Here are the things you should look for from a security perspective when choosing an online savings account.

Secure Banking

Any bank these days will probably be using adequate encryption technology but you should always check.  You shouldn’t enter any personal information or your user name and/or password on any page who address doesn’t start with https.  If you see https you know they are using a technology called Secure Socket Layer (SSL) to prevent anyone else from accessing your information as it travels via the Web.

Email Security

A technique known as phishing is a common way for hackers and identity thieves to try and steal your login information.  They send you an email that looks like it’s from someone you trust, like your online bank, but when you click the link in the email it takes you to a fraudulent site instead of to your online bank account.

Your bank should include a portion of your customer or account number in your email to let you know it’s really from them.  For example, if your account number was 52048234, the email should contain xxxx8234 near the top. You don’t want it to be your full account number for security reasons but including the last few digits let’s you know it’s a legitimate email.

You also want a bank that never uses email to send or confirm personal information, such as account number, PIN number, or social security number.

Login Security

Personalized Authentication

Online savings accounts with the highest level of security have you setup a personalized phrase and image when you setup your online account.

When you’re on the bank’s login page and have given them your user id, they’ll display your custom phrase and image before they ask for your password.  If the image and phrase don’t match what you setup then you know something is fishy, a sign not to enter your password and proceed.

PIN Number

Some banks require you to setup a PIN number in addition to your user name and password. This can be difficult to remember at times and a bit inconvient but it does help increase the login security.  In my opinion it’s worth the extra hassle because it’s your money we’re talking about.

Security Questions

Similar to the personalized phrase, some banks will ask you to answer a variety of questions, such as “What color was your first car”, “What month did you get married”, or “What’s your mother’s maiden name”.  They usually give you a list of questions to choose from and ask you to answer 4 – 8 of them.

Then when you start to login you’re asked to answer one or two of the correctly before you’re able to finish the login process.

Computer Recognition

Some online banks let you register your primary computer so thier online banking software can recognize you when you visit the site from that computer.

For some banks this allows you to skip the security questions but that’s not the real benefit.  The man reason to do this is so that your bank can confirm your identity when you visit the site.

Some of the things you can do to protect your identity include shredding documents with personal information, keeping documents you need to save in a safe place, monitoring monthly statements for fraudulent charges, and checking your credit report regularly for accounts that may not be yours. Watch out for social engineering, which means being careful of who you give account numbers to and what personal information you share.

If you’re looking for some help monitoring your credit and other personal information, there are identity protection services you can signup for. Here’s a list of some of the services available today:

Identity Guard: This service monitors your credit reports and scores, as well as monitors information related to your Social Security Number and address. You get lost wallet protection and $1 million in identity theft insurance. Can also include software meant to help protect your computer. Cost: up to $17.99 per month, depending on the package you choose.

LifeLock: One of the most visible identity protection services out there, LifeLock provides cyber monitoring services, and credit card monitoring and protection. It also offers alerts, and $1 million in ID theft insurance, and help placing fraud alerts on your credit reports. Cost: $9.99 or $13.50 a month, depending on your package, or billed at $99.00 or $148.50 for a savings.

TrustedID: You can get your three bureau monitoring, which is fairly standard with most identity protection services, along with black market Internet monitoring and medical benefits monitoring. You get anti-phishing protection, and TrustedID will perform a threat assessment to see how at-risk you are for ID theft. Comes with a $1 million warranty. Cost: There are two plans, one for the family and one for individuals. A family plan will cover your spouse and children as well. A family plan is $27.99 a month, or $20 a month if you are billed for 12 months at once ($240). The individual plan is $14.99 a month, or $10.42 a month for a year of protection ($125).

ID Watchdog: This company claims that 80% of identity theft has nothing to do with your credit, and offers services with this in mind. ID Watchdog has packages that include medical monitoring, credit monitoring, regular reports and alerts, public database monitoring, an ID management dashboard. You can also get a risk assessment and consultation on avoiding ID theft. Cost: Advanced package is $19.95 a month. You can get savings if you agree to an annual package ($179.95) or a three year package ($466.95). There is also a basic package for $9.99 a month.

Single Identity: American Express offers its own identity protection service. It monitors black market web sites and public records. You also receive mobile alerts of potentially dangerous information. There is also $25,000 of identity theft insurance and lost wallet protection. Cost: $9.99 a month.

