Your credit history use to be something you would look at to make sure there were no errors or misreported entries. Today protecting your credit history and credit rating has come much more into focus with the threat of identity theft.

You can protect yourself with these simple tips for protecting yourself against identity theft along with picking up a copy of your credit reports for free each year.

Nothing influences your financial well being more than your credit history. Those numbers and track record speak volumes to a financial institution about your reliability as a potential future customer and even an employee.

So what is hiding in your money use report card?

The Credit Report

Your personal credit report holds information containing both your personal along with your financial status. This information is all compiled together for what is called a FICO score. The goal for those planning to borrow should be to build a high FICO score, which translates into a very positive credit rating.

When you request credit the lender usually contacts one of the three major credit reporting bureaus Equifax, Experian, or TransUnion questing a credit report of your credit history based on information collected over time and reported to them.

It may sound complicated especially when you consider all the financial transactions you’ve done over the years. Everything from buying a house, opening a credit card to buying your dining room set over time gets reported. All of that debt and payment history plays a part in your financial life. It’s for this reason you need to keep an eye on your credit score. Regularly reviewing your score, payment and credit entries you can spot and correct potential mistakes and errors.

What Your Credit Score Means in Day to Day Life

For some a below average credit score can mean the difference between a applying for a loan with an excellent interest rate and terms or one which over the term of the loan will cost your much more money. A low score makes rejection much easier for lending institutions.

Companies are now looking at credit histories before hiring new employees. Insurance companies are also using credit reports when basing insurance premiums for policy owners.

What Influences Your Credit Score

How well you pay your bills probably plays the biggest influence in your credit rating. Paying bills on time affects your score in a positive way.

Along with timely bill paying your outstanding debt also draws some consideration. The current outstanding debt of the outstanding balances owed on accounts measured against credit limits on credit cards accounts you have.

For example, despite your intentions keeping a credit card with credit limit open with a zero balance can negatively impact your credit report. Why you may ask? Creditors view that zero balance as a place for some potential spending to occur real soon.

Lenders can also have a difficult time with borrowers who have none or little credit history as this make it difficult for them to evaluate any future payment trends.

Identity Theft The New Credit Score Threat

Identity theft is the new epidemic to hit credit reporting. Be careful with your handling of personal papers, financial documents, mail, mortgage and loan papers, etc. If they come up are missing you could be a victim of identity theft. Thieves go to great lengths to steal people’s identity. They will go through garbage cans to find the right and just enough information to become the new you on paper.

If you believe your identity has been compromised consider freezing your credit report. A credit monitoring service can keep you abreast of any potential identity theft. Be prepared for a lot of changes such as changing bank accounts, credit cards, etc.

If you discover invalid action or activity on your credit report contact the bureau issuing the report and dispute each invalid entry. It may be necessary to contact local authorities to file a report. Do not be shy – take the steps to protect yourself!

Obtaining Your Free Credit Report

New laws now obligate credit bureaus to provide a copy of your credit report each year for free. Now the credit report may not cost you but to find out your FICO score will most likely involve some cost. You can get free credit report from Equifax, Experian, and TransUnion once every 12 months by simply requesting it. The Government has made the process of requesting your credit report very easy. Visit Annualcreditreport.com to get your report and start watching out for identity theft today.

With so many choices in the world of credit cards one item stays a constant - the changing APR or "Annual Percentage Rate."

Many cards holders are unaware that the APR on a credit card is not a constant. The rate changes depending on a variety of financial calculations.

For instance, cash advances usually carry the highest rate while purchases using your card is at another rate. When you signed up for you 0% APR card and transferred all of your balances my likely the card came with a grace period on the balance. Once that time ends a new APR comes into play. Confused? Learn more here in Low APR Credit Cards May Not Be Created Equal - Know Your Cards APR and How it Changes.

It is possible to stop the bleeding of credit card debt with a few tips.

