Credit File Monitoring

One of the best ways in which you can prevent identity thieves from misusing your personal information for credit fraud is to closely monitor your consumer credit file.

What is a credit file?
Every consumer has a credit file recorded with the three main credit agencies Equifax, Experian and TransUnion, and this shows your credit history including all of your credit products such as bank accounts, credit cards, mobile phones, loans, mortgages etc.  All legitimate lenders use your credit report in the approval process for any new credit products, as this history will also show whether you have had any bad debts of missed payments on loans or mortgages, and this will be reflected in your over all credit score.  If your credit score is too poor, then it is unlikely you will be eligible for the majority of competitive credit products.

How can thieves access my credit file?
Legitimate lenders access your credit file as a matter of course when approving credit applications, but thieves could also masquerade as a third party to gain a copy of your credit history.  However the most damaging way in which thieves can affect your credit report is to gain enough personal information to apply for new credit products in your name, in order to run up debts and charges that you will end up being liable for.

How can Credit File Monitoring help?
You should monitor your credit file closely, as this can often be the first place any fraudulent use of your identity shows up, when identity thieves try to apply for credit products in your name.  You can request a free copy of your credit report from the main credit agencies at any time, but an even more effective way to monitor your file is to sign up to one of the identity protection services such as Identity Guard, Trusted ID, ID Patrol or LifeLock.  These services offer 24/7 monitoring of your credit file and will alert you if any suspicious activity takes place.