We all hear about identity theft, and it is very scary, but you never think it can happen to you. Nowadays, with internet and technology, it is very easy to become a target and the victim of the identity theft. The criminals had become very creative, and it almost impossible to avoid invasion of your personal information.

I know someone who had a client who is very wealthy, and usually accrues high charges on his credit cards, so it was not noticed right a way. The criminal who obtained the his personal information , put a down payment on the house, fixed and purchased cars, spent money on expensive furniture and so on. The way he was busted was, when the accountant noticed discrepancies, and started investigating, they came upon a bill from body shop. So, he went there, and requested the mechanic to show the documents that person provided in order to fix his car. They usually ask for driver license. So, that is how the information was gathered, and forwarded to the police.

What happens when someone steals your identity?

The information that leads to identity thefts are the following: your social security number, personal address, age, birth date, mother’s maiden name. This information is used to apply for credit cards, make multiple purchases, even as it was in the above example put a down payment on the house or a car.

The problem here is that the thieves will rapidly charge/max the credit cards and will not stop until they get declined, if that ever happens. If you have an excellent credit history, the charging and purchasing can go on for a very long time.

Another way your personal information can be compromised is through you very own checking or saving accounts; debit accounts. The thieves find the ways to snatch pictures of your debit cards or checking account numbers, to re-create your personal checks.

A lot of this happens at the gas stations, and ATM machines, or even in stores, where the thieves have connections with the retail people.

So, how to avoid becoming a victim of the identity theft:
– Always check you credit report (which can be free) for discrepancies, and unidentified charges, loans, credit lines etc.
– Check your bank accounts, statements for unusual amounts and checks.
– Separate your billing and home address (makes it difficult for thieves to still your personal info).
– Be careful when giving out your personal info over the phone. Some thieves will obtain a number with caller ID to show financial institutions when calling your house. It can be easily mistaken, and they will be able to get your personal info.
– If you noticed unusual charges on your credit card, ATM or checking account, immediately notify your financial institution to avoid freeze on your account, and lengthy investigations.

So, what are the signs of a possible identity theft?

· When you get a credit card in the mail, which you never signed up for.

· While checking your credit report, you noticed a decrease in your credit score.

When you receive demanding letters from collection agencies.

Protect your chance of a getting a home loan and get a free credit quarterly.

Some information on your credit report can be inaccurate or negative.

These are the best ways to correct and manage your credit report:
– Order your free credit report form an adequate credit report agency or organization(s).
– Review each item on your credit report for accuracy; underline those items that are incorrect, as well as the negative items. Use your personal records to verify the amounts and credits that are due.
– It is important to contact the companies that you have a dispute with, and see if they can assist you with the correcting your credit report.
– For those items that are incorrect you can write a dispute to all credit bureaus: TransUnion, Experian, Equifax by letter, and via online request.
– Once you filed a credit report dispute, it takes about 30 days for credit report bureaus to investigate and make adjustments on your credit report.
– You will be notified in writing, in regards to what items were corrected and what Items are still remained the same. At that point, you may want to submit another dispute, providing additional supportive documentations.

There are certain unfavorable items on your credit report that are equitable.
Unfortunately these items will remain on your credit report for a long time; however they will eventually expire and be removed from your credit report:
• Bankruptcies Records are removed from your record after ten years from the day of filing.
• Collection Records are removed after seven years (after 180 day late payment, that was sent to the collection agency).
• Closed/inactive accounts Records are removed after seven years.
• Foreclosure Records are removed after seven years.
• Judgments Records (child support, civil, small claims judgments will be removed after seven years.
• Late Payments Records. The late payments will remain on your credit report for seven years; however the late payments over 30 days will automatically affect your credit score.
• Tax Liens Records will remain on your credit report with out expiration; however if paid, it will stay on your record for seven years from the date it was paid in full.
• Charge-off Records (write off records). This record is placed by a lender or creditor, if the account marked as “uncollectible” ,and the company writes it off as a loss.

