With the economy going…where it’s going, it’s time to start getting serious about protecting your credit. If you think obtaining a mortgage, buying a car, or getting a new credit card is a challenge now, imagine how hard it will become in the next few years! The only way to make sure that your financial future is secure is to do everything you can to protect your credit rating (or improve it).

Make all of your credit card/loan payments on time. This should be common sense, but you would be surprised how many people decide to let their payments slide a month or two when things get hard. If you have been doing this, stop! Even if you only pay the minimum amount due, make sure those bills get paid.

Monitor your credit. You can usually sign up for credit monitoring for a small monthly fee. Monitoring your credit is the best way to make sure that your payments are recorded correctly and that false information is corrected. You would be surprised how often errors are reported to the credit reporting agencies!

Start paying off your debt. Many financial experts advocate paying the most money to the account that has the highest interest rate. This makes sense from a math perspective. From a personal standpoint, I think that paying off the smallest debts first is better. The “paid in full” entry on your credit report helps to raise your score. It also gives you a sense of accomplishment, which will keep you on track while you work to pay off your larger debts.

Don’t take on any new debt unless you absolutely need. The goal is to prove that you are financially responsible—adding to your existing debt has the opposite effect.

Protecting your credit isn’t hard, it just takes dedication!