The quickest and easiest way to destroy your credit is to have your identity stolen. Therefore, guard your social security number and credit card account information as carefully as you can. If your identification or credit cards are stolen, you should immediately file a police report and also place a fraud alert on your credit report with each of the three major credit bureaus. This can be accomplished by calling each of the credit bureaus and requesting a fraud alert. This phone call should be followed by a written letter stating that you may be a victim of identity theft and that creditors should not extend credit to anyone claiming to be you until they have confirmed your identity by contacting you at the address or phone number listed on your credit report.

If you learn that your identity has unfortunately been used to obtain credit, contact that creditor immediately to inform them of the fraud, and provide them with a copy of the police report. Taking these steps may help you to stop damage to your credit by the identity thieves and may also serve as important evidence when you attempt to repair any damage the thieves have done to your credit score.

Although a multitude of credit pulls by potential creditors may hurt your chances of obtaining credit, it does not damage your credit score if you pull your credit report periodically to maintain your own credit. Pulling your credit periodically will allow you to determine whether inaccurate information is damaging your credit score, or even whether your identity has been stolen. It is recommended that you check the contents of your credit report at least twice a year.

Although the process of calculating a credit score remains shrouded in mystery, the simple ways to improve and maintain your credit rating are not. Following these easy steps, you can guard against damage to your credit rating and protect your financial freedom.