Kids don’t have credit cards, kids don’t have loans, so why should you or they have to worry about their credit being ruined?
The problem is, you do have to, because believe it or not they can be victimized. Even worse than that, they most likely will be victimized without their even knowing it – until something happens to make them aware. For example, they could find out when their parents try to set up a college fund for them or when they try to get a loan for a car or to borrow money for school or even just to get a driver’s license.
It can be tough to find out only then, maybe a dozen years later, that the young person has a ruined credit record. Often the delay in finding out a child’s credit rating has been ruined is the exact reason identity thieves target them.
The Identity Theft Resource Center verifies that credit issuers cannot easily verify the age of a person who applies for credit. This means even a newborn baby could end up with a credit card, using just that baby’s Social Security number of course. Usually, companies just enter the age on the application as the age of the account holder, whether it is valid or not.
While you shouldn’t live in fear that a stranger is going to snag your child’s Social Security number, you should take some steps to protect your children. For example, you can order free credit reports for them, even though they shouldn’t have any credit on file, by going to annualcreditreport.com. While you should take some time to review your credit reports your child’s should show not on file. If they do have a credit report make sure you review it immediately then start taking corrective action.
Also, if your child does have bank accounts, even if they are just savings accounts, you should look over the statements regularly. Older kids should also get a talk about the importance of keeping their passwords secure if they wish to log into your account online. You should also tell them to make them something that isn’t easily guessed.
If anyone’s asks you for your child’s Social Security number, be skeptical. Always ask why they need the information and how it is going to be used. Sometimes there is a legitimate reason, and sometimes it is perfectly fine to bow out of providing it.
Don’t forget that you can sign your children up for identity theft protection, usually as an add on to your own policy. Both LifeLock and TrustedID help protect your children. TrustedID includes all children in their family plan where LifeLock charges a nominal fee per child. It should cost you only a few pennies a day, and it could potentially save you hours of hassle further on down the road, not to mention ruined credit for your child.
You ca find reviews on both companies thru the links at the top right corner of every page.