WHERE CREDIT'S DUE: HOW TO PROTECT YOUR FINANCIAL SCORE

It's hard to buy a house, or really anything, without credit. The concept that tells lenders to trust you, that - in fact - you do pay back what you borrow, a credit line is also a life line. Through credit, we are able to purchase everyday items - such as clothes - and once a decade items - such as cars and homes. Still, even with the importance of credit, not everyone knows everything they should. The following are tips that can - when facing banks and leasing agents - tip the hand in your favor:

Know that Closing Credit Card Accounts Closes you Off From Possibilities: Sure, you may have been one of those people who absolutely went to town when - as a college student - you found your true love: a credit card. Buying out department stores, you took your credit card everywhere. In fact, you stopped just short of having you and your VISA card's picture taken in one of those mall photo booths. All this uninhibited spending led you to ridiculous debt and one conclusion: credit cards and you are a dangerous combination. You'd better close them all. Well, don't.

Even if you have been irresponsible in the past, closing all your credit cards isn't the way to go. In order to have a credit history, you need to include credit in your past. Someone who simply refuses to ever again buy anything on credit inadvertently shoots themselves in the foot. Instead of closing all your credit card accounts, continue to use them, but do so responsibly.

Don't Miss Payments: Sure, it sounds quite a bit easier than it is: missing payments on your credit card is sometimes inevitable. You forget, other things come up, or you simply can't afford to pay. Even if you have the best excuse in the world, any missed payment will drastically hurt your credit score. When a creditor is judging you, they will look to see how often you make or skip payments, how recent your tardiness has been, and how extreme it is. For example, paying a credit card a day late looks a lot better than paying one 30 days late. If you've missed payments in the past, lenders can't help but assume you will miss them in the future. The best way to predict a person's upcoming behavior, after all, is to look at a person's history.

Don't Assume All Credit Scores are Identical: So, you've gotten one credit report and it was quite good: with a score over 700, you've hung it on your refrigerator for all the world to see. You go to get a home loan for a wonderful farmhouse you've found in Sullivan County and you bring this wonderful score along. To your dismay, however, you soon learn that the lender you're hoping will provide you with the loan doesn't use the company from where you got your credit score. That company, in fact, isn't even reputable. Instead of using any old credit reporting agency, and getting yourself in the aforementioned mess, be sure to use a credit agency with the authentic FICO trademark.

Know Your Rights: One of the best things about living in America? As citizens we have rights around every corner. Credit scores aren't immune to this: the Fair Credit Report Act is a Federal Law that regulates the use and collection of credit information from the consumer. Though this law - like any law - can be extensive, just knowing the main points can help you protect your personal and private information. For anyone who isn't aware why a credit report can be accessed or how to dispute a report that is incorrect, accessing the Federal Trade Commission website is recommended.