For example, here’s one myth that I was discussed in a recent article: “Anyone can get their credit card bill reduced”.  Well that’s certainly a myth.  Take a look at the following article for more credit card myths that you should know about.

8 Credit Card Myths You Need To Know

Tip 1: Shop for a loan before you visit a dealership or bid for a car over the Internet. After reviewing your credit report to correct errors (see Check your credit report for accuracy), ask your bank and several other lenders about their loans and costs so you are in a better position to get the best possible terms. If you’re a homeowner, you could also consider using a home equity loan or line of credit instead of a traditional auto loan, but remember, you could lose your home if you can’t repay the loan. Know what car dealers are offering in terms of financing by reading their advertisements, making phone calls or checking the Internet. Many dealers offer discounted loans (such as zero-percent financing) or cash rebates, but not both. "In some situations, it may be better to accept the dealer’s rebate and pass up the zero-percent financing in favor of a loan from a bank that does charge interest," said Joni Creamean, an FDIC Senior Consumer Affairs Specialist.

Tip 2: Think carefully about how much car you can afford and how much of a loan you need. The dollar amount of your loan largely will be determined by the sales price of the vehicle minus your down payment, any rebates and the value of any trade-in. Don’t forget, however, the costs of auto insurance, sales taxes, annual property taxes on the car (if any), and options you may be inclined to buy, such as an extended warranty. Also remember that every item you add to your loan instead of paying upfront will add to the total cost of the loan because you will pay interest on the amount financed.

Tip 3: Consider getting "pre-qualified" by a lender for a specific loan amount. "This doesn’t mean you have been approved for a loan," said Creamean, "but it will help you know approximately how much you can afford to spend on a car and how much it will cost you in finance charges before you get to the dealership." Consumer advocates also suggest that you not tell the dealer if you’ve been pre-approved elsewhere for a loan until after you’ve negotiated the best price on a car. They say that some dealers may be less flexible on the price of the vehicle if it’s clear that the dealership won’t be earning money on a loan.

Tip 4: Understand the costs and risks of choosing a long repayment period. "A longer loan term will be tempting because it means a lower monthly payment, but that also means a higher total cost overall because you will be paying interest longer," warned Creamean. For example, a $25,000 loan at a seven percent interest rate for three years will cost $772 a month. Stretching the term to five years will drop the monthly payment to $495 but will increase the total cost of the loan by about $2,000. Creamean offered another reason to be cautious with a repayment term of five years or more: The aging vehicle’s resale value may fall below what you owe on the loan if the terms are spread out too long. "In the later years of the loan, you’ll still be making payments on what is an older vehicle that may have a lot of repair and maintenance costs," she said. "And if you decide to sell your car, you may have to come up with extra cash out of your own pocket just to pay off the old loan."

An identity thief is someone who obtains some piece of your sensitive information, like your Social Security number, date of birth, address, and phone number, and uses it without your knowledge to commit fraud or theft.

How Identity Thieves Get Your Information

Skilled identity thieves use a variety of methods to gain access to your personal information. For example, they may:

• Get information from businesses or other institutions by:
  • Stealing records or information while they’re on the job
  • Bribing an employee who has access to these records
  • Hacking these records
  • Conning information out of employees
• Rummage through your trash, the trash of businesses, or public trash dumps in a practice known as "dumpster diving".
• Get your credit reports by abusing their employer’s authorized access to them, or by posing as a landlord, employer, or someone else who may have a legal right to access your report
• Steal your credit or debit card numbers by capturing the information in a data storage device in a practice known as "skimming." They may swipe your card for an actual purchase, or attach the device to an ATM machine where you may enter or swipe your card.
• Steal wallets and purses containing identification and credit and bank cards.
• Steal mail, including bank and credit card statements, new checks, or tax information
• Complete a "change of address form" to divert your mail to another location
• Steal personal information from your home
• Scam information from you by posing as a legitimate business person or government official

How Identity Thieves Use Your Information

Once identity thieves have your personal information, they may:

• go on spending sprees using your credit and debit card account numbers to buy "big-ticket" items like computers that they can easily sell
• open a new credit card account, using your name, date of birth, and Social Security number. When they don’t pay the bills, the delinquent account is reported on your credit report.
• change the mailing address on your credit card account. The imposter then runs up charges on the account. Because the bills are being sent to the new address, it may take some time before you realize there’s a problem.
• take out auto loans in your name
• establish phone or wireless service in your name
• counterfeit checks or debit cards, and drain your bank account
• open a bank account in your name and write bad checks on that account
• file for bankruptcy under your name to avoid paying debts they’ve incurred, or to avoid eviction
• give your name to the police during an arrest. If they are released and don’t show up for their court date, an arrest warrant could be issued in your name.