The best tip helps control the debt but it could be the toughest - take your credit card and put it away. I've heard of people freezing there creditcard in a block of ice, then thawing it out when they needed it! It is their way of debt management.

Begin with a budget based not on wishes or wants but on your income and expenses - the credit card should be your last resort, after thawing the ice it's in!

Pay off what you purchase each month. If you cannot stop spending, pay more than the minimum on the balance.

Consider consolidating your credit card debt with a 0% APR balance transfer card. Focus on paying the balance off before the trail or grace period on the APR changes.

Is there equity in your home? Tap into the equity with a home equity loan and pay off the higher interest credit cards. Only borrow the minimum - do not put your home at risk!

Really facing extreme credit card debt? Do some research into credit counseling as a way out.

Learn Wise Credit Card Use

Credit cards are no free money - it must be paid back. Think hard before pulling out the card to buy anything. Ask yourself if you really need it!

Know your balance at all times and stay within your budget, this will allow you to pay it off at any time. Don't finance the future.

Collect your receipt from each purchase and compare each charge against your statement. If you find and error - report it immediately.

Pay your bills on time, you will avoid penalties and additional fees.

Plan your spending - spend cash!

Bad habits can be hard to break and using a credit card is no different. Think twice before spending.

Would you hand your credit card off to a complete stranger and let them walk off - as long as they gave you a polite "I'll be right back!" Probably not - Or would you? If you've ever pulled out your credit card to pay for a meal at a restaurant, that statement just described you.

Stop for a moment and think about it. Once the waiter steps away from the table do you really know what will happen to your credit credit card once it disappears from sight and the table?

Well it could happen to you!

Waiters from around the country representing approximately 40 restaurants took information from patrons then recorded their credit card data then took the information to spend and make purchases total about $3 million.

Identity theft is growing each and every day. When your information involving privacy and security come into play, don't let your guard down of give anyone the benefit of the doubt. If you must make a purchase with a credit or debt card and it must leave your sight - use cash!

Check and monitor you monthly statement when it arrives or go online to watch it and report immediately any suspicious activity to your creditor. Don't be a victim of identity theft.

There are so many credit cards on the market loaded with all kinds of options, we see these on a daily basis as the hit our mailbox.

Choosing the right card for your needs can be not the easiest of task.

Don't go out and make your choices blindly. Give the offer some careful consideration before filling out the application.

What Will You Need The Card For?

Everyone has different needs for some it's gas, others it's rewards and for some it's a balance transfer. It's important to know what you plan on doing with your card and why you are opening an account before taking that credit step.

Pick a credit card that gives you the services and function that best meets your needs.

Do you plan on paying the card off each month? Are you looking to stop yourself from carryig cash? Or maybe you have so many cards you need to consolidate your outstanding balances into one monthly payment with lower interest rates.

Do you see big spending in the future and can see using the card to pick up some rewards or points. My wife and I did just that when building our house and shopping for furniture.

Select a card for business may carry a different set of needs compared to a personal use card. Cash back and special discounts may play a big part of the decision making process.

Watch The Interest Rates!

The initial interest rates may look very attractive across the board with credit card companies. However, make sure you look long-term. A missed payment of late payment could skyrocket the interest rate.

Make sure you know what can trigger rates changes, extra fees and any other potential hidden costs.

Incentives

Many companies in the credit card arena will offer additional services all in an effort to attract more clients. Take the time to look out beyond the offer to examine the complete scope any incentives may require down the road.

Focus on the usefulness or if they could be a trap in your buying habits.

Over the years I’ve watched as some people take just about any strategy dealing with finances, apply it, and come out winners. Then there are others who never reach the same or any level of success, even though they follow and do about the same steps everyday.

I always ask myself "Why?”. Are you one of them looking for some magic bullet, when thousands before you have followed a path very successfully!

