It is always a shock to the system. When you first discover that you have been a victim of identity theft, you feel violated. It is as if someone has been living in your house, and you didn’t even know it. Then you get angry. Someone has stolen my hard-earned money! But it is difficult to “get even.” Chances are you’ll never find out who the ID thief was. The best you can do is clean up the mess, and take steps to protect yourself in the future. This is your life after identity theft.

The first signs that you’ve been a victim of identity theft might be unexpected credit card charges, denials of credit for no apparent reason, or monthly bills that don’t arrive as expected. It’s time to take action immediately to stop the thief.

Place a “fraud alert” on your credit reports. This tells your creditors you suspect something is wrong, and they will follow set procedures before opening any new accounts in your name. You’ll also get a free copy of your credit reports so you can review them carefully for any other signs of criminal activity.

Close accounts that have been violated or established without your knowledge. Contact the security or fraud department of each company where an account was opened, and be sure to follow up in writing providing evidence of the theft.

File a police report. This will help you with any creditors who may want proof of the crime. You can also report the theft to the Federal Trade Commission – this probably won’t help you directly, but will help them monitor the overall scope of ID theft in the country.

To make sure that you’re not a victim again, start safeguarding your personal financial information immediately. This should include shredding documents with your personal information on them before throwing them in the garbage or recycle can. Don’t give out personal information over the phone or the Internet unless you know whom you are dealing with.

Tighten up the security of your online passwords and PINs. Don’t use obvious passwords like your mother’s maiden name, your birth date, or part of your social security number.

Keep your personal information in a secure place in your home. Lock away your passport, credit cards you don’t normally use, and financial records. This is especially true if you have roommates, hire outside help, or are having work done in your home.

Finally, continue to monitor your credit report, looking for any signs of illegal activity. You can get a free copy of your credit report once a year from the three major credit bureaus at annualcreditreport.com. If you space out your requests (ask for a report from one of the bureaus every four months, for example), you can monitor your credit more thoroughly.

Is there life after identity theft? Obviously, yes! It’s just not the same, though. You’ll always be more suspicious when the phone rings or when you check your e-mails. And maybe that’s a good thing.

Article courtesy of Credit Secrets Bible.

Having a credit problem is serious business, and fixing that problem should be done in a business-like manner. Picking up the phone and yelling at the lender’s customer support representative is not going to help repair your credit; in fact, it may make it worse. However, writing a concise, professional letter may well do the job. A simple credit repair letter can help you in a variety of ways.

Reduce your debt by negotiating repayment plans with your lenders, in writing. Debt negotiation letters can settle your debts, and erase bad credit, for a fraction of what you currently owe. Your lenders will always want to recoup some of their losses, as opposed to having to write all of off your bad debt. A simple letter can be very powerful in reducing the amount of money you owe, and perhaps avoid bankruptcy for you.

A well-crafted letter can also stop collection agencies and attorney debt collectors from harassing you. It is your right to not be called in the middle of the night or while you are at work. These companies sometimes “buy” your debt from the original lender, for a percent of the value. Get these annoying parasites out of your life by putting it in writing.

Stop identity theft with a fraud alert letter. If you suspect that an ID thief is using your personal identifying information to open a new credit account for their personal gain, place an “initial fraud alert” on all three of your credit reports (TransUnion, EquiFax, and Experian). This can only be done if you feel your personal information has been compromised. The initial fraud alert letter requires that lending institutions call you at the phone number listed on your credit report to confirm any new transactions, effectively stopping any new ID theft, at least for the next 90 days.

Raise your credit score by removing inaccurate or negative information from your credit report. Write to the credit bureau that is distributing the bad information, and spell out exactly why the data should be deleted from your report. Perhaps you have paid off a loan that your report shows as outstanding. Always include any copies of proof you may have, such as cancelled checks showing timely payments. It never hurts to include the consequences that have resulted from the credit bureau including the inaccurate information as well.

Be sure to make a copy of all credit repair letters and any attachments for your own files. It is all good evidence that you are working to establish a good line of communication with your creditors.

The impact of your credit repair letters will not be instantaneous. But in a month or so you will likely find that your credit report will reflect the requested changes, that the identification theft has stopped, or that your lenders are negotiating in good faith with you in good faith to reduce your debt. Keep in mind that you are repairing not only your credit, but also your good name and reputation. The pen is mightier than the sword.

Article courtesy of Credit Secrets Bible.