Identity theft may seem so far fetched but trust me it is not. With today’s technology and the growing sophistication of the world wide web, hackers and con artists are now living in a world that used to only exist in the pages of a science fiction book or a scene in a suspense-thriller movie.

This can be a major problem for anyone because not only will you have to worry about your personal properties like credit cards and bank accounts, you also have to think about the fact that someone else is using your name and your reputation to do god-knows what.

According to the FTC, there are more than 160,000 reported cases of identity fraud in the country in 2002.

Identity theft insurance reimburses the victims of identity thefts for the cost of restoring their identity and repairing credit reports. Some companies include these kinds of insurance as part of their homeowners insurance policies while others sell them as stand alone policies or as an endorsementa to a homeowners or renters insurance policies.

On average, these policies cost between $25 and $50 for $15,000 to $25,000 worth of coverage. Identity theft insurance provides reimbursement for expenses such as phone bills, lost wages, notary and certified mailing costs and sometimes attorney fees with the prior consent of the insurer.

Complaints about identity theft have surged from about 40,000 in 1992 to 750,000 in 1998, according to regulators.

Las Vegan Julia Twentyfive knows all too well how identity theft can destroy your life. A thief who stole her purse used her identity to rip off others in a credit card scam. Her nightmare cost her three days in jail, $15,000 and two years of her life to straighten it all out.

Metro police say they receive up to 75 new reports of identity theft every week here in Clark County. It’s the fastest growing crime in America today. It’s just a matter of time; sooner or later we’ll all become victims.

Ted Burke is a former law enforcement agent who has spent many years dealing with identity theft victims. “They really didn’t have an antidote or way to stop the bleeding until we came about. Burke is now the senior regional vice president of Prepaid Legal Services, Inc. in Nevada. His company has offices all over North America and has now partnered with the nation’s biggest investigative agency, Kroll Inc., to provide an insurance policy for ID theft victims.

“Generally, we’ll find out if they’re a victim before they know and we’ll notify them,” Burke said.

It’s called identity theft shield, an around the clock system of monitoring your credit, restoring your identity and reimbursing your costs in case your good name is stolen and used against you. And with 1 of out of every 4 Las Vegans at risk of falling victim to this rising crime, identity theft insurance may be the closest thing our society has to a cure.

Ted Burke adds, “It gives them peace of mind. They can sleep at night knowing we’re watching their back 24-7, 7 days a week no matter where they are or what they’re doing, we’re taking care of them.”

Identity theft shield benefits will cost your family anywhere from $10 to $12 a month. Pre-paid legal Services has been in business for more than 30 years and operating in Nevada since 1989.

All across the United States, there are hundreds and hundreds of banks and credit card companies looking for your business. This day and age, banks and credit card companies are in competition with each other, trying all they can to get your business. To try and get your business, they offer different credit cards with various incentives, rebates, and other perks.

Before you make your decision and choose a credit card, you should always compare what each company or bank has to offer you. If you get an offer in the mail for a credit card, you should go on the Internet and look into it more. You should also make sure that you read the fine print as well, to see if there are any type of hidden fees or other costs associated with that card. Many times, with offers in the mail, credit card companies or banks will try to sneak hidden fees and costs in there.

When you start to compare offers, you should make sure that you look at the APR and the fees. The APR is very important, as this will tell you your interest rate. You want to get the lowest APR possible with your credit card. If you look at a credit card that has an unusually high APR, you should immediately rule it out. Credit cards that come with high APR rates can easily lead you on a roller coaster towards credit card debt. No matter how good your credit may be, high APR rates can leave you with charges that are really difficult to pay.

Among the many options available to you, you’ll have three primary choices for your credit card – Visa, MasterCard, and American Express. These three giants are the leaders in credit cards. Visa and MasterCard don’t issue the cards themselves, they have banks and other companies issue on their behalf. American Express, or AMEX, is the only one that does everything themselves. AMEX issues their credit cards, maintains their own networks, and doesn’t use any type of third party.

If you like to travel, you will probably want to choose either Visa or MasterCard, as they are accepted all over the world. American Express is the least accepted of the three, although the company is upgrading their networks every chance they get. Before too long, AMEX will be accepted virtually everywhere. Right now though, AMEX isn’t accepted in all areas of the world.

Discover is another type of credit card, although it isn’t near as popular as the three above. Discover does have some great benefits to offer you, although it isn’t accepted in other parts of the world. Most people who have Discover credit cards stay local and use their cards in the event of an emergency. If you don’t have a credit card and have been thinking about getting a Discover card, you should really think about that decision and choose either Visa or MasterCard instead.

All in all, there are a lot of credit cards to choose from. That final decision though, is entirely up to you. There are a lot of great companies and banks out there, although it’s up to you to find the best credit card for your needs. You can choose to go with a company or bank that’s local to you, or get online and look for your credit card. The Internet can be a great resource for credit cards, as long as you know what you want. If you know what you want before you go online – you’ll save yourself a lot of time and money.

