Have you or someone you know been a victim of identity theft or one of the recent high-profile credit card data breaches? If so, you may have already taken extra steps to protect your credit in the future. If not, consider yourself lucky—but don’t be complacent. Be prepared!
To monitor existing credit accounts, everyone should take advantage of their one free credit report per year from each of the three credit bureaus—Experian, Equifax and TransUnion. Mark your calendar or set reminders on your phone for one every four months, so you’re alternating credit bureaus and getting your three free reports per year.
Becoming more familiar with the content of your credit files will make it easier to spot errors if they occur—and catching errors early will simplify the process of getting them corrected.
In addition to regularly monitoring your existing credit records, you may want to consider a credit freeze, also known as a “security freeze.” A credit freeze is a way for you to have maximum control of access to your credit.
Credit freezes are designed to prevent a credit reporting agency from releasing your credit report without your consent. They do not protect your existing accounts or affect your credit score, but they are a way to prevent others from seeing your personal information and opening accounts in your name.
If you need access to your credit for a new loan, mortgage, insurance, employment, rental housing or other purpose, you can easily have the freeze temporarily lifted to allow access for the intended creditor.
For more information, download our Financial Planning Resources white paper, “Controlling Access to Your Credit” or get in touch with one of our CERTIFIED FINANCIAL PLANNER™ professionals.
Our advisors are passionate about helping people achieve financial peace of mind. Contact us today to get the conversation started.
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