How Does Identity Theft Affect Credit Repair?

Have you ever been a victim of identity theft?

Are you aware of any methods that can protect you from being a victim of identity theft? Identity theft can cause a huge harm to your credit report. You may see a reduction in your credit score for some purchase that you have not done on your own. You may remain completely shocked as you can’t remember making any such purchases. Yet your credit report is so far on the low because you have been a victim of identity theft. Identity theft affects the process of credit repair too as your credit score may suddenly reduce due to no mistake of your own.

You must be aware that your credit score is the most important thing that is taken into consideration by the lenders while lending you new lines of credit. If ever you want to buy a car, purchase a house or even rent a house, your lender will certainly check your credit score. Having a good credit score gives you more liberty to make purchases like a luxury car at a lower financing rate. But having a bad score will bar you from getting a new line of credit at an affordable rate.

Identity theft is one thing that can ruin your credit report by not making payments on time on many things you own.

When the criminal gets easy access to all the personal and financial details of the consumer, then he may even file for bankruptcy to lower your credit score. The impact to the victim of identity theft can be so huge that it may also lead to financial ruin. The criminal can also use the stolen identity in practicing illegal activities leaving the victim not only to a state of financial ruin but also under criminal investigation.

Identity theft can also ruin your credit repair by putting a halt on any future accounts and you will have a tough time opening new lines of credit.

Sometimes there are people who try to improve their credit by opening small accounts and trying to pay them on time. But you have no option left if your request for opening a small account is also turned down by your lender as your credit report looks not so impressive.

Identity theft is on the rise in the US. The FTC believes that identity theft is the fastest growing crime in America. They now offer advice to consumers to protect themselves from identity theft. This is why you should secure your identity as much as possible. In this tough economic situation, it won’t be surprising if more and more people become victim of identity theft. Order a credit report and keep checking your score every month in order to safeguard yourself from identity theft. Make your credit repair attempt successful by staying an edge over others.

 

Hope this gives a basic understanding on how scary Identity Theft is.  I should hopefully have another post written myself on this topic soon.

About the Author

Jeremy Maher dealt with harassing collector calls, debts piling up and damaged credit for years. He improved his situation and started helping others.   That leads us to today, where Jeremy has DIY solutions for stopping collection harassment, eliminating debt and improving your credit scores. His clients can improve their situation within the comfort of their own home.

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