As a consumer, you understand the weight your credit score carries. Whether you want to finance a new car or apply for a mortgage on a home, your credit score heavily influences many of the financial decisions you make. However, when someone uses your identity, the impact it can have on your credit score can affect you for years. As such, knowing the common signs of identity theft is critical to remedy these matters as quickly as possible so you can protect yourself and your finances. The following blog explores what you should know about these troubling matters, including the importance of working with a Michigan identity theft lawyer to help you reclaim your identity.
What Is Identity Theft?
Identity theft is a term used to describe the act in which someone uses your personal information as their own for any number of purposes, primarily financial gain. Thieves will use information like your name, date of birth, social security number, and address to open accounts in your name, get medical care, or even commit crimes using your identity.
Unfortunately, there are a number of ways in which someone without authorization can access your sensitive information. While identity theft is now commonly committed online through hacking, phishing scams, and data breaches, you’ll find that it can also occur through methods like stealing mail, taking wallets, and even searching through trashcans.
Identity theft can wreak havoc on your life due to the impact it can have on your credit score. When thieves open accounts in your name and leave them unpaid, it can cause your credit score to plummet. Not only can you be denied loans you would have otherwise been approved for, but you can also face lawsuits as creditors attempt to collect the debt accrued in your name.
What Signs Should I Be Alert To?
Understanding the signs of identity theft is critical, as you’ll find that the sooner you know about the theft, the quicker you can remedy any issues you’ve experienced. As such, regularly monitoring your financial accounts, including your bank and credit cards, is imperative. In addition, you should check your credit reports to search for signs of fraudulent information.
One of the most common signs of identity theft is receiving notices in the mail regarding accounts you’ve never opened. For example, you may find new credit cards you never applied for in the mail or a rejection letter for a loan you did not take out. In addition, the letters you receive may be from debt collectors as these accounts will likely go unpaid, thus negatively impacting your credit. Not only can unpaid accounts in your name cause your credit score to plummet, but you may also be subject to creditor harassment as they attempt to collect the funds they are owed.
In addition, any unauthorized purchases or transactions on your credit or debit card are a clear indication that someone else has accessed your information to use for financial gain. As mentioned, regularly checking your statements can help you stay alert to whether or not someone has used your identity. If you see any unfamiliar charges, you should immediately contact your financial institution.
If you have reason to believe your identity has been compromised, it’s important to understand that you have rights. As such, one of the most important things you can do is connect with an identity theft victim defense attorney. At Lyngklip & Associates, our firm understands how overwhelming and unsettling it can be to discover someone has usurped your identity. Our firm can help you recover your identity and protect yourself. Contact us today to discuss your circumstances.
