How to Protect Your Credit

To protect your credit, you need to be proactive, consistent, and a little bit strategic. Credit can be fragile, and even small missteps, like missed payments or unauthorized charges, can have lasting effects. Whether you're buying a house or renting an apartment, your credit score plays a major role. For homebuyers, a higher score improves your chances of mortgage approval and helps you secure a lower interest rate. For renters, a good score can be the key to avoiding a larger security deposit or the need for a co-signer. Whether you're planning for the future or simply want to avoid costly setbacks, protecting your credit is about staying alert and building smart financial habits. Here's how to get started.

1. Make on-time payments

Consistency is the key when it comes to protecting your credit. Payment history is the largest factor in determining your credit score, making it one of the most important things to stay on top of. Missing a payment, even by just a few days, can have a noticeable negative impact on your score. 

To avoid missed payments, try setting up automatic payments for recurring bills. This helps make sure that you never accidentally overlook a payment and can help you stay on top of your financial obligations without extra effort. 

However, if you’re struggling to make a payment, reach out to your servicer immediately. Many financial institutions and lenders offer hardship assistance programs that can help you stay on track and avoid negative marks on your credit. 

2. Monitor your credit report

A credit report is sort of like a financial health report card. By regularly monitoring it, you can catch errors or signs of fraud early. It also lets you spot drops so you can start rectifying them before they seriously affect your credit. 

You’re entitled to check your credit report for free once per week with each of the three major credit bureaus, Experian, TransUnion, and Equifax, through AnnualCreditReport.com. Download your report and look for any inaccuracies, like incorrect personal details, unfamiliar accounts, or accounts that don’t belong to you. If something looks off, don’t wait — dispute it right away to minimize harm to your score. 

3. Protect your personal information

Identity theft remains one of the most common threats to credit health. Safeguarding your personal information, such as your Social Security number, account details, and passwords, is incredibly important. Be cautious about where and how you share this information and who you share it with.

Stay safe by:

• Avoid using public Wi-Fi networks when accessing sensitive information. If using public Wi-Fi is unavoidable, consider using a VPN.
• Being skeptical of unsolicited calls, emails, or texts asking for personal details. 
• Using strong, unique passwords for online accounts and changing them regularly.
  

4. Keep your credit cards safe

Credit cards are a great tool for building credit, but they’re also the prime target for bad actors. To keep your cards secure, consider: 

• Only using secure and trusted websites when making online purchases.
• Regularly check your credit card statements for unfamiliar changes. 
• Notifying your credit card issuer immediately if you spot any suspicious activity. 

5. Monitor credit utilization

Another key part of protecting your credit is managing your credit utilization — how much of your available credit you’re actually using. The number refers to the ratio between how much credit you’re using and how much you have available. This ratio compares your credit card balances to your total credit limits. Ideally, your credit spend should stay below 30% of your available balance. When your balances creep too high, even if you’re making payments, it can negatively impact your credit score.

One of the best ways to keep your credit utilization low is by paying down debt strategically. If you’re working with a tight budget, use our guide for practical tips on how to pay off debt fast with low income to help you regain control and protect your credit long-term.

6. Freeze your credit when not in use

If you’re not expecting to apply for new loans, place a freeze on your credit until you need it. This can prevent bad actors from using your information to apply for a credit. Simply request a credit freeze with the three major credit bureaus, Experian, TransUnion, and Equifax. Then, when you do need to apply for credit, like if you’re shopping around for a mortgage lender, unfreezing your credit is simple to do online. 

Fraud alerts can be another line of defense, during those periods when your credit is unfrozen.When you add a fraud alert to your credit file, it signals banks and other financial institutions to verify your identity before opening any new lines of credit under your name. This makes it more difficult for scammers to open fraudulent accounts using your identity, helping you steer clear of even bigger problems down the line. 

7. Avoid scams

Scams and the scammers that create and operate them are getting more creative by the day. They use a variety of tricks and tactics, including phone calls, emails, text messages, and even fake messages, to trick you into sharing your personal information. If an offer sounds too good to be true, it probably is. 

Be extra cautious when it comes to: 

• Unsolicited offers for “too good to be true” deals.
• Pressure tactics that make you feel that you need to act quickly. 
• Requests for sensitive information, like your social security number or bank account information. 

Not sure about the legitimacy of an offer or request? Take a step back and research the source. A little extra time and effort can save you from falling victim to a scam. 

8. Keep a consistent credit profile throughout the mortgage approval process

Receiving a mortgage pre-approval is exciting. You’re one-step closer to locking in financing for your new home. However, a pre-approval is not the same as being approved. You’ll need to avoid any major changes to your credit profile during the underwriting process. Opening or applying for new credit accounts, taking out loans, or making large purchases on credit could change your credit profile enough to void your initial pre-approval or change the amount you're pre-approved to borrow. 

Stay in touch with your lender throughout the process and ask any questions you might have about managing your credit while waiting for final approval. 

Protect your credit to protect your future

At the end of the day, your credit score is more than just a number — it’s a powerful tool that can open doors to financial freedom and long-term security. Protecting your credit means setting yourself up not just for homeownership, but for better loan options, improved credit card offers, and the peace of mind that comes with financial stability. 

Whether you’re planning a big move or just want to feel confident about your money, taking these simple steps today can help you build a stronger, more secure future.

Disclaimer: This article is for informational purposes and is not intended to provide tax, legal, or financial advice.

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