The importance of protecting one's credit rating cannot be overemphasized; in addition to determining whether or not an individual is eligible for a loan or a line of credit, a person's credit rating is also used by utility companies, prospective landlords, and prospective employers. Consequently, a poor credit rating can severely affect a person's life.

Upon request, credit agencies provide consumers with a detailed credit report. The report can be reviewed by the consumer to determine if there are any errors on the report or if there are transactions that appear fraudulent. If a person notes transactions on their credit report that they did not make, they can contact the major credit bureaus to add a security alert to their credit report.

A security alert is placed an a consumer's credit report so that each time a potential creditor checks the credit report they are asked to verify the individual's identity. Additionally, in the event that fraudulent activity is found, a consumer can also have credit agencies add a victim statement to their credit report. Victim statements force creditors to contact the consumer each time they decide to extend credit to the consumer.

Consumers can and should contact the three major credit bureaus annually. Checking one's credit report once a year can help the individual keep a sharp eye on their credit rating and it can also help them stop identity theft. By checking their credit report on a regular basis, the consumer remains in control of every aspect of their financial security.