Credit Report is a report card that is prepared to let the lenders determine whether lending to an individual would be a wise decision or not.
It is compiled to let the lenders know the credit history of the borrowers: how much has the person borrowed? How many times borrower has applied for the loan? What is the status of his loans? Etc. The credit report lets the lenders assess the borrower’s risk and that is helpful in determining the interest that they might be charging from him.
Credit report fraud is very common and people tend to be victims of it. To protect credit report, one must take the following steps. These steps help in fixing the credit report which may affect a person’s ability to take loans in future due to identity theft, etc:
Asking for frequent credit reports is important. Although, everyone is entitled to one free credit report every year from each of three national credit reporting bureaus, but having more frequent access to the credit history is not a bad idea. It helps one to protect the credit report. A complimentary copy of all three credit reports is a good idea.
Contacting the local law enforcement body to file a police report stating your plea regarding identity theft is one of the first steps that should be taken in such cases of identity theft. Taking the highlighted credit report with all fraudulent accounts and incorrect information to the police helps a lot. A report for the police is required to clear any fraudulent activity from the account.
All the companies where the fraudulent accounts have been accessed or have been opened should be contacted immediately after obtaining the reports from the police with their attestation. The collection agencies, insurance agencies as well as the companies with any pending applications, all must be contacted in any cases regarding credit report. The fraud department of the companies looks into the matter and is always ready to help the victims. The fraud department helps in clearing all the mess that has been created due to the problem of identity theft and it clears the history from the credit report. Removing the history of credit fraud from the credit report is very important and must be taken care of.
Image credit: free-credit-report-gov.net