To shred or to tear: that is the question. Robert Cockerham of cockeyed.com [1] decided to put the matter to a test. His test subject? A newly received Chase Mastercard pre-approved application.

Step 1: Robert tears the application into small pieces.

Step: 2: Robert meticulously lines the torn pieces up and tapes them together, like so.

Step 3: Robert fills out the application, replacing the current billing address with a new one (his parent's house) and using his cell phone as the phone number on the new account.

With that, he mails it in.

Step 4: Robert excitedly receives his new credit card at his parent's house and activates it using his cell phone.

Analysis:

• Tearing up your sensitive documents is not sufficient.
• Some creditors will process applications, even if they've been torn up, taped together and have a new address.
• A criminal could easily apply for credit in your name, change the address, and activate the account via a pre-paid cell phone. You wouldn't even know what happened until creditors started calling you about your unpaid bills.
• You must destroy all sensitive documents using a cross-cut shredder [2] before placing them in the trash.
• Better yet, opt-out of pre-approved offers [3] and give your shredder and the recyclers a rest.

Read the whole story on Cockeyed.com [4].