Credit is a useful tool that can help you reach your goals. Paying your bills on time is an important step you can take to keep your credit healthy. But, it's also crucial to take a few precautions so you don't end up applying for more credit than you need or get exploited by those who don't have your best interests in mind.

Pre-approval Offers

Pre-approval offers can be great especially, if there is a special rewards promotion attached. However, just because you get an offer doesn't mean you need to take it. Opening too many credit accounts can hurt your credit score, so don't apply for credit unless you need it. Additionally, you should scan your pre-approval offers carefully to make sure they are coming from a legitimate source and not a scammer whose trying to lure you into an offer that's too good to be true.
 

Credit Cleaners

You might hear ads on TV, the radio, or get emails, messages, or advertisements on social media and other websites that offer to help you "repair your credit quickly and easily."

"Services" like these can end up costing you more money than you actually owe to creditors. Not only that, but they have a great potential of being scam offers.

Good credit takes time to build. The best thing you can do for your credit and your finances is to make your payments on-time and not borrow more than you can afford to pay back.

Identity Theft

Someone stealing your identity is a scary thought, and unfortunately, it happens more often than you might think. You might be wondering how can someone steal your identity? According to the Federal Trade Commission (FTC), identity theft occurs when someone uses your personal information without your knowledge to commit fraud or theft.

Information that is often used and acquired by identity thieves include:

• Your name
• Social Security Number (SSN)
• Credit/Debit card number
• Other personal information

Shredding documents before you dispose of them, limiting the information you share, using strong passwords, not clicking on links or attachments in unsolicited or suspicious looking emails or messages are some ways you can protect yourself from identity thieves. For more information and tips to protect your personal information, visit the FTC's site on Identity Theft.

Unauthorized Charges

Like you do with your checking account or debit card, it's important to keep track of your credit card and what you spend on it. Keeping tabs on your credit card and the transactions you make on it, will help to ensure that you spot errors or fraudulent charges.

If your credit card is lost or stolen, report it immediately. Your card issuer likely has a 24/7 toll-free telephone number you can call to report your lost or stolen card. Or, depending on the issuer, you may be able to report your lost/stolen card online.