ProtectMyID: Credit bureau Experian offers this service, which monitors your credit reports and scores. It also provides Internet monitoring and address monitoring in the event of attempted redirect. ProtectMyID also offers protection in the arena of medical information. There is also the option of ChildSecure to help keep your child’s identity safe. Comes with a $1 million guarantee. Cost: $9.95 per month.

Equifax ID Patrol: Like other identity protection services, this product from credit bureau Equifax offers credit monitoring and alerts you of changes. Additionally, it looks at Internet information trading sites. You can get help to resolve problems, and you get up to $1 million in identity theft insurance. Cost: $14.95 per month.

Obviously there are several different identity monitoring services to choose from.  Most of them offer similar protection but differ in some of the features and pricing so be sure to compare them to see which fits your needs best. Some of them offer a free trial period so it’s not a bad idea to try out a few for free and see which you like best.

1) Virtual Credit Card Numbers
Some of the best credit cards for shopping online offer virtual account numbers that help you keep your credit card information hidden. These account numbers are usually only good for one purchase, and stop working once you use them.  Typically you login to your credit card website, like Discover or Citibank, and request a virtual account number, which you then use to complete your purchase.

Another online payment alternative that can keep your credit card number hidden from the merchant is to use a third-party payment provider, such as Google Checkout or PayPal.  Not every merchant accepts these methods of payment, in which case a virtual number may be your only choice.

2) Online Billpay
Some people are still wary of online billpay because you’re accessing your bank account online but it’s much more difficult for someone to hack into your bank account than it is to steal your mail out of your mailbox. If you receive and pay your credit card bill electronically you don’t have to worry about people swiping your paper statement and stealing your credit card information.

Although it’s not an online threat, one thing worth mentioning are the credit card offers you get in the mail. Often times they will have information pre-populated to make it easier for you to fill them out. It’s helpful if you decide to apply but if you just toss it in the trash then someone has access to a credit card application with your name and address already filled in. Be sure to shred these.

3) Beware Phishing
Even though having your credit card bill delivered electronically can be useful, you have to be vigilant about the emails that arrive in your inbox. Identity thieves have discovered a technique known as phishing to be very effective at stealing your account numbers, passwords and other personal information.

Be wary of emails that ask you to click through to a page.  Although it may appear to be a page on your credit card company’s website that you end up on, it could be a fake site website that’s trying to trick you into giving up your login information.

A good rule of thumb is to never click on links inside of an email. Instead you can open a new browser window, type in the official home page, and login from there.

4) Online Alerts
Many credit card companies now offer alerts via email or text message to help you monitor your spending patterns.  They offer a variety of criteria, for example, you can get an email if there’s ever a charge over a certain amount on your credit card. These alerts can tip you off to credit card fraud early enough to help you put a stop to the spending before it gets worse.

5) Credit Card Statement Review
This one is simple but effective. Check out your activity on your credit card statements every month and look for purchases you haven’t made.  Companies like American Express have made your online credit card statement pretty interactive so you can easily search and sort your purchases and keep an eye out for ones that aren’t yours.

Most credit card companies offer purchase protection that shield you from liability in the event your credit card number is stolen and misused.  However, these companies do ask that you monitor your card activity and report anything suspicious right away so be sure to check your statements.

New Credit Accounts

The five strategies above can help you protect your current credit cards, but something else you want to watch out for are identity thieves opening lines of credit in your name.  If someone has enough information about you, it can be difficult to prevent them from posing as you and opening credit cards under your social security number. However, there are two ways you can keep an eye out for new cards that pop up in your name.

Credit Report Checks
The first way that you can catch credit card identity theft early on is to regularly check your credit report. Look for any credit accounts that you didn’t open. You are entitled to three free credit reports yearly (one from each of the major bureaus), you can access your free reports via Annual Credit Report website.

After you have used up your free reports, you can usually get reports from the major bureaus for between $15 and $50 (depending on whether you get a three-credit report, and include a credit score).

Credit Monitoring Services
The benefit of a credit monitoring service is that it will regularly check your credit reports on your behalf and notify you if something comes up. Credit monitoring services usually cost between $9.99 and $29.99 a month, and provide a range of services. Credit monitoring services alert you when suspicious activity occurs, and will let you know when accounts are opened in your name.

