Many people who have had a good record of debt and bill repayment are surprised to find that their credit score is lower than it should be. This can occur when you have been a victim of identity theft or there has been an error on your credit report.
Identity theft is more widespread that many people assume and it can affect you without you ever knowing, until of course you make an application for credit and get declined. Identity theft is where a criminal will assume your identity by stealing your information and getting access to your accounts.
They will use this information to drum up debt leaving your financial record in tatters. Sometimes they will use your information more discretely by removing small amounts of money from your accounts over a period of time. This can happen when they get access to your PIN numbers of credit cards or bank accounts.
They can also use your information to get new credit cards and use them up to the credit limit before attacking the next unsuspecting victim. When this happens you are left with the debt and the poor credit score.
You should always check all your accounts on a regular basis and look for any suspicious activity. If you notice anything that you are unsure of contact your bank immediately and get them to investigate.
In addition to checking your accounts you should also check your credit report regularly to see whether there is anything on it that you believe shouldn't be there.
There will be information on your credit report of new accounts if they have been created in your name and you will be able to act on these immediately if you see them on your records.
If there is any suspicious activity you should report it to the police immediately and get a statement from them that you can then send to your bank or the lending institution that shows on your report. Notify the credit bureaus and get them to attach the police report to your records and make sure you close the accounts that have been attacked.