Card skimming is a technique criminals use to collect data from your credit or debit cards magnetic strip when you use it to pay for a purchase. Point-of-purchase machines, such as gas pumps, ATMs, and store check outs are susceptible to skimming devices.

According to the data analytics firm FICO, skimming scams are on the rise. They found a 96% increase in these scams in 2023. According to the FBI, skimming scams cost consumers upwards of a billion dollars a year in the United States.

How Skimming Occurs

Criminals install skimming devices on payment platforms, the device can be inserted into the card reader, or overlayed on the payment device. Sometimes a small camera is installed that records your activity. The skimming devices record the debit or credit card information. Depending on the type of device installed it can transmit data wirelessly or the thief will come back later to retrieve the data.

How to Spot a Skimming Device

Card skimming devices can be difficult to spot. Before making a payment inspect the payment terminal, signs of tampering can include a loose, misaligned or damaged card reader.

Part of the machine may look different than the rest, or the keypad may have an overlay. If the numbers are hard to press or you cannot see the numbers clearly that can indicate an overlay.

Gas pumps should have an intact security seal near the card reader. If the seal is broken, the FTC says the label will read void. Check other gas pumps to see if they look the same. If something looks different that may be a sign that a skimming device has been installed.

How to Prevent Skimming

Inspect each card reader you use, if anything seems out of place don’t use it and inform the business.

Check for hidden cameras near payment terminals and if you need to enter a PIN number cover the keypad with your hand while you type it in.

Avoid using your debit card when making a payment, use a credit card instead. Credit cards offer more protection, and they are not tied directly to your bank account.

Use a contactless payment method “tap to pay,” by tapping your card at the POS terminal. Each tap generates a transaction-specific, one-time code that can help reduce fraud. This near-field communications (NFC) technology is more secure since it does not expose the card’s magnetic stripe.  

Use a mobile wallet like Apple Pay, Samsung Pay, or Google Pay. This form of payment is secure because your credit card information is tokenized.

Avoid outdoor terminals when possible, criminals are less likely to tamper with payment terminals located inside of a building.

Use a fuel pump located closest to the store, criminals often target fuel pumps that are not easily seen by store employees.

Avoid using non-bank ATMs. FICO reports that 60% of skimming occurs at privately-owned ATMs.

Regularly monitor your financial accounts so that you are quickly aware of any unusual charges or activity. Contact your financial institution immediately if you find a problem.

Sign up for account alerts at your bank, credit card company and other financial institutions. Alerts will notify you of any unusual or suspicious activity.

What To Do If Your Card Has Been Skimmed

If your debit or credit card has been compromised, contact your credit card company or bank immediately. Federal law limits your liability if a credit, ATM, or debit card is lost or stolen but you must report the loss as soon as possible. You will not be held responsible for charges made without your permission if they happen after you report the loss.

After reporting the loss immediately follow up in writing, send a letter to the bank or credit card company detailing the event, include the date the incident occurred, the date you reported it, your name, address, phone number, and account number.

If you have a good FICO credit score (670-739) very good (740-799) or exceptional (800-850) you will qualify for some perks. The higher your score the better.

The average credit score for most Americans is around 717. Your credit score is based on the information in your credit report. Each of the three major credit bureaus (Equifax, Experian and TransUnion) generate a credit report based on how you use your various lines of credit.

There are five factors that make up your FICO score.

• Payment history (35 percent): Payment history is a record of payments on your credit accounts. It includes on-time payments, late payments, defaults (Instances where you failed to pay back a loan or credit card debt) and collections (accounts that have been turned over to a collection agency due to non-payment)
• Amounts owed (30 percent): FICO looks at both the total amount owed across all your accounts and your credit utilization on revolving accounts. Your credit utilization ratio is your current credit balance compared to the amount of credit available to you.
• Length of credit history (15 percent): This is the length of time your credit accounts have been open.
• Credit mix (10 percent): This is the mix of credit types in your account. Creditors like to see that you can manage both revolving credit, like a credit card, and installment loans, like a home or auto loan.
• New credit (10 percent): This shows how often you have applied for new lines of credit. Each time you apply for credit an inquiry is placed, soft inquiries (may happen when a credit card issuer checks your credit without your consent to see if you qualify for certain credit card offers, or an employer might run a soft inquiry as part of your job application process). don’t typically influence your credit score, but hard inquiries (when you apply for a mortgage, loan or credit card) can.

