PROTECT YOUR IDENTITY

Recently I attended a seminar by an FBI representative on various types of fraud affecting the mortgage and real estate industries, and of course, our buyers and sellers. Then I had an enlightening conversation with a business associate whose focus is consumer protection and education.

Did you know that identity theft is America’s fastest growing white collar crime? The average dollar amount charged in identity theft is $92,893 and only 1 out of 700 thieves are ever prosecuted. And,the identity theft victim spends on average up to 600 hours restoring their identity. Identity theft is to knowingly transfer, possess, or use without lawful authority another person’s personal information to secure services or products, or to commit crimes in that person’s name.

The mortgage industry has stringent rules and oversights in place to safeguard our business from accepting applications using fraudently obtained information. A new national Red Flags Rule was implemented recently, further enhancing safety practices. At InSight Mortgage Group we have policies and procedures in place providing for the identification, detection, and response to “red flags” that could indicate identity theft.

There are five types of Identity Theft:

1. Financial – your information to obtain money, goods, or services leaving you
with the bill
2. Drivers License – an identity thief could obtain a drivers license in your name and accumulate traffic tickets in your name
3. Social Security – your social security numbers could be used for employment purposes and you could get the tax bill
4. Medical – your personal medical information could be used to obtain
prescriptions or medical health which could affect your health or reduce your
benefits
5. Criminal – your information could be used to escape fines or jail time. You
could actually end up in jail.

Military personnel are at risk too. Social Security numbers are the basis of personal and medical administration. In our era of Internet, credit cards, and computer file-sharing, the element of risk increases. The prime target is the deployed military person who most likely will not view his/her credit report for a year or more according to a public affairs officer with Army Human Resources Command. He said contractors, soldiers, and civilians should be aware of the dangers of identity theft and know how to protect themselves from unauthorized release of personally identifiable information.

Everyone should review their credit reports and financial statements regularly for any fraudulent charges. The Federal Trade Commission also suggests being alert to signs such as bills not arriving as expected, denials of credit for no apparent reason, or calls or letters about purchases never made.

Everyone is facing challenging economic times. Finances are a concern for each and every one of us, and identity theft is a potential threat to us all. Please don’t shake it off as a “it can’t happen to me” attitude. I’ve become aware of a valuable service provided by a company with integrity. Adell Associates of Pre-Paid Legal Services offers a comprehensive service you can use right now to help with the tough decisions all families and businesses must make. Everyone needs a will/living will but puts it off, maybe you’re thinking of bankruptcy, everyone signs contracts, and everyone needs to be concerned about their credit score and identity. These are some of the important benefits this service provides. For more information and personal assistance contact Adell Associates at 913-780-2375 or visit www.adellassociates.com.

Any of us at InSight Mortgage Group would be happy to discuss how we protect your identity through the loan process, or answer questions you may have. Call us at 913-642-3334 or please email me at michele@wantinsight.com. Have a blessed day.

THE NUMBERS GAME -- Your Credit Score

What do you consider the most important number in your life? Your social security number? Your birth date? Your phone number? While the majority of people don’t know this number, it pretty much rules your finances --- it’s your credit score.

A credit score is used by lenders in the decision making process of “if I give Person #1 a loan or credit card, how likely is it that Person #1 will pay me back on time?” This number is also called a risk score and is actually a statistical measure of the risk that a person will be able to repay the debt as agreed.

A good credit rating is essential these days if you plan on making a major purchase, apply for a credit card, or take out a loan. If your credit rating isn’t as positive as you’d like, there are ways to improve it.

WHERE DO I GO TO FIND OUT MY SCORE?

There are three major credit reporting bureaus and you are entitled to one free report per agency, per year. And, the reported score may be a different number from one agency to the other. You also have the right to dispute any errors on the report(s). Request a written report to be sent to you:

Equifax www.equifax.com
Experian www.experian.com
TransUnion www.transunion.com

You can always call any of us at the office,at 913-642-3334 or email me at michele@wantinsight.com for additional information on credit scores.


REVIEW THE REPORT

It’s been reported that nearly 80% of all credit reports contain at least one error! So, review your report carefully. Once you’ve identified any discrepancies, they’ll need to be eliminated. A dispute form usually accompanies the credit report (or request one from the website). Fill it out and send it back as Registered Mail. Documentation of each step you take is important, so keep a “paper trail”. And note that the law states that any item that is not verified as accurate must be removed from your report.

IT’S CLEAN UP TIME

Now the mistakes are cleared up, but there are still a few blemishes that are yours. What next? Identify any debts that are still pending and make a plan for eliminating them. It takes time to clear up debt, so it’s important to start now. AND, you also have the legal right to add remarks to your file. This is an opportunity to defend yourself and also highlight the positive points in your report.

WASH & REPEAT

Consistent payments (small is fine, as long as it’s the minimum due) is key. Consistency proves you are responsible enough to repay loans as promised. Over time, that consistency outweighs the possible negatives on your report.

LOOK AGAIN

Check your credit information at least once a year to avoid any nasty surprises when you’re ready to make a major purchase.

OTHER NUMBERS

It’s good to have a few open lines of credit, none max’ed out, and no more than what you can afford to pay off on your income. Cancel old cards you don’t use any more. BUT, do not use up one huge line of credit by putting your full amount of debt on it! Credit card issuers like to see no more than 30% of your limit accessed at one time. Prove your self control by having 2-4 lines of credit with a small or even no balance on each.


For help with any of your credit related questions please call me, 913-642-3334, or email me at michele@wantinsight.com