From what we have learned, there is no way to fully protect against credit bureau errors or from other people committing fraud using the social security number. The best defense we found against credit reporting bureau error, or creditor error, is for the individual to actively work to maintain a perfect payment history. This does not protect against errors but it makes it easy to become aware should an account be reported in a derogatory manner. By keeping all documentation relating to the timing of payments (cancelled checks and record of mailing) consumers have recourse in cases where a creditor reports to a credit bureau that an account is past due. If the consumer has no way to prove that a payment was received on-time, in the right amount, we have found that it is very difficult to correct errors in the credit report.
This method is also effective in detecting fraud. In addition consumers should check each monthly statement from credit card companies and inspect the charges to insure nothing was charged without authorization. If unauthorized charges are discovered on the monthly billing statement, consumers should contact the credit card company immediately and advise them that the charges are unauthorized.
To protect against identity theft, consumers can place a restriction in their credit file, with each of the three major credit bureaus. The restriction of the credit file limits access to the consumer credit report and stops the extension of credit by banks and finance companies. This can pose an inconvenience for consumers attempting to apply for new credit but does extend security against identity theft.
