Two of the most important things you can do to maintain a good credit history are protect your credit rating and protect your privacy.

How can you protect your credit rating?

First, it's very important to be aware of what's in your credit report. That way, if your identity has been stolen, you'll be aware sooner rather than later.

Second, you need to make careful decisions about how you use credit.

• Separate your wants from your needs. Having credit can make it easy for you to spend above your means, so you need to set good spending habits.
• Compare your income to your expenses and set priorities, goals, and limits.
• Pay yourself first by saving money every month.
• Limit your number of credit cards and try to pay the balances in full every month.
• Get credit counseling if you need it.

How can you protect your privacy?

Identity theft and credit fraud can damage your credit history.

• Ask "why" when you're asked for personal information. It's your right to know why it's needed and how it will be used.
• Don't give out your Social Security or tax ID, PIN, bank account, driver's license, and credit card numbers unless you're absolutely sure how they'll be used. You can ask for a password.
• Sign your credit cards and debit cards immediately. If you lose them or they're stolen, anyone can sign and spend freely. You can put "Please Ask For ID" on your signature line so you're always protected.
• Report lost or stolen cards immediately.
• Take care when throwing away old bills or papers with private information. Shredding is best.