You know the commercials where they sing about getting a free credit report.  About what are they singing?

3 Credit Bureaus in USA:

1. Experian

2. Equifax

3. TransUnion

Think of the 3 as being similar to time zones within the USA.  Things you do, like open up an account for a store card, get your credit checked for new cell phone service or car insurance, or use a credit card in your name and maybe your parent's name too...all of these things show up on your credit report in 1, 2, or all 3 of the credit bureaus depending on where the activity occurs within the USA and at what level.

 

What is a credit score?

A credit score is a complex mathematical model that evaluates many types of information in a credit file. A credit score is used by a lender to help determine whether a person qualifies for a particular credit card, loan, or service. Most credit scores estimate the risk a company incurs by lending a person money or providing them with a service –– specifically, the likelihood that the person will make payments on time in the next two to three years.

Generally, the higher the score, the less risk the person represents.  To get the best mortgage interest rate for example, one needs a credit score of at least 720, while the average US American has a score of 690.

Each time your credit is checked, it can reduce your credit score.

 

Uh oh, That isn't mine?!

What do I do?  Well, it's up to YOU to prove that something is incorrect on your credit report.  Accounts opened in your name are YOURS until you can prove otherwise.

Sometimes other people and their activities accidentally show up on your credit report.  This could happen if you have similar Social Security numbers, names (ex. Same Name Jr/Sr), addresses, etc.  Sometimes people get linked to you.  Hopefully they have good credit.  If it's bad, you unfortunately can be dragged down with it. 

With these 'accidents' along with ID theft, which is no accident, you should be checking your credit.  Talk it over with your parents.

 

What should I do?

For now, get some tips on ID theft at the Federal Trade Commission Identity Theft Center at http://www.ftc.gov/bcp/edu/microsites/idtheft/index.html

To learn more about Internet fraud and protecting your personal information, go to OnGuardOnline.gov as it provides practical tips from the federal government and the technology industry to help you be on guard against phishing and internet fraud, secure your computer, and protect your personal information.  They've even got games to learn while play!