There are steps you can take to improve your credit score, see my article How to Improve Your Credit Score

Here are 4 perks you might receive with a good credit score.

1. You will more easily qualify for new credit. Since your credit score is a way for lenders to measure your credit worthiness a higher score signals to lenders that you are more likely to make on time payments. So, whether it’s a home loan, car loan or new credit card application your chances of being approved are better with a higher score. You will also qualify for higher credit limits. For credit cards in particular, having a higher credit limit benefits you in a few ways. You will be able to pay your bills without worrying about reaching your limit and it can also improve your credit score because it helps keep your credit utilization low. Your credit utilization ratio is a measure of how much credit you’ve used versus how much credit you have. A lower credit utilization ratio is better for your credit score.
2. Utility companies also look at your credit score and may not require a deposit if you have a higher score. Utility companies often require a security deposit which acts as collateral if a customer does not pay their bill. A higher score demonstrates to the utility companies that you are a responsible payer.
3. Insurance companies will often offer a lower rate if your score is good. Most insurance companies run a credit check on their customers, they look at customers who have a low rating as potentially costing the company more money so the better your credit score the better your chances are of receiving a lower rate.
4. Employers can request your credit report as part of your job application. (your consent is required). They may see things like late payments and bankruptcies as possible red flags so you might be more likely to get hired with a favorable score.

A lot of us start the new year focusing on goals and any lifestyle changes we might want to make, like weight loss, traveling more, or spending more time with family, but it’s also a great time to review your finances to be sure you are on track for a successful year.

No matter what goals you set for yourself getting your finances in order should be one of them. Here are a few areas that you can look at and adjust if needed to start the year off on the right foot.

Check your Beneficiaries

Life insurance policies, retirement accounts, bank accounts, and brokerage accounts can all be left to a designated beneficiary. If you don’t choose beneficiaries for your assets, then the decision will be left to a court or financial institution. Don’t let that happen, you should choose where your assets will go so it is important to review each of your accounts to be sure they are up to date. A lot can change in a year, marriages, divorces, births, and deaths can all change how your assets will be distributed.

Review Credit Card Debt

If you are starting the year with credit card debt create a plan to pay it off. Credit card debt can carry a high interest rate, make it a top priority to pay off any debt with a high interest rate.

If you don’t pay your balance in full each month you are paying interest which is a huge waste of money. Use your credit card as a tool to build credit and earn rewards. Don’t put anything on your credit card that you cannot afford to pay in full each month. Choose a credit card that has no annual fee and offers reward points. Establish and contribute to an emergency fund for unexpected expenses instead of charging those to your credit card.

Consider transferring to a zero-interest credit card. You pay no interest for a promotional period, typically 15 to 21 months. Take that time to aggressively tackle the debt.

Create a Budget

If you don’t already have a budget setup, consider doing so. A budget allows you to create a plan and track where your money is going each month.

Setup an Emergency Fund

An emergency fund is money you have on hand to cover emergencies and unplanned expenses, having money in an emergency fund ensures that you will be prepared for a sudden expense, and you can handle those expenses more easily. Unemployment, illness, family emergencies and home and auto problems can happen without warning. Most financial experts recommend having enough money in an emergency account to cover 3-6 months of expenses. If you lose your job, you should have enough money in your emergency fund to cover your monthly bills. Having this money allows you to pay your bills while you are out of work without going into debt. Add up your monthly expenses and multiply that by the number of months (3-6) you want to save for. That number is the amount of money you want in your account.

Update Your Estate and Insurance Plans

If you don’t have an estate plan the new year is a good time to set it up, if you already have a plan in place review it and make any necessary changes and updates. The plan should consist of a Will/trust, Durable power of attorney, Beneficiary designations, Letter of intent, Healthcare power of attorney and Guardianship designations.

Review your insurance policies including life insurance, homeowners and rental insurance and auto insurance to make sure your adequately covered and any changes such as home improvements have been added to your policies. It is also a good time to shop around to be sure you are getting the best coverage at the most cost-effective price.

