Are you affected by the EQUIFAX BREACH? Consider a Fraud alert or credit freeze

Considering a fraud alert or credit freeze? 

You don’t need to be an identity theft victim to use these – but it’s helpful to know depending upon your situation. If you’re not sure which is best for you, here are some things to think about.

The recent security breach at Equifax has left some 143 million consumers scrambling to understand the difference between fraud alerts and security freezes, and which works best in protecting their personal information.

If you’re a victim of the Equifax breach, don’t hesitate to use these options to safeguard your information. You can opt for one or both, depending on what’s right for your situation. Here’s how to choose between a freeze and a fraud alert, and the best way to protect your credit.

What do fraud alerts and credit freezes do? With a fraud alert, businesses must try to verify your identity before extending new credit. Usually that means calling to check if you’re at a particular store attempting to take out new credit. With a credit freeze, no one – including you – can access your credit report to open new accounts. You’ll get a PIN number to use each time you want to freeze and unfreeze your account to apply for new credit.

How long do fraud alerts and credit freezes last? A fraud alert lasts for 90 days. You can renew it but you’ll need to remind yourself or it will expire automatically. Identity theft victims are entitled to an extended fraud alert, which last seven years. In almost all states, a credit freeze lasts until you temporarily lift or permanently remove it. In a few states, it expires after seven years.

How much do they cost? Fraud alerts are free. Credit freezes may involve fees, based on state law. In most states, they’re free for identity theft victims. For non-victims, they cost about $5 to $10 each time you freeze or unfreeze your account with each credit reporting agency.

How do I place a fraud alert or credit freeze? To place a fraud alert, contact any one of the three major credit reporting agencies, either by phone or online. The one you contact is required to notify the other two. If you’re an identity theft victim placing an extended fraud alert, you’ll also need to mail or upload your Identity Theft Report which you can create at IdentityTheft.gov. To place a credit freeze, you must contact each of the three credit reporting agencies individually at their credit freeze portals.

Credit freezes may be a strong tool but they may not be for everyone. Consider the cost and hassle factor. If you’re about to take out new credit (apply for a mortgage, car loan, student loan), then you’ll have to unfreeze and refreeze each time you want new credit. But if you won’t need new credit soon, then a credit freeze may be for you.

Double Protection

For anyone who is in the middle of buying a home, or some other financial transaction, you may not want to block prospective lenders from seeing your credit file. If that’s the case, opting for a fraud alert may offer reasonable protection, because lenders will be warned and you’ll receive a free credit report from each bureau.

Still, a credit freeze is the stronger option. So if you can’t lock down your credit now, plan on doing so as soon as you can.

And for maximum protection, we recommend using both freezes and fraud alerts. As the Equifax breach showed, you can’t be too careful.

If you need further information, please contact us.

702-326-7866 www.iLendLasVegas.com 

Think You Have Bad Credit? 7 Signs That You Probably Do

I know you're busy and possibly quite frankly afraid of what you'll see. It can be all too easy to turn a blind eye to your credit profile. There are certain red flags that can let you know that something is really amiss - and that your credit score has entered the "bad" zone. (Credit scores range from 350-850 scale, but generally a "bad" score is considered scores below 600 scale.)

Here are a few indications that you may have bad credit.

1. A Recent Loan Application Gets Denied
2. Your Credit Card Company Won't Lower Your APR (or Raise Your Credit Limit)
4. You Get a Default Notice or Subpeona From a Creditor
5. You're Contacted By a Collection Agency/Debt Collector
6. You Start Receiving Subprime Credit Offers
7. You Have to Put a Deposit Down on Utilities

A loan denial is one of the quickest ways to learn that your credit score is low, since a good credit score generally entitles you to affordable financing and an average one will often net you credit, but at a higher interest rate.

The Fair Credit Reporting Act (FCRA) requires lenders provide a copy of the report they used, along with an explanation, when a consumer is denied or offered adverse terms on a contract or loan.  This should give you an idea of where your credit stands shortly after you get turned down for a loan (though it's a good idea to pull your credit immediately anyway). 

A credit card issuer typically reviews your credit if you ask for a lower annual percentage rate (APR) or a credit limit raise on an existing account. So, if you get turned down for some reason, it's probably a sign that there's something on your credit report.  

  

Credit Card issuers are in the habit of conducting account reviews on their own from time to time, so if you see a change in your credit card's terms and conditions (like, say, your credit limit decreases or your rate is increased), your score may have gone down. And if it's fallen low enough, they could close your account all together.

Late payments are certainly going to hurt your credit score, but by the time you've entered default, big damage is likely to have been done. The same rule applies if you're being or were sued for an old debt.

Lots of different items, including medical bills, unpaid utility accounts or even gym subscriptions can wind up in collections. And these collections accounts will hurt your credit score, if the company who owns them reports to the three major credit reporting agencies. So, if bills start arriving in the mail or a debt collector comes calling, that's your cue to check your credit. 

You want to make sure the collections notice is valid, and then address it. 

Credit card solicitations can wind up in anybody's mailbox, but pre-approved offers from subprime financing providers, like a secured credit card issuer, payday lender or a car title loan company, may be a sign your score has dropped below a certain threshold, especially if you're somebody who's used to being qualified for prime credit.

Lenders aren't the only ones who pull your credit. Cellphone providers, insurance agencies and even utility companies look at versions of your scores when determining whether to do offer credit to you. So, if you have to pay fees or are offered less-than-stellar rates, your credit may to blame.

Has There Been a Mistake on Your Report?

Keep in mind, your credit score may be bad for a variety of reasons. While you may have damaged your own credit, there is also a chance an error is weighing down your score.  And something more damaging could be lingering... a sudden drop in your score could be a sign identity theft might be occurring.

To get a handle of what might be behind your bad credit, you should thoroughly check your credit. You can do so by pulling your credit reports for free each year at www.AnnualCreditReport.com. If your bad score is valid, you can work to improve it by getting accounts out of default, paying down high credit card balances and limiting new credit inquiries.

If you need help, we are here for you to answer any questions you may have.

Aundrea Beach-Greco

NMLS 333739

702-326-7866

www.iLendLasVegas.com

PS - If you want a free credit analysis, just reach out!  Click here for your request.

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