Experian study shows that consumers have a greater chance of having their identity theft stolen as their FICO scores improve
Here at Auto Credit Express we’ve been involved in helping car buyers with bad credit for the past 20 years. We even designed our web site with a resource section and list a toll free number so that applicants can understand the subprime auto loan process which includes today’s topic, the relationship between credit scores and the chance of credit fraud.
So if a good credit score means more opportunities for credit thieves while a poor one doesn’t, how do fraudsters know the difference? As it turns out, they probably don’t.
A recent report from Experian analyzed the rate of identity fraud across various credit score ranges – one which demonstrate a clear correlation between high credit scores (for individuals and businesses) and “the propensity for identity fraud victimization.”
Playing the percentages
Using a VantageScore of 769 as a reference point for the average U.S. score, the study finds that those consumers in the lowest 20% (501-556 VantageScore) of the credit scoring population have anywhere from a 1% to a 2% chance of identity fraud detection. Those consumers at the opposite end – the highest 20% – have between an 8% and 16% chance of identity fraud detection.
And while consumers with higher scores may be targeted more than consumers with lower scores the question is, how are identity thieves able to differentiate between the two? It turns out that these fraudsters may not be able to.
According to the report, “although there may be fraud attempted against those with lower credit scores, it is less likely that those attempts will come to fruition. In essence, those with lower credit scores may be relatively safe from identity fraud simply because their scores are likely to be a barrier to entry in opening a credit-based account such as a credit card or a loan.”
Preventing identity theft
Experian also has a number of suggestions to help consumers prevent identity fraud:
• Consumers at all credit levels – but particularly those at the top – need to actively protect themselves from becoming victims of identity fraud.
• Consumers need to be aware that they are the first line of defense in preventing their information from being pirated in the first place.
• Consumers should not give out personal information over the phone unless they have initiated the call.
• Consumers should take precautions such as shredding financial documents and other documents containing sensitive information.
• Consumers should regularly check their credit reports at the three reporting companies. This could include enrolling in a credit monitoring program that will detect the crime quickly so that immediate action can be taken to mitigate the damage.
As we see it
The bottom line is that even consumers with low credit scores are at risk of having their identity stolen and, if they’re in the process of repairing their credit (such as a subprime auto loan); they should be checking their credit reports regularly.
One other tip to consider: Auto Credit Express matches up applicants that have auto credit issues with dealers that can offer them their best chance at getting approved for an auto loan.
So if you’re ready to reestablish your car credit, you can start now by filling out our online car loans application.