Make Saving Money a Priority

If you are not currently saving enough money review your budget and make it a priority to set aside a designated amount of money each month. Automatic contributions are an easy way to transfer money into your saving accounts. Any amount is better than nothing and when it is automated you don’t have to think about it. Also shop around to find the best savings account interest rates.

Consider putting more money into your retirement accounts as well. Just a small increase can add up over time. If you received a raise at work, you might put it toward retirement instead of increasing your spending.

If your employer offers a 401(k) match, be sure you contribute enough to get the full match since it’s basically free money. Also review where your money is being invested. Most experts recommend investing in a diverse portfolio to limit your risk while still achieving attractive returns.

Freeze Your Credit

A credit freeze, also known as a security freeze, is one of the best ways to prevent fraud and identity theft. When your credit is frozen it limits access to your credit reports unless you lift the freeze, or “thaw” your credit. Limiting access to your credit report makes it significantly harder for creditors and lenders to access your files, this prevents criminals from opening accounts in your name.

In 2018 the Economic Growth, Regulatory Relief and Consumer Protection Act, was passed which requires all credit freezes to be free of charge. A credit freeze will not impact your credit score.

The three major credit bureaus are Equifax, Experian and Transunion. Freeze your credit at each bureau. This can be done online, by phone or through the mail.

You will need to provide your full name, address, Social Security number, birth date and other personal information. You’ll be asked a few questions to verify your identity and then be asked to create a PIN.

Keep your PIN and other information they provide in a secure location, you will need this to access your account and manage the freeze.

You can temporarily or permanently unfreeze your credit online, by phone or by mail.

Children are also vulnerable to identity theft see my article How To Freeze Your Childs Credit

Check your credit reports regularly. You can use sites like Credit Karma and Credit Sesame to view your credit scores.

You are entitled to a free copy of your credit reports at the three major credit bureaus, Equifax, Experian and Transunion. Go to AnnualCreditReport.com to request your reports.

If your current credit score is not up to par, consider taking steps to improve it. See my article How to Improve Your Credit Score

Most credit experts advise against closing credit cards, even if you’re not using them because canceling a credit card has the potential to reduce your credit score.

If you have a card that you have not used for a while the provider may notify you that due to inactivity the account may be cancelled. You might consider cancelling the card since you don’t use it but here’s why you might want to keep the card open.

Length of Credit History

The length of your credit history makes up 15% of your credit score. Showing long held accounts in good standing has a positive impact on your score. If you cancel a card, you lose that history.

Credit Utilization

Credit utilization ratio is how much debt you have in relation to your total available credit. It signifies how much credit you are using. Keeping the credit utilization ratio below 30% shows that you can effectively manage your debt. A utilization rate of 10% or less leads to the highest credit score.

If you have a limited number of credit cards and you cancel one of them it can have a negative impact on your credit utilization ratio because it reduces your total available credit, which can significantly increase the percentage of credit you are currently using on your other cards.

Payment History

Payment history makes up 35% of your credit score, having a long-standing card with a positive payment record is important. Even if you use the card infrequently it can still benefit you.

Keeping an old credit card open might be beneficial. Take the card out a few times a year to pay a bill or make a purchase and pay it off in full. Or use it for a recurring charge so that you don’t have to think about it.

There are situations where closing a card may be beneficial in the long run, while you might take a negative hit on your credit score it may be minor if you have a lot of available credit and limited debt.

• The card has an annual fee, closing the account will eliminate that expense.
• All credit cards come with a security risk, if your account details are stolen you will spend time reporting the crime and resolving the charges.
• Any open card can lead to debt if the account is not managed properly.
• If you want to simplify your finances having a limited number of credit cards can help you do that.
• The account was recently opened, canceling a newer card will most likely lead to a smaller drop in your credit score.
• If you have a joint credit card account and the relationship has dissolved maybe during a separation or divorce you want to close the account.

According to a report from the Federal Reserve Bank of New York Americas total credit card balance was $1.166 trillion in the third quarter of 2024, that’s up from $1.142 trillion in the second quarter. It is the highest balance since the New York Fed began tracking in 1999.