Bottom line: It is impossible to completely prevent identity theft. However, with some vigilance, it is possible to reduce the possibility of it happening to you and limit the amount of damage if it does.

But before we get started let me suggest you devise a solid organizational plan for all of the paperwork and correspondence you are about to process. Print everything. Write everything down. Send letters to creditors and collection agencies rather than dealing with e-mails and phone calls.  Good records will help you sort through the financial mess you could be facing.

Here are some first steps to take if you’ve been hit with identity theft.  It’s not a comprehensive list, but it’s a good start to dealing with the issue.

Alert the Company

If you find an unauthorized account opened in your name, contact the company that’s providing the credit immediately.  For example, if someone uses your credit card number to make purchases call the issuer up and report the problem.  They’ll take the steps necessary to stop the perpetrator from charging anything further to your card.

Freeze Your Credit

You’ve got to stop the identity thief from opening up additional credit lines in your name. Once your credit is frozen you can go and start to fight the accounts that are open in your name, and you’ll have a definitive list of which accounts to close. Without freezing your credit you can end up thinking you are done fixing the theft and then another fraudulent line of credit opens up.

You’ll need to contact each credit bureaus separately to freeze your credit. Freezing your credit is supposed to mean that lenders will no longer extend you, or anyone posing as you, a line of credit.  Unfortunately not all lenders heed the credit freeze but they’re supposed to so it’s a step you definitely want to take.

Of course the one downside is if you do actually need access to credit during this time then it will be more difficult for you to borrow money.  You have to unfreeze your credit report to be able to open up a new line of credit, but the inconvenience is probably worth the protection.

You will also want to establish fraud alerts that are valid for 90 days initially. You can then extend this fraud alert to 7 years once you’ve received information in the mail from the bureaus.

File a Police Report

If someone has used your credit card or opened accounts in your name then fraud has been committed. If your identity has been stolen it’s definitely a crime and you need to get a police report detailing the facts. The police may not be able to catch the criminal but it’s still very important that you file a report.

You’ll have to send this report to creditors, banks, etc. to provide proof that you didn’t open the accounts and a thief did.  For example, let’s say someone goes on a shopping spree with your credit card and you report it. The credit card company will send the case to their fraud department and an investigator will gather the evidence to validate that you really are a victim of a crime and not trying to commit fraud yourself.

Filing a police report can be an especially difficult task if the identity thief is someone you know and trust. It’s not uncommon for identity theft crimes to be committed by family members since they have access to a lot of the information needed to pose as you. It’s hard to point the finger at a family member and accuse them of identity theft, but if that’s what has happened then you should file the police report.

Contact Financial Institutions

Reach out to your financial institutions (banks, credit card companies, mortgage company, retirement account companies; all of them!) and ask them what steps you need to take to protect your account with them.

Then begin tackling the fraudulently opened accounts at the same types of firms. Again, have your police report at the ready. You’re going to have to provide documentation that your identity was stolen to them, and it can be a pain. This is costing them money, and they may not be inclined to believe you. Work in writing, and prepare for this to take a while.

Unfortunately even if you haven’t been a direct victim, the costs of identity theft are often passed onto you by the companies that end up footing the bill.  For example, if someone steals your credit card and goes on a spending spree you’re not responsible for the charges but someone is taking a loss on those items.

Protect Your Identity Week

The National Foundation for Credit Counseling (NFCC) and the Council of Better Business Bureaus are hosting “Protect Your Identity” week to help raise awareness of the threat and share ways to help prevent it.

We’ve covered identity theft in the past with tips for preventing college student identity theft and looks at the credit monitoring services of True Credit and Equifax Id Patrol.  We also ran the series below about identity theft:

• Identity Theft Protection – What You Don’t Know Can Hurt You
• Identity Theft Tips – How They Steal Your Information & How You Can Help Prevent ID Theft
• Identity Theft Costs – How Much Time & Money Does ID Theft Cost the Victim
• Identity Theft – Stealing Your Identity so They Can Break the Law

Identity Theft Protection

According to the NFCC 11.1 million people were victims of identity theft last year, 12.5% more than the year before.  Later this week we’ll look at ways to protect yourself against id theft and what to do if you discover you’ve been the vicitim of identity theft.

