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Identity theft is a growing national epidemic. The Federal Trade
Commission's 2003 report on identity theft called it
the fastest growing crime in the nation, with nearly
500,000 victims, costs to businesses of $48 billion,
and costs to consumers of nearly $5 billion.
Credit Factor Corporation is a leading directory of
credit report providers and the largest resource
about credit management for consumers. Recent
studies conducted by the Public Interest Research
Group found over 70% of credit reports contain
errors.
Incorrect information in your credit file makes your
credit score lower. As the result you get a higher
APR when you: take a loan, open a new credit card
account, lease a car or every time when you take
credit.
29% of the credit reports contained even more
serious errors that could result in the denial of
credit. "Serious" errors included false
delinquencies, public records or judgments that
belonged to a stranger, or credit accounts that did
not belong to the consumer. If your identity has
been stolen and somebody has taken credit on your
name you may get huge financial problems. It is much
easier to investigate such kind of situation before
it is reported to a collection agency. After it is
reported to a collection agency and an accordant
record appears in your credit file, you may be
denied credit at all.
The solution is to take a look at your credit report
and become sure that your credit situation is under
control.
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