10 Ways to Prevent Identity Theft from Ruining Your Credit

Identity theft is becoming a bigger problem every year.  Several people have credit problems after falling victim to an identity scam.  It’s hard enough to have a good credit rating, without having to worry about other people ruining your credit.  While you may not be able to protect yourself completely from identity theft, there are a few preventative steps you can take.  Here are 10 ways you can prevent identity theft from ruining your credit.

1. The best way to prevent identity theft is to keep an eye on your credit report.  At the very least you should check your report for mistakes once a year.  Notify any creditors and the credit bureaus immediately if you find any mistakes.
2. You should shred any mail that has personal information on it.  It may take a little longer than throwing it in the trash, but it could save your money and your credit.
3. If you even think there is a possibility someone has one of your account numbers, don’t hesitate to change it.  You might also want to notify the company who holds the account so they can make a note if they notice any suspicious activity.
4. Be careful who you give your information to.  You shouldn’t give any personal information, especially your social security number, to anyone you don’t fully trust.  You should also find out why it’s necessary for them to have this information in the first place.
5. If your bank offers online banking, you should take advantage of it.  This is a good way to keep a close eye on your bank account.  If there are any fraudulent charges, you can notify the bank to have them quickly removed. 
6. When shopping online, only enter your financial information if you know that the webpage is secure.  A big cause of identity theft is from unsecured online purchases. 
7. Keep any identification or sensitive financial information in a safe place out of plain view.  You should also be cautious about keeping important information or passwords stored on your computer unless you have it properly protected.  Hackers are very good about getting information from your computer without you every knowing.
8. Sign the back of all of your credit cards with the phrase “See ID”.  Anytime you use your card, the cashier should ask for a photo id before the card is scanned.  While cashiers aren’t always the best about asking for id, it’s at least a little extra protection.
9. Be careful about email scams. There are a million different scams out there.  Some seem pretty obvious, others are a little sneakier.  Even if the email isn’t requesting financial information, you shouldn’t contact them at all.  They can get all the information they need by getting your full name and address, so be careful.
10. As an extra precaution, you may want to pick up ordered checks at the bank instead of having them mailed.  This will stop anyone from intercepting them before they arrive at your home. 

These are just a few simple things you can do to protect yourself from identity theft.  The biggest protection you can have is to be aware of your finances.  If you check your bank and credit card statements when you get them, you’ll know if something is wrong.  Also, checking your credit report can be a big help as well.  It’s much easier to prevent identity theft than it is to clean up the mess after it happens.