One thing to check out are the free paper shredding events around the country this week sponsored by Cintas Corporation.  As part of “Protect Your Identity Week” they’re trying to set a Guinness Book World Record, so if you have a bunch of documents with sensitive information you need to shred, check it out.

If you’re going away to school for the first time or returning for another year, it’s extremely important to take certain precautions to keep your identity and money safe. Here are a few tips to help you avoid identify theft.

Set a password on your computer, lock your computer when away from it.

This is easy to do, and it will deflect most common computer users. Although, if your computer is stolen by a decent computer hacker, they’ll be able to get past the screen saver password so don’t store passords to your online bank accounts or other sensitive information on your computer. Make sure that you never leave your computer unattended in public such as the library, student union, or cafeteria. When you leave your laptop in your dorm room you could even stash it out of plain site.

Avoid revealing too much personal detail on social networking sites.

Every piece of information that identity thieves can gather about you is another clue to stealing your identity.  Seemingly harmless pieces of information individually (birthday, address, phone number, etc) can add up over time and eventually make you a victim of identity theft.

Not only is this good for your security, but can also protect your future career. Remember, everything you post on Facebook, Twitter, or MySpace could end up being seen by the wrong people at the wrong time. Use social networking wisely, and don’t post pictures that might compromise your reputation or give off the wrong idea about you.

Don’t let anyone borrow your credit or debit cards.

This might not sound like something you’d ever think about doing, but you’ll be running across dozens of “mooches” at school. They might ask you, “Hey man, can I just borrow your card to order a pizza, I’ll give you the cash”, but don’t trust them unless you are really close to them. Don’t give out your credit card number or debit card number to anyone, write it anywhere, or store it anywhere on your computer.

Don’t open a tab on your credit card and forget it.

I’ve never done this, but I’ve come close! You never know who might be working behind the bar and if they’ll abuse your card if you leave it there overnight. Make sure your designated driver reminds everyone to close out their tabs. If you’re walking home or taking public transportation, write a note on your hand to remind yourself.

Call right away if credit card stolen or lost.

Do not wait until the next morning if you think you lost or had your credit card stolen. Credit card companies have 24 hour customer service, and it will be much easier on yourself and the credit card company if you report it right away. Even if you end up finding it a couple of days later, it’s better safe than sorry, and you’ll receive a new card usually within a week.

You aren’t personally responsible for an unauthorized credit or debit transaction, but you can make a much stronger case that it wasn’t you if you report it as soon as you think it’s been lost or stolen.

Don’t keep cash in your dorm room, use debit card instead

Identity theives take your identity so they can steal money.  If you just leave your money lying around, they can just skip the identity part and go right after your cash. It’s not that you don’t trust your roommate (or maybe you don’t), but when you aren’t there, your roommate could be bringing in all kinds of people to the room that you’ve never met before. It’s always a good idea to keep your cash on you or better yet, use a debit card for most transactions.

If you’ve never had your identity or credit card stolen in the past, let me assure you it can drain a lot of your time and money trying to get the situation straightened out. Here are some more identity theft tips to help protect your money and your credit.

“We have learned that some credit card information for your Bank of America account may have been compromised at a third party location.  Your credit card number may have been part of this occurrence.  At Bank of America, we take your privacy very seriously.  To ensure your privacy is protected to the best of our ability, Bank of America has taken the following steps:

 

– We have reviewed your credit card account activity and see no evidence that your account has been misused in any way.  We will continue to monitor activity on your Bank of America account, and if we detect suspicious transactions, we will notify you.

 

– As a measure of added security, we will close your current account and issue you a new account number and credit card(s). They will arrive in a separate mailing in approximately 5 – 7 business days.  You many continue to use your existing card until your new card arrives.”

Then they go on to advise me to review my monthly statements and online banking account for unauthorized transactions, destroy my old card, and change my credit card information for any bills I autopay with it.  Luckily, I only use this card as one of my backups when a merchant doesn’t accept my American Express Blue Cash card so I don’t have any recurring payments that I need to change.

