How can I protect myself from identity theft?

Besides getting a credit report at least once a year to monitor your credit, you should carefully examine your monthly financial statements. Read over your bank statements and other creditor statements to make sure you recognize all the items listed. Use a shredder to destroy bank statements, credit card offers, or any other document that carries your financial information. And keep track of your credit card receiptsÑsome still list your full account numbers and expiration dates.

How do I dispute inaccurate information?

Immediately call and write the credit bureau that reported the inaccurate information. The bureau will then check with the original source. If the disputed inaccuracy persists, add a statement to the credit report explaining why you believe the item is wrong. The dispute process can take up to 30 days.

Why should I review my credit report?

Reports frequently contain errors that can hinder your ability to apply for a loan, sign a lease, etc. A careful review will insure that all the information is correct. Check for old accounts that are still open and for occasions when a creditor reported you for paying late or not at all. Once you see what data is shown to lenders, you can take the necessary steps to fix your credit.

What is a credit score?

Look at your credit score as a report card of your credit history. ItÕs a complex rating system used by lenders to determine if youÕre a good or bad credit risk. It compiles all your available financial data into a model that computes a score between 350 and 850Ñthe higher the score the better. Your score is based, among other things, on your payment history, credit usage, length of credit history and bankruptcies.

How do I establish credit?

You must have a steady work record and continued residence at the same address. In addition, you should have a checking account and be careful not to bounce checks. Consider applying for credit at a department store or credit union. Another option is a secured credit card, which requires you to deposit money as security for the charges you make on the card.