security freeze - stop id theft

[slam]

http://redtape.msnbc.com/2007/11/now-a-way-to-st.html

very interesting. as of this month, you can now 'freeze' your credit history with the three major credit companies. any time you need a new credit card, or loan, etc, you have to go through a process to 'unfreeze' it first.

stop id theft cold. i've never been hit by it, but it's a huge problem. i remember larryhead got an audit from some alien working under his soc and not paying taxes in college. screw that!

so, take some time, invest $30, and save yourselves the hassle down the road.

[bubz_bluez]

this doesnt make a whole hell of alot of sense

bubs

[slam]

this doesnt make a whole hell of alot of sense

bubs

basically, it says 'no one gets to look at my credit history unless i explicitly give them permission'

[larryhead]

this is awesome news, especially if you've ever had someone take out a credit card in your name and run up an insane balance :erf:

this sounds very similar to "locking" your domain name at the registrar so thieves cannot transfer it away or change your info. the only way it can be changed is to "unlock" it first.

glad to see this :thumbsup:

[cuscus]

I am going out on a limb here. I am not sure this is such a good thing. Don't get me wrong ID theft is a terrible thing, and I hate the credit agencies more than most on the board. For the last six years I have dealt with consumers and their credit. In that time I have seen only two cases of true ID theft. The most common theft I saw were illegal immigrants using the numbers of deceased individuals, which doesn't harm anyone else really. Although I see the benefit of a freeze, the detriment to your score could be just as high. If creditors can't update payment history and account info, it could falsely spike your score down. When you open an account your score is negatively affected by the balance owed versus the credit limit. If you open a new account then refreeze you credit. The balance would more than likely sit at a high percentage vs. limit. another problem would be a lack of an accurate payment history appearing on a trade line. I don't know...this is the first I have heard of this, so I guess I would want to learn more. I still think the best action is to be careful with your personal info and regularly check your own credit to look for problems.
On a side note I think a bigger problem with the credit agencies is the use of triggered leads. Lets say that you come to me for a mortgage, and I pull your credit. The agencies themselves are selling your contact info to other mortgage companies to try and steal your business. I think this is shady. Granted it makes my business harder, but they should keep ALL of you personal info private.

[slam]

hmmm, that's pretty interesting. i'd be interested to see how this plays out.

go read up on it and give us the dirt cus!

[cuscus]

Hmm ok, this looks as though its actually been around for a while. It looks as though creditors will still have access to your file so info can be updated regularly. I still think that this is a bit fishy. It seems like a way for the agencies to charge or an extra service. I do think its a great idea for older people, because they are not going to need much credit. One article read did bring up a good point, this will prevent new accounts from opening falsely, but does not prevent someone stealing preexisting funds, like stealing your current card numbers. I still think that the best method is opting out of pre screened mail and stuff......https://www.optoutprescreen.com/?rf=t. Shredding junk mail, and being diligent with your credit and personal info.
So although not bad, I don't think its the end all be all of id security.
Keep in mind my opinions are that of a salesman who has needed instant access to credit to sell my products, so anything to slow that process down lowers my chances at success.
On a personal level I will not do it unless I am attacked, because I will want the easy access to the credit in the event I am trying to secure the best rate when I am shopping for either a car or a mortgage.

[slam]

Keep in mind my opinions are that of a salesman who has needed instant access to credit to sell my products, so anything to slow that process down lowers my chances at success.

so, if i lock my credit, will i receive fewer credit card offers in my mail? what's bad for you as a salesman might be great for me as a wary consumer :>

[cuscus]

No if you lock your credit you wont be removed from any lists. You will need to go the link in my previous post. The freeze means that you just cant open a new account. The junk mail will continue. I recommend everyone opts out for that. Remember I am also a consumer and the junk mail is bad both for personal finances and a risk for ID theft. I think it's different for big ticket purchases like homes and cars, where when I buy I want the ability to shop for the best rate whenever possible.

[mrjohnchimpo]

you've done the opt-out thing before? is it safe? ...is it secret? (haha, i couldn't help the LoTR ref)

[mrjohnchimpo]

dude, they ask for my social security number?? in order "to ensure that all mail gets stopped" or some nonsense. i don't think so!

[cuscus]

Dude, Social Security number is not needed, it justs makes it easier and more complete of an optout. The site is the one authorized by the four credit companies. You dont have to put it in. If you would rather there is a phone number way to do it. I am not 100% sure what it is, I believe its 1-888-5optout.

[cuscus]

Again its not something I have done, because I like the junk mail and the offers, never seem to be much of a problem for me. I also have the ability to pull my own credit whenever I want. All of the professionals from the car business I knew and all of the mortgage people I know refer their clients to the phone number or the website. I am not personally vouching for the site or anything, I dont work for them, just pointing you to the resources I know.

[meatball]

I have a sort of related question that has been bothering me and I wonder if anyone can shed any light. I have had some credit card debt that I have carried for awhile and I recently paid off some in fairly sizeable chunks. Well, sizeable for me, but probably not in the scheme of things. Basically I paid off a couple of cards. I have heard before that to just suddenly pay off and close credit cards can actually be bad for your credit. Is this true? That seems so unfair because if you should be able to pay it off, that should be a good thing. I haven't actually closed those cards because I am afraid it will negatively affect my credit score, but that too is bad imo because it is taking up that certain amount of credit allotment I have available. I cannot remember exactly why it was supposedly bad for your credit, but I think it was something about if you suddenly were able to pay it off "they" (they being those credit giving mo fo's) assume that you must have had the money all along and unnecessarily were using credit.

Fact or fiction?

[cuscus]

Both fact and fiction. It would not really hurt your credit to close the paid off accounts, but it would definitely help you if you leave them open. An open account effects your credit based on the percentage of balance owed to the high limit. So if you owe 100% of your limit it will actually pull your score down. If your balance is half or so, it will sort of hold still. If your balance is low in relation to the limit your score should raise. Obviously one would have to look at a whole credit file to understand exactly what is going on. For example if you just had the one card, and no other loans the score should go up. If you have a ton of other cards with high balances, collections, or late payments, the positive effects won't be as drastic. An account with an open limit does not get calculated into your debt to income ratio, only the used balance. Leave them cards open, I would still suggest that you use them like once a month and pay it off right away. Buy like a tank of gas or groceries, then pay it off, it will show that you are actively using the account and keep an extended pay history on the trade line.

[meatball]

Ahhh thanks so much! I have been bringing this up with lots of people and no one seems to have much of an answer. You rule! :D