The Equal Credit Opportunity Act states that all lenders will apply the same credit standards to all consumers, without prohibiting by race, sex, marital status, national origin, religion, age, or public assistance program involvement. This does not guarantee the approval of a loan or credit but does insure that all consumers are given an equal chance to obtain credit. The only acceptable measurement for creditors to use is your ability to pay your debts.

Many applications will contain questions about your sex, your race, or your nationality. You are not required to answer such questions on an application for credit. These may be asked in conjunction with fair housing laws or affirmative action laws, but these are completely optional. Furthermore, you should not be asked about your marital status, unless your partner will help secure and use the loan. You may be asked your age under the Equal Credit Opportunity Act, but only to determine if you are old enough to obtain credit (usually 18 years old in the U.S.)

All creditors must notify any applicants of their decision within 30 days. If the application is denied, the creditor must provide a written statement detailing the outcome or decision along with the reason for the denial and information on the applicant’s rights. This act helps ensure that a certain standard is kept with all applications for credit – no matter who the applicant is.

The Fair Credit Reporting Act gives individuals the right to view their credit report. To disseminate this, each citizen can receive one free credit report every 12 months. The act allows individuals to receive their credit history for all three national credit reporting agencies. In reviewing his or her credit, disputes can be logged against specific items on the credit report, allowing the consumer to police the credit reporting agencies. If the correction to your credit is not up to par, you can also add a brief statement of 100 words or less clarifying the particular item.

The act was instituted to uphold the accuracy and privacy of an individual’s information in credit reports. It was also passed with the intention of curbing identity theft, an ever-growing crime. By reviewing one’s credit report each year, he or she could determine if any sort of identity theft had occurred.

Both acts help protect you by insuring the fairness of the lending industry while allowing you to take control of your credit history and ensure its accuracy. Maintaining good credit begins by learning all you can about how credit reporting works. By understanding these laws, you are taking a positive step in creating good credit for a stable financial future.

The time it takes for a victim to recover from identity theft can be extensive, and while the wounds aren’t physical, they are psychological and life-changing in several ways.

Imagine having a clean credit history and working hard to pay your bills, only to find yourself suddenly with debt, with purchases in your credit cards that you did not make, or have outstanding utility bills that are not yours, or have lost and claimed benefits that you do not remember claiming, and having your credit destroyed because of going over the limit. Victims of identity theft find themselves unable to do many of the things they easily accomplished in the past: get approval for loans or mortgages, get credit for mobile phone accounts, or open a credit card account.
- Micheal Pastore

Identity theft occurs when someone steals personal information and pretends to be you to obtain credit cards, loans, and even jobs by using your work references.

Identity thieves only need to know your Social Security number, name, and address to wreck your good credit. Using easily accessible public records, they can learn your place of employment, date of birth, and mother’s maiden name. They can open a credit card account and immediately charge up to the limit with no intention of paying.

Credit cards can be obtained through banks and credit unions as well as chain stores. Many offers for “pre-approved” credit cards come in the mail.

Getting a credit card issued by department stores is simple. Only two forms of ID are required: a driver’s license with a picture ID and a second identification, like another credit card or your Social Security card.

What steps should you take to protect your identity with credit cards?
Ask stores at which you are applying for credit how they safeguard credit applications. Ensure that they are treated as secure documents.

Ask businesses how they store and dispose of credit card transaction skips. Ensure that proper safeguards are in place to treat these documents securely.

Never giver credit card numbers or other personal information over the phone unless you initiate the call. Even if you initiate the call, ensure that called party is not using a cellular or other mobile phone.

Carry only the credit cards needed for the current trip. Most people carry all their credit cards with them at all times.

The garbage bags are not secure place for old or pre-approved cards. Tear them up before throwing them away. Thieves can retrieve these documents and open credit accounts with new addresses.

Keep a list or photocopy of all credit accounts, along with expiration dates and phone numbers to call in case of theft. Keep this list in a secure spot at home.

When you purchase items with credit, always take your credit card receipts with you. Never toss them in a waste basket.

Do not have boxes of new checks delivered to your home. Arrange to pick them up at the bank or credit union.

Do not write credit card numbers on checks.

If you have applied for a new credit card and it does not arrive, contact the issuer.

Avoid giving credit card numbers over the phone if you are in a public place. Even at work, others may overhear and use the information.

Once you understand what a credit score is, how it affects your life, and why it is important to build and maintain good credit, you may also want to know how, exactly, a credit score is calculated. The process is not simple, and each of the three major companies in the United States that reports credit score and history uses a slightly different method, so your credit score will probably vary slightly from one report to the next. However, there are some factors you can take into consideration if you want to roughly estimate your own credit score.

