Many people who are careful about paying bills on time and having minimal debts are shocked each year to find they have low credit scores.

In many cases, this happens as a result of identity theft.

Identity theft is a crime in which people take your personal information and use it to pose as you in order to get access to your accounts or access to credit

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For example, someone with your PIN numbers can remove small amounts of money from your bank account each month or someone can use your name and personal information to get credit cards in your name and use those credit cards with no intention of paying back the money.

You are stuck with the large debts and the poor credit score.

To prevent identity theft, always check your account statements carefully each month. Report any suspicious activity or any charges you don’t recognize at once.

Also check your credit report regularly and immediately investigate any new credit accounts you do not recognize – this is the best way of detecting and quickly short circuting identity theft.

If you have been the victim of identity theft, report it to the police at once and get a police statement. Send copies of this to your bank and credit bureaus.

Close all your accounts and reopen new ones.