem with identity theft is that it doesn’t discriminate against one demographic or socioeconomic status. In many cases, the theft is not due to carelessness on the part of the victim. Celebrities have to deal with the annoyance of identity theft as well, and they have plenty of money to steal, so they are prime targets. Here’s a list of 7 well-known celebrities that have been victims of identity theft related crimes
Steven Spielberg was the victim of identity theft, however he had nothing stolen besides his privacy. In the 1990s, Spielberg had his personal information used to allow an inmate in a Tennessee prison view on Spielberg’s American Express credit card purchases. The man later claimed he did it to supply the celebrity’s information to a Hollywood studio. Apparently this genius thought he could make money by getting a movie made about his small time id theft caper. Are people just that stupid?
Liv Tyler had a bout with an identity thief in 2011. Her hairstylist used her credit card number to help herself to plenty of merchandise and services around town. When caught, it seems the stylist didn’t use Tyler’s card alone. She used Anne Hathaway, Penelope Cruz and Melanie Griffith’s card information as well. Tips and payment aren’t enough?
Ricky Gervais was on the receiving end of a fraud in 2009. Using an insider at the bank to obtain Gervais’ information, the group of thieves transferred 200,000 pounds from his bank account. The cash was to be used to secure gold bullion. While the scheme seems fairly clever, the identification they used was a passport, with a cutout photograph of Gervais. The pic was taken off the DVD box of The Office. They needed the identification to pick up the gold they had purchased.
Paris Hilton had her name used in setting up a website. The site was dubbed Paris.org. Being registered as a trademark, she informed the thieves that she wanted payment for the use of her name. Later, her run-in with a teen in Minnesota resulted in her information being posted online. Apparently the teen had hacked in to Ms. Hilton’s phone.
A busboy was not using his head when he stole Ms. Oprah Winfrey’s social security number, birth dates of friends and relatives and even addresses of Oprah and 200 of the Richest People in America list published in Forbes. With the use of cell phones, a library computer and people imitating couriers, the thief snagged all of this info from credit protection services and reporting through Equifax. If you’re going to steal someone’s identity (or bank info) you might as well swing for the fences and steal Oprah’s right?
Known criminal, Anthony Lemar Taylor, picked a good one. He obtained Tiger Woods’ information after finding his information was not that secure. Taylor purchased $50,000 in merchandise. To top it all off, Taylor procured a fake license to drive, social security card and a military I.D, all in Tiger’s name. This bright guy even misspelled Tiger’s middle name wrong on the document’s but managed to still fill a storage unit to the hilt with stolen goods.
Will Smith found several fake accounts were used to grab $33,000 under his real name, William C. Smith. The 2009 incident wasn’t the first time for the thief. He had been arrested before for stealing the former Atlanta Hawks basketball player, Steve Smith’s name. He was still on parole for the prior arrest. Some folks never learn.
So what’s the moral of the story here? That anyone can be a victim of identity theft. You, me, Kim Kardashian or the mail man. Identity thieves don’t discriminate. If you haven’t started making decisions to better protect your identity, then you are just a statistic waiting to happen. Learn how to protect yourself on a daily basis and discover what credit monitoring can do as an proactive tool to help limit the damage should be ever be a victim of identity theft.
Last week we mentioned how Your Credit Rating Might Be Ruined Even When You’re Not Doing Anything Wrong. This week we’ll be addressing The 10 Most Frequent Credit Mistakes you’re making.
What’s a Credit Rating?
Your credit rating is a judgment about your fiscal well being, at a certain time. It suggests the threat you represent for lenders, in contrast to other consumers.
There are various approaches to work out FICO scores. The credit rating agencies Equifax and Trans Union use a scale from 300 to 900. High scores on this particular scale are great. The larger your rating, the lower risk you pose to the lender. Lenders might also provide their very own methods for arriving at credit ratings. Additionally, lenders must choose the lowest score you’ll be able to have and still borrow cash from them. They may also apply your score to create the interest you may pay.
Which are the 10 Most Frequent Credit Rating Errors?
1. Neglecting to review your own credit history for mistakes: Assess your credit report at least yearly. Errors on credit reports are somewhat more frequent than you could have visualized and you should stay along with the problem. Should you find any mistakes, contact the credit reporting agency when possible to fix the scenario.
2. Not using your complete legal name in monetary records: It Is possible that individuals with common names or similar sounding names could have their name imputed to a credit report that’s not theirs, as was the situation for Mr. Dave Johnson of Pembroke, Ontario. Use your complete legal title on credit programs, bank accounts as well as other files that become segment of your own credit history.
