You probably know that one of the most important things you can do before you apply for mortgage financing is to be aware of your financial history.
But is it worth it to pay to protect yourself from identity fraud?
That question is at the heart of a debate right now over the identity protection service LifeLock. LifeLock purports to provide identity protection with a "million dollar guarantee." Ads for Lifelock feature the co-founder giving out his Social Security Number, and professing his confidence in the system.
Of course, what the ads don't tell you is that you can get identity fraud protection for free. Most of the services that LifeLock offers (including "fraud alert" warnings on your credit reports) can be set up yourself, within a few minutes -- and at no charge.
And that million-dollar guarantee? Well, it only covers the cost of fixing your credit if something happens while you are protected by LifeLock. The good news? The things you can do to remedy mistakes on your credit report are free as well. And that guarantee does not cover losses you sustain due to identity fraud (such liability for fraudulent loans and charges).
Besides, reports MSN Money, LifeLock founder Todd Davis is a victim of identity fraud himself:In fact, Davis has been a victim of identity theft by multiple offenders, according to one of the lawsuits now pending against the company. Attorney David Paris said he had found at least 20 instances of people applying for a driver's license using Davis' Social Security number.
Niiiice.
Bottom line: Check your own credit report, and put the fraud alert on your credit reports yourself. It only takes a few minutes, and it will save you money.
image credit: Nordisk familjebok (1917)
Checking your credit report is a great start. Here is a free guide to Protecting Your Identity that can offer some great tips.
Posted by: Jen | June 16, 2008 2:23 PM | Permalink to Comment