HARRISBURG – Attorney General Tom Corbett urged consumers to add healthy credit issues to their list of New Year’s resolutions.
“Many people make New Year’s resolutions about healthier lifestyles – everything from losing weight or exercising to quitting smoking or changing other habits,” Corbett said. “People should also be concerned about healthy credit, so we are urging consumers to give themselves a ‘credit check-up’ for the New Year.”
Corbett explained that many people only think about credit when considering a major purchase, such as a home or car, which is the worst time to learn about negative credit information. He urged consumers to be pro-active – regularly checking their credit history and financial accounts for signs of potential problems.
“Everyone knows that if you only balance your checkbook once a year, it becomes a complex and time-consuming task.” Corbett said. “If you only check your credit history once a year, or only when applying for a major loan, it can take a lot of time and effort to correct any problems.”
Corbett said that according to a recent national study by Money magazine, fewer than half of all consumers have ordered their credit report, even though it is available for free. Additionally, only about 40% of all consumers track their monthly expenses, including credit card bills and bank statements.
“This is vital information – and checking your financial statements and credit history regularly is the single most important thing that consumers can do to avoid unwanted credit surprises,” Corbett said. “Take the time every month to review your bank and credit card statements, and take regular advantage of your free credit reports.”
Corbett said that in many instances, identity thieves will process small charges on stolen accounts, checking to see if the credit card number is valid before going on a major “spending spree.” He urged consumers to check their monthly or online statements carefully and immediately report any unauthorized charges. Information about disputing charges is included with the monthly billing statements.
Additionally, Corbett recommended that consumers check their credit reports frequently, explaining that everyone is entitled to one free credit report per year from each of the three major credit bureaus. Because most information is shared between the credit bureaus, this effectively allows consumers to get three free reports every year.
Corbett suggested that consumers should space their free credit reports out over the entire year, getting one report approximately every four months in order to minimizes the time between reports and enhance your chances of catching problems quickly.
“Consumers should regularly check their credit history for new accounts that they did not authorize, and immediately report any suspicious activity,” Corbett said. “Information about reporting fraudulent accounts is included with your credit report, and consumers can also get details tips and instructions in the’Identity Theft Toolkit’ section of the Attorney General’s website.
Corbett also suggested that consumers review their credit history for old accounts that may have been forgotten, and to close accounts that have gone unused for an extended period of time. Contact information for the banks or credit card who issued those accounts is listed on your credit report.
When checking your credit history, Corbett suggested that consumers go directly to the Web site created by the credit bureaus for accessing free annual credit reports.
Corbett noted that numerous private companies used television and internet advertisements to offering “free” credit reports, though many of those companies only provide free reports when consumers subscribe to expensive monthly “credit monitoring” or “credit protection” services. Carefully consider the cost and benefits of any of these services before subscribing.
Additionally, Corbett urged consumers to be wary of programs that claim to help make bad consumers information “disappear” or provide you with a new “credit identity.”
“Consumers should remember that if an offer ‘seems too good to be true,’ it probably is,” Corbett said. “The only information that can legally be removed from your credit history is information that is incorrect or outdated, which consumers can remove without the help of any credit repair service. The passage of time, along with a history of regular payments, is the only thing that will truly ‘fix’ bad credit.”
Consumers can file complaints concerning credit issues by calling the Attorney General’s Bureau of Consumer Protection at 1-800-441-2555 or filing an online consumer complaint.
Detailed information about credit issues is available in the “Consumers” section of the Attorney General’s Web site.