First, if you have never owned a credit card, had bills in your name, or borrowed money of any sort, your credit score is zero. While this is not considered bad credit, it is almost as hard to get a loan with no credit as it is with bad credit. Some companies may be willing to take a chance on someone with a zero score, but it is much better to build up a little credit by owning cards, and living a stable life.

Credit history is about 35% of your total credit score, so this is very important. Bills that have gone unpaid or debts that have defaulted will hurt your credit score for 7 to 10 years before they are erased, so remember that the bad choices you make today can hurt you in the future. Even if you repay these past debts, they will still show up on you credit history as bills that were late. Another 15% of your credit score is length of credit history. Therefore, it is important to start building credit as soon as possible. Your credit score will improve with age as long as you maintain bank accounts. Information such as length of employment or residence can also fall under this category, so if you have a very stable life, you’ll have a better score than someone who moves around often.

About 30% of your score depends on what you currently owe. Even if you are not late on bills, if you have many loans out already, it may be possible that you are denied another. Therefore, it is important to only take out the loans you really need and to repay them on time or early if at all possible. By paying off your loans early, you will not only see a jump in your credit score, but you will also save money on interest. This shows up as good credit on your history. However, try to keep your money in one place if possible. 10% of your credit score is based on new accounts. They will look at how many different loans you’ve applied for in the past and how many different accounts you have open. Opening and closing accounts quickly is not recommended.

Overall, use common sense. By knowing how your credit score is calculated you can easily spot mistakes, which may hurt your credit now or in the future. You are entitled to see your credit report annually for free, so review this, as well as your credit score, to be sure that you are being treated fairly.

If you have never had to apply for a loan or rent an apartment, you may not understand the emphasis on having good credit. Your past record of making payment on bills, keeping a steady job, and various other proof of stability is all documented in your credit report. It may seem trivial to some; however, when applying for a loan of any type it is the point that can either make or break the deal. It is best to get a good credit record established as early as possible to get your financial future set on the right path.

A common struggle when trying to establish credit is getting your foot in the door. How do you rent an apartment or apply for a home loan if you have no credit history? You could get a co-signer to help get approved for a loan that you pay back over time. If you are in college or high school and still living with your parents, perhaps they could put your name on one of their monthly utility bills. Any bill that is in your name and paid on time will be a good start to proving that you are credible.

Maintaining a good relationship with a bank over time will reflect positively when it comes to building good credit. Keeping a positive balance shows that you are capable of managing your finances well enough to have extra money to put into a savings or checking account regularly. This will increase your chances of being accepted for a loan from this particular institution as well because they have a record of your loyalty to them and ability to make payments. Do not take out a loan if you have any doubts about being able to make payments on it because if you end up with bad credit on your record, it will likely be tough to get back on your feet again.

Most people plan at some point in life to own their own home or purchase a new car. It is not common that even a responsible person is not able to pay many thousands of dollars in cash for these expensive belongings, which is where your good credit will be necessary to take out a loan. There are basic actions that you can take before you even reach the age where you are ready to move out of your parent’s home to be prepared for a stable and good credit rating.

It’s safe to say that if you have built a good credit score, you’d like to keep it that way. Who wouldn’t? There are a few simple things to remember when you are maintaining your credit score. Even though some of them may seem too simple to even mention, unfortunately, life is sometimes just distracting enough to make you forget about your credit score completely. Don’t fall into this bad habit. Maintaining your good credit is a matter of discipline.

Remember to make bill payments on time. This is crucial to keeping your credit score safe. It is almost like being in school again and showing off a great grade to your peers, because just like your peers, the creditors are just as proud of you for doing something great. By paying off your bills, not only are you preventing those annoying collection calls from occurring, you are improving your score. The reason for this is that when you are caught up with your bills, lenders see this as being a good sign that you will be able to pay back any money that you may request and will more than likely give you the money that you request because they know by your credit history that you are capable of making responsible payments. If you have had problems remembering when to pay bills before they are due, write them on the calendar every month. A simple reminder may be just what you need to help get those payments in on time.

If you have a good credit score, but can foresee rougher roads ahead, maybe you should consider debt consolidation. This is a way to combine all of your bills into one payment that is distributed amongst the companies that need to be paid. This takes all the guess work out of paying bills, no longer do you have to consider how much to pay and when to pay to whom. You see, even though you are paying what might appear to be a larger payment, in fact you are paying a lower payment to each individual company, but they are all getting their money on time. Creditors see this as being very responsible and it will most definitely improve your score or maintain an already satisfactory one.

Simply remembering to pay your bills on time can keep your score at a great level with no chance of falling. When you are responsible in bill payment your credit score will reflect just that-this is why it’s called “Credit”, because you are gaining person creditability for your financial history.