5 Ways to Manage Your Credit Report & Score

1. Do not close credit cards you have paid off, this can negatively effect your credit score. For example: if you have two credit cards, owe $5k on one with a $10k credit limit and owe $1k on the other with a $2k limit, your total debt to credit limit is 50% (6k total debt/12k credit limit). If you pay off $1k on the smaller card and close it,  your
total debt to credit limit is still 50% (5k total debt/10k credit limit). However,  if you pay off the debt and leave the account open and current,  your total debt to credit limit is lowered to 41.67% (5k total debt/12k credit limit).

2. Transfer balances to low interest,  0% on balance transfer credit cards. Even though there is almost always a fee to transfer your balance, there is a benefit to paying 0% interest on old debt as you pay it off. Just remember, this special rate only last for limited time and interest still accrues during that period.

3. Be mindful of your income-to-debt ratio.  Less than 15% is considered good, 15-20% is average, above 20% is risky. For example, if you make $42,000 a year, your debt should not exceed $8,400 for the year.

4. A recent credit agency settlement has changed the way medical debt is listed on your report. Agencies such as Equifax, Experian and TransUnion will establish a 180 day waiting period before adding medical debt to your credit report to account for disputes and corrections.

5. Monitor your credit report regularly. You receive three free credit reports per year. It's recommended to request one credit report every 4 months from each credit union to check for any discrepancies.

Sources: www.creditkarma.com, www.npr.org and www.annualcreditreport.com

5 Ways to Manage Your Personal Finances...

1. Create your budget. Use either software such as Quicken or Sage, programs like Microsoft Excel, or personal finance apps and websites like mint.com, to keep track of your income and expenses.

2. Accurately manage your income. Be mindful of over estimating future earnings.

3. Plan ahead! Make sure to dedicate some of your future income to pay for things such as a trips, events, gifts, even taxes.

4. Shy away from debit card use, instead take out cash or switch your routine debit card spending to reward based credit cards such as Citigroup,  Capital One,  Bank of America or even American Express. As you spend you receive cash back!  Make sure to set aside a monthly amount to pay these cards in full so you do not incur interest charges.

5. Stick to the plan. We all fall of the wagon at times, but try your best to stick with your financial plan. Just remember, if it's not in your budget, don't touch it!

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5 Ways to Manage Your Tax Refund

1. Put 50% of your refund in a Savings account or IRA.

2. Use 20% to pay down debt on high interest credit cards.

3. Invest 10% in CD's, stock, or bonds.

4. Set aside 10% for unexpected medical expenses.

5. Use 10% on personal consumption, you have to reward yourself!