Obviously Bank of America knows it could potentially be a major pain for some customers and they go on to acknowledge this and apologize:

“We understand that some of these steps may pose an inconvenience to you.  We apologize and are doing everything we can to minimize it.  Please know that Bank of America seeks to keep your financial information secure.  As a valued credit card customer, you are protected by Total Security Protection* including Fraud Monitoring, Zero Liability, Online Protection, Guaranteed Credit*, and our Privacy Policy.

 

Again we apologize for any inconvenience this situation may have caused you.  If you have any questions, please call 1-800-xxx-xxxx.  We are at your service 24 hours a day, seven days a week.”

I like the fact that they’re alerting me to the potential issue and are apologizing for the trouble it may cause but I would like to know more detail, such as when it happened and what information may have been compromised.  I’d also like to know what compromised means.  Was it simply that someone left my account information sitting out on their desk for anyone to see for a week, or that someone hacked into a computer system and stole my name, address, and credit card account number?

They do end the letter with a nod to identify theft protection:

“P.S. For important information on how to protect your identity, please visit us at bankofamerica.com”

I checked out their main page and found a link entitled “monitor and manage your credit” under the Privacy and Security section that contained information on their Privacy Assist and Privacy Assist Premier products.

• Unlimited online access to the information the 3 leading credit reporting agencies—Equifax Inc.®, Experian® and TransunionSM—are reporting about you.
• Your credit files will be monitored each business day. You’ll be sent a notification within 2 business days when new accounts are opened, inquiries are made, or address changes occur so you can take action if needed.
• Experience Internet Surveillance – a powerful online feature that monitors your personal information on the Internet

Their Privacy Assist products sound pretty useful but they do have a monthly fee for the service.  I don’t have anything against paying for credit card and identity monitoring in general but in this case, since it was Bank of America’s partner that potentially compromised my data (whatever that entails) it would be nice if Bank of America would give me one year of their service at no charge.

So what do you think?  Should I take the time to follow up with Bank of America and see if they’ll grant me access to their credit and identity monitoring service? Do you think if I call in they’ll provide me with more information on what actually happened to “compromise” my information and the extent of the issue?

Let’s start with a quick walkthrough. To sign up for the service I went to Equifax.com.

It was pretty simple to locate their ID Patrol product since they have a huge banner on the front page.

Then I logged into my account with Equifax. (You can create one for free if you don’t already have one, you don’t have to sign up for anything.) Once I signed up for ID Patrol I was taken directly to a page that showed me my current credit reports at all three bureaus.

Aside from having all three of my credit reports on the same page, my debt-to-credit ratio at all three bureaus was clearly spelled out. The entire thing was easy to read and pretty comprehensive. They get points for that in my book – I’m busy, and if I have to take 30 minutes just to figure out how to use a service I’m paying for, then I’m not a happy camper.

I was pleasantly surprised that all of the main ID Patrol features were visible on the front page and it took me very little time to figure out how to use them.

At first glance this service has a ton of features. You can:

• View your current credit reports at all three credit bureaus.
• Freeze your Equifax credit report with the click of a button.
• Get email alerts any time something changes on your credit reports.
• They monitor suspected internet trading sites (The ones that buy and sell people’s information and credit card numbers.) and they will alert you if your information shows up on a “for sale” list.
• You get up to $20,000 of identity theft insurance as part of the ID Patrol package.
• They have “Identity Theft Resolution Specialists” on call 24/7 in case your identity does get stolen.

Now, since most credit monitoring services offer you three-in-one credit reports, account freezing, and email alerts, I wanted to take a closer look at the other main features to see if the service was really worth the $14.95 a month.

Equifax WebDetectâ„¢ – Suspected Internet Trading Site Monitoring:

It took me about three seconds to add my social security number to the list of numbers that ID Patrol actively searches for over the internet.

The cynic in me was hoping that they didn’t just Google my Social Security number. There is no official list of sites that they monitor since they are supposedly “underground, illicit information trading sites.”

I was not 100 percent sold on this particular feature. I mean, to my way of thinking, the identity thieves who are selling information are probably selling large lists at a time – and I doubt seriously that they are letting prospective buyers “Get a peek” at said lists before they pay for them.

So…if that’s the case, how could Equifax monitor those lists for my information, unless they are buying the lists themselves? It just does not make sense to me.

