Improve Credit Score

You need to first know what's on your credit report in order to fix errors and to take other steps to improve credit scores.

Obtain a free credit report copy and your actual credit score

• Tip: Although it takes time to recover from major credit problems, there are 2 things you can do to improve credit. These 2 things will lower the balance of your debt as a percentage of your total borrowing ability: (1) Pay down a balance and (2) Call your issuer and ask for a higher credit limit, but don't actually spend it.

Reduce Personal Credit Risk

Reduce the odds of you becoming a victim of credit theft, and also lower your temptation to accept a new credit line.

Protect your credit

The first line of defense against identity theft, is to limit the ability for someone to steal your identity by getting credit in your name. Shred, burn, or otherwise destroy all documents which contain sensitive data (name, address, Social Security Number, bank account numbers, etc).

• Tip: Some states allow credit freezing. Freezing credit prevents anyone from issuing credit in your name. You can; of course, temporarily lift the freeze when you need credit. Visit consumersunion.org/securityfreeze.htm for details.

Prevent Overextending

The less line-of-credit offers you receive, the less temptation you'll have to accept those pre-approved offers and to overextend yourself.

• Tip: To stop mailed credit offers, call 1-888-5OPTOUT to remove your name from credit issuers' mailing lists.

Improve Personal Finance Situation

Negotiate Credit Card Interest Rate

If you have a good credit score, you are a valuable customer for any credit card company. Call your issuer and negotiate a lower rate. You'll be surprised how quickly the card issuer will grant your request just to keep you as their customer instead of losing you to a competitor card company.

• Tip: You may be able to save even more by getting a credit card with better rewards and perks. Visit creditfederal.com/credit-card-rewards.html for details.

Prep Your Financial Future

Invest, rev up your 401K, and get adequate property and life insurance.

Save Money

Avoid late fees.

• Tip: Two ways to avoid late payments are to pay bills online or to setup auto-drafts for recurring payments to creditors (mortgage, auto loan, etc) from your checking account.

Avoid bounced check fees

Why pay fees for bouncing checks when you have options at hand?

• Tip: Setup an overdraft protection plan with your bank, or ask your bank to notify you when your balance falls below a certain level. Some banks will also notify you when there's unusual activity in your account to help you quickly spot identity theft.

Lower Auto Insurance

Although you risk more if you have an accident, by raising your car insurance deductible you can save you up to 30%.

• Tip: If your car isn't worth much and is paid in full (no lien) consider terminating your collision and comprehensive coverage, especially if your car is worth less than 10 times what you pay for the insurance. Also, don't forget to shop around for the best deal.

Pay Less Taxes and Earn More Interest

If you typically get a large tax refund each year, this means you are having too much withheld from your paycheck.

• Tip: Instead of letting the government have your money interest free for a whole year, have your employer withhold less and put that extra amount into a savings account. No, you won't get a huge refund when you file, because that money is already sitting in your savings account and is now actually larger due to the interest.

Stop Impulse Purchases

Those last-minute purchases; for items you didn't plan to buy, could be eating up a chunk of your spare cash.

• Tip: To stop luxury impulse purchases, mull over the decision for at least 10 minutes.
• Tip: To stop grocery store impulse purchases, make a shopping list that follows the layout of the store (no straying) and calls for stocking up on sales items.