If you’ve set yearly financial goals in the past, but have failed to achieve them, now is a great time to re-evaluate your process. And don’t let past failures discourage you, because you are not alone – only 12 percent of consumers reached their financial goals in 2011, according to a recent Zogby IBOPE survey commissioned by TransUnion, one of the three major credit reporting companies.

“Even though you may have been busy with the holidays, now is the perfect time to appraise your current financial situation and make goals for where you want to be at the end of 2012,” says Heather Battison, TransUnion’s senior director responsible for consumer education.

So what can you do to ensure financial success in the coming year? TransUnion offers five tips for planning and achieving your goals:

* Check your credit reports every three months. Monitoring your credit can help you recognize bad financial habits, like making late payments, which can affect credit score. Regularly checking your credit report is also a way to protect yourself against identity theft. If you ever run into a situation where you suspect identity theft, TransUnion provides a guide for what to do next.

Federal regulations allow everyone to receive one free credit report per year from each of the three main credit reporting agencies, Experian, Equifax, and TransUnion.

* Check for accuracy.  Make sure the information on your credit reports is up-to-date and reflects your current credit history. Give yourself at least 30 days to resolve any issues. Online dispute forms are available at TransUnion.com.

* Know your score. Your credit score helps determine your interest rates on credit purchases. A healthier credit score can help you receive the best interest rate, ultimately putting more money in your pocket as your work toward achieving your financial goals.

* Create a monthly spending plan and stick to it. Breaking down your spending habits into smaller and more manageable increments can help you achieve your financial goals. Through breaking it down by month, you can also set aside a fixed amount each month to deal with unexpected financial emergencies that may come up later in the year. If you don’t have to spend this reserve fund, you can treat it as a year-end bonus, or, even better – put it toward next year’s goals.

* Take additional measures to minimize your exposure to identity theft. In addition to frequently checking your credit, you can sign up for a credit monitoring service that will alert you whenever something changes in your report.

Setting yourself up for a successful financial year means developing plans now that you can execute as the year goes on. Additional planning tools to help you understand your credit information, manage your debt load, protect your identity and help you achieve your financial goals can be found TransUnion.com.

The post Tips for Meeting your Financial Goals this Year first appeared on The How Do Gardener.

Experian, the leading global services information company, conducted a second annual assessment of credit scores in cities across the country and found that many cities have improved their scores since last year – albeit by small margins. With the average U.S. credit score at 749, or a “C” rating based on the VantageScore 501-990 scoring range, many consumers are taking small steps toward improving their economic situation, but there is still a great deal of room for improvement.

Maxine Sweet, vice president of public education at Experian, the leading global services information company, offers some tips to help consumers take proactive steps to help improve their credit and make smarter financial choices.

Check your credit score and report so you have a benchmark for improvement.
Credit scores translate the information in your credit report into a simple number. Check your credit report and purchase a credit score so you understand the baseline of where you stand and how your credit may have been affected by recent life events.

Understand the financial behaviors that influence the information contained in your credit report.
While it is important to know where your credit scores fall in the range of risk for lenders, the most important things to understand are the factors in your credit report that determine that risk. Once you understand the way your credit report is affected by your financial behaviors, you will be able to take the necessary steps to improve your credit history and subsequently improve your scores.

Pay your bills on time.
Paying your bills on time is the single most important contributor to good credit. Late payments negatively affect your ability to get credit since they indicate a stronger likelihood that you will make late payments again or will be unable to pay your debts in the future. Even if the debt you owe is a small amount, it is crucial that you make payments on time.

Keep balances low on credit cards and other revolving credit.
If you max out your credit card or charge balances that are very close to your limit, you will increase your “balance to limit ratio,” or utilization ratio. A high utilization ratio may indicate that you are tempted to charge more than you can pay and therefore, negatively affect your credit score.

Remember there is no overnight fix for a low credit score.
A credit score reflects credit payment patterns over time, with more emphasis on recent information. The fastest way to see an improvement in your score is to catch up on late payments and pay down your debts. If you have negative information on your credit report, time is your ally in improving your credit score.

Understanding how your financial behaviors influence your credit score will allow you to make more informed financial decisions and, ultimately, improve your financial future. To learn more about building and maintaining a strong credit history visit LiveCreditSmart.com.

The post Living Credit Smart in Tough Financial Times first appeared on The How Do Gardener.