If you have a lower credit score that you would like, odds are that the score is caused by some small financial mistake or oversight you have made in the past. Not every person with bad credit has a low credit score caused by something they did, though. Sometimes, other people’s criminal activity can affect your credit score.  There are a few tips that can keep you and your credit safe form online and financial predators: 

Tip #8: Look out for identity theft. 

Many people who are careful about paying bills on time and having minimal debts are shocked each year to find that they have low credit scores.  In many cases, this happens as a result of identity theft.  Identity theft is a type of crime in which people take your personal information and steal that information to pose as you in order to get access to your accounts or identity.  

For example, someone with your PIN numbers can remove small amounts of money from your bank account each month or someone can use your name and personal information to get credit cards in your name and use those credit cards with no intention of paying back the money.  You are stuck with the large debts and the poor credit score. 

To prevent identity theft, always check your account statements carefully each month.  Report any suspicious activity or any charges you don’t recognize at once.  Also check your credit report regularly and immediately investigate any new credit accounts you do not recognize - this is the best way of detecting and acting on identity theft.  

If you have been the victim of identity theft, report to the police at once and get a police statement.  Send copies of this to your bank and credit bureaus.  Better yet, get the credit bureaus to attach the report to your credit report, if you can.  Close all your accounts and reopen new ones.  You should not have to pay for someone else’s illegal activity. 

Tip #9: Practice safe banking, safe computing, and safe business practices.                     

To stay safe from identity theft, always follow safe banking and financial practices: 

1) Keep account numbers and PIN numbers safe.  Cover your account and PIN numbers when using debit at the store and refuse to give your PIN number to anyone. Avoid writing down your PIN and account numbers - you never know when this information could fall into the wrong hands. 

2) Only do business with businesses you trust. 

3)If you get applications for credit cards in the mail that are “pre-approved” rip up the applications and enclosed letters before discarding them.  No, this is not paranoid. Identity thieves sometimes go through garbage in order to find these forms so that they can fill them out and steal your identity. 

4) If you use a computer, install good firewall and antivirus protection system and update it religiously.  Better yet, take a course in safe computing at your local college or community center.  You will learn many good tips for keeping all your information safe while you are online. 

5) Never buy anything online from a company you do not trust of from a company that does not have encryption technology and a good privacy policy. 

6) Even with all computer precautions, avoid providing private information through email or your computer.  Be especially cautious if you get an email from your bank asking you to verify your information by clicking on a link - this is a popular scam that comes not from your bank but from criminals posing as your bank.  Ignore the email and phone your bank about the message.  

7) Be wary of unsolicited emails, phone calls, or mail advertisements.  Most are from legitimate companies but there are companies who promise you a credit card over the telephone only to charge your existing credit card without sending you anything.   

Similarly, letters will sometimes promise you specific items or services.  Once you send in your credit card information (usually to a post office box) you hear no more from the company.  If you need or want to buy something from a company, be sure to check the company’s standing with the Better Business Bureau first.   

Send a money order instead of a check (which had your account number) or your credit card information.  If you do use a credit card, report any unusual charges or any payments you made for a product that did not arrive to the credit card company.   

In some cases, they can stop payment or refund your money as well as take steps to keep your credit card number safe. 

8) Be wary of offers that seem too good to be true.  If you get an offer for a ten million dollar check - for which you need to put down $5000 as a “sign if good faith”...if you get an offer for a free state-of-the art computer - if only you provide your account information... take a deep breath and consider before sending in your money and your information.   

Offers that are too good to be true always are.  Scam artists often rely on your belief in others and your trust to make money.  They depend on the fact that you will be so excited about a product or service that you will throw good judgment out the window.  Prove them wrong.