Arizona Tribune - How to Protect Credit: Must-Know Practices

What is a credit score?

Before knowing how to protect your credit, you should know what credit is. Credit is one's capacity to be given money from lenders, and how likely they'll be to pay it back. It's simple - if you have a credit history in which you've paid your bills, credit cards, or loans on time, lenders will see that you're good for the money. More on-time payments and less outstanding debt equals a higher credit score number, which indicates a higher the likelihood of securing approval for new credit lines.

Financial institutions like banks evaluate a potential borrower's creditworthiness when deciding how much of a loan they'll give them, interest rates on that loan, and the loan's repayment terms. They often access your credit report, which is a report that compiles data which makes up your credit score. The lowest credit score you can get is a 300, and the highest is an 850. A credit report includes factors like outstanding balances, existing credit lines, and significant financial events, like bankruptcies.

What can compromise my credit score?

Building a solid credit history takes time and effort, and without it, your poor credit score can hinder borrowing opportunities. And whether your credit is compromised due to personal decisions or outside factors, you should be taking steps to safeguard it however possible.

In addition to unpaid bills, credit scores can be compromised by intruders. Over 5.7 million cases of identity theft were reported in 2024, the highest rates ever. And with a stranger opening accounts in your name, using your funds, or capitalizing on other resources, your credit could take a huge hit.

Ways to protect credit

1. Monitor your finances regularly

The easiest way to protect your credit is to keep a close eye on your bank and credit card statements. Comb through often for any unauthorized transactions, and if you find them, report them immediately. This also means monitoring your credit reports - you get one free report per year from each of the major credit bureaus, but financial experts recommend checking up to four times a year. Quarterly checks can be done using other credit monitoring services.

2. Use strong, unique passwords

If you're concerned about identity theft taking down your credit, improve the security of your accounts. Create complex passwords for all your financial tools, and change them at least once a year. If you've worried about forgetting your passwords, consider using a safe, vetted password manager to help you keep track.

3. Be cautious online

If you receive any suspicious links or attachments from unknown senders, don't click on them or download them. This is especially the case if the sender is asking for your credit card information, as they can then use your credit card in ways that will negatively impact your credit. Be wary of phishing scams, as these are designed to steal your personal information.

4. Keep your documents safe

Before you discard any documents containing personal information, like your credit card statements, shred them. This will prevent prying eyes from accessing your data and using it to log into various accounts. This also includes your credit cards - keep all physical copies in known locations, and if you need to throw out a credit card or replace it, cut it up before it goes in the garbage.

5. Consider identity theft protection services

If you're concerned about your credit, you can always hire a sort of security system to do the leg work for you. These services can help you monitor your credit reports, detect signs of identity theft, and provide assistance with various recovery efforts. Protection from identity theft also includes identity theft insurance, which will help you in worst-case scenarios.

CONTACT:

Sonakshi Murze
Manager
[email protected]

SOURCE: iQuanti

View the original press release on ACCESS Newswire

W.Moreno--AT