It is very easy to quickly accumulate credit card debt and once people reach a high debt level, they may feel overwhelmed and powerless to pay it off, but we all have the power to control our own financial situation. This may require reevaluating your spending habits and creating a financial plan to reduce spending and pay off your debt.

Here are some steps you can take to regain control and pay off your credit card debt.

Put the Card Away

Once you are buried in debt you need to put the credit card away and stop adding to the balance, setup a budget and eliminate all unnecessary expenses, differentiate your wants and needs. Food and rent are needs, streaming services, dinners out and entertainment are wants and can be eliminated or reduced until you are in good financial standing. Most credit card issuers compile a year-end summary report that categorizes what you are spending your money on, review the report to get an idea of where your money is going, this will help you decide which areas of spending are unnecessary.

Contact Your Credit Card Company

Call your credit card company and ask for a lower interest rate. Getting the rate reduced by even a few percentage points will help. Many providers are willing to lower your rate if they know you are actively trying to pay off your balance.

Some issuers offer a credit card hardship program, typically it is a payment plan that you setup with them, they may waive fees and lower interest for a certain period of time. Not all issuers offer this type of program but if yours does it is something worth investigating.

Research Balance Transfer Deals

Look for a reputable credit card that offers 0% intro APR. Transferring to a 0% APR credit card could help you save hundreds or thousands of dollars in interest and may help you get out of debt faster. Look for a card with no annual fees and low or no balance transfer costs. Most of these cards give you 12-18 months of no interest so work hard on paying off your debt during that time.

Any Amount Will Help

Don’t get discouraged if you have a large balance, the worst thing you can do is give up and stop making payments or pay only the minimum amount. Look for ways to eliminate spending and take the money you are saving and put it toward your debt.

Look For Ways to Earn Extra Money

Look for ways to earn extra money, this could be a part time job or selling unneeded possessions or even moving to a less expensive home or rental. Any additional money you bring in can help you get out of debt faster.

Pay with Cash

Paying with cash will eliminate paying interest, which is a huge part of credit card debt, it also makes you more aware of your spending. If you don’t have the cash to pay for it, you don’t buy it.

Use Any Extra Money

Use any extra money you come into to pay off the debt, this can include income tax returns, salary increases, inheritance money, and work bonuses.

Debt Snowball & Debt Avalanche Method

If you have multiple credit cards, you might consider either the debt snowball or debt avalanche methods of payment. The snowball approach involves paying off the smallest cards first and then moving on to the next smallest until you have paid them all off. The Avalanche method is when you pay off the card with the highest interest rate first and then move on to the next card with the highest rate until you are debt free.

According to a research report by Empower titled “In Case of Emergency” roughly a fifth (21 percent) of Americans have no emergency savings at all.

If you have an emergency fund setup that would cover 6-12 months of expenses that’s good news. A fully funded emergency account ensures you are in good financial standing should an unexpected event occur such as an illness or job loss that temporarily reduces your income. An emergency fund can prevent you from going into debt that may be hard to recover from.

Here are some common mistakes to avoid when funding your emergency account.

Not Saving Anything

The biggest mistake is not saving anything in an emergency fund. Even if you start small any amount you can contribute will pay off.

Not Saving Enough

How much you have in an emergency fund depends on your situation, it includes your financial obligations, lifestyle and living expenses. Some experts recommend having 3-6 month’s worth of living expenses in your account, some suggest up to 12 months. You should be able to cover expenses like rent or mortgage payments, groceries, utilities, healthcare, transportation, and other necessary costs. Calculate all your monthly expenses and then save enough money to cover those expenses for an amount of time you feel comfortable with.

Saving Too Much

Once your emergency account is fully funded with the amount you have decided upon you can stop adding money to the account. Since an emergency fund should be in an easy to access account like a regular savings account it may be paying a low interest rate. Once the account is fully funded put your money into an investment account or retirement account where your money is working for you.

Saving in the Wrong Type of Account

Your emergency fund should be saved in an account that is easily and immediately accessible. Park your money in an account that is liquid and earns interest, with little to no risk involved.

