How can one protect their credit score from negative impacts, such as identity theft, fraud, or errors on credit reports?

To protect their credit score from negative impacts, individuals can take the following steps:

Monitor credit reports: Regularly checking credit reports can help identify any errors, fraudulent activity, or unauthorized accounts that could negatively impact their credit score. Credit reports can be obtained for free once a year from each of the three major credit bureaus (Equifax, Experian, and TransUnion) through AnnualCreditReport.com.

Set up fraud alerts: Placing a fraud alert on credit reports can help prevent fraudulent activity by notifying lenders and creditors to take extra steps to verify the identity of the individual before extending credit.

Freeze credit reports: Freezing credit reports can prevent new accounts from being opened in the individual's name without their permission, as it requires a PIN or password to lift the freeze.

Practice good financial habits: Paying bills on time, keeping credit card balances low, and avoiding opening too many new accounts can all help maintain a good credit score.

Use credit monitoring services: Credit monitoring services can provide alerts to suspicious activity or changes to credit scores and reports.

Protect personal information: Keeping personal information such as Social Security numbers, account numbers, and passwords secure can prevent identity theft and fraudulent activity.

By taking these steps, individuals can protect their credit scores and prevent negative impacts that can make it difficult to obtain loans, credit cards, or other financial products and services.