Check Your Credit Report for Identity Theft

Identity theft is a crime that affects millions of Americans every year. It's a crime that can be difficult to prevent and even more difficult to detect.

Unfortunately, many people don't find out that they're victims until they start receiving calls for debts they never incurred. Or, just as bad, until a bank rejects them for new loans or credit cards. You can take action today to find out if you're a victim by ordering your credit report and reviewing it for the following signs of ID theft.

Red flags to look for on your credit report

Accounts that don't belong to you. Pay close attention to each account that's listed on your credit report. Make sure it's an account that you opened. The field that’s marked "Date Opened" can give you an idea about whether the account is yours or not. If the account was created recently and you know you haven't opened any new credit cards or loans, there's a red flag for identity theft.

Unfamiliar collection accounts. You'll typically see collection accounts in the public records section of your credit report. Suspicious accounts could be a sign that someone has opened an account in your name and never paid the bill. Contact the collection agency to get more information about the account.

Credit report inquiries for applications you didn't make. Inquiries for applications you didn't place may suggest that someone has been trying to open accounts in your name. Sometimes credit card companies who simply wish to send credit card offers to you make inquiries. Contact the company listed next to the inquiry to learn specifically why they made the inquiry.

Different addresses listed on your credit report. If you see addresses where you've never lived, someone may have made an application in your name but with a different address. It could simply have been a clerical error. Contact the credit bureau to find out which company updated your credit report with that address, then follow up with the company to learn how it got that address.

Review your credit reports regularly

Without checking your credit report often, it could be months before you learn about an identity theft. Make sure you review your credit reports throughout the year, and alert the credit bureaus if you find fraudulent information on your credit report.

You can check for identity theft yourself for free by getting your credit reports from www.annualcreditreport.com. These credit reports are part of a federal law that gives you the right to one free credit report each year from each of the three credit bureaus - Equifax, Experian, and TransUnion. A good idea might be to order your Equifax report in the spring, your Experian report in the summer, and your TransUnion report in the fall. While the information on each report won't be identical, this do-it-yourself approach lets you oversee your credit year-round without paying for a professional credit monitoring service.