3. Paying your bills late and neglecting to make at least the minimal monthly payment:In time your lenders will finally report your account as past due, which can damage your credit If you do not pay at least the minimal amount due on score When there is a rationale why you will not be in a position to cover your invoice promptly, get in touch with your lender prior to your invoice is arrangement if due to work-out an feasible
4. Maxing out on your charge cards: If your charge cards are maxed out, prospective lenders may challenge your ability to refund. You might be billed an increased rate of interest to compensate for what exactly is viewed as a higher hazard in case you are qualified to get a loan.
5. Not alarming lenders if you have proceeded: Your statement may arrive late and as a result your payments could be late, possibly damaging your credit score.
6. Registering for too many new charge cards: Consumers who often open new credit cards are viewed as a greater danger than those who do not.
7. Closure older credit card accounts: Closure this can adversely impact your credit score and older credit card accounts shortens the duration of your credit history.
8. Do Not cosign for someone else’s loan: You could be liable for that man’s debt and harm your credit.
9. Do Not share your charge card or social insurance number with anyone: There are a lot of abound where individuals strive by telephone, e-mail or mail to get your charge card or social insurance scams number This is a fast-track to fiscal catastrophe and id theft.
10. Dismissing the warning signals of credit issues: If you’ve problem making the minimum payments on time and have maxed out all of your credit, you’ve severe debt issues.
Professional assistance is required by serious debt issues. Contact a reputable credit repair company or a debt management service to help get your credit moving upward again
Lenders look at credit scores as a means to judge an individual’s creditworthiness. In today’s market, it may look like everyone is taking a hit to that all important credit rating. It’ll likely come as a surprise to you that some states are do better than many others. Dwelling in a specific locale does not mean you’ve got perfect credit, yet. Understanding which says top the list will provide you with a concept of the manner in which you compare together with the individuals residing around you.
What Variables Determine a State’s Typical Credit Score?
Just what variables can alter the common credit rating of a state’s residents? There really are a number to contemplate. Joblessness is among the top concerns. States with better employment numbers often have residents using a healthy FICO score. Being jobless forces some visitors to rely greatly on credit to fund essentials, and that could drive their scores down. Foreclosures inside the state are another prime concern. Other factors include:
- Typical charge card payment history
- Natural disasters which affect the state market
- New companies
- Home marketplace
- Insolvency rate
- Warm weather locations often endure more than states that face the chilly each year, also. This might take part because of their tourism-based markets. As a country, Vantage Scores average from 707 to 785, but by state, there’s a broader distribution.
A Review Of the Top Ten
10. Iowa – With a score that sits around 771, Iowa makes the most effective 10. Residents of Iowa tend to get low bank card delinquencies, as well as the state in general has low joblessness. Iowa does take a moderate ding to get a greater-than-average foreclosure speed. It had been enough to motivate the state right down to number 10.
9. Hawaii – Hawaii is tied with Wisconsin and Connecticut for average credit rating, with all three coming in at 772. Hawaii is the exception to the warm weather rule. While this sunlight state is famous for the high expense of living, it also hosts among the greatest amount of millionaires per capita in the U.S.
8. Wisconsin – Coming in at 772, Wisconsin boasts a gross state product of $248.3 billion. An adverse element in its credit rating is high joblessness. The Bureau of Labor Statistics reports the speed in Wisconsin hovers around 6.3, but that’s a large progress on the 2010 amounts.
7. Connecticut – The per capita income in the area of Connecticut is among the elite in the nation, but the unemployment rate runs high. In cases like this, the one positive and one negative cancel each other out to provide the state an average credit rating of 772.
6. Massachusetts – With a score of 773, Massachusetts is number six on the top ten list. Like Connecticut, Massachusetts increases points depending on its high personal income – it’s the 3rd-wealthiest state in the union. It’s also home to 13 Fortune 500 firms, making it-one of CNBC’s top states for company in 2010.
5. North Dakota – Back in 2011, this was the state that topped the set of greatest credit scores. These days, it’s still among the top competitors based on all of the credit metrics. North Dakota reports the lowest unemployment rate in the state – only 2.7 percent – and keeps low bank card delinquencies, giving it an entire credit rating of 775.
4. New Hampshire – Linked with North Dakota is New Hampshire. Like its New England neighbors, New Hampshire gains points for high personal income. It ranks number seven in the nation. Unlike Massachusetts and Connecticut, it’s a fair unemployment rate, also – well under the national average.
3. Vermont – The state of Vermont ties with South Dakota for time slot two and three. Vermont has steadily kept low foreclosure speeds. The national percentage of foreclosures is around one in every 2,370 home units. In Vermont, that amount is closer to one in every 39,000 units. Vermont ranks high in virtually every measurable class, giving it an average credit rating of 777.
