Improving Your Credit Your credit score plays a large factor in how much money you can save. The higher the credit score the lower the interest rates and payments. Here are some tips to improve your credit score. 1. Check your credit report annually to make sure everything is in line. When you pull it be sure to review to see if there are any items that you were not aware of. 2. Pay down and eliminate unsecured debt. If you are unable to pay it off at least try to keep the balance less than half of the credit limit. 3. Pay off any outstanding collections. 4. Close out old accounts that are not being used, and do not carry a balance. It can be a lot of work to research the source of accounts and collections, but it is worth it. 5. If an incorrect account or information is reported on your credit, then dispute the item with the credit agency in order to resolve any issues. 6. If you are planning on buying a new car it is a good idea to get prequalified with a banking institution before you shop with a dealer. This is because when a dealer tries to qualify you at the dealership, not only will they pull your credit, but the bank they are contracting the loan through will also pull your credit. There is a window of times that your credit can be pulled by someone other than you before it negatively affects your score. You can avoid the second credit check by walking into the dealership with a prequalification already in hand. 7. Once all of this is done and your credit is good then depending on the market you should be able to refinance your car and/or home with a lower interest rate.