Protecting Yourself

Managing your personal information is key to minimizing your risk of becoming a victim of identity theft.

• Keep an eye on your purse or wallet, and keep them in a safe place at all times.
• Don’t carry your Social Security card.
• Don’t share your personal information with random people you don’t know. Identity thieves are really good liars, and could pretend to be from banks, Internet service providers, or even government agencies to get you to reveal identifying information.
• Read the statements from your bank and credit accounts and look for unusual charges or suspicious activity. Report any problems to your bank and creditors right away.
• Tear up or shred your charge receipts, checks and bank statements, expired charge cards, and any other documents with personal information before you put them in the trash.

How To Tell If You’re a Victim of Identity Theft

Monitor the balances of your financial accounts. Look for unexplained charges or withdrawals. Other indications of identity theft can be:

• failing to receive bills or other mail signaling an address change by the identity thief;
• receiving credit cards for which you did not apply;
• denial of credit for no apparent reason; or
• receiving calls from debt collectors or companies about merchandise or services you didn’t buy.

What To Do If Your Identity’s Been Stolen

If you suspect that your personal information has been used to commit fraud or theft, take the following four steps right away. Follow up all calls in writing; send your letter by certified mail, and request a return receipt, so you can document what the company received and when; and keep copies for your files.

1. Place a fraud alert on your credit reports and review your credit reports.
   Contact any one of the nationwide consumer reporting companies to place a fraud alert on your credit report. Fraud alerts can help prevent an identity thief from opening any more accounts in your name. The company you call is required to contact the other two, which will place an alert on their versions of your report, too.
   

   Equifax: 1-800-525-6285; www.equifax.com
   Experian: 1-888-EXPERIAN (397-3742); www.experian.com
   TransUnion: 1-800-680-7289; www.transunion.com

   In addition to placing the fraud alert on your file, the three consumer reporting companies will send you free copies of your credit reports, and, if you ask, they will display only the last four digits of your Social Security number on your credit reports.

2. Close the accounts that you know, or believe, have been tampered with or opened fraudulently.

3. Contact the security or fraud department of each company where you know, or believe, accounts have been tampered with or opened fraudulently. Follow up in writing, and include copies (NOT originals) of supporting documents. It’s important to notify credit card companies and banks in writing. Send your letters by certified mail, return receipt requested, so you can document what the company received and when. Keep a file of your correspondence and enclosures.

4. When you open new accounts, use new Personal Identification Numbers (PINs) and passwords. Avoid using easily available information like your mother’s maiden name, your birth date, the last four digits of your Social Security number or your phone number, or a series of consecutive numbers.

5. File a report with your local police or the police in the community where the identity theft took place.
   Get a copy of the police report or, at the very least, the number of the report. It can help you deal with creditors who need proof of the crime. If the police are reluctant to take your report, ask to file a "Miscellaneous Incidents" report, or try another jurisdiction, like your state police. You also can check with your state Attorney General’s office to find out if state law requires the police to take reports for identity theft. Check the Blue Pages of your telephone directory for the phone number or check www.naag.org for a list of state Attorneys General.

6. File a complaint with the Federal Trade Commission.
   By sharing your identity theft complaint with the FTC, you will provide important information that can help law enforcement officials across the nation track down identity thieves and stop them. The FTC also can refer your complaint to other government agencies and companies for further action, as well as investigate companies for violations of laws that the FTC enforces.

7. You can file a complaint online at www.ftc.gov/bcp/edu/microsites/idtheft/. If you don’t have Internet access, call the FTC’s Identity Theft Hotline, toll-free: 1-877-IDTHEFT (438-4338); TTY: 1-866-653-4261; or write: Identity Theft Clearinghouse, Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, DC 20580.