Credit reports are a record of a person’s credit history that is maintained by a credit reporting agency, or credit bureau. It is important to note credit reports aren’t just a current record of how you are managing your credit accounts. Rather, credit reports include a history of everything you are doing with your credit now, as well as what you have done during the past 7-10 years.
As such, a person’s credit report can tell a lot about their personal security, and unfortunately, identity theft can negatively impact it. Good credit is essential for many life milestones, including buying a home, securing a job and getting a loan, among other things. However, identity thieves can cause your credit score to plummet if they compromise an existing account or open a new account in your name, then fail to pay back the debt, which will be attributed back to you.
To avoid this issue, regularly review your credit report for signs of inaccuracies or potential fraud and file a police report and a fraud report with the three main credit bureaus if you see anything suspicious. Also, consider identity theft protection tools such as Lexington Law’s recently upgraded Lex OnTrack, which combines identity protection and credit repair for peace of mind.