Depending on Retirement Savings for an Emergency

Your retirement account should be off limits, don’t entertain the idea that you can dip into it if you need to. This can cause long term, irreversible financial consequences. You should pretend this is not even an option. Not only can you face penalties for early withdrawal, but you will be depleting an account that is meant to fund your retirement.

Borrowing from your Emergency Fund for Non-Emergencies

Your emergency fund is not meant for anything but emergencies. Eating out, shopping, entertainment, vacations, and other daily expenses are not emergencies.

Not Replenishing the Account

When you withdrawal money from your emergency fund it should be paid back as soon as possible. Once the emergency has passed start contributing money to the account again. Setup an automatic transfer from your checking to your emergency account so that it happens automatically, and you are not tempted to spend the money elsewhere.

Not Considering Economic Changes

The amount you save can change over time, pay attention to inflation and other economic changes and changes to your personal finances, and adjust your contribution amount accordingly.

Not Cutting Back on Expenses

It is important to have a budget so that you know where every penny goes, if you feel you don’t have enough money to contribute to an emergency fund evaluate your spending and cut back on unnecessary expenses to fund the account. Dining out, shopping and entertainment should take a back seat to your emergency fund.

When making financial decisions think long term. You don’t want to make mistakes now that you may regret later. Choices you make today may seem inconsequential, but they can have long term effects.

Not Saving for Retirement

When we are young, we might think we have plenty of time to save for retirement, but reconsider if you feel this way. It takes years for retirement savings accounts to accumulate enough money to finance your retirement. If your employer offers a retirement savings plan put as much as you can in it each month, many employers offer a match up to a certain percent.

Not Having an Emergency Fund

An emergency fund is money you have on hand to cover emergencies and unplanned expenses, having money in an emergency fund ensures that you will be prepared for a sudden expense, and you can handle those expenses more easily. Unemployment, illness, family emergencies and home and auto problems can happen without warning. Most financial experts recommend having enough money in an emergency account to cover 3-6 months of expenses. If you lose your job, you should have enough money in your emergency fund to cover your monthly bills. Having this money allows you to pay your bills while you are out of work without going into debt. Add up your monthly expenses and multiply that by the number of months 3-6 you want to save for. That number is the amount of money you want in your account.

Overspending on a Car

Most of us need a car but we don’t need the biggest and best. A common area people overspend on is purchasing a vehicle. Cars depreciate in value the minute you drive off the lot and an auto loan can take years to pay off. Don’t buy more than you can afford.

Overspending on a Home

When applying for a home loan, lenders look at your credit, your collateral, and your capacity to repay. They look at debt that typically shows up on your credit reports but that does not include many of the other monthly expenses you may have so your approved loan amount may be far more than you can comfortably afford. There are many benefits of purchasing a smaller, more affordable home. Don’t allow your emotions and visions of a dream home cloud your judgement. Your mortgage is potentially the largest expense you will have, you should easily be able to add the house payment into your budget and still have money left over.

Not Having a Budget

A budget helps you track your spending and shows you where you money is going. Use it to track your spending and save for the future.

Impulse Spending

We have all done it, gone shopping for items on our list and came home with things we did not intend to purchase. Impulse spending is buying based on feelings instead of necessity. This might not cause a problem if done occasionally but if it becomes a habit it can lead to financial difficulties. Making an impulse purchase might make you feel happy or satisfied at that moment but later you may realize that the happiness was short lived, and you might regret the purchase and the money you wasted. If you are trying to stick to a budget and save money curbing impulse spending should be a priority.

Incurring Credit Card Debt

Your credit cards should be used as a tool to build credit and earn cash back and rewards points and you should think of it as cash. If you don’t have the money to pay for the purchase in full don’t buy it. Paying your balance in full each month avoids high interest charges, helps you build credit and prevents you from spiraling into debt which could take many years to recover from.

Not Prioritizing Your Health

Not taking care of your health can lead to long term medical and financial consequences. Schedule regular checkups with your doctor, eat healthy and exercise, get enough sleep, avoid unhealthy habits, and find ways to limit stress.

