How to read, analyze and dispute your Equifax credit report

Posted by Caitlin on June 30th, 2008

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Equifax is one of the three major credit reporting bureaus in the United States.

In this guide we are going to walk through a sample version of Equifax’s online credit report with FICO score. If you don’t already have your Equifax credit report you can get instant online access to an Equifax or three bureau credit report and FICO score at Equifax.com. This service will provide you with a free Equifax credit report, a free FICO credit score and a free trial of a credit monitoring service that will help you keep an eye on any changes to your credit file. Since Equifax offers a 30 day free trial, you can sign up without any risk.

You are also entitled to one free credit report per year from annualcreditreport.com. Keep in mind that credit reports ordered through annualcreditreport.com do not include a FICO score, which is a good indicator of your overall credit health. If you choose to order your Equifax credit report through annualcreditreport.com or purchase a credit report without a FICO score, however, this guide will still be applicable, after the first section.

We will explain how to read each section of the report and how to spot potential errors that may be lowering your credit score and costing you money or impacting your financial life in other ways. Like most of the other credit report and monitoring services, Equifax offers consumers the option to purchase what is known as a “3-in-1″ or “three bureau” credit report which includes information from Equifax, Experian and TransUnion. Keep in mind that if you purchase a three bureau credit report from Equifax, which we strongly suggest since it will give you insight into how lenders view you across all three bureaus, the information from the Experian and TransUnion sections of the report will have been provided by the respective bureaus.

So, even though you will be able to view the information side by side, any disputes on non-Equifax information will need to be taken up directly with the appropriate credit bureau. The first installment of our “How to read, analyze and dispute credit reports” series explains how to review information from Experian, and a future installment will explain how to review information from TransUnion.

With that said, let’s dive right into your Equifax credit report.

Section #1: Credit Score

This section tells you your FICO credit score, explains what factors are affecting your score, what your score means, and how you can improve it.

The score summary section gives you your FICO score, which is a number between 300 and 850, and tells you whether your score falls in comparison to other consumers. It also breaks down the major factors affecting your score.

The section titled “Understanding Your Score” breaks down the reasoning behind your FICO score in more depth, and lists the specific factors that are both hurting and helping your score. This section also offers suggestions on how to mitigate any of the detrimental factors.

The next section explains what your FICO score means to lenders, and how it will impact their perception of your loan risk.

The FICO Simulator is a useful tool that predicts how your score might change over time. The first three tabs let you play with different scenarios to see what actions could raise or lower your score, and the fourth tab advises you on the best strategy for improving your score.

Section #2: Credit Summary

The purpose of this section is to provide a quick snapshot of your current and prior credit history by showing the total number of open and closed credit accounts in your name, your outstanding balances for different types of credit accounts in your name and your history of delinquent accounts.

This section lists a variety of information all of your credit accounts. The types of accounts in this section include:

• Mortgage - this section includes accounts related to real estate that you have purchased.
• Installment - this section includes fixed amount credit accounts such as auto loans. Installment accounts are typically for a fixed amount and are paid off over time.
• Revolving - this section includes revolving credit accounts such as credit cards. They are called revolving accounts because although they may have an upper limit on what can be borrowed at any given time you can use as much credit as you have available.
• Other - this section includes additional accounts that don’t fit into any of the other category types.

For each type of credit account listed above this section will list the following information:

• Total Number - the total number of credit accounts by type that have been reported to Equifax throughout your recorded credit history. This number will include both open and closed accounts. For example, if the count for your installment accounts is ‘2? then it would mean that Equifax has data about two different installment accounts in your name, even if some of those accounts have been closed by you or the creditor.
• Balance - the outstanding balance of all accounts of a particular type. This is what you owe to all the creditors of this particular credit account type according to information reported to Equifax and will be listed as an actual dollar amount.
• Available - the unutilized credit remaining on each account.
• Credit Limit - the maximum amount of allowed credit for each account.
• Debt to Credit Ratio - the percentage of your available credit that you are currently using.
• Monthly Payment Amount - the amount that you pay each month.
• Accounts with a Balance - the number of accounts of each type that carry an outstanding balance.

Here are some important things to look for in this section:

• Make sure that the number of accounts of a specific type, total accounts or total balances don’t seem higher than they should be.

If you see any inaccuracies in any area of the credit summary section you should move immediately to the account history of your credit report which will have more detailed information on an account by account basis. This will help you further investigate whether or not your credit report contains errors.

Section #3: Accounts

The purpose of this section is to provide detailed information on all credit accounts that you have ever opened that have been reported to Equifax.

For each account listed in this section, there will be specific information about the type of account, the current status, dates and payment amounts, and any negative information associated with

This section also includes an 81 month payment history of each account listed that gives potential creditors insight into how you have kept up on your existing accounts. This information is represented graphically to show your account performance in each month.

The information that is reported in account payment history includes:

• * - This account is paid on time and in full.
• 30/60/90/120/150/180 - The number of days the account has been past due.
• CA - This account is outstanding and has been sent to a third party for collection.
• CO - This account is outstanding and the creditor is no longer attempting to collect payment.
• F - Property related to this account has been foreclosed.
• VS - Property related to this account has been voluntarily surrendered.
• R - Property related to this account has been repossessed.
• NR - No data is available for a particular month. This is usually because either the account was not open or the creditor has not reported information to Equifax in a given month.

Here are some important things to look for in this section:

• Make sure that the information in this section is accurate. Pay especially close attention to any information related to delinquency, collections or past due accounts either in the account details area or in the 81 month payment history, as all of these things negatively impact your credit report and credit score.
• Make sure all of your accounts in good standing are represented. Not all creditors report account data to all credit bureaus, so Equifax may not have access to information on all of your positive account information (of course, this means that they may not have access to negative account information as well). If you don’t see an account that you believe to be in good standing listed in your Equifax credit report then contact your creditor and ask them if they report your account information to Equifax.
• Make sure you recognize all of the creditors and accounts listed in this section. Any unrecognized accounts could mean that your financial information may have been compromised and that identity thieves may have opened accounts in your name.

