Credit warning signs

Keeping your finances running smoothly is simple when you know about possible detours that lie ahead. The five danger signs described here are the top reasons for credit report troubles. Spot them early and you can avoid any bumps in your financial journey.

Strange data - Not sure where that credit card came from? Unauthorized account or address changes could be a sign that a thief is using your identity. If you find a credit card or loan that you don't remember opening, call the creditor immediately to investigate. If it turns out to be a case of identity theft, have the account closed and follow the fraud resolution procedures outlined in the identity theft section of the Credit Learning Center.

Maxed-out credit cards - High balances on credit cards are common but that extra debt could be bringing your credit score down significantly. Reducing your balances to below 35% of your credit limits can save you a bundle on interest charges.

Late payments - Paying your debts late not only costs you a fee but also damages your credit. If you have had trouble making your payments on time lately, evaluate what is causing the problem. Ask your creditor to move your due date to a different time of the month or sign up for online bill payment service that can be programmed to remind you before the due date.

Mistaken identity - With over 290 million people in the United States, a few crossed credit records can be expected from time to time. Finding someone else's credit data on your report is especially widespread for people with common or shared family names like "Joe Smith Jr." If you find something that does not belong on your report, contact the credit reporting agencies to have your data corrected.

Credit score differences - A dramatic difference in one of your three credit scores can point to a potential error on that report. If one of your scores is 50 points lower than your other two scores, it is a good idea to look closely at that score's credit report for inaccuracies or signs of identity theft.