Keeping Up

We have all heard the phrase “keeping up with the Joneses” it is a phrase used to describe the idea of keeping up and comparing ourselves to our neighbors. If they have a better car, better house, better social life we might feel the need to have the same. Don’t do it. Live within your means and never compare yourself or what you have to others. The neighbors that seem to have it all may be drowning in debt.

Overspending When Your Income Increases

If you are living within your means, you have enough money to pay your current expenses with some left over. When you receive a pay raise, tax refund, inheritance or other additional income don’t look at it as free money, instead pretend you never got it and invest the money in savings and your retirement account and continue your current lifestyle. Your future self will thank you.

No Financial Education

Financial education is important for everyone, it allows you to make smart financial decisions and stay out of debt. You can take classes in person or online, talk to financially smart people, read books and listen to podcasts to gain a better understanding of how money, investing, credit and living within your means works.

When you freeze your credit card it is done through your credit card issuer and is not related in any way to freezing your credit with the three major credit bureaus.

Consumers may freeze their credit card to prevent fraud or to stop themselves from spending. The provider may also freeze the card under certain circumstances.

One reason you might place a freeze is if you have misplaced your card, you can freeze it temporarily while you search.

If you cannot find the card or believe it was lost or stolen, you should contact your credit card provider immediately to cancel the card and get a replacement.

Most credit card companies allow you to freeze your card by phone, online or through their mobile app. Freezing can also be called locking by some companies so look for either of those terms when placing a freeze.

When the card is locked it generally prevents any new charges from taking place, however recurring payments and certain other transactions like credits to your account, refunds from returns, interest charges, fees and dispute adjustments will continue to be processed. You will still be responsible for making payments. To find out exactly what transactions will continue if you freeze your card contact your credit card provider.

Another reason you might freeze your credit card is to stop yourself from spending, without easy access to the card you may be less tempted to make a purchase. You could do this while you are paying off debt, so you don’t spend anymore until you have reached that goal.

Some lenders will allow customers to freeze specific types of payments, for example online payments, foreign transactions, contactless payments, and cash withdrawals. This can be useful if you are worried about those types of expenditures.

The provider may freeze the card themselves if they notice potentially fraudulent activity or if you have failed to make payments.

Once your card has been frozen you will need to contact the provider to remove the freeze. If you have frozen the card yourself, they will process your request. If the provider froze the card, the length of time before it is unfrozen depends on the circumstances that lead to the freeze. You would need to contact the provider for details.

Maintaining a good credit score is important, your credit score can determine your eligibility for loans and the rates you receive, utility services, insurance rates and more.

When you understand what elements go into determining your score you can take steps to protect your credit and maintain a good score.

What is Included in Determining Your Score

Payment History

Your payment history shows whether you’ve consistently made on time payments. This helps lenders determine the amount of risk involved when extending credit. This is the most important factor in determining your score.

Credit Utilization

Credit utilization measures how much credit you are using compared to your total available credit. Lenders look at this number to find out how much you are relying on credit. The lower the number the better. Most financial experts recommend that you keep your utilization below 30% but 0% is ideal, you can accomplish this by paying your balances in full every month by the due date.

Credit Age

This is the length of your total credit history, having long-standing accounts is beneficial. This is one reason most financial experts recommend you keep old credit card accounts open even if you don’t use them often, another reason not to close old accounts is because it can temporarily lower your credit score.

New Accounts & Credit Checks

When you apply for a new line of credit your credit is pulled to determine your eligibility. There are hard and soft inquiries. Hard inquiries typically occur when a financial institution checks your credit when making a lending decision, for example when applying for a mortgage, loan or credit card, while one hard inquiry may not have a huge impact on your credit score having multiple hard inquiries close together can lower your score significantly. Soft inquiries are typically used for things like employment, rental housing, and pre-approved loan and credit card offers, they do not have a negative impact on your score.

Credit Mix

Credit mix is used in determining your credit score, having a good mix of credit with accounts that are in good standing is beneficial, this can include credit cards, home and auto loans, and personal loans. A diverse credit mix tells lenders that you have been able to manage different types of credit accounts responsibly over time.

What is Not Included in Determining Your Score

Employment History

Employment history can show up on your credit report, but it is not used to calculate your credit score. Although employment history and your time on the job can have an impact on determining your eligibility for lines of credit.

