What if a teenager loses his wallet?

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November 9th, 2009 - Posted by Caitlin

The following post in our Reader Question series is an actual user submitted question.

Q: If someone who has just turned 18 and has no prior credit history loses his wallet, what can he do to prevent someone using his driver's license to open up new accounts in his name? Would it do him any good to contact the credit bureaus, or are they only an available resource for people with credit histories?

A: A credit report is not created until you open your first line of credit. And if you do not have a credit report, it is not possible to set a fraud alert. Since the young man in this particular case is now over 18, he should request his own credit reports from all three bureaus in order to confirm that no fraudulent accounts have been opened in his name. He may also find that he does, in fact, have a short but legitimate credit report already, perhaps due to a gym membership, DVD rental card, or student loan. If so, he can set fraud alerts or freeze his credit file to prevent new accounts from being opened in his name.

If he truly has no credit file whatsoever and wishes to set fraud alerts or freeze his credit, he would first need to apply for some form of credit, such as a credit card. In order to acquire his first credit card, he may need a cosigner.

However, whether or not this young man has an existing credit file, he could subscribe to a credit report monitoring or identity theft service, which would immediately alert him to any suspicious activity. You can check out our reviews, comparison charts, and frequently asked questions to learn more about credit report monitoring or identity theft protection services. You may also be interested in our Student Identity Theft Protection Guide.