Keep in mind that different creditors report information to Equifax in different cycles so some information, such as the balance listed on your account, may not be totally up-to-date. This is fine as long as you have verified that it is an account that you recognize and that the information listed was accurate at some point in the recent past. If you don’t see this type of information update over time it is a good idea to contact your creditor to see if there are any problems with your account or ask how frequently they report your account information to Equifax.

Section #4: Inquiries

The purpose of this section is to show what companies have requested your credit report from Equifax. This includes inquiries that may impact your credit rating, and inquiries that do not. Equifax treats these two types of inquiries very differently.

Inquiries that may impact your credit rating (hard inquiries):

• Are generated as a result of action taken by you such as completing a credit, insurance, mortgage or other loan application or due to the transfer of an account by the creditor to collections.
• Remain on your Equifax credit report for up to two years.
• Are viewable by creditors when they review your credit report.

Inquiries that do not impact your credit rating (soft inquiries):

• Are generated when a company pulls your credit report to evaluate you for an offer of credit that you have not requested. Pre-approved offers from credit card companies that you receive in the mail are typically generated as a result of a soft inquiry by the creditor who sent the offer to you, for example.
• Have no impact on your credit report or credit score.
• Are not viewable by anyone other than you.

For each inquiry, whether it is a hard or soft inquiry, the following information will be listed:

• The name of the company that requested the inquiry.
• The type of business that company operates. For example, if you filled out a credit card application with your bank the resulting inquiry would be listed as ‘Banks & S&Ls’.
• The date the inquiry was requested.

Here are some important things to look for in this section:

• Make sure that all of the hard inquiries are accurate. If you don’t recognize the name of a company listed in this section then research it to find out whether or not you had actually initiated a credit inquiry with them. Keep in mind that some organizations have consumer brand names that are different than their actual corporate names, so you may not recognize the name listed in the report even if it is a valid inquiry. Searching for the company name in an Internet search engine such as Google or Yahoo is a good way to find out who they are.
• Make sure to take note of the total number of hard inquiries and their dates. Since hard inquires stay on your credit report for up to two years and have some negative impact on your credit report and credit score it is good to be aware of the number and age of hard inquiries that have been reported to Equifax.

If you find hard inquiries that don’t appear to be accurate it is best to contact the company that made the inquiry first. The creditor will be able to research the purpose of the inquiry and assist you with getting it removed from your credit report if it was mistakenly reported to Equifax.

While soft inquiries won’t impact your credit report or credit score in any way, as they are only viewable by you, there are ways to eliminate or at least limit the number of soft inquiries you receive. The fair Credit Reporting Act (FCRA) allows consumers to opt-out of receiving pre-screened offers of credit by calling 888-567-8688 or by visiting optoutprescreen.com.

Section #5: Negative Information

The purpose of this section is to document any information that could hurt your credit score. This includes negative accounts, accounts that have been turned over to a collection agency, and public record information. Public record information includes federal district bankruptcy records, state and county court records, tax liens and monetary judgments that have been levied against you. In some states overdue child support is also reported in this section. Public record items typically will stay on your credit report for 7 to 10 years.

The negative accounts section will list any ‘past due’ accounts that have been reported to Equifax in your name. These include both open and closed accounts. Creditors will typically report a delinquent account to Equifax if it has gone unpaid for at least 90 days, although it can technically be reported sooner.

The collections section will list any accounts that have been turned over to a collection agency by one of your creditors because they believe the account has not been paid as agreed.

The public records section will list information about any bankruptcies, judgments and tax liens.

Here are some important things to look for in this section:

• Make sure that the number and dollar amount of delinquent accounts for each type of credit looks accurate. This is an important area to focus on because errors by creditors or accounts fraudulently opened in your name by identity thieves are likely to become delinquent accounts before they are sent to collections. By catching delinquent accounts early you can prevent them from being sent to collections, which can have a significant negative impact and, often, a higher cost to you.
• Make sure that the number of collections accounts looks accurate. Once an account has been sent to collections it will begin to have a significant negative impact on your credit score. Whether you simply have not been able to pay your bills, the creditor has made a reporting error or you have fallen victim to identity thieves, the collections section should be carefully scanned for accuracy.
• Make sure that any public record items are accurate.

Section #5: Personal Information

The purpose of this section of your credit report is to document your personal information such as name(s), age, address and work history.

The specific information listed in this section includes:

• Full legal name
• Any alternative names you may currently or have previously used to obtain credit
• Social Security number
• Date of birth
• Current and previous addresses
• Current and previous employers
• Any alerts that have been placed on your credit file

Here are some important things to look for in this section:

• Make sure that your name is correctly displayed and that any alternative names or alias are accurate. If there are alternative names listed that you have never used then it could be a sign that Equifax has confused your credit file with that of another consumer with the same or a similar name.
• Make sure your year of birth is accurate. Again, an error in this section of your credit report could mean that you are being confused with another consumer.
• Make sure that there are no addresses where you have never lived or employers that you have never worked for listed in the respective sections. Keep in mind that it may take some time for these sections to update when you move to a new residence or take a new job. For this reason, it is fine if the information is outdated as long as it is still accurate. For example, it is not a problem if you have recently changed jobs and your credit report still lists a former employer as your current employer. However, if your credit report were to show that you currently or previously worked for an employer by whom you were never employed, then you may have a problem.

Section #6: Dispute File Information

If you find information that you believe is inaccurate on your credit report it is important to act quickly as these errors could not only be costing you money, but could also be early warning signs of possible identity theft. Luckily, Equifax makes it fairly simple to dispute any credit report item that you believe to be inaccurate.

From this section of your credit report, you can simply click the link that says, “Click here to begin an online investigation of information found in your file.” This will take you to an online dispute resolution form. Be ready with the confirmation number located at the top of your credit file. When submitting your dispute, provide an explanation as to why you believe that the particular item is inaccurate. You should be as descriptive as possible. Just saying “This is wrong” or something similar will not be sufficient. You should provide specific reasons as to why you believe the information on your Experian credit report is erroneous as well as any supporting evidence that you may have. Equifax will review your request and notify you within 30-45 days of their decision on the dispute. If the dispute is resolved in your favor, Equifax will remove or correct information that is inaccurate or cannot be verified during their investigation.

If you would like to receive the results of your dispute through mail as opposed to email, you should submit your dispute by mail or by phone.