Interest Rates on Debt

The interest rates you are paying on debt are not a factor in determining your score and is not part of your credit report.

Bank Account Balance

Your bank account balance is not part of your credit report, nor does it impact your credit score.

Your Income

Your income and net worth are not part of your credit report.

Public Records (Except Bankruptcy)

In the past some public records may have shown up on your credit report but that is no longer true. Since the National Consumer Assistance Plan went into effect in 2017, public records must meet stringent requirements to appear on consumer credit reports, previously civil judgements and tax liens could be included on credit reports but they do not meet these new requirements, so they were removed. Bankruptcy is the only information from the public record that is included in your credit report.

Personal Information

Your credit report does include some personal information such as your name and any names you have used in the past, date of birth, current and past addresses, Social Security number, current and past phone numbers, employment history and credit and loan accounts. But these are not used to determine your credit score. US law prohibits credit scoring from considering your race, religion, national origin, sex, and marital status.

Just like you tune-up your car, consider giving your finances a tune-up a few times a year.

Whether your goal is to pay off debt, build savings, or just spend more carefully, here are some tips to help you get started.

Evaluate Your Spending Habits

Review your spending habits over the previous few months, look for areas where you may be spending too much money and areas where you can cut back. Review recurring expenses like subscription services, cell service, and memberships and decide if you can eliminate some of those expenses or switch to something less expensive. Review expenses like entertainment and eating out and instead look for free or less expensive entertainment and meal options, even little changes can save money.

Review Your Budget

If you don’t have a budget setup, consider doing so, a budget helps keep you on track and shows you where your money is going and it builds a foundation for financial accountability and stability. Allocate money for all of your necessary monthly expenses like housing, utilities, groceries, and transportation while also setting aside money for savings, retirement and debt repayment.

Review Your Bills

Call your cable company, cell service provider and internet provider to negotiate a lower fee or obtain promotional offers or other discounts to reduce your monthly payment. With so much competition in the market service providers are often willing to work with you to reduce costs. Call your car and homeowners insurance companies to review your policies and find a better rate, shop around with different insurance companies if your current provider is too expensive or unwilling to negotiate a lower rate. If you don’t currently bundle your policies, consider doing so because you often receive a lower rate when bundling. If your credit score is poor take steps to raise it, you receive better rates on insurance and other services with a good credit score.

Automate Your Savings

Make savings a priority, setup automatic transfers from your checking to your savings, each time you get paid deposit a set amount into savings. You won’t have to remember to transfer the money and you will build wealth overtime. If you do not have an emergency account setup, make this part of the plan. You should have 3-6 months of income set aside for unexpected expenses.

Pick The Right Time to Buy

When you are considering making a purchase, take advantage of end of year or end of season sales. Spring, summer, winter and fall all come with their own discounts, for example you might get a better deal on a lawn mower or outdoor grill if you buy them in the fall when the summer season has ended. After holiday sales are the perfect time to stock up on items for next year, after Christmas you can get great deals on wrapping paper, greeting cards and holiday decorations.

Try DIY

You can save money by doing things yourself, if you pay for lawn service, cleaning service and minor household repairs consider doing those chores yourself. General home maintenance is something you can easily learn to do. YouTube is full of useful videos on almost every subject.

Pay As You Go

Credit card debt can be a problem for some, if you struggle to pay off your credit card each month make it a rule to pay for some expenses like groceries and gas with cash or a debit card instead which will hold you accountable and help you stick to your budget without accumulating additional debt.

Pay off Credit Card Debt

Credit card debt is often the most expensive type of debt. Make it a priority to pay it off.

Review Your Investment Mix

Review your retirement plan and other investment mix, depending on your age or how close you are to retirement and the standing of the current market you might need to adjust your holdings. If you have an employer sponsored retirement plan that offers a match, try to contribute the maximum amount so you are not leaving free money on the table.

Review Beneficiaries

Review the beneficiaries on your accounts, especially if you have had any recent changes such as a divorce, marriage, birth, adoption, or death. Make sure the designated beneficiaries on your financial accounts, insurance, retirement accounts and other holdings are up to date.