Protecting your credit goes hand in hand with protecting yourself against identity theft. While there's a lot of damage you can do to your own credit by not being attentive to payments and defaulting on your debts, your credit can also be affected by the actions of others.
Step 1
Get a copy of your credit report once a year. Check for errors, unpaid debts and unusual activity. If you see something that seems out of place, call the company and figure out whether the debt is really yours or whether somebody could have broken into your account. Accounts and debts older than seven years should not show up in your credit report if they have been paid off.
Step 2
Deal with old, past-due debts. While paying off and closing old accounts won't take the mark off your report, it would show potential lenders that you are responsible and have good intentions. If you're in a money crunch, call companies and try to negotiate a lower payment or ask for a reduction of your debt.
Step 3
Be organized and keep track of bills and payments. When a bill arrives, either pay it right away or make a note of its due date, so you're not late. Also, save receipts of everything you buy, as well as contracts for loans, layaways and things you buy on credit. If there is a dispute, you can solve it before it is reported and your credit damaged.
Step 4
Be very protective of your financial information. This includes credit and debit cards, PIN numbers, passwords to online bank accounts, bank statements and old tax returns, pay stubs and utility bills. File them away safely as soon as they arrive, especially if you share your home with roommates. If you're going to throw away any of these papers, shred them first.
Step 5
Get your name off mailing lists. Always opt out of receiving information on the mail when you sign up for a website subscription or forum. You should also fill out an Opt Out Request form to prevent companies from sending you pre-approved credit cards and other financial offers on the mail (see resources below). Pre-approved credit card offers can easily be stolen from your mailbox and your credit ruined once somebody starts using them.
Member Comments