Which action is a proactive step in managing credit responsibly?

Reviewing your credit report regularly is a proactive step in managing credit responsibly because it allows you to monitor your credit status, identify any inaccuracies, and detect signs of identity theft early. By examining your credit report, you can see how your credit behaviors affect your score, which elements might be improved, and when to consider applying for new credit. Regularly checking your report empowers you to make informed financial decisions and take action to maintain or enhance your creditworthiness.

In contrast, submitting frequent credit applications can negatively impact your credit score as it may signal to lenders that you are experiencing financial distress. Paying only the minimum on credit cards can lead to long-term debt due to accumulating interest, which is usually less beneficial than making larger payments. Lastly, ignoring credit limits can result in overspending and high debt levels, which could harm your credit score and put your financial health at risk.