As we all know that having a bad credit can make you struggle to get approvals for loans, credit cards and for any type of credit. It can result into unfavourable interest rate that can cost you thousands of rupees when you take any kind of credit.
But did you know that even identity theft can damage your credit?
Identity theft occurs when someone tries to apply for any kind of services in the name of some other person. Identity theft is one of the major crimes in the world. It can damage your reputation as well as your credit profile. Also it can lead to a criminal record in your name an arrest, having your driver's license revoked or your wages garnished. Also you can lose your employment and the place you live.
How can you avoid identity theft?
Your credit report has all the information regarding the all the credits that you have taken in your entire life cycle. It contains also contains the number of enquires that have been made by you over a certain period of time.
Constantly monitoring your credit report will help you to check if there are some enquires that have been made by any other person in your name. If you detect some incidents, it can turn into identity theft.
Even, there can be some accounts which are not applied by you, but are reflecting in your credit report as open. This can drastically lower your credit score and your creditworthiness.
Steps you should take?
One you figure out accounts that are not applied but you, you should take some necessary steps that will help you to eradicate the errors in your report and will make your report error free.
Firstly, you should inform the bank regarding the account wrongly updated in your name. Provide all the necessary proof required by them.
Secondly, you should also inform the bureau regarding the same mistake made by the bank and ask the bank as well as the bureau to kindly update the same in their record.
Thirdly you should get a copy of the credit report and check if the same have been rectified.
Source: Secondary
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