The best way to find out if someone has opened an account in your name is to pull your own credit reports to check. Note that you'll need to pull your credit reports from all three bureaus — Experian, Equifax and TransUnion — to check for fraud since each report may have different information and reporting.
The basic requirements for getting a credit card with no credit include being at least 18 years old and having enough income to afford monthly bill payments. Credit cards you can get approved for with no credit experience include student credit cards, secured credit cards, and select unsecured credit cards.
It's possible that you won't have a credit report if you've never had a credit card or any type of debt. Credit card companies aren't exactly eager to loan money to someone who hasn't proven their ability to pay off debt, so many cards with more favorable terms require at least some credit experience.
So be suspicious of any debit card showing up that you were not expecting. So what should you do if an unexpected debit card arrives in the mail with your name on it? The Federal Trade Commission says don't simply cut it up or toss it away. Someone may be collecting benefits in your name, or the card may be legitimate.
If your identity has been stolen, the criminal may try to open bank accounts, or apply for credit cards and loans in your name. You might start to get letters from banks you don't have accounts with, credit cards you've never applied for, or from debt collectors you know nothing about.
Banks believe that the offers you get in the mail are likely to get more of your attention. The offers you get depend on your credit score, so if you have bad credit, you'll get pre-approved offers to help you build your credit, and if your credit is good you'll probably get offers for rewards credit cards.
When you apply for a credit card, you may be wondering whether you're obligated to accept the card if you're approved. The short answer is no, you don't have to accept a credit card if you don't want it. However, there are some important considerations to keep in mind before making a decision.
Being denied for a credit card doesn't hurt your credit score. But the hard inquiry from submitting an application can cause your score to decrease. Submitting a credit card application and receiving notice that you're denied is a disappointment, especially if your credit score drops after applying.
Applying for a new credit card can trigger a hard inquiry, which involves a lender looking at your credit reports. According to credit-scoring company FICO®, hard inquiries can cause a slight drop in your credit scores. Keep in mind: Hard inquiries usually stay on your credit reports for two years.
An identity thief would have to obtain personal details such as your name, birthdate and Social Security number in order to open a credit card in your name. However, it is a federal crime to do this, and it can result in jail time when the thief is caught for their behavior.
If credit card fraud occurs, one way the thief may steal your identity is by starting a new credit card using your name. To prevent this from happening, contact the three major credit reporting agencies (Equifax, Experian and TransUnion) and inform them that your credit card account has been compromised.
Additional On-Time Payment History
Payment history makes up 35% of your FICO Score and 40% of your VantageScore. Managing a new credit card well can improve your score. If the new credit card is your first account, however, it may take some time before it counts on your credit score.
Too much debt: If you have a lot of outstanding credit obligations — loans, mortgages and high credit card balances — issuers will view you as a higher-risk borrower. Too young: You'll be denied credit if you're under 18, and likely if you're under 21 and don't earn an independent income.
If your goal is to get or maintain a good credit score, two to three credit card accounts, in addition to other types of credit, are generally recommended. This combination may help you improve your credit mix. Lenders and creditors like to see a wide variety of credit types on your credit report.
It may cause your credit score to drop temporarily. But, don't panic. By making timely payments on your other accounts, and lowering your credit utilisation ratio, you can rebuild your credit score. However, it's highly recommended that you wait for at least six months before applying for your next credit card.
You can cancel a credit card before activation. The activation process has nothing to do with your account being open, so you can simply call the number on the back of your credit card. With that said, unless the annual fee is troublesome, you're better off keeping the card open.
A credit card can be canceled without harming your credit score. To avoid damage to your credit score, paying down credit card balances first (not just the one you're canceling) is key. Closing a charge card won't affect your credit history (history is a factor in your overall credit score).
If you keep receiving credit card offers in the mail, it's likely that you have a good or excellent credit score. Unsolicited credit card offers essentially say, “We see you have good credit and we think you would like this offer.” These companies can get your information in two ways.
Card issuers and other lenders can request contact information from the credit reporting companies for people who meet certain criteria. You can opt out of these communications.
Credit card preapprovals are usually a good sign since they show you have met basic criteria like having good credit or a history of employment. That said, you may not want to go after the first prequalified credit card offer you receive. That's because, by and large, preapproved doesn't always mean best.
Contact the major credit bureaus
Fraud alerts are free and require companies to verify your identity before opening any new accounts in your name or changing any existing accounts. Another option is to contact each of the credit bureaus to add a credit freeze.
You can file a report online, or by calling the FTC's Consumer Response Center at 1-877-FTC-HELP (1-877-382-4357). Essentially the FTC files these complaints which allow law enforcement to use this information to combat fraud. Your complaint will be more useful if you provide: Name, address, phone number, email.
Account opening fraud allows criminals to launder money and scam banks out of large sums of money without ever being detected.