A stolen identity can leave the victim spending countless hours and attorneys fees trying to clear their credit.  Not only can your good name be victimized, but if your credit turns sour, even if it’s not your fault, it’s up to only you to fix it.  Unfortunately, when it comes to credit, you’re considered guilty first, and must prove your innocence.  Job opportunities may be lost.  Loans for automobiles, mortgages, or education won’t be obtainable.  Before this tragedy happens to you, it’s best to take the proper steps to avoid it as much as possible.

Identity thieves are skilled hunters of information.  Credit card numbers, addresses, and bank statements are pure profit for the identity thief.  One way identity thieves steal your information is by obtaining it through your trash.  Old bills or credit card statements should never be thrown away in the garbage.

1.  One of the best ways of safeguarding your credit is by using a shredder.  Shred any type of paperwork containing your personal information before tossing it into the trash.  Dumpster diving thieves are looking for any type of personal information they can get their hands on.  Be sure to shred the following items:

• Pay stubs from work
• tax returns from previous years
• anything with your Social Security number on it
• credit card applications that come in the mail
• credit card receipts
• deposit receipts, bank statements, and canceled checks
• telephone and utility bills statements
• any statement containing your name, address, and account numbers

2.  A second way of protecting yourself from identity theft is by periodically reviewing your credit report.  There’s no excuse for not monitoring your credit report at least three times a year; especially when you can obtain a free annual credit report from the three major credit reporting services, Equifax,Transunion, and Experian.

3.  Keep your paperwork secure.  Filing cabinets with a secure lock, or even safety deposit boxes work great. We hate to say it, but even roommates or relatives should not be trusted when it comes to securing your personal information.  We’ve seen it too many times to know that it’s real.  It may start out innocently.”Oh, I’ll just apply for this account in my mother’s name, and have the billing address as mine.  She’s got good credit, and I know that I can pay the bills.”  Unfortunately, that turns into a situation where the bills aren’t paid, and that mother ends up having to pay the charges.  If they turn in their child, that child will be prosecuted.  It can become an ugly mess. Always protect your paperwork containing personal information.

4.  Protect your online identity. Phising is the online identity thieves tactic for stealing personal information.  The online identity thief pretends to be a bank or other online financial service.  They send you an e-mail that looks like an official notice from your online account.  It may even have an e-mail address that looks official, such as having the banks name in the URL address.  For dealing with online phising you must remember this one thing.

If someone is asking for your personal information through an unsolicited pop up or e-mail, never ever reply with your personal information.  You should always go to your secure financial institutions Web address to handle any personal information issues.  Always!  If you’re initiating an online transaction, be sure the page is secure.  Using the Internet to make financial transactions can be convenient and save you time.  Just be smart about it.

5.  Remove your name from mailing lists.  The less junk mail you receive, the less junk mail you’ll have to shred.  We’ve heard of identity thieves that are even as bold as to steal mail before it gets in your hands.  By reducing the amount of those “pre-approved” credit cards applications you receive, you’ll also deter the possibility of them getting into the hands of someone with bad intentions.

Follow these five proactive steps, and feel safer knowing that you’re doing your best to protect yourself from identity theft.

Launched on December 1, 2004, the place to actually obtain a free annual credit report – with no strings attached – is through www.annualcreditreport.com.  Created by the three major credit reporting companies – Equifax,TransUnion, and Experian, AnnualCreditReport.com allows consumers the ability to obtain their free annual credit report once every 12 months.  In accordance with the Fair and Accurate Credit Transactions Act (FACT Act), you’re allowed to obtain one credit report from each credit reporting company within a 12 month period.  You don’t have to obtain all three credit reports at once.  You can spread out when you get them if you’d like.

Be sure when you login that you are visiting the legitimate AnnualCreditReport.com site.  It should have the following encrypted URL – https://www.annualcreditreport.com.  This ensures that you keep your Social Security number safe from identity theft.  The service even ads an extra security feature which allows you to display no more than the last four digits of your Social Security number on your credit report.

Be prepared with your Social Security number and other facts about your identity which will allow authenticated approval to the service.  This includes past addresses, and financial information, such as bank account numbers, or credit card numbers.

Once you’ve obtained access and logged in, your free credit report is available immediately.  If you’d rather obtain your credit report by phone or mail, those options are available.  You should allow two to three weeks for delivery if you choose this route.

There’s really no reason to pay for your credit report when you have a free annual credit report service such as this.  Take advantage of it!

Depending on your debt, and the credit granting standards of each individual creditor, you’re probably looking at a different resolution for each problem.  Some creditors look at longer histories, while others look at shorter time periods of your ability to pay.  In some cases it’s probably worth contacting your creditor to discuss the situation.  Sometimes it’s not though.  So where do you turn?

You’ve probably heard the commercials on TV, or the radio spots on your favorite rock ‘n roll station.  And if you’re searching on the Internet, you’ve definitely seen the advertisements for credit repair solutions.

“Erase your credit forever – 100% guarantee.”  “Legally change your credit identity – get out of debt now!”

Don’t believe these sales gimmicks.  There’s no quick fix for getting your credit cleaned up, but that doesn’t mean that it’s impossible either.  It can be done with some hard work and patience. Maybe you don’t want to tackle it yourself though.  We understand that credit problems can be daunting, frustrating, or even downright scary.  There are free credit counseling services out there.

The US Department of housing and urban development – www.hud.gov, offers information on approved housing counseling agencies, that can offer guidance on all aspects of home buying, preventing foreclosure, renting, and even reverse mortgages.

Another organization offering free credit counseling services is NeighborWorks America.  Since 1978, this organization has been improving communities through their efforts.  It’s located in select cities, and offers residents financial counseling at no cost.

A third organization offering free nonprofit counseling services is CCCS.  They’ve been offering free credit counseling services for over 40 years.  Certified counselors are available to answer your credit questions.

Remember if it sounds too good to be true, it probably is.  If you hear an ad for a free credit counseling service that offers to remove that bad credit for you in a hurry, run the other way.  They are probably out for one thing, and that’s your Money.