Credit has been under attack lately, and in a state of
change. Thus, the new "Red Flags Rule" that went into
effect on May 1.

This rule directs car dealers to play "snoop" in order to
prevent ID theft. So, if you apply for a loan to buy a car
- new or used - the dealer may ask you questions that you
feel are none of his or her business.

For instance: "Do you always use your middle initial?"
"What's the balance on your American Express Card?" These
are questions designed to trick someone who isn't you.

Here's how: They ask about the American Express Card
because your credit report shows you don't have one. That's
something you would know, but a thief probably wouldn't
know. So if "you" stutter and say you aren't sure, because
your spouse is the one who keeps track of such things, it's
a clear sign that "you" aren't you.

Dealers are also looking for other inconsistencies, such as
a name and address on your application that doesn't match
your driver's license or the address listed in your credit
report.

Dealers will now be required to document the steps they've
taken to assure that the person buying the car is the same
person whose credit is being used for the car loan - or
lease. If they fail to do so, they will be subject to fines.

So that you don't become suspect when using your own
credit, make sure to take these steps:

If you move, be sure to notify all of your accounts and get
your driver's license updated. If you move to a different
state, get a new driver's license in the new state Check
the photo on your driver's license - if it doesn't look
like you, either request a new photo or take along
additional photo ID that does look like you. Driver's
license photos are notoriously bad to begin with - but if
you've changed your hair color, shaved off a beard or
moustache, lost or gain weight, or have just recovered from
a long illness, the picture might not resemble you at all.

Use of stolen identity at car dealerships is relatively
rare - but now that the definition of "financial
institution" has been expanded to include any business that
includes loans and leases, dealerships are subject to the
same regulations as other financial institutions. Your
credit's your life, treat it as such.