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The Resource Center Credit Fraud & Credit Monitoring | article

School Loans and Identity Theft: Why You Need a Credit Monitoring Service

Identity theft
can happen to anyone at any time, even if you have never applied for a line of credit in your own name before. This is equally true for first time college students, as some will find that they have already been the victim of identity theft only after they apply for a student loan and get denied because of damaging, fraudulent activity. This is why enrolling in a credit monitoring service is a must.

These programs monitor certain financial activity that is taking place in your name and alerts you whenever there is an unauthorized purchase or activity that appears suspicious that could signify identity theft.

One crime that you’ll want to be sure a credit monitoring service is watching out for is student loan fraud. These criminals generally aim to got the quickest route possible in securing as much cash in hand as possible before they risk getting caught. What is perfect about student loans is the fact that they come with a deferment and forbearance agreement, that allows a thief to postpone payments for as long as possible, giving them time to pocket the loan money and separate themselves from the identity theft as much as possible.

When you enroll in college, don’t wait to get the acceptance letter to request your credit report from one or all three of the credit bureaus authorized and obligated to provide you with a free report on an annual basis. And as a high school graduation gift to yourself, enroll in a credit monitoring service to help you avoid pitfalls that could hinder your financing for college.