For years, people all over the world have read the book called "Think and Grow Rich" by Napolean Hill. This must read classic was written decades ago, however, the message inside is as true today as when it was written. The simply message is “the quality of what we think usually dictates the quality of our lives”. In case you have not looked lately the actual circumstances you face in your life includes money.

It is an attitude - the way you think about money holds a strong bearing on the shape of your finances. Facing bad credit and deep in debt. Maybe it is the way you view and spend money. Do you respect money?

By changing the way you view money, and I’ll admit I’m not perfect, I am constantly making corrections each day, I’ve found interestingly that money seeks me out in many new and interesting ways.

For example when I moved two years ago I thought I had updated the address on all my accounts to my new address. Recently, I discovered one I had not updated and I made the changes. I figured that when the pay cycle come through I’d get a check for about $120. Imagine my surprise when I opened the envelope and discovered a check for $532.90.

Pretty Strange. But I can tell you that over the past 3 to 4 years my view of money has changed dramatically. What’s your view of money? Go out and pick up a copy of "Think and Grow Rich" by Napolean Hill and read it!

Credit - many people run out and start using credit with their shiny new credit card before they understand how credit works. Later on after flashing the plastic they find out how it really works. That is the worst time to find out about the mechanics of credit.

Without understanding credit and how it can affect employment, borrowing, and other parts of your life it is easy to make mistakes. Those mistakes can cost you a pile of money.

Take some time and read this credit overview to get yourself up to speed on what credit is and how it works. Remember it's is never to late to start getting your financial education and start managing your money the right way.

Try to stay out of debt as much as possible. By following the below 8 steps you’ll find yourself staying away from or keep yourself from sinking deeper into a financial crisis.

1 – Only apply for credit IF you need it. Make sure it is really a need and not a want. Dictionary.com defines a “Need” as a requirement, necessary duty, or obligation or necessity arising from the circumstances of a situation or case. A Flat panel LCD TV is not a need.

2 – If you use a credit card use it as a 30-day loan with NO Interest. Pay the balance in full every month.

3 – Do not apply for a loan unless you have a complete understanding of the terms, interest rate, introductory & grace periods, requirements of credit score, how it will be reported to the credit bureaus, etc.

4 – NEVER apply for credit for any kind of exchange or discount for the purchase.

5 – Watch out for and it is best to probably stay away from in-store financing. “No payment for 24 months” is not a good idea, someone is paying somewhere.

6 – No excuses – pay off the balances on your credit cards every month. Give up something if you need to but pay them off every month.

7 – Choose to use debt cards over credit cards – you’ll spend less!

8 - If you cannot write a check for your purchase, you probably should not buy it.

One of the easiest ways to put more money in your pocket each payday takes only a few minutes to do.

I am always amazed at how many people get excited about their tax refunds. They cannot wait for their $1000 to $5000 or more to show up and help them pay off some bills.

Did you know you are basically loaning the government money interest free? You don't receive any interest on the money you get back in a refund!

Take your tax refund and divide it by 12. For example $3000/12 = $250. That's roughly the amount of money you could be adding to your monthly paycheck every month.

Why be so stressed out about money when an extra $250 bucks could smooth the ride?

All you need to do is adjust your withholding. In general as a rule for every $500 of money you get back in your tax refund you should add one dependent to your w4 form. The amount of dependents you claim on your w4 form does not need to equal your actual number of dependents.

Add some coin to your paycheck - make the change!

Is it possible your credit score could be affected from rising fuel cost? The American Banking Association did a survey back in 2005 after the big hurricane season and found delinquencies on credit cards was rising.

There’s a lot of talk we’ll soon be seeing gas in the $4.00 per gallon range in some parts of the country. Consumers need to take a look at their budgets now and prepare for that possibility.

If more money is spent in one area of your budget like transportation another part of the budget needs a decrease. Make sure the area that does not get attention is paying the credit cards off each month.

Not paying or late paying on your credit cards shows up quickly on your . Make sure you stay up to date and make your credit card payments on time.