Wow. After hearing just how many people have problems with their credit, or just how many people don't know how they got where they are - I decided to share a few choice lessons on how to protect your credit. I'm no Suze Orman -- I can't stand her voice, but the woman knows what she is talking about -- but these are things you should know to keep your credit clean. My mother is a retired business teacher and my father is a real estate broker - both are always trying to explain most of the following things to people when they can't figure out why their credit is all over the place:- Protect your Social Security number. This would seem like a fairly simple and smart thing to do in this day and age - but you would be surprised at the amount of people that give it out to anyone that requests it. If you use it to secure getting a cell phone account - sure to have it removed from the account information; and, request a letter in writing to verify it's been removed. If you leave it on your account, it will appear on all the paperwork generated about you. Also, the people that look up your phone number (on purpose or accidentally) who work at random kiosks, and stores access to your number. If a college or university is asking you for it - same deal. Sometimes it can be a pain in the ass -- but when they post up grades by your Social Security #, when every professor has a grade book with your name/info/# listed for anyone to see or steal, and the campus is run by students with no money - do you really want to entrust your credit to basically everyone on campus? I didn't.
- Do not repeatedly check your credit reports online or let anyone check it that won't provide you a copy of it (especially if you are paying a fee to get it checked by all agencies). If someone is going to run your credit, they will have a copy of it - and so should you. This copy is good for at least a month, due to the nature of bill circulation, and can be used at other places that request it. See the next point for why ...
- Every time you check your credit report - and get a score - you lower your score by a few points. This is not bad if you purchasing something: an apartment, a car, a mortgage, etc. It's when there is a tic on the report without a follow-through (ie: credit card, house or car dealership checks credit without signing up for a card, or purchasing a house or car) -- it looks like you were denied. People tend to associate debt with bad credit. If you have debt, but pay it off - your credit score will still be good. If you have a debt, but do not pay the minimum each month, it may effect your credit negatively. Check your credit when you want to move forward with something, not on a whim.
- At a car dealership - do not allow them to take your license - unless you're buying the car there. When they ask for your license, they scan it through a machine that pulls your social security # from it (did you know it was embedded in your license?). With this - the WILL run a credit check without your knowledge (yes, it's legal) ... and see if they should continue the conversation with you. Also - to see what kinda car they should be steering you towards. Gotta love technology!
- And last, and probably one of the best things to do: If you should apply to move into an apartment with someone that you are not legally tied to (ie: married/partner), be sure to pay the extra fee - sometimes double the cost - to have two credit reports run. Or - better yet - ask that only one name be on the lease. If you don't specify, they will run your credit with your partner/roommate/friend/etc and tie you for LIFE to this person via credit. This seems to be a frequent error at property management firms, and often - prevents people from securing loans, mortgages, etc. If you had excellent credit, and you tie yourself to someone with poor credit - every time their credit takes a dive, so can yours. Also, it can takes years for this to be removed.
Hopefully someone is reading this and either learning how to protect themselves or getting a wake-up call! Credit follows you and is a tricky business to control. It's better to err on the safe side, play by the rules and most of all: PROTECT YOURSELF! And for those that are wondering, yes, I did write this from experience. I do have great credit, but I have been listening to this my whole life!
Another good link: 10 Lies that Got You & Keep You in Debt
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3 comments:
In Massachusetts, your SSN *is* your liscense number, unless you ask to have it changed! Not a whole lot of check writing that goes on these days, but it does mean that every time you write a check someplace that wants to put your liscence number on it, guess what... The cashier knows it, the manager who counts the register at the end of their shift knows it, The assistant manager who calculates the store's safe knows it... Scary stuff!
Again - this goes back to protecting yourself. A lot of insurance companies attempted to use your social for your ID number ... which was immediately rectified. Also - The Intelligence Reform and Terrorism Prevention Act of 2004 prohibits states from displaying your SSN on drivers' licenses or motor vehicle registrations. The law went into effect on December 17, 2005, and applies to all licenses, registrations, and state identification cards issued after that date. If your current license still uses your SSN as the ID number, you can request that this be changed. You do not have to wait until it expires to get a new one with a different number on it. However, you might be charged a fee for this new issuance.
Read more about this law: www.ssa.gov/legislation/legis_bulletin_010705.html
As for writing checks - if you are dumb enough to not change it, write checks and cross your fingers ... you shouldn't be surprised when someone at TJMaxx robs you blind.
Good post! There was a lot on there that most people don't know!
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