A recent data breach of National Public Data, a background check company, has sparked a lot of conversation and concern. You may have heard stories about individuals’ personal information being leaked in this security breach. At Chaffey FCU, we take data security very seriously – we want to make sure you have the education to keep you and your personal information secure outside of the credit union.

Although this unfortunate breach is in no way connected to Chaffey FCU, it’s important that it is still taken seriously. We’re here to share some resources on what to do if your information has been affected by a data breach:

Look out for Notifications

If your information is lost, you’ll likely get a notice from the company that was breached informing you of the event and the extent of what was lost. If you have identity protection services in place, such as credit or identity monitoring, you will likely get a notice from this service as well. Subscribers to our Chaffey Plus Checking account* receive IDProtect®**, which includes continuous identity monitoring*** and credit file monitoring*** – you will be notified immediately of any changes to your credit file, or get a monthly reassurance e-mail if no changes were made. These services will help identify and alert you to suspicious activity related to your identity.

If you receive a notification of this type, don’t panic! Seeing this does not necessarily mean your information has already been used by criminals. There are steps you can take to help prevent fraud tied to your identity.

Credit Freeze vs Credit Lock

Credit Freezes and Credit Locks are two common options for placing additional security on your report. Knowing how each option differs can help you select the service for your needs.

• Credit Freeze: This service is available free at each credit bureau. Freezing your credit prevents lenders from viewing your information until you decide to unfreeze it. Since creditors and lenders can’t open your report, it prevents fraudulent accounts from being opened in your name. You can freeze your report at each of the three credit bureaus (Equifax, Experian, and TransUnion) directly with each bureau.
• Credit Locks provide the convenience of allowing you to place or remove the lock at your own discretion, without reaching out to the three credit bureaus. This service is usually offered for a fee from each of the bureaus.
• To help you better understand the details, NerdWallet gives a detailed breakdown of Credit Freezes vs Credit Locks. 

Be on the lookout for fraud attempts.

When criminals receive access to your personal information, it’s possible that you may be more likely to become a target for fraud. Knowing how fraud is evolving and how to identify if a scam may be occurring is a key skill to keep yourself protected. Phone scams, romance scams, or phishing emails have been constantly changing, and it’s important to learn how Artificial Intelligence is helping criminals create new scams. Experian has a helpful guide on what scams you should look out for in 2024.

Protecting different types of information.

Depending on what information was exposed in the data breach, there may be specific steps you want to take to help ensure your protection. The Federal Trade Commission offers specific guidance on what to do depending on the information that was lost. If your Driver’s License was lost, the steps may be as simple as reporting it lost to your nearest DMV and checking your credit report for changes. If your Social Security Number is exposed, the steps will be more in depth: monitor your credit reports for changes, consider a Credit Freeze or Lock, be more vigilant for scams (such as tax scams) and more. View the full list of information and recommendations here. Changing the passwords or adding a multi-factor authentication step to your accounts can add another layer of security before someone can access your account.

Monitor your information.

Staying updated on the activity within any of your accounts or on your credit report can help you detect fraud more quickly. Keeping an eye on your financial accounts, online accounts, or credit report can help you identify unexpected changes that you did not make. Even if you haven’t used or accessed an account for a period of time, regularly reviewing your information is essential to identifying suspicious activity. With online and mobile banking, you have access to view your Chaffey FCU checking accounts at any time, from anywhere.

Knowing how to prevent fraud and how to respond to a data breach is constantly evolving. To help you learn from the experts, we’re hosting a free Fraud Prevention seminar on August 22nd. Hosted by the Riverside White Collar FBI Squad, this presentation will provide you with insight and real-life examples from experts who specialize in resolving fraud. 

*For complete account details, speak with a representative or visit https://www.chaffey.com/chaffey-plus-checking. A $6 monthly service fee applies. Some benefits require authentication, registration and/or activation. Terms and conditions may apply.
**Benefits are available to personal checking account holder(s), and their joint account holders subject to the terms and conditions for the applicable Benefits. Some Benefits require authentication, registration and/or activation. Benefits are not available to a “signer” on the account who is not an account holder or to businesses, clubs, trusts organizations and/or churches and their members, or schools and their employees/students.
***Registration/activation required.

March is credit education month – do you know where your credit score comes from? We’ve collected information and resources to help you get to know your credit.

For many of us, we may not think about our credit history or score unless we’re planning a big financial change – applying for a new car loan or purchasing a new house, for example. Having a good credit score can save you money by helping you qualify for a better rate on these items. In addition to lenders, your credit information may also be reviewed for non-borrowing activities. For example, potential landlords or employers may review your credit information before accepting your apartment or job application.

Although your credit score may drop quickly from a few mistakes, raising your score can take a much longer time, so understanding your score now can be essential in reaching your financial wellness goals.

