This is one of the most commonly known terms in the world of credit. People with a bad credit history, usually may have heard of this term and many of them may have faced it themselves. There are people who have suffered and undergone through this term, along with facing the terrible effects that have hampered them and their family members. Every individual has an identity, which no one else should or is allowed to use. If somebody uses someone else’s identity, it harms or affects both the lives. To a certain extent, the one who uses the identity enjoys the benefits he is receiving whereas the other who feels at completes loss.
Meaning of Identity theft:
Coined in the year 1964, this term simply means stealing someone else’s identity. This identity may include name, original documents, assets, etc. This also includes using of someone else’s credit card, without having or taking his permission. The person who usually does this has fraudulent intentions and hence he commits things and creates situations where in the actual person suffers for the losses incurred. The credit card may be used for purchasing something larger. The possession of such things is enjoyed by the thief whereas when it comes to repaying the credit amount, it has to be made by the actual person.
How is this term related to credit history?
No matter how much the real person tries to explain his situation, certain spots are put in his credit reports. Therefore, he has a bad credit history in front of the credit giving parties like banks, stores or agencies that are into crediting. Once he proves that his identity has been stolen, he needs to contact certain companies that are into Credit repair. Such companies help to prove him innocent and clean his reports.