In addition to disputing inaccurate information with Equifax, we strongly suggest that you contact the company that reported the account information to them in the first place. Under the Fair Credit Reporting Act (FCRA) both the credit bureau and the company that reported the information are responsible for the accuracy of account information on your credit report. If you believe that one of your creditors has reported inaccurate information then you should contact them directly. Each company has a different dispute resolution process but it is a good idea to contact their customer service department as a first step, as they will likely be able to provide you with the appropriate steps to take.

Conclusion

Your credit report is like your resume for potential lenders. It gives insight into the positive and negative elements of your credit history based off of information reported by your previous creditors. It is important to not only limit the number of negative items on your report by practicing healthy credit usage habits, but to make sure you have insight into any potential erroneous or inaccurate information as those errors may be costing your thousands of dollars or more.

We invite you to check out our online credit report monitoring service comparison guide where you can learn more about credit reports and monitoring from a variety of service providers.

We hope this guide has been a helpful tool in enabling you to better understand the information on your Equifax credit report and, just as importantly, get a better idea as to how potential lenders may view you. Stay tuned for our next installment where we will cover the specifics of reviewing your TransUnion credit report.

In the meantime, let us know if you have any feedback on this guide or if there are any additional questions you may have about your Equifax credit report by leaving us a note in the comments.

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MySpace Identity Theft Protection Guide

Posted by Caitlin on June 18th, 2008

Our Facebook Identity Theft Protection Guide provides six tips to prevent Facebook users from being victimized by identity theft. These six tips concentrate on two areas in which users can be proactive in protecting their identity and personal information: limiting the amount of personal information available and restricting your Facebook profile to people you know and trust. Many of these tips are also applicable when using MySpace, but there are some significant differences between various social networking sites. While Facebook is primarily geared toward one on one interaction with people you know in real life, MySpace is more frequently used to establish a larger and more public online presence and facilitate contact with large groups of people. While we still recommend that users only accept friend requests from people they know, we realize that this is not necessarily realistic. If you do choose to make your MySpace profile visible to strangers, we strongly encourage you to be extremely careful when publishing any information about yourself. Presumably, you would not walk around in public wearing a t-shirt printed with your birthday, phone number and address. So use the same discretion on MySpace.

Tip #1: Decide how public you want your MySpace profile to be, and select your privacy settings accordingly.

MySpace does offer some privacy settings, although they are not nearly as comprehensive as the privacy settings on Facebook. You can access these settings by clicking on the “My Account” link near the upper right hand corner of any page on the MySpace website. From the “My Account” page, click the “Privacy” link. This will take you to the “General Privacy” page, where there are six options for restricting your visibility.

Online Now: Whether you choose to show people when you are online is up to you, but bear in mind that the more “time and place” data that you expose, the easier it will be for people to determine what your daily routine is like. That knowledge could be used to victimize you. (See Tip #3.)

Birthday: This is an important piece of personal information that can potentially be used by identity thieves. It is safest not to make it visible, particularly if you accept friend requests from strangers.

Profile Viewable By: Who you allow to view your profile is a very important decision, as it should determine how much information you decide to publish. If you choose to make your profile visible to everyone, or everyone 18 and over, you should treat it like a personal website and keep personal information to an absolute minimum. If you choose to make your profile only viewable by your friends, and only accept friend requests from people you know, then you can basically follow the six Facebook security tips.

Photos: It is almost never a good idea to encourage the circulation of personal pictures on the Internet. We suggest that you uncheck this option.

Block Users By Age: This is at your discretion, although you should seriously consider preventing users under 18 from contacting you if you are a teacher or work in some other profession where you are a figure of authority for minors. Also, bear in mind that many users’ MySpace profiles do not reflect their actual age.

Block Users: While this may be a useful feature for you, it will not really help protect you from identity thieves, since you can’t possibly know who they are ahead of time.

Tip #2: Limit the amount of personal information available on your MySpace profile.

If you do choose to make your MySpace profile visible only to your friends, and only accept friend requests from people you know, then the six Facebook security tips apply here as well. Many MySpace users, however, either make their profile visible to everyone, or accept friend requests from strangers, or both. If your profile is visible to strangers, you should be especially careful when publishing any information about yourself.

Exposing your full name, date of birth, phone number, email address, or home address to the general public is extremely foolish. Revealing personal information about your spouse or significant other can put you both at risk of having your identities stolen.

Identity thieves can use your phone number and home address to submit a change of address form with the United States Postal Service and have your mail forwarded, allowing the thief to gain access to financial or other sensitive information that would allow them to open a credit card or other accounts in your name. They might also use contextual information in your profile to deduce what your user names and passwords could be for various accounts, and hack into these online accounts with this information.

Our recommendation is to limit the amount of information available on your MySpace profile. Specifically:

• Do not list your full date of birth, phone number, or home address on your MySpace profile.
• Limit the amount of contextual password clues on your profile pages. Identity thieves know that many people use personal information, such as birthdays, a spouse or significant other’s birthday or name, anniversary dates, mother’s maiden name or pet’s name as password on their personal account. It is also a good idea to refrain from using personal information in your online passwords, as this makes your personal accounts much more vulnerable to being hacked.

Tip #3: Limit the amount of “time and place” data that you expose through MySpace.

MySpace users often publish information about their schedule and whereabouts on their profile, or in MySpace’s forums. Information about the exact location of your home, school, or office, as well as information about your immediate or upcoming plans can help criminals victimize you in a number of ways. Personal photographs can be even more revealing, since any number of seemingly insignificant details could be used to uncover information about your whereabouts or daily routine.

By revealing when you will be away from your home, even indirectly or unintentionally, you put yourself at risk. Criminals can use this information to determine when your home may be most susceptible to a burglary, which could open you up to any number of forms of identity theft or worse.

Tip #4: Remember that even people you know can be identity thieves.

Even if you do make your MySpace profile visible to only your friends, and only accept friendship requests from people you know, you should still be very cautious when revealing personal information online. Several recent studies show that a significant number of identity theft victims know the person that victimized them.

According to Javelin Research, 17% of identity theft crimes are perpetrated by people that the victim knows, such as friends or family members. The credit bureau Experian found that 55% of identity thefts perpetrated against children were committed by someone the victim knew.

