How can you avoid credit score scams? These are 7 key ways (2024)

FAQs

How can you avoid credit score scams? These are 7 key ways? ›

Use official channels: Stick to official channels for obtaining your credit score, such as authorised credit bureaus of Cibil, Equifax and Experian. These agencies provide legitimate and accurate credit reports.

However, many people need to check their credit report, FICO score, or personal credit history more frequently, such as when talking to lenders about loans or mortgages. Scammers take advantage of these situations to steal money and sensitive information, such as your Social Security number (SSN) or credit card number.

The Federal Trade Commission (FTC) online at IdentityTheft.gov or call 1-877-438-4338. The three major credit reporting agencies. Ask them to place fraud alerts and a credit freeze on your accounts. The fraud department at your credit card issuers, bank, and other places where you have accounts.

Late or missed payments can cause your credit score to decline. The impact can vary depending on your credit score — the higher your score, the more likely you are to see a steep drop. Late or missed payments can also stay on your credit report for several years, which is why it is extremely important to avoid them.

When you request a copy of your credit report, you will see a list of anyone who has requested your credit report within the past year, including any employers or prospective employers who have requested your report within the past two years for employment purposes.

How can I check if someone is using my Social Security number? ›

Contact the Internal Revenue Service (IRS) at 1-800-908-4490 or visit them online, if you believe someone is using your SSN to work, get your tax refund, or other abuses involving taxes. Order free credit reports annually from the three major credit bureaus (Equifax, Experian, and TransUnion).

Unless you see a transaction on your bank statement you don't recognize, you might not realize someone has opened a fraudulent bank account in your name. But it happens more often than you might think. The Federal Trade Commission received over 110,000 complaints about new account bank fraud in 2022 alone.

It offers identity theft protection: A credit freeze significantly reduces the risk of someone opening new accounts in your name, which is a major form of identity theft. It helps prevent data sharing: Credit freezes prevent credit bureaus from selling your information for marketing purposes.

Pay on time.

Payment history makes up a significant chunk of your credit score, so it's important to avoid late payments. If you struggle with on-time payments, consider using automatic payments for your accounts or setting up alerts so you are reminded to pay.

Making all your payments on time is the most important factor in credit scores. Second, by making multiple payments, you are likely paying more than the minimum due, which means your balances will decrease faster. Keeping your credit card balances low will result in a low utilization rate, which is good for your score.

Pay your bills on time

Prioritize and schedule your monthly payments, making sure to pay at least the minimum payment on time every month on all your accounts. Try to pay more than what's due whenever possible. This helps to pay down debt faster, save on interest expense and may improve your credit score.

Bottom line. Locking or freezing your credit file may help prevent criminals from opening fraudulent accounts in your name. If you don't plan on applying for any new credit in the near future and your state doesn't allow credit freezing fees, a freeze may be the way to go.

Payment history, debt-to-credit ratio, length of credit history, new credit, and the amount of credit you have all play a role in your credit report and credit score.