What about identity theft or a data breach?

What about it, indeed! This is yet another reason why it's so vital to check your credit report regularly. The faster you report that your identity has been stolen, the faster and more effectively the problem can be fixed.

If you're aware that some of your personal data has been stolen – even if you don't see anything wrong in your actual credit report – you should attach a fraud alert to your credit file. This will alert any creditor to contact you to make sure you're the one who is actually applying for the credit.

If you don't feel this is enough, you can file a police report or even get a credit freeze, which prohibits creditors from gaining access to your report at all. The problem with this, of course, is when you do need to apply for credit you'll have to "unfreeze" everything before submitting an application. (Note: There is a nominal cost for freezing and unfreezing; usually around $10.)