Even if you believe that all your MySpace friends are people you know and trust, we strongly recommend that you still follow all of these security tips to avoid falling victim to MySpace identity theft.

Tip #5: Read and follow the safety tips provided by MySpace.

MySpace recently added an extensive section to the website dealing with safety. You can access this section by clicking on the “Safety Tips” link at the bottom of any page on the MySpace website. These safety recommendations are mainly directed at teenagers and their parents, but there is other information that should be helpful and valuable to any user.

Tip #6: Consider an identity theft protection service.

Identity theft, whether online or in the real world, is a real and growing threat. We recommend that all consumers consider using a proactive identity theft protection service to protect their identities. Two such services that we have reviewed and recommend are Identity Guard and LifeLock.

Each identity theft protection service is different, but most will:

• Set fraud alerts with the 3 major credit bureaus so that new accounts cannot be opened in your name without your knowledge.
• Provide you with identity theft insurance that will reimburse you on costs and expenses you incur as a result of being victimized.
• Provide you with copies of your credit report.

You can learn more about the various benefits of identity theft protection services and learn more about the specific services we have reviewed by visiting our identity theft protection service guide and comparison.

While social networks like MySpace can be fun and productive services, it is important for users to be aware of the risks that they pose. We believe that taking proactive steps to protect your identity on MySpace will only improve the amount of enjoyment you can get out of the service.

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How to set up automated online hard drive backups with Mozy

Posted by Joe on June 6th, 2008

We highly recommend the Mozy online backup service for several reasons. It is economically priced at just $4.95 per month for unlimited file storage, offers PC and Mac compatibility and allows you to access your securely stored files from any computer in the world. Plus, it is extremely easy to configure the Mozy service to process automated hard drive backups on your home or office computer.

Since not everyone may be as familiar with the process of setting up online backups with Mozy, we have put together a simple thirteen step walkthrough of the process. You can use this guide as reference while your are configuring your Mozy account or simply review it beforehand to get comfortable with the process of setting up your Mozy account.

Make sure you click here to sign up for a Mozy account before you get started.

Step 1: Registration

Registering for Mozy is as simple as providing your name, email address, a password of six or more characters and the type of account you want to create. It is a good idea to write down your password since you will need it later on to access your Mozy account. Your Mozy username will be the email address you enter on this screen. Consumers should choose MozyHome Unlimited while businesses should select MozyPro, which is for office use. For the purposes of this guide we will select the consumer MozyHome Unlimited option.

Step 2: Computers and Billing

At this point must choose the number of computers you would like to be able to backup and the frequency you would like to be billed. Each computer you plan on backing up with the Mozy service will cost you $4.95 per month but you can prepay to receive a slight discount. Mozy offers three separate billing options. You can either pre-pay for one or two years of service, which include one and three months of free online backup service respectively, or select monthly billing which will charge your credit card $4.95 per month. We recommend selecting one of the prepaid billing plans because there is a slight cost savings and it eliminates the need to worry about the monthly charges. For the purpose of this guide we will be selecting a monthly billing option on one computer. If you have a promotional code you can also enter it on this screen for additional savings. It is not required to move forward, so if you don’t have a Mozy promotional code, don’t worry.

Step 3: Purchasing Mozy

It is time to pay for your newly created MozyHome Unlimited online backup account. Before your process your credit card payment you should confirm that the number of computers, billing options and charges match up with what you selected in the previous step. Mozy accepts all major credit and debit cards, so it is a quick and easy process to pay for your new online backup service.

Step 4: Mac or PC Mozy Download

In this step you will select the type of computer you are going to be backing up with the Mozy online backup service. Mozy works with both Mac OSX and Windows based PCs. Select the appropriate type of software based off of your needs and the download will begin. For the purpose of this guide we will be downloading the Mozy software to a Windows PC. This step also allows you to enter the referral code of anyone who may have referred you to the Mozy service. If you don’t have a referral code (and you won’t if you came from NextAdvisor.com) don’t worry. You can skip that portion of this step.

Step 5: Getting Started with Mozy on Your PC

Now that you have downloaded the Mozy software for your computer you can begin configuring the automated backups. Once you begin the process of configuring your Mozy online backups by clicking ‘Next’ on the first screen, you will be asked to read and accept the Mozy license agreement. Like most license agreements this spells out the basic terms and conditions you must agree to follow as a Mozy subscriber. It is pretty straightforward in nature but we encourage you to at least scan the agreement to make sure you understand the terms.

Step 6: Select Mozy Download Destination Directory

Now it is time to download the Mozy software on your PC. The first step is to decide where you would like to have the Mozy software stored on your computer. By default the Mozy online backup software will be saved in the program files of your computer’s hard drive. Advanced users may want to save the Mozy files somewhere else, but most users can simply click ‘Next’ to continue the configuration process. Clicking on the ‘Next’ button will initiate the download of the Mozy software on your computer.

Step 7: Complete Mozy Software installation and Begin Configuring Online Backups

Once the Mozy software installation you will be presented with a screen that allows you to begin configuring your automated hard drive backups using the Mozy online backup service. Check the box marked “Launch MozyHome Configuration Wizard” and click ‘Finish’ to complete installation and move on to the configuration process.

Step 8: Login to Configure Automated Online Backups

Enter your username and password to login to your MozyHome Unlimited account. Your username is your email address and your password is the one you created in step one. Click the ‘Next’ button to move on to the next step.

Step 9: Establish Your Encryption Settings

User managed encryption is an advanced feature of Mozy. Advanced users may want to utilize a personal encryption key but most users should simply opt to utilize Mozy’s default 448-bit key. Don’t know the difference between an encryption key and a house key? Don’t worry. We recommend using Mozy’s default encryption settings so simply click the ‘Next’ button to move on to the next step.

Step 10: Select Which Files to Backup

Now it is time to choose which files you would like to securely backup online using your new MozyHome Unlimited account. Simply select or deselect the files that you do or do not want to include with your automated backups. Since Mozy offers unlimited storage for just $4.95 per month we suggest that you backup all of your files for the optimal level of protection. If you choose to backup only some files we recommend items such as important financial records and documents, digital pictures and music files, all of which may not be easily replaced. Again, there is no limit on how much data you can store with your new Mozy account so we think most consumers should simply choose to backup all their files.