Giving them the benefit of the doubt though, if they did find my information on an “illicit list” then the email alert might give me time to freeze my credit reports and call my bank before any charges were made.

$20,000 of Identity Theft Insurance:

Now the truth is, when your identity is stolen and fraudulent charges are made on your credit cards you are not liable for more than $50 per card. Here’s a quote from the FTC:

• Your maximum liability under federal law for unauthorized use of your credit card is $50.
• If you report the loss before your credit cards are used, the FCBA says the card issuer cannot hold you responsible for any unauthorized charges.
• If a thief uses your cards before you report them missing, the most you will owe for unauthorized charges is $50 per card.
• Also, if the loss involves your credit card number, but not the card itself, you have no liability for unauthorized use.”

However, if your bank account information is stolen you could end up being liable for all the charges that were drawn on your account between the time that your information was stolen, and the time that you reported the theft to your bank.

I was surprised to find that the $20,000 of Identity theft coverage also pays for:

• The cost of getting notarized fraud affidavits.
• The cost of sending certified letters to your creditors and the police.
• If you have to take time off of work to straighten the mess out they could reimburse you up to $500 per week, for as many as four weeks.
• “Reasonable” attorney fees, long distance phone calls to your creditors, and, if you had to close out your previous accounts, they even pay for new loan application fees.

24/7 Identity Theft Resolution Specialists:

A search of Experian’s website did not reveal a special number for ID Patrol users to call in case of fraud. They do list an automated 24 hour phone number – so I called it. Disappointingly all it did was give me instructions on how to place a fraud alert online.

Two things here:

1. You don’t have to use Equifax’s ID Patrol Service in order to call their number and get automated instructions. That service is available to everyone, so no real reason to pay extra for it.
2. If you really think your identity has been stolen, then you need to freeze all three of your credit reports completely – not just place a fraud alert. Most lenders will refuse to issue you credit if you have a fraud alert on your account – but not all of them. When you freeze your credit report it means that lenders literally cannot pull your credit score to give you a loan, so it’s far more effective than just an “alert”.

In Review:

I am actually going to ditch my first love (True Credit) for this service. Why? Because I am currently paying $15 a month to monitor all three of my credit reports with True Credit, and it has no identity theft insurance. With ID Patrol, I get all three reports, plus the identity theft insurance for $14.95.

Even given the dubious nature of some of the features, it comes down to price vs. functionality, for me. ID Patrol has the extra features that I want, it’s basically the same price, and it’s easier to use.

Another priceless bonus is this: The only ads I ran across while using ID patrol were for an Orange Checking Account at ING Direct, and a Home Depot Account. True Credit’s pages are swimming in targeted advertisements, and that gets old fast.

So, what do you think? Is Equifax’s ID Patrol Service worth $15 a month? Would you use it?

True Credit is a credit monitoring service that allows you to check your reports and scores from all three credit bureaus each month.

Do you really need to monitor your credit reports?

Well, depending on who you ask this service is either a valuable lifeline or a total and complete waste of money.

Let me be frank: If you are able to walk into any bank or auto dealership in America and have them roll out the red carpet for you, then you do not need this service! You can simply check your free credit reports once a year, look for inaccurate information, and give yourself a well deserved pat on the back for expertly managing your credit.

However, if you are like the rest of us, and your credit score needs a little work, then yes, this service should be invaluable to you.

Personally, I monitor my credit each month through a service called True Credit. Using this service has allowed me to raise my credit score over one hundred points (yes you read that correctly) and it has prevented me from accidentally lowering my score by applying for things I might not get approved for. Forewarned was forearmed in my case.

The Lowdown:

For $15 a month True Credit bought me access to all three of my credit reports and scores in an easy to read format. The sad fact is, not all of my creditors were reporting to all three bureaus, and I was shocked to find that my score varied wildly from place to place.

How True Credit Helped Me:

1. As soon as I signed up I was able to look at my reports from all three credit bureaus. It turns out, I had incorrect information on all three credit reports. I was able to immediately challenge an incorrect past address, and several old collection accounts that had already been paid off but were still reporting as open accounts. That is what raised my score.

   Now, it is important to note that you do not have to pay for a credit monitoring service to challenge items on your credit report – that is free. However, having everything in one place, printable, and easy to compare side- by- side made the process much easier for me. In my opinion that alone was well worth the $15 because it saved me time and stress.

