If you receive a call or a letter, stating that you have been approved or denied credit for accounts that you never applied for, then you should think of an identity theft.



Identity theft takes place when someone uses your personal identifying information, for instance, your credit card number or your Social Security number, without a permit, to commit fraud.

If you have become a victim of identity theft, the first thing you should do is to place a fraud alert on your credit reports and review them. A fraud alert is something that credit bureaus add to your credit report. Start with speaking to the fraud department of one of the three major credit bureaus (Experian, Transunion, and Equifax) to put a fraud alert on your credit file together with a victim's statement.

Victim statements might be the cause of delays in getting credit while the creditors attempt to contact you. If you want to open a credit account by getting a new , the lender will call you to be sure that you really intend to open a new account.

Fraud alerts are planned to prevent an identity theft from opening new accounts in your name. If you are not asked about it, a new credit account wouldn't be opened. When the credit bureau confirms your fraud alert, it will inform the other two. Thus they will put a fraud alert on their variants of your report, too.

I can't but mention that it's your choice what kind of fraud alert to place on your credit reports.

If you have been decided to put initial alert, you should know that it will remain on your credit file for 90 days. While the alert is on your file, probably you won't be able to get instant credit. During these 90 days you will be entitled to get a credit report from three credit reporting agencies.

In the case of extended alert, it will remain on your credit file for 7 years. Nevertheless, you can to remove the fraud alert before this period expires. To do this you are to make this request in writing and give information verifying your identity. These actions are designed to prevent criminals from taking fraud alerts away from victims' accounts.

A fraud alert serves as protection against identity theft. However, it doesn't work in some cases. For example, it won't be helpful when a criminal opens a new account in your name that doesn't require a credit check. And it will not help you when an identity thief takes advantage of your existing credit cards or other accounts.

Identity theft is a real problem faced by majority of people. And the consequences of it may be very serious. Many victims of identity theft spend much money and time to repair their damaged credit score and good name.