Step 11: Test Your Upload Speed

Your Internet connections upload speed determines how quickly information can be processed from your computer to Mozy’s servers where it will be securely stored. The faster your upload speed, the faster your files can be backed-up. Mozy’s bandwidth test will determine your upload speed and the amount of data that can be transferred during a 24 hour period. This is really only important for your very first backup which will require uploading all the files you selected in the previous step. All future backups will only need to transfer the files that have been added or changed since the last backup which typically only takes minutes to complete.

Step 12: Selecting Backup Speed

Now it is time to determine how quickly Mozy will process your automated file backups. Mozy allows you to select how fast you would like these backup to run by sliding an arrow to along a spectrum. There is a direct relationship between how fast the backups run and their impact on the speed of your computer. The faster the online backup process runs the slower your computer will run. Mozy recommends selecting about 3/4 speed since they say that at this level your backups will run quickly but the impact on your computer will be minimal. Ultimately, it depends on your habits. If you will be processing backups in the background while you work at your computer then you may want to select slower backups. However, if you have periods of downtime during the day or plan on processing your backups while you are not using your computer at all, then choose quicker backups. This setting can be changed at any time, so if you aren’t sure of your needs simply keep the default 3/4 speed backup setting in place. This step will also provide you an estimate of how long your initial backup may take.

Step 13: Start Your First Backup

Congratulations! You have successfully completed the Mozy online backup automated backup setup process. We recommend that you process your initial backup with with new MozyHome unlimited account immediately to ensure full protection of your files.

As you can see, setting up automated backups with Mozy is a simple and painless process. Plus, you can now rest easy that your important files are safe and secure. To learn more about Mozy or other online backup services read our online backup service comparison and reviews.

Editor’s Note: Contributing Editor Josh Steffen provided research for this guide.

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NextAdvisor.com Fraud Alert and Credit Freeze Guide

Posted by Joe on May 6th, 2008

Fraud alerts and credit freezes are effective tools in preventing some forms of identity theft. However, many consumers don’t understand the differences between the two or how to go about setting up a fraud alert or credit freeze on their credit file.

We have compiled detailed information about both fraud alerts and credit freezes below as part of our ongoing attempt to educate consumers on the best ways to help protect themselves from the ongoing risk of identity theft.

Fraud Alerts

Fraud alerts are annotations in a credit report that let potential lenders know they should take additional action to confirm your identity before issuing credit in your name. There are two types of fraud alerts:

1) Initial Fraud Alert. An initial fraud alert is meant to be a temporary marker on your credit file and lasts for 90 days from the time you set the alert. When a lender runs your credit report and sees that there is a fraud alert in place they are legally obligated to use “reasonable policies and procedures” to verify that the person applying for credit in your name is actually you.

Initial fraud alerts are a good option for consumers that believe they are at risk for what is called new account fraud. This is where a criminal uses your personal information to sign up for new financial accounts such as credit cards, bank accounts, cell phone providers or any other service that may pull a credit report and extend you some for of credit.

Keep in mind, however, initial fraud alerts provide little or no protection for other forms of identity theft. For example, an initial fraud alert will not prevent an identity thief from accessing your existing financial accounts and making unauthorized charges or liquidating your financial accounts. We point this out because some experts point to initial fraud alerts as a magic bullet for preventing identity theft which may give some consumers a false sense of security. If you believe that your existing accounts may be at risk for identity theft then it is a good idea to contact the institutions with which you maintain accounts directly and let them know of the risk. Some of the identity theft protection services we have reviewed will also assist in notifying your bank, credit card company or other institutions on your behalf.

Setting an initial fraud alert requires contacting one of the three credit bureaus and requesting the fraud alert be set. Technically you only need to set the fraud alert with only one of the three major credit bureaus, including Equifax, Experian or TransUnion. However, if you believe you may be at risk for identity theft or simply want an extra level of identity theft protection from new account fraud, we suggest setting fraud alerts with all three bureaus by using the contact information below.

Equifax
1-800-525-6285
www.equifax.com
P.O. Box 740241
Atlanta, GA 30374-0241

Experian
1-888-EXPERIAN (397-3742)
www.experian.com
P.O. Box 9532
Allen, TX 75013

TransUnion
1-800-680-7289
www.transunion.com
Fraud Victim Assistance Division
P.O. Box 6790
Fullerton, CA 92834-6790

Initial fraud alerts are free to set and can be renewed every 90 days. LifeLock, one of the identity theft protection services we have reviewed in our identity theft protection service comparison, protects and renews initial fraud alerts for their subscribers. The do-it-yourselfer may be fine with setting and keeping up with initial fraud alert renewals, but if you believe that the process may be cumbersome or you may not have the time to do so then LifeLock may be a good option for you.

2) Extended Fraud Alert. While an initial fraud alert stays active for a relatively short 90 days, an extended fraud alert stays on your credit report for seven years. Additionally, if you have an extended fraud alert on your credit file a potential lender is required to actually contact you or meet with you face to face to verify your identity before providing credit in your name.

In order to qualify for an extended fraud alert you typically need to demonstrate that there is a high likelihood that you have or will be victimized by identity theft. This typically means showing inconsistencies in your credit report or other evidence that you are at risk of being victimized. As such, setting an extended fraud alert is slightly more complex than setting an initial fraud alert.

The first step in setting an extended fraud alert is filing an Identity Theft Complaint with both the Federal Trade Commission (FTC) and your local law enforcement agency. The FTC has an online Identity Theft Complaint Form which can be submitted securely over the Internet and then printed out so that it can be provided to your local law enforcement agency.

Take the Identity Theft Complaint to your local police or other law enforcement agency to file a report. In addition to your completed complaint you will also need to provide your local authorities with a government issued photo id (such as driver’s license or id card), something with your name and mailing address on it that will establish your residency (such as a utility bill, pay stub or rental agreement), a copy of your credit report(s) that shows the inaccuracies you believe may have been caused by identity thieves and any other supporting documentation including information on the identity thief if available.

Your local law enforcement agency will review your information and, if warranted, provide you with a copy of the official police report. make sure this report includes or is attached to your Identity Theft Complaint.

