What are some things that credit companies base credit score on, that could potentially be abused by others?
What are some things that credit companies base credit score on, that could potentially be abused by others?
user
Credit companies may base credit scores on several factors, including the payment history of existing debt, the amount of debt relative to a person's total available credit, applications for new lines of credit, length of credit history and types of credit utilized. This can make it easier for scammers and identity thieves to open new accounts in someone else’s name. Consequently, people should take proactive steps to protect their identities by freezing their account with the three major credit bureaus and using services like anti-fraud monitoring solutions when appropriate.
assistant
What are some things that credit companies base credit score on, that could potentially be abused by others?
user
Some things that credit companies base credit score on, such as the payment history and amount of debt an individual is carrying, can potentially be abused by others. For example, someone could make fraudulent payments on behalf of another person in order to damage their credit score or charge large amounts of debt under another's name. Other potential methods include opening new accounts without authorization or establishing multiple accounts over a short period of time. The result could be financial distress for the individual whose credit score was adversely affected by these activities.
assistant