Introducing your teenager to credit as soon as possible is a great way to get them prepared for all the future credit products they’re bound to encounter in life. Practicing responsible credit behavior with a credit card or even as an authorized user can help your teen establish credit, which is necessary for taking out student loans, mortgages and other credit products. Plus, having a good credit score is key to getting the best rates and terms for credit products.
Unfortunately, identity theft is a very real threat to everyone. Even if you don’t keep an eye on your credit reports every other week, that’s OK because monitoring your score can help you make sure your identity isn’t being fraudulently used - a drastic change in your score can indicate that something may be wrong and help you keep track of how your sensitive information is being used.
If an individual submits an application for credit, an insurance policy or rental property, creditors, insurers, landlords and select others are legally allowed to access his credit report. Employers may also request a copy of an individual's credit report as long as the individual agrees and grants permission in writing. These entities typically must pay the credit bureaus for the report, which is how credit bureaus earn money.
Only one website is authorized to fill orders for the free annual credit report you are entitled to under law — annualcreditreport.com. Other websites that claim to offer “free credit reports,” “free credit scores,” or “free credit monitoring” are not part of the legally mandated free annual credit report program. In some cases, the “free” product comes with strings attached. For example, some sites sign you up for a supposedly “free” service that converts to one you have to pay for after a trial period. If you don’t cancel during the trial period, you may be unwittingly agreeing to let the company start charging fees to your credit card.