Once you have received the official police report of your identity theft incident your are ready to move on to the next step of setting an extended fraud alert which is notifying the three major credit bureaus. Send a copy of your police report, Identity Theft Complaint, any supporting documentation and a brief cover letter requesting that an extended fraud alert be set on your credit report. You can mail the information to each of the credit bureaus using the addresses below. You can also call them or visit their website if you have any questions on how to proceed.

Equifax
1-800-525-6285
www.equifax.com
P.O. Box 740241
Atlanta, GA 30374-0241

Experian
1-888-EXPERIAN (397-3742)
www.experian.com
P.O. Box 9532
Allen, TX 75013

TransUnion
1-800-680-7289
www.transunion.com
Fraud Victim Assistance Division
P.O. Box 6790
Fullerton, CA 92834-6790

Once you have sent your extended fraud alert request and documentation to the three major credit bureaus they will review the information and notify you to either let you know that an extend fraud alert has been set or to request any additional information. The FTC also strongly suggests that you send your identity theft related documentation to the fraud departments of any of the companies where you hold accounts, or where accounts have been opened in your name, that you believe have been impacted or may be impacted as a result of your suspected identity theft crime.

The process for contacting each of these companies will vary. It is best to contact their customer support department to get more information on how to contact their fraud prevention team.

Once an extended fraud alert is set it will be active on your credit report for seven years. It is possible to remove an extended fraud alert before it expires by making a written request to each of the three credit bureaus.

Given the time and effort required to set an extended fraud alert, we only suggest that consumers who have seen specific inconsistencies in their credit report or other proof that they are at imminent risk for identity theft opt to set them up. Consumers that feel their is a potential risk because they have been part of a data breach, for example, or are just looking for an additional layer of preventative protection would be better off using an initial fraud alert. Initial fraud alerts can be set by the individual or by using an identity theft protection service such as LifeLock.

Credit Freezes

Credit freezes lock down your credit report so that only you or any companies where you have a pre-existing relationship may have access it. No new lenders will be able to access your credit file at while a credit freeze is in place. This means that even if you attempt to legitimately apply for credit in your name with a new lender they will not be able to access your credit information. It is possible, for an additional fee, to temporarily remove a credit freeze if you need to allow a new lender to access your credit report for any reason.

Credit freezes are extremely effective tools in preventing the new account fraud type of identity theft since they essentially take your credit report “off the market”. They are also a good tool for the elderly or other people that don’t anticipate any need for new credit in the foreseeable future since credit freezes eliminate the risk of new accounts being opened fraudulently. Like fraud alerts, however, credit freezes are only effective at preventing account fraud and do little or nothing to prevent identity theft perpetrated against existing accounts or accounts where a credit file is not used to issue credit (this is the case with some utility or cell phone accounts).

The process of setting a credit freeze varies greatly from state to state. For example, most states allow anyone to set a credit freeze while others require that a consumer be able to prove they are at risk for identity theft before they can be set. Consumer Reports offers and excellent guide to the credit freeze laws by state which includes information on how to set freezes. You can view that guide here.

Generally, setting a credit freeze requires contacting the three major credit bureaus, Experian, Equifax and TransUnion, and paying a fee to each of about $10. The credit freeze will remain in effect until it is either temporarily lifted or removed. If you set a credit freeze and want to temporarily remove it you will have to make a request to each of the three credit bureaus and pay an additional fee to each to have the freeze lifted. You must then contact each of the credit bureaus in order to have it reset. A credit freeze may be permanently removed by making a request with each of the three credit bureaus.

TrustedID, one of the identity theft protection services we have reviewed, is the only service we have found which allows consumers to set credit freezes with all three credit bureaus over the Internet. As a subscriber to the TrustedID service, you may set and manage your credit freezes through your TrustedID account. We see this as a major benefit and convenience for any consumer that feels a credit freeze is right for them.

Credit freezes are really only realistic for consumers that know they are actively being victimized by or in imminent danger of identity theft or for people that have no need for additional credit in the foreseeable future.

Conclusion

If you are at risk for identity theft or a current victim, the choice whether to set an initial fraud alert, extended fraud alert or credit freeze will greatly depend on your personal circumstance.

Initial fraud alerts are a fairly easy to set up and maintain way to get a good layer of protection for new account fraud. They are relatively easy to set up yourself or can be managed by third party identity theft protection services such as LifeLock. While initial fraud alerts will add a layer of additional complexity when you try to legitimately obtain new credit in your name they are unobtrusive enough to be kept in place over long periods of time. Although, admittedly, this is not their intended use.

The credit bureaus would likely prefer that only identity theft victims set initial fraud alerts as there is the potential risk that lenders could stop taking initial fraud alerts as seriously if too many consumers have them set on their credit reports. That being said, it is up to each person to determine whether they feel that they need this type of protection. Some people may believe, given the explosive growth of identity theft in this country, that any consumer could reasonably be at risk for identity theft at any time. LifeLock is an identity theft protection service that sets and manages initial fraud alerts on behalf of their subscribers.

Extended fraud alerts are a more thorough level of protection above initial fraud alerts. They are best suited for those that are either being victimized or have seen inconstancies in their credit report that lead them to believe they may be victimized by new account identity theft. Extended fraud alerts are also a better option than credit freezes for consumers that believe they will have an imminent need to legitimately secure credit from lenders in the future since they don’t completely lock off access to your credit report by enders.

Credit freezes are most effective for those consumers that believe they are currently being victimized or are at risk of new account fraud and don’t believe they will have any need to secure credit from lenders in the foreseeable future. The elderly, many of whom may not need additional credit in the future, are an good example of a population that could benefit from the use of credit freezes. TrustedID is an identity theft protection service that allows consumers to set up and manage credit freezes online.

It is important to reiterate that any of these solutions are only effective in preventing certain types of identity theft including new account fraud. We recommend that consumers educate themselves on the risks of identity theft and identity theft prevention techniques by reading the FTC identity theft prevention website. Additionally, those interested in learning more about identity theft prevention services should read our guide to identity theft protection services.

Finally, don’t forget that identity thieves are increasingly targeting children. Read our guide to Child Identity Theft Protection to learn more about safeguarding your kids from identity thieves.