Your credit is an important factor when considering a home loan but the fine folks at RMCFUNDING will make the process a smooth one.

How to build and secure your credit?

To establish and maintain good credit takes some time a free credit report can give you an idea where you stand.

There is one way to build and secure your credit by applying and using a credit card.
In order to obtain excellent credit rating, the credit card should be used carefully and sensibly:

-Apply for several credit cards (reasonable amount, not to exceed more then you can handle).
-Place your credit card charges wisely. Make sure you can afford to pay for the purchases. At least make a minimum payment.

Pay on time and Find out if they recorded it with a Online Credit Report

-Make sure you pay your credit card bills on time, avoid late payment fees.

-Manage you credit card credit line. You may have a high credit limit, but it doesn’t mean you have to go on the shopping spree, and spend all of that money at once.

Your credit history will show the credit limits which are great for your credit.

-If you have difficulty obtaining a credit card, you have an option of getting a Secure Card.

It works like a saving or checking account. You place the money down, and then use is until you are able to get an actual credit from substantial financial institution.
-As you build your credit, you can always check you credit report (can be free credit report) to see how well you do.

Please take Ron up on his offer for a Free Credit Report.

As you can see getting your home loan is an easy process as long as your have RMCFUNDING behind you.

How to build and secure your credit?
To establish and maintain good credit takes some time a free credit report can give you an idea where you stand.

There is one way to build and secure your credit by applying and using a credit card.
In order to obtain excellent credit rating, the credit card should be used carefully and sensibly:

-Apply for several credit cards (reasonable amount, not to exceed more then you can handle).
-Place your credit card charges wisely. Make sure you can afford to pay for the purchases. At least make a minimum payment.

Pay on time and Find out if they recorded it with a Online Credit Report

-Make sure you pay your credit card bills on time, avoid late payment fees.

-Manage you credit card credit line. You may have a high credit limit, but it doesn’t mean you have to go on the shopping spree, and spend all of that money at once.

Your credit history will show the credit limits which are great for your credit.

-If you have difficulty obtaining a credit card, you have an option of getting a Secure Card.

It works like a saving or checking account. You place the money down, and then use is until you are able to get an actual credit from substantial financial institution.
-As you build your credit, you can always check you credit report (can be free credit report) to see how well you do.

Please take Ron up on his offer for a Free Credit Report

As you can see getting your home loan is an easy process as long as your have RMCFUNDING behind you.

What is a Credit Score?

Understanding of Credit Score.

Whenever you apply for loan, credit card, your credit score is checked, there is a credit score that is used to determine the risk for lenders and creditors. The credit score number reflects the rates, terms and conditions for all of your major financial purchases.

The credit score is the financial evaluation of your credit history, which is calculated by using complex mathematical formula, based on your credit, debts, payment history, credit inquiries. Each credit bureau, such as Equifax, Experian, and TransUnion, will provide you with their own credit score.

Numeric Credit Score.

The credit score represents three digit number between 300 to 850, and if your credit score is over 700 it is really good score. The higher the rate is, the better and lower rates you get on all your purchases from car lone to mortgage.

Credit Score Formulas.

Financial institutions, such as banks, lenders, retailers use different scoring formulas, FICO, Beacon, Empica. Each score will evaluate your credit data in a different way, and the credit score will very about 40 points depending on which credit score was used.

Managing your Credit Score.

To avoid losing points on your credit score, try to follow simple rules:
– Make sure to make your credit card balance as low as possible.
– Try to pay your bills on time, avoid late payments.
– Obtain several credit accounts.
– Do not apply for too many new credit applications.
– Maintain a steady record use.
– Maintain one or two loans.
– Maintain your credit accounts for an extensive amount of time.

Is your credit score affected if you check it constantly?

A lot of people believe that if you are checking your own credit on more then one occasion within a year, it will not decrease points off your credit score.

However, it is true, when you apply for new credits, loans your points can drop about 5 points.

Great example would be, when you get approved for a new car. Sometimes people go from dealership to dealership and get their credits run several times a day!