Go through all your credit statements carefully each month.

Credit cards are a convenient way to pay for things and manage your money, but they are also vulnerable to theft and fraud. Criminals have countless schemes for stealing your identity and credit, but there are ways you can protect yourself and reduce the risk of becoming a victim.

David Bach is an internationally recognized personal financial expert and the best selling author of Smart Women Finish Rich and Smart Couples Finish Rich. A contributing editor to Smart Money magazine, he explains how to protect your credit and identity from thieves:

• Shred credit card applications.
  According to Bach, the first place to protect your identity and credit is the mailbox. Never throw away a credit card application without shredding it first, as they can become a new account for a professional thief.

• Stop junk applications.
  If you want to stop the applications from coming in the first place, call the National Opt-out Center at 888-567-8688 or visit the Web site www.stopjunk.com.

• Monitor your credit closely.
  Review your credit card and bank statements every month, and order your credit agency reports from Equifax, Experian and TransUnion every year. For a nominal fee, you can get a consolidated report at MyFICO.com.

• Contest errors.
  Confusing or erroneous charges in your credit reports could be evidence that a criminal has stolen your identity and opened accounts in your name. If you find mistakes, immediately challenge them in writing. By law, the three credit bureaus have 30 days to respond to you in writing. Most credit card companies give you 60 days to contest a charge.

For more information about credit card fraud and identity theft, check out the following organizations or websites:

ID Theft
www.consumer.gov

Equifax
www.equifax.com