• Data Breach Alert: Thousands of Dominican University students impacted in secure file breach
• Reader Question: How do I set a fraud alert on my credit report?
• Reader Question: Are credit bureau fraud alerts still available?
• Reader Question: What should I do if I think I have been a victim of identity theft?
• LifeLock receives 5 star rating from NextAdvisor.com

5 tips to live a more eco-friendly lifestyle this Earth day

Posted by Joe on April 22nd, 2008

In honor of Earth day we thought we would post a handful of useful tips related to the various services we review and compare here at NextAdvisor. The great news is that most of these techniques will not only reduce your impact on the environment but are also make your daily life easier.

1) Eliminate junk mail

We have posted previously on the hidden identity theft risk in junk mail, but in honor of earth day, we also wanted to point out that junk mail and other marketing communications you receive in the mail are very bad for the environment. Check out the original post for more tips on eliminating junk mail.

Additionally, we came across a new service today called Catalog Choice which allows you to select which catalogs you would like to receive. The service is free and allows you to opt out from receiving catalogs that you no longer wish to receive while still allowing those you want reach your mailbox.

2) Receive your credit report online

Whether you are ordering your free credit report from AnnualCreditReport.com or from one of the credit report monitoring services we have reviewed and compared make sure you opt for online delivery of your credit report. Not only will this lower the overall carbon footprint of your order because the reports don’t need to be printed or transported by postal mail, but you will also receive immediate access to your credit file information.

3) Go paperless when you have the option

Opt for paperless billing where you can. VoIP services such as voip.com and Vonage offer a paperless billing option and so do other companies such as cell phone providers and credit card companies. Accessing your billing information online is not only more eco-friendly but it is also more convenient.

4) Attend an online college or university

Think of going back to get a better job or just for personal enrichment? Consider an online college or University. We have reviewed and compared dozens of e-learning institutions and found that they are every bit as reputable as their traditional counterparts with the added convenience of being able to attend classes from your home computer. Since you don’t have to commute to and from a physical campus and most of the course information is distributed digital the impact on the environment is greatly reduced.

5) Store your data “in the cloud”

Use an online backup service such as Mozy to store the information on your computer’s hard drive. Online backup services are much more environmentally friendly than the hardware based alternatives because they cut down on the number of home storage devices that have to be produced and shipped all over the globe.

Do you have your own eco-friendly and convenient tips that you would like to share? We would love to hear from you! Just leave a note in the comments below.

• Reader Question: How do I stop junk mail?
• Carbonite agrees- online backup services are good for the environment
• How to eliminate the hidden identity theft risk in junk mail
• 5 reasons why online backup services are superior to offline home storage solutions
• Reader Question: How do I order my free credit report?

How to report a fake profile page on Facebook

Posted by Joe on March 26th, 2008

A recent commenter on our Facebook identity theft protection guide asked how to report someone who has created a fake Facebook profile in her name. After doing some quick research, we found that Facebook makes it fairly easy to report a fake profile.

If you already have a Facebook account simply visit the Facebook “Report a Fake Profile” page and enter the requested information.

If you don’t have a Facebook account you can ask a friend that does have an account to report the fake page on your behalf. Alternatively, you can send an email to “login@facebook.com”. Briefly explain that a fake profile has been created in your name and provide your contact information so that a member of the Facebook support team may contact you to investigate the matter further.

Someone setting up a fake Facebook profile in your name may be a sign of even more serious identity theft. Read our Facebook identity theft protect guide and guide to identity theft protection services to learn more.

• Facebook phishing scams increase risk of identity theft on the popular social network
• Facebook security flaw exposes personal information
• Your new Facebook friend just stole your identity
• Facebook moves to protect users in partnership with 49 states
• Facebook Identity Theft Protection Guide: 6 tips to protect your identity on Facebook

How to eliminate the hidden identity theft risk in junk mail

Posted by Joe on March 17th, 2008

One of the most significant and immediate benefits that many consumers see from an identity theft protection service is a significant decrease in the amount of junk mail that they will receive.

Besides being a nuisance some junk mail may actually help enable identity thief. For example, preapproved credit card offers sent through the mail could be used by criminals to perpetrated new account fraud against the intended recipient.

While we still believe that most consumers will greatly benefit from having their identity protected by a professional identity theft protection service, there are some relatively simple steps that consumers can take to eliminate the amount of unsolicited junk mail they receive from banks, insurance companies and other marketers.

In this guide we will detail the simple steps you can take to stop receiving unsolicited postal mail from financial institutions, catalogers and other marketers.

Step 1: Stop receiving preapproved credit card offers in the mail with OptOutPrescreen.com

Preapproved or prescreened offers of credit are unsolicited mailings by creditors, such as banks or insurance companies, sent to consumers to make them aware of a particular financial offer they are qualified for. These offers are typically for credit cards, auto insurance, mortgage refinance or other financial services.

The financial companies that make these offers of credit to consumers determine your creditworthiness by using information on your credit report without your authorization (this is called a “soft inquiry” or “soft pull”). While such inquiries are totally legal and do not impact your credit in any way, it is possible to opt out from any future preapproved or prescreened offers of credit.

The major credit bureaus, including Equifax, Experian and TransUnion, jointly created the website OptOutPrescreen.com to enable consumers to do just that. The site allows you to opt-out from receiving prescreened offers of credit for five years or permanently. You can also opt back in if at some time in the future your situation changes and you would like to begin receiving firm offers of credit again.

We recommend that most consumers opt-out for the five year period for two reasons. First, this process can be completed very simply online in minutes whereas the permanent opt-out requires the additional step of mailing in an opt-out form. Second, the five year opt-out gives you the flexibility of receiving offers of credit in the future if you decide after five years that you would like to receive them again without having to opt back in. With a permanent opt-out you would be required to opt back in through OptOutPrescreen.com if you decide you would like to receive credit offers in the future.

Here is how to process a five year opt-out of receiving any preapproved or prescreened offers of credit through OptOutPrescreen.com:

1. Visit OptOutPrescreen.com
2. Select either a 5 year opt-out from the list of options on the screen and click on the submit button.
3. Enter the required information on the following screen. OptOutPrescreen.com will attempt to opt you out even if you don’t provide your Social Security number or date of birth, however it is possible that your opt-out request could fail without this information. Since the OptOutPrescreen.com website uses significant security measures, you shouldn’t worry about submitting this information directly. Keep in mind that your Social Security number and date of birth are NOT REQUIRED to process an opt-out from firm offers of credit.
4. Click on the “confirm” button to submit your information to OptOutPrescreen.com and initiate your opt-out request.

