Beware of Credit Score Scams

Have you ever received an email with the subject line, of “Your TransUnion, Equifax, and Experian Scores May Have Changed”. “Your TransUnion, Equifax, and Experian Scores May Have Been Modified” or “Your Credit Score Has Changed”. These and other similar subject lines, offering you a free look at your credit scores are usually sent by professional scam artists. BEWARE!!

These scam artists sometimes will give you the scores and other times they will,( after you have given them the details of who you are including your personal data like your address and social security number ), tell you that you are not eligible for the free score but you can sign up for their monitoring service for a charge. They will ask you for a credit card number for a “refundable” $1.00 charge.

What happens next? After you are able to look at your credit scores, you receive a charge on your next credit card statement for a monitoring of your credit scores. You will need to go through significant trouble to get this charge reversed.

Also beware of those that advertise on TV like freecreditscore.com which only monitors Experian and not the other two major credit rating agencies, Equifax and TransUnion. If you are going to monitor your credit you need to look at all three services.

If you want to monitor your credit score the two services we recommend are IdentityGuard and PrivacyGuard. Both offer monitoring of all three credit bureaus as well as a 30 day trial. We like IdentityGuard best because it offers the most comprehensive and best overall service. Additionally, it has a 30 day really free trial and offers a 25% discount.

In today’s world it is important to protect your credit rating and your identity. You should pick the service that does the best job and not the scam artists who are just after your money and who operate from scare tactics.

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Credit Scoring Rules are Out of Date with the Modern World

I recently received a Facebook post from my nephew about a problem he was having applying for a mortgage. He is an executive at a Fortune 500 company and his wife is an attorney. Both are employed and have high paying jobs. Their credit scores are excellent. So what is the problem? Apparently, not having a land line telephone number prohibited them from completing the application form.

Many younger people do not have a land line these days. We are living in a cell phone generation; an unused landline is simply considered a waste of money. Why have one since most communication is done on their cell phones.

Our banking system was brought to its knees by the mortgage crisis which was caused by lending institutions applying ridiculous standards for loans that allowed almost anyone to get a loan regardless of their credit worthiness.

Now we are operating on a set of lending criteria that was developed in the last century. It is obvious to anyone with half a brain that the standards need to be brought current with the times and credit scoring for loans and mortgages need to be updated for the world we live in today.

What can you do about this? Write your congressperson and your state banking commission. Ask them to create regulations that require banks and other lending institutions to update their criteria at least every decade so they accurately reflect credit scoring for our current society and its population.

Just for the record, I am a dinosaur and I have not one but two land lines, one for voice calls and one for faxes. I also have a cell phone. I don’t think this makes me anymore credit worthy than my nephew.