dentity theft has been a to 850, indicates how worthy the
hot topic in the news applicant is to qualify for the
during the last few years. loan or credit. The new laws
Just a month or so ago, forty allow consumers to "freeze" their
million credit card numbers were credit reports, effectively
compromised due to a computer blocking any attempts by anyone
attack on a credit card to view his or her credit score.
processor. Consumers are rightly If the score can't be viewed,
concerned, as it can take years then credit can't be issued, thus
to unravel the problems created protecting the consumer from
when someone's identity is fraudulent activity.
stolen. New legislation in Texas
and California, also proposed The process is a simple one, and
elsewhere, is designed to protect can be initiated or canceled with
consumers by letting them put a a simple transaction on the
"freeze" on their credit reports. Internet. The problem, according
Those in the real estate industry to those in the real estate
are worried, however, that doing industry, is that this simple
so may make it difficult for some security precaution may make it
people to buy homes. difficult for a consumer who has
blocked their credit to buy a
The concept of freezing credit home. In many markets, homes put
reports is a simple one. Every up for sale sell in a few hours
time someone applies for credit, or days, and the process of
the lender contacts on of the unfreezing a credit report can
three main credit bureaus and take longer than that. If a home
requests a copy of his or her seller or lender cannot assess a
credit report, which contains the potential buyer's credit rating,
applicant's FICO score. The then the home sale may be lost to
score, a number ranging from 300 another buyer. True, it is a
simple process to unfreeze a unjustified. This is a case where
credit report, but some consumers all parties would benefit from
may forget that they froze their taking the time to see if the
reports in the first place, or laws are effective, and whether
they may forget or misplace their or not they actually hurt the
username or password for the real estate industry. In the
Website that allows them to meantime, anyone considering
unfreeze their report. purchasing a home should be made
aware of the ramifications of
On the surface, the new laws to freezing their credit, as doing
protect consumers seem to be a so may make it more difficult to
good idea, and those in the real purchase the house of his or her
estate industry who are concerned dreams.
may find that their worries are
About the Author:
"©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.End-Your-Debt.com, a Website devoted to debt consolidation information and http://www.HomeEquityHelp.net, a site devoted to information on home equity loans.
Source: www.isnare.com