Once your request is submitted your opt-out will be processed within 5 business days. You may still continue to receive prescreened offers over the next several weeks following your opt-out, but potential creditors will no longer be able to prescreen your credit for firm offers of credit.

It is also possible to process an opt-out request by calling 1-888-5-OPTOUT (1-888-567-8688).

Step 2: Stop receiving other marketing offers in the mail with DMA’s Mail Preference Service

While OptOutPrescreen.com will remove you from financially related preapproved offers of credit, it will not opt you out of other standard marketing communications sent through the postal mail. There is no totally fool proof way to eliminate all junk mail, although you can greatly decrease the amount you receive by managing your preferences with the Direct Marketing Association (DMA).

The DMA is a marketing industry organization that works with major marketers and catalog companies to establish best practices in how they market to consumers. They manage a Mail Preferences Service (MPS) that these companies use to determine which consumers they will send unsolicited postal mail to. The DMA MPS allows consumers to determine which types of communications they like to receive and those which they do not.

Here is how to set your DMA MPS postal mail preferences:

1. Visit the DMA MPS website at https://www.dmachoice.org/MPS/mailpref.php
2. Completely fill out the web based form and include all possible versions of your name that a sender may address mail to. You should minimally include the version of your first name that you commonly use in daily life as well as the “formal” version of your first name.
3. Submit your credit card information to verify your identity. The DMA will NOT cahrge you for web based MPS requests. However, if you choose to process your request over postal mail there is a $1.00 processing fee. Because of this additional cost and the extra step involved, we suggest that you process your request over the Internet.

Once you have submitted your credit card information and your identity has been verified, yoiu will be presented with three options. You will want to choose either Option A: “Remove your name from individual organization lists” or Option C: “remove your name from DMA member prospect list”.

Selecting Option C may result in you not receiving some pieces of unsolicited mail, such as catalogs or coupons that you may actually want. If this is a concern, you may want to invest the time and effort into selecting Option A. This will require you to identify every single marketer that you want to stop receiving junk mail from and, therefore, could be very time consuming. It also doesn’t prevent you from receiving new unsolicited mail in the future since new marketers may decide that you meet their targeting guidelines.

We suggest that most consumers select Option C if they are concerned with the amount of unsolicited postal mail they are receiving. Just as with the prescreen opt-out process you can opt back in at any time, so if you feel that you are missing out on marketing messages that you really do want to receive you can do so by adjusting your preferences at the DMA MPS website.

Once you have selected the appropriate opt-out option and submitted your request your preferences will be updated immediately and marketers that subscribe to the DMA MPS list will stop sending you new postal mail. The DMA estimates that it will take 30-90 days for you to stop receiving all mail from DMA member companies because some postal mail campaigns are queued up several weeks or months in advance.

Again, keep in mind that the DMA MPS opt-out will not eliminate all junk mail, but you should see a noticeable drop in mail sent to you as a result of proactively setting your preferences.

Conclusion

It is relatively simple to decrease the amount of unsolicited mail you are receiving which will limit the waste, annoyance and identity theft threat that junk mail represents. However, it is only one step in proactively protecting yourself from identity theft. While we strive to provide consumers with useful and actionable information, we strongly suggest that if identity theft is a concern of yours that you consider an identity theft protection service.

Visit our free online comparisons and reviews to learn more about identity theft protection services that will help you eliminate junk mail and protect your identity.

• Reader Question: How do I stop junk mail?
• 5 tips to live a more eco-friendly lifestyle this Earth day
• LifeLock receives 5 star rating from NextAdvisor.com
• Identity Guard provides extensive identity theft protection and detection
• Reader Question: How much do credit report monitoring services cost?

Help us help you protect yourself from identity theft

Posted by Joe on March 17th, 2008

Over the last several weeks we have received lots of great user feedback on our child identity theft protection and Facebook identity theft protection guides.  Based off of the positive feedback so far, our plan is to continue to create similar in-depth “how to” guides that help our readers protect themselves from identity thieves.

We would like to know what type of identity theft protection guides you would like to see from our team in the future.  Let us know by leaving us a note in the comments below.  Or, if you have a blog of your own, simply post your idea for a new identity theft protection guide on your blog with a link to this post.
We would also like to thank several great bloggers that have helped us spread identity theft protection awareness by posting links to our guides on their blogs including:

• Ryman at Eternalmoonlight.net who added our Facebook identity theft protection guide to his third version of Life Tips
  
• Marc Majers at LeadingHands.com who posted about our child identity theft protection guide
• Damian at WhatDayJob.com who referenced our Facebook identity theft guide while discussing risks in “the cyber world”
• Wayne Parker at the About.com Fatherhood blog who blogged about our child identity theft guide as a resource for dads

• How to report a fake profile page on Facebook
• Facebook phishing scams increase risk of identity theft on the popular social network
• Facebook security flaw exposes personal information
• NextAdvisor.com launches state specific identity theft protection guides
• Facebook moves to protect users in partnership with 49 states

Arizona identity theft protection guide: facts, trends and resources

Posted by Joe on March 14th, 2008

This is our third in a series of State Identity Theft Protection Guides.

Arizona has the dubious distinction of having more identity theft complaints per hundred thousand residents than any other state in the Union at 137.1. Additionally, six cities in Arizona made the top 50 list of cities with the most identity theft complaints in the Unites States. 3.4% of the nearly 256,000 identity theft complaints made to the Federal trade Commission (FTC) in 2007 came from Arizona residents.

We have compiled a list a list of identity theft facts, trends and resources for Arizona residents. If you know of any other resources, have additional information to add or simply want to give us some feedback, please leave a comment below.

Arizona Identity Theft Facts and Trends:

• There were 8,688 identity theft complaints in Arizona in 2007 which is up 48% from 2002.
• Arizona has the highest rate of identity theft complaints of any state with 137.1 identity theft complaints per hundred thousand residents.
• Six Arizona cities made it to the top 50 list of most identity theft complaints in the United States including Flagstaff (9), Lake Havasu (13), Yuma (15), Prescott (17), Si