Some habits need to be broken, and some need to be kept.
Regularly checking your credit is a good habit, according to
Businessweek."You can sign up for services that will automatically check your credit and alert you if there’s unusual activity," Carol Marie Cropper, personal finance editor of
BusinessWeek, said.
Linda and Jay Foley, who run the
Identity Theft Resource Center, suggest that you make the checks yourself to avoid credit-monitoring scams.
"By checking your credit report once a year, you're on top of any mistakes that might be in there and any fraudulent accounts that have been opened in your name," Linda Foley said.
Reputable credit agencies make it easy and affordable.
"For $8.50 a year, you can get your own credit report from one of the three agencies," Cropper said.
But just one report isn’t good enough. Get one from each of the three biggest credit bureaus:
Equifax Experian TransUnion Call (888) 567-8688 to stop pre-approved credit cards. Sign up for a credit-monitoring service. CreditWatch from Equifax costs $40 a year. Call your creditors if bills or replacement cards don’t arrive on time.If you review your credit report and find errors, you have the right to correct mistakes under the Fair Crediting Report Act.
Fill out a dispute form, and explain why you think the information was incorrect. The more evidence you have to back up your claims, the better chance your credit report can be restored.
Compare reports, and contact creditors about unauthorized activity.
Foley said that it's worth the time.
"You might find accounts that have been opened in your name without your knowledge, or collection notices -- which are very typical -- and dealing with a collection agency isn’t anyone’s idea of a good time. I'd rather have a root canal," Foley said.
Linda and Jay Foley are spearheading a campaign that would provide all consumers with a free credit report once a year.
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