3 ways you can protect your credit rating

Your credit rating is extremely important. The better it is, the more likely you are to get a good loan rate. Here are some inside tips on keeping your credit rating in tip-top shape.

• Don't throw your mail away — shred it. This includes bank statements, credit card bills and anything that has even one iota of financial information on it.
• Shredders range in price from about $30, for the most basic model, to more than $1,000 for one that turns your important financial documents into dust.
• In truth, a simple shredder is all you need. That's because crooks always take the easiest route.
• It's a lot easier to read a bank statement that was ripped in half as opposed to one that was shredded into 50 pieces.

• Did you know that if you miss a deadline on your car or credit card payment, your other lenders can jack your rate up to the default rate?
• This clause is called "universal default," and you want to avoid it at all costs.
• If you're more than 30 days late on any payment, all of your credit card lenders earn the right to treat you like a financial pariah.
• Remember, credit ratings will be seen by anyone holding your credit. If you're making late payments for one credit card, your other credit card companies are going to find out.
• Be sure to make your payments like clockwork.

• Identity theft is a multi-billion dollar business now. Hordes of thieves are hoping you won't do this.
• If you check your account on the Internet religiously, you'll spot any criminal spending quickly and you'll be able to take action.
• Check your hard-copy statement. Or, go to your credit card company's website for information on how to get online access to your account.

In today's society, most people pay for all their major purchases with loans. A few points difference in your credit rating can add up to a substantial amount of money over the life of a car loan or a house mortgage. So be sure you do everything you can to keep it high.