As college students, the last thing on our minds is worrying about establishing and maintain our personal credit. We think we have years before we are going to have to think about such “adult” issues, but the truth is, without credit there really won’t be much “adult-ing” going on once you graduate. Credit is what allows you to buy your first car, put a down payment on a house, and be financially independent. Establishing credit is one of the best things you can do for your future, that is unless you’re hacked.
Three weeks ago the credit company Equifax acknowledged, after knowing for almost two months, that their security had been breached. Hackers invaded their way into the system and stole over 145 million American’s social security numbers, addresses, birthdates and drivers license information. Equifax is part of the three biggest credit companies along with Experian and TransUnion. The security breach at the US credit bureau is bad news for everybody, but one of the most frustrating things about the hack is how Equifax has made victims responsible for limiting the damage. Equifax will not contact you or let you know if you have been hacked, but they have decided to waive the fee to freeze credit at the bureau and offer free credit monitoring for up to one year. It’s up to consumers to seek out additional measures, like setting fraud alerts and freezing credit at Experian and TransUnion. As a student, this can all seem really confusing, but it is important to stay vigilant and make sure your identity and personal information is protected.
How do I know if I have been affected by the Equifax breach?
This is something you will have to check yourself because the credit bureau will not inform you. This can be done by visiting their website. Even if your name is not on the list, it is still a good idea to check your FICO score and/or freeze your credit. As many as 145 million people may have been affected by the breach, but as of late Sept., only 15 million people had visited the Equifax website to see if they were affected. Everyone is at risk, but consumers with less financial literacy are even more so.
Three Steps to protect your Credit: 1. Monitor your FICO credit score. This can easily be done online, and most credit card companies include your FICO score at the end of your monthly statement. 2. Protect against identity theft Get into the habit of shredding your bank statements, credit card bills, and other financial documents. Check your credit card statements monthly for any irregularities, and never provide personal information such as your social security number over the phone. 3. Check your credit report often Once a year, the government allows you to check your credit and all related activity for free through the three major credit bureaus: Equifax, Experian and TransUnion. This is a good habit to get into and can help to make sure your identity is safe and that all activity on file is from you.
Courtesy: The New York Times
Three Steps to Protect Your Credit:
1. Monitor your FICO credit score.
This can easily be done online, and most credit card companies include your FICO score at the end of your monthly statement.
2. Protect against identity theft
Get into the habit of shredding your bank statements, credit card bills, and other financial documents. Check your credit card statements monthly for any irregularities, and never provide personal information such as your social security number over the phone.
3. Check your credit report often
Once a year, the government allows you to check your credit and all related activity for free through the three major credit bureaus: Equifax, Experian and TransUnion. This is a good habit to get into and can help to make sure your identity is safe and that all activity on file is from you.