Your personal credit score comes from information stored on your credit report, which contains credit accounts and inquiries, payment history, and your identification or employment details. Other public information, such as bankruptcies and foreclosures will also be shown, if applicable. All of this information remains on your reports for various amounts of time – while new credit inquires may only show on your report for two years, tax liens will remain for seven.

Experian offers additional resources to help you understand your own credit report, who can view your report, building credit, and more on their site.

Where does your credit score come from?

Your credit score, sometimes referred to as your “FICO” in reference to the company who introduced this scoring method (the Fair Issac Corporation), ranges from 300-850 and acts as a snapshot of your credit history. If you are a responsible borrower and meet payments on time, your actions will be reflected by a higher score.

There are three credit bureaus in the Untied States that process your credit information: Experian, TransUnion, and Equifax. When applying for a loan or financing a new loan, it’s possible that a lender receives slightly different scores for you. There is no need to worry over this! The information processed or calculated by each bureau may differ slightly (the below scoring method comes from the traditional FICO method). However, if you see a large discrepancy in your score from two difference bureaus, this may indicate that something was incorrectly reported on your report, so reviewing a copy of your report to verify accurate information may be wise. Each bureau is required to provide a free copy of your report every twelve months. You can request yours at AnnualCreditReport.com

Your score is broken down into five categories:

• Payment History (35%) – Do you make your loan and bill payments on time? The largest factor of your credit score considered if you make your payments on time. If you consistently make payments on time, you can see your score go up. Keep missing payment deadlines, and you can see your score go down.
• Credit Utilization (30%) – How much of your available credit do you use? Constantly maxing out credit cards or borrowing up to your credit limit may negatively affect your score, as creditors often view this as risky borrowing behavior. Using credit modestly and only when needed can benefit you here.
• Length of Credit History (15%) – How long have you had credit? When you get your first credit card or loan, you will have little to no credit history to reflect on. As time goes on and you successfully borrow and pay money back, you will earn credit history.
• New Credit (10%) – How often do you apply for new credit? Applying for loans and credit cards too often may harm your score. It’s important to apply for credit only when you need it, to prevent yourself from borrowing too often.
• Credit Mix (10%) – What different types of credit do you have? Having multiple types of credit (credit cards, loans, or mortgages) can show lenders that you can successfully manage and pay back difference types of credit. Although it may help your score, having each type is not necessary, especially if you don’t need them.

Although FICO scores are most common, other credit scoring models, such as the VantageScore, exist. This score was actually created by the three major credit bureaus and works similarly to traditional credit scores. Low scores indicate high risk in a borrower, high scores indicate less risk.

How can you reach your credit goals?

• Pay on time. Because payment history is the largest factor in determining your score, making your payments on time is the simplest thing you can do to improve or maintain your score. Setting reminders on your phone or marking your calendar may provide helpful reminders.
• Establish a savings account. If you have money available to you in the event of an emergency of unexpected bill, you won’t have to rely on credit to make these unexpected payments
• Secured credit cards. Secured credit cards work similarly to traditional credit cards, however, upon opening the account, a deposit is required. This deposit reduces risk for the lender, by ensuring access to funds in the event you are able to pay your credit card bill. If you are looking for a secured credit card to begin or rebuild your credit, a Chaffey Secured Visa credit card may provide the credit-building benefits and Visa Rewards you’re looking for.
• Avoid borrowing too much. Regularly maxing out on your credit cards or applying for new loans may indicate risk to a lender or bring your score down. A good rule of thumb for using credit cards is to use 30% or less of your credit limit when possible
• Try to keep old credit lines open. Closing old credit cards can reduce the length of your credit history. It can also lower your capacity for credit, impacting your credit utilization. Keeping your old credit lines open for occaisional use can prevent this.
• Track your credit. Understanding your personal score is the first step to improving it. Through a Chaffey Plus Checking account¹, you can receive access to additional credit resources, such as a credit report and score²*, credit score tracker^2,3, credit file monitoring*, and Financial Wellness 360^{o 4} to help you proactively maximize your financial wellbeing. Talk with a representative today to see how you can take advantage of these benefits.

*Registration/activation required ¹$6 monthly service fee. ²You will have access to your credit report and score provided your information has been verified by the Credit Reporting Agency. Credit Score is a VantageScore 3.0 based on single bureau data. Third parties may use a different VantageScore or a different type of credit score to access your credit worthiness. Once you have activated credit file monitoring, you may request your credit score. Once you have done so, you will have access to your score on a monthly basis. ³Once credit file monitoring has been activated and you have requested your first credit score, you may request a cew credit score each month to be plotted on your Credit Score Tracker graph. Monthly email notifications will be sent to let you know when your new score is available. ⁴Available via mobile or web only.