2. South Dakota – Another state that produces the list every year, South Dakota additionally boasts a typical credit rating of 777. The state keeps a reduced unemployment rate, tied with Nebraska at 3.6. Additionally, it makes the very best six for high scores in most quantifiable groupings.
1. Minnesota – Topping the list by the end of 2013 was Minnesota. The residents of the state have a few of the best credit ratings in the country. United, their average sets Minnesota in the lead using a score of 785.
Fico scores transform year to year for every state. In 2011, North Dakota was on top of the stack, followed closely by Vermont, South Dakota and Nebraska. In 2013, Nebraska did not even make the list, due in part to a large number of reported personal bankruptcies.
Going to a different location in the country is most likely not the solution to boosting your credit rating, but understanding your state average does help provide some perspective. It requires work to build it up again when your score has dropped. The important thing for rebuilding a faltering credit report is an all-inclusive credit repair solution. It begins having an overview of your payment history and setting FCRA and FACTA laws to meet your needs, in order to construct better credit opportunities wherever you reside
Creditors and financial institutions are always drawing up plans to increase their revenues. Most of the time, consumers like you fall prey to their hidden charges or confusing rules. This is why a lot of you doubt whether the creditors can actually resort to such mischievous loan origination tactics or not.
To help you make smart decisions, I have discussed five of the most popular misconceptions related to credit and the banking
practices observed in our country.
Myth 1: Credit card companies cannot increase the rate of interest on my cards.
Fact: Actually, they can. However, the CARD Act has been put into place to protect you from their most horrendous abuse, i.e., they can no longer hike the interest rate on your card’s existing balances without you being 60 days late in making the payments. Still, there are certain loopholes that you must be aware of like:
- Rate of interest on credit card’s are variable and that they are always dependant on their prime rates. So, the interest charges on your balances will not increase any further unless the interest rates go up.
- You could be slapped with higher interest rates, depending upon your creditworthiness and payment history. If you pose higher risk to the creditors’ money, then you’ll be charged with higher rates of interest on all your future transactions.
- Your creditors can increase the interest rates on your cards for practically any reason after a 12-month period. However, the new, increased rate will only be applied to future purchases and not on the present balances. For that too, your credit card issuer, is bound to notify you at least 45 days ahead of any change in your cards’ rate of interest.
One of the most effective ways to resolve this of kind credit problem is to get your balances transferred or to payoff your dues through a personal loan, but make sure you are never made to pay as per the purchase annual percentage rate (APR).
Myth 2: Credit card payments are always used to pay off the highest interest incurring debt first.
Fact: This isn’t always true. Creditors use different rates to charge different kinds of transactions. The rate of interest on a purchase (is high) but then, it differs from the balance transfer that is basically low. Now, with the advent of the CARD Act everything such thing has changed. The payment made by you must be applied to the highest interest rate balance first. But, your payments should be greater in value than the minimum outstanding balances.
So, if you make minimum payments every month, then your money will be used to pay back the lowest interest rate balance first. The best tip would be to avoid having balances transferred and spend money from a single credit card. Frankly speaking, banks usually get to have your balances trapped when there are multiple kinds of balances incurred in a single credit card.
Myth 3: Every zero percent offer means the same.
Fact: No, all such credit card offers aren’t. A huge difference exist between a zero percent APR credit card and a zero percent purchase financing. Former is actually a balance transfer card wherein you’ll not be charged any interest on all your purchases for certain period known as the promotional period, whereas, the latter will defer interest from getting applied to your balances in some chosen departmental or retail stores.
In case of deferred interest credit cards, make sure you’ve paid off all the balances before the expiry of the promotional period because if you don’t pay off the balances within the said period, then you’ll be charged interest for the entire promotional period. Similarly, zero percent APR credit cards either have their interest reduced or stayed during promotional period. This is one of the most suitable ways to wipe out your overwhelming credit card balances and stay financially healthy.
However, as soon as it is over, the interest on their balances increases drastically. So, be careful with your use of these offers and always make it a point to pay off all the bills before the promotional period expires, as it might take you years to repay them all.
Myth 4: Closing credit card accounts will increase my credit score.
Fact: Actually, canceling old credit card accounts or any other debt is never a good idea to promote your credit score. People have the misconception that old debts look ominous to potential lenders. But, it is a lot better to pay off your bills on time and not missing a deadline than to keep a card with $5,000 available as credit lying idle in your closet.
So, basically its foolish to wipe out old credit card balances by having them cancelled. This is because old credit card accounts will elongate your credit history that plays an important role in improving your credit score. It would help creditors to evaluate whether you can manage your financial obligations responsibly or not. However, there are certain acceptable ways to have old debts removed from your credit report, if you’re hell bent on doing so.
