You are on a clean slate with your credit; all of your loans are paid off, you never miss any payments, and you have never came close to going over your credit limit. Suddenly, when you get your first credit report you get an abrupt smack in the mouth as you realize that it definitely does not make sense. Not only could your report have gotten confused with a relative or someone with a similar name, but it could be a result of identity theft miles away.
Yes, Virginia, other people can affect your credit report. Whether your name has been used maliciously through identity theft or accidently paired with someone else’s, your credit score has taken on a life of its own. Before you panic, take a deep breath and determine what has happened.
Your credit history has been confused with someone else: This accident happens to many of us. When two people live nearby with similar names, their credit history may get intertwined with one another. This type of accident shows why it is so important to apply for a credit check regularly. Then you can dispute anything that shows up in your credit history that is not your own.
Your credit history includes credit cards taken out before you were 18: When you were growing up, your parents may have given you a credit card in your name for “emergencies only” that was tied to their own credit cards. Whether or not you used it properly (remember those “emergency” CD purchases?), if your parents did not pay the bill, you are in a credit emergency of your own. This is an issue that you should be able to dispute, but it takes a little more time.
The biggest and most worried about possibility is identity theft. Whether or not the person has a close name to yours could determine if it really was identity theft; and if there name is nothing like yours, it is. As soon as you see these charges on your credit report, dispute the claims and report the crime as well. The longer this goes on the worse shape you are in.
A great way to start is to look at your bank account and your credit cards to check and see if anything has ever been taken out without your approval. Say you see something you did not buy or money you did not take out - contact the bank or card company immediately. That way you can put a stop to the withdrawals or spending and hopefully catch the person responsible.
If you feel it necessary, you can also file a report with the state you live in and with the FTC (Federal Trade Commission). This is a popular choice because it shows the credit reporting agencies that you are not just messing around with their mistakes - but you want them fixed, now.
So now you know how other people can mangle your perfect credit score. What does it all mean? Overall, you should always be very cautious when talking about your finances and should keep your information and account data secure at all times. One small account number can lead to a world of problems; so be safe to keep your credit score safe.
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