You had bad credit, the worst credit possible. In fact, it was so bad that the credit reporting agency had to invent a new rating just for you. When the mortgager ran your file, it came back with big red letters stamped across it saying, “Warning, don’t ever lend this person any money.”

You worked hard to eliminate inaccuracies, paid down your debt and earned points by taking out a low limit credit card and paying it on time every month. You got to a point where you could qualify for a mortgage from a subprime lender. You made your mortgage payments on time, things are looking pretty good, and you’re feeling confident. Now you want to refinance at a lower interest rate. Bam! You’re turned down. Why?

It might not be your own fault. You could be a victim of clerical error, incorrect billing, or even identity theft. This is why, even when you’re reasonably certain your credit report is looking pretty good, you should still examine it periodically.

Identity theft can ruin a person’s credit for years, and sometimes it’s impossible to detect until it’s too late. Check your credit report periodically to flag any unusual charges or fees. This may be a tip-off that someone has stolen your identity. Keep your personal identification close and protected. If you’re traveling overseas, never let your passport out of your sight. Passport thieves can and do take them and forge duplicate copies.

Also, theft can cause untold damage to your credit. Keep careful track of your credit, debit, and ATM cards, and if you must write down your PIN numbers, don’t keep them in the same place as your cards. Keep a separate list of all of your credit cards, along with contact information, in case of theft. That way, if your wallet and credit cards are stolen, you can call immediately to cancel them and you will not be held liable for charges above $50 per card.