How can one protect their credit and avoid negative impacts, such as fraud, identity theft, or excessive debt?

There are several ways to protect your credit and avoid negative impacts, such as fraud, identity theft, or excessive debt. Here are some steps you can take:

Monitor your credit report regularly: Review your credit report at least once a year from each of the three major credit bureaus (Equifax, Experian, and TransUnion) to ensure there are no errors or fraudulent activity. You can obtain a free credit report from each bureau once a year at AnnualCreditReport.com.

Sign up for credit monitoring: Many companies offer credit monitoring services that can alert you to changes in your credit report, such as new accounts opened in your name or changes to your credit score.

Protect your personal information: Be cautious when giving out personal information, such as your Social Security number, credit card numbers, or bank account information. Avoid providing this information over the phone or via email, especially if you did not initiate the contact.

Use strong passwords: Create strong, unique passwords for all of your financial accounts, and avoid using the same password for multiple accounts.

Check your accounts regularly: Review your bank and credit card statements regularly to ensure there are no unauthorized transactions.

Freeze your credit: Consider freezing your credit to prevent new accounts from being opened in your name without your permission. You can do this for free with each of the three credit bureaus.

Manage your debt: Keep your credit card balances low and pay your bills on time to avoid accumulating excessive debt and negatively impacting your credit score.

By following these steps, you can protect your credit and avoid negative impacts that can affect your financial health.