How your credit reputation is affected?

Upon targeting your financial well-being, fraudsters will ruin your credit reputation that was carefully built over time.

• New credit enquiries:

  Each time an identity thief applies for credit in your name, the lender is likely to check your credit report. These credit checks appear on your credit report and typically ding your credit score by a few points. Every time someone does a “hard pull” of your credit, it’s going to pop up on your report. Look for those pulls; if you didn’t request it, it’s a clear sign that you are a victim of an identity theft.

• New loans or credit cards:

  New loans or credit card accounts taken out by an identity thief don’t necessarily hurt your credit by themselves. The problem starts when those accounts become criminal because the identity thief isn’t paying the bill. Your credit score takes a hit each time a month of non-payment passes.

• ollections accounts:

  After a certain period, lenders turn unpaid debt over to a collection agency. When this happens, a collection account appears on your credit report, and that has a very damaging effect on your credit score and credit worthiness. Medical identity fraud often results in a collection account. Thieves use your information to receive medical services or treatment, and when those debts go unpaid, the medical provider sends the debt to a collection agency.

• Unpaid cell phones or utilities:

  When a thief opens a wireless plan or home utility using your personal information and doesn’t pay the bill, those providers are likely to report the default to the credit bureaus. This results in a negative account appearing on your credit reports, which hurts your credit score.