If you use your credit card to make common purchases, it is especially important that you are aware of your credit activity. There are ways you can protect yourself and your

credit history from becoming prey to identity thieves. The Equifax Finance Blog has an article about these tools, “

Fraud Alert Versus Security Freeze,” to let you know when it is best to use these utilities.

Fraud alerts place red flags on your account, where creditors know to take additional steps to verify that you are the one to request new credit, credit extensions and the like. It doesn’t stop creditors from viewing your credit score or accessing your credit information, and if your identity is compromised, it doesn’t stop your credit from being damaged by opening accounts claiming to be you. Fraud alerts are free, and still allow you to have flexibility in your credit.

Security freezes limit your flexibility, but provide you the greatest protection to your

credit score. When you set a security freeze, only regular companies you do business with (like mortgage, phone bill, credit card) and those that you specifically approve can access your credit by setting up a security code you have to give for approval. This prevents new accounts from being opened in your name or extending credit limits without your permission. It won’t protect your current accounts from being misused, but it will stop wider abuse of your accounts. It does require you to set up the security freeze with each of the three credit reporting agencies, and can have a fee to set up or take down. This can sometimes be waived if it is requested by someone whose identity has been stolen.

For more information, be sure to check out the full article on the

Equifax Finance Blog, as well as lots of information about taxes, credit, retirement and real estate.