Myth 5: Credit card issuers don’t provide any freebie to college students for signing up for their cards.
Fact: This is not always true. Though credit card companies are barred from doling out freebies like T-Shirts in front of schools, as per the CARD Act, yet that doesn’t stop them from signing-up students for the sake of bonuses. They can even promote their services/products on campus. Still, the practices isn’t good for students, as they are asked to spend with the lure of getting a free gift on every purchase they make. This is much worse than getting a T-Shirt for signing up.
Myth 6: I am protected from any kind of credit card or debit card fraud.
Fact: Not necessarily. In order to defend yourself against a credit fraud, you must report such an incident within 60 days of its occurrence. Or else, you’d lose a lot of your rights. In case of ATM/debit cards, banks can hold you responsible for not more than $500 in fraudulent transactions, provided you’ve notified them about the incident after two days of it from happening. On the other hand, credit card companies will not hold you liable for a fraud of not more than $50. There are some banks that waive off a fraud of $50 altogether.
If you are charged and held liable for credit frauds, then you’ll have to make the payments and in turn have your credit rating damaged. However, you can work to improve your credit score after negative trade lines like payment defaults, credit frauds or bankruptcy is reported against your accounts.
Whatever be the case, it is your responsibility to avoid any kind of liability. Utilizing a credit monitoring service is a good, proactive way to prevent identity theft. Always keep a record of your transactions and inform the concerned personnel of the bank or the creditor, the moment you detect any suspicious activity. Moreover, guard your confidential financial details and never share your Personal Identification Number (PIN) with anyone, or keep an easy, obvious one.
For millions of Americans, their Netflix accounts are essential to getting through a sick day or weekend at home. Nevertheless, something most of these subscribers don’t pay much mind to is keeping basic account security that helps to keep their individual info safe. Something as easy as changing a password regularly may appear like a bit of a hassle, but it’s vital to making sure ongoing account security, particularly as it associates with current hacking attacks.
A number of major data breaches in recent months have potentially put Netflix users at risk of having their streaming accounts hacked, according to Advertisement Week’s Lost Remote vertical. In mid-October 2016 and once again previously this month, Netflix began alerting customers that it had actually been checking its own user records versus data exposed in other companies’ information breaches, indicating that while Netflix itself has actually been unaffected, user accounts were still at threat. As a result, impacted users were required to alter their passwords.
What’s the risk?
The reason for customers to change their passwords is basic: Many individuals use the very same login details for numerous or perhaps all their online accounts, according to TIME Data Security. While can make it much easier for individuals to bear in mind their passwords, it likewise makes it simpler for hackers to get access to potentially important details. Even something as easy as a Netflix password can give criminals– who can frequently buy taken login data at low individual costs– access to crucial information that can be used for fraud, including name, address, and even charge card data.
Customers can examine to see how their accounts have been accessed by making use of Netflix’s “Viewing Activity” feature, which will show info such as the IP address and place where accounts have been accessed, the news source stated. That, in turn, can assist individuals comprehend if their accounts have been subjected to these kinds of attacks, and trigger them to start altering their passwords for their other accounts if they haven’t currently.
People typically know they need to utilize multiple passwords for their various accounts– ideally using an unique one for each account they develop– hackers also know that this isn’t basic practice for the huge bulk of internet users, inning accordance with KrebsOnSecurity. Hackers also understand that if they have, state, a victim’s Facebook password, they can attempt using that password for Twitter, Netflix and even savings account and have some quantity of success.
Fortunately for numerous web users is that larger business like Netflix are taking preemptive actions to make sure account information isn’t used by hackers, but there’s no single sure-fire way to prevent this from occurring. Businesses can examine their own records versus exactly what’s been dripped online, but it depends on users change their login information.
” Some Netflix members have actually received emails motivating them to alter their account passwords as a precautionary procedure due to the recent disclosure of extra credentials from an older breach at another internet business,” Netflix told KrebsOnSecurity. “Note that we are constantly participating in these kinds of proactive security procedures (leveraging Scumblr in addition to other mechanisms and information sources), not just when it comes to significant security breaches such as this one.”
In addition to keeping different passwords for all their separate accounts, it’s smart for users to make sure they take efforts to read more about the dangers they face and alter their passwords regularly. That way, even if a years– old Netflix account is breached, there’s little chance of that to affect other accounts. When passwords fail you, it’s constantly excellent to have an identity theft security plan in place. Take proactive steps to secure your personal information and keep track of your credit by monitoring it regularly.