One¡¯s FICO score is a very important determinant of the ability to finance the
purchase or refinance of a home. The FICO score is determined by a formula
developed by Experian and takes into account many different factors. In
today's lending environment, automated underwriting has taken a
predominant position in the processing of loan applications. It has become
more cumbersome to address issues that do not easily fit into the formula. It is
of extremely high importance, therefore, to protect one¡¯s credit by guarding
against identity theft. Once an item is shown as a negative on one¡¯s credit
report, it is very difficult and very time consuming to get it taken off. Also, while
an item of bad credit is being investigated and attempts are being made to
rectify the problem, the result is that the overall FICO score is reduced, and
therefore reflects a greater credit risk than it should.
The protection of your identity is one of the most important functions in
maintaining your financial health.?Identity theft can cause many a
myriad of problems.?One major problem could be the inability to
achieve the "American Dream" of homeownership.?Even if you
already own a home, identity theft could cause you thousands and
thousands of dollars due to higher interest rates.?In trying to
refinance a home in order to remodel, for example, the interest
rate could easily be 2% higher than the current market interest
rate just because someone else used your credit and negatively
impacted it.
There are ¡°Ten Top Tips for Identity Theft Protection¡± published by the Office
of Privacy Protection, California Department of Consumer Affairs,
www.dca.ca.gov. If one follows these guidelines for protection, one will be far
ahead of the average person in safeguarding their identity, although no one is
fully guaranteed complete immunity.
The following is a short, abbreviated list of these top ten pointers:
Tip # 1. Protect your social security number. (Don¡¯t carry your social security
card with you)
Tip # 2. Fight ¡°Phishing¡±-don¡¯t take the bait. (Don¡¯t respond online to credit
information requests).
Tip # 3. Keep your identity from getting trashed. (Shred information when
throwing away).
Tip # 4. Control your personal financial information.
Tip # 5. Shield your computer from viruses and spyware.
Tip # 6 Click with caution!?When shopping on line, check out the
website before entering your credit card number or other personal
information.
Tip #7 Check your bills and bank statements right away.
Tip #8 Stop pre-approved credit offers.
Tip #9 Ask questions of anyone before giving personal information.
Tip #10?Check your credit reports-for free.
Identity theft can be devastating to a person¡¯s finances. It often leaves
its victims credit and financial lives in shambles, but by practicing these simple
tips you can stay one step ahead of the identity thieves, and be the only one
who uses your identity.
About the Author:
Nef Cortez has been dealing in real estate and foreclosures for over 29 years. For free foreclosure lists please visit http://www.nefcortez.com
Protect Your Identity