2. I had a former friend who stole my personal information and used it to open an account in my name. I had previously resolved that issue, but keeping tabs on my report each month lets me be very, very sure that they do not do it again. Once your personal information has been stolen, you can never really be sure that the thief won’t use it again, or give it to someone else.

   Using True Credit gives me enormous peace of mind. No more identity theft here – I’m going to know it as soon as it happens and be able to take action on it. They also give me the ability to freeze and un-freeze my credit report with the click of a button. If I ever do notice suspicious activity, I can stop it right then and there.




3. Knowing my credit scores has save me from making several bad decisions. Once I knew what my score was I stopped applying for credit card offers that I probably could not get approved for, like platinum cash back rewards cards. Before, when I did not know my credit score, I always figured,

   “What the heck? Maybe I will get approved and that is a good offer!”

   Now, let me tell you that was the wrong way to go about it. Applying for any new loan can lower your credit score so while I was happily applying (and getting rejected) for several cards a year, my score was plummeting.

4. True Credit allowed me to time the purchase of our last car. I was able to wait until my score had gone up some (and because I monitored them, I knew exactly what all three of my scores were). Because of that, we were able to finance at a better interest rate than we would have gotten several months earlier, and we came out on top of the deal.




5. I noticed an interesting psychological effect - Once I started paying to monitor my credit, I started taking my score more seriously. I felt more in charge, and more comfortable with the credit side of my finances. It would be interesting to know if any of you have had that same effect come from monitoring your credit? Did you notice any change in the way you handled things while you were monitoring vs. when you were not?

Now, again, paying for a service like this may not be your cup of tea. I can only tell you that I have found it to be an essential part of rebuilding my score. If you are facing some similar challenges, then it will probably benefit you to take a look at it.

Free Trial: True Credit is offering a 30 day free trial that will let you try out the service and see your TransUnion credit report and score for no charge. Click here to get the free trial.

I also found an excellent walkthrough on YouTube. It’s about eight minutes, so if you’re at work, you may want to wait until you get home to watch it. It gives you screenshots, guides you through the process of looking at your reports, and even covers some additional features that I didn’t mention here.

How about you? Have you ever used a credit monitoring service?
Do you think it’s worth the money?

Leave us a comment below and give us your opinion!

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Writer Auditions – Author Connie Brooks – Offer Your Feedback

Stolen Identity Can Mean Jail Time
Imagine being pulled over for a broken tail light only to end up being hauled off to jail because there’s a warrant out for your arrest that you knew nothing about.  It sounds crazy but unfortunately it does happen to some victims of identity theft.  Instead of simply using your identity to borrow money, which is bad enough, some criminals use your stolen personal information to fraudulently obtain a driver’s license or identification card in your name.

In the event they’re pulled over or are arrested the law breaker gives the police your name and id.  Then they don’t pay the ticket or show up for court and the judge issues an arrest warrant for the name on record. Or the criminal may even show up and plead guilty, using your identity the whole time.  In the eyes of the government, you are the one that broke the law and the offense goes on your record.

Criminal Identity Theft Example
For example, here’s an identity theft story of a guy in Albuquerque, New Mexico who was in jail for days because a criminal wanted for drug charges had assumed his identity. His story is a good example of how this kind of identity fraud can follow a person around for years.  After an initial run-in with the law in 2003 due to his stolen identity, he was locked up for six days in 2005 because the police again mistook him for the wanted criminal.

Combating Criminal Identity Theft
While identity theft can be hard to prevent there are steps you can take that we’ll discuss in further posts.  Here are some of the suggestions the Albuquerque Tribune article makes for dealing with criminal identity theft when it does occur:

• Get yourself fingerprinted so that your prints are on file for comparison. Contact your local law enforcement agency.
• Ask arresting agency to amend all criminal complaints that wrongly name you.
• Ask the appropriate courts to provide you with official documentation showing that your identity was wrongly used in a criminal case, then carry those documents with you at all times.
• Keep the phone number of a good attorney handy.

Although these tips may be use, obviously the goal is to avoid the id theft in the first place.  Next time in the Identity Theft series we’ll start to look at how you can prevent identity theft.