A lot of people have made various attempts to fix their financial situation. However, majority of these people failed. This is because financial resolutions need a long-term behavioral change which is very difficult but not impossible to do. There are other things that can be done to fix one’s finances aside from saving and spending less. Here are three tips to try to be able to manage your money better.

First, obtain a free copy of your credit report. The legislation in 2003 entitles all Americans to an annual free copy of their credit report. Each of the three credit bureaus must provide this copy. It can be obtained via AnnualCreditReport.com.

Despite this privilege, survey shows that almost 2/3 of Americans do not order a copy of their report. Getting hold of one’s report is important because it allows you to understand your credit score. It also helps in identifying errors and disputing them so that changes can be made that will help you obtain loans and additional credit for purchasing your needs. Aside from this, credit ratings these days determine employment. If you are planning to apply for a job, you must know your credit standing to see if it will affect your job application.

Second, go through a medical exam. This is a preventive measure rather than a direct solution to a financial challenge. By going through a medical exam, health care expenses are significantly reduced. This is because minor health problems are addressed early on before the condition gets worse.

Finally, update your beneficiaries. Deaths are inevitable and there are plenty of cases wherein the insurance proceeds go to someone else. Sometimes, this is not the intention of the bereaved family member but since the update was not made prior to death, there is nothing he or she can do about it. Remember that the name indicated as the beneficiary will be the person who will be receiving the proceeds of the insurance.

This holds true even if the will of the dead family member states that it must go to his or her spouse or children. Updating of beneficiaries should be done every time a major life change such as marriage, divorce, child birth or spouse’ death occurs. Accounts that usually need beneficiary designations include the following: 401k, 403, 457 plans, retirement plans for the self-employed, individual retirement accounts or IRAs, credit union plans, disability and life insurance policies and annuities.

Before the economic challenge took its toll, people dealt with short-term financial challenges by paying a check at a grocery store while hoping that it won’t clear before their next payday comes. This can be quite risky especially when the check bounces and there is a need to pay additional fees. The lack of option to make ends meet when cash is short is to take a loan from payday lenders.

Payday lenders give loans for the short-term. Loanable amounts range from $100 to $1000 with fees averaging at $15 to $30 for every $100 borrowed. This type of loan can be easily obtained. However, they can be very expensive. If the annual fee is considered, the rates can range from 381% to 700% according to NCLC or the National Consumer Law Center. More than the high interest rates, a cause for worry is the repeated loans of many borrowers because of the inability to pay their current loan when it becomes due. Many individuals get stuck in unmanageable debt because of this type of loan. But, payday loans are not the only options to provide for short-term cash needs. There are other fast-cash sources like 401K loans and credit card advances.

401 K allows employees to loan up to $50,000 or 50% of the total amount invested whichever is lower. Interest rates in 401K loans are generally lower than other types of consumer loans. On the average, a 1 to 2 percentage points higher than the prime rate is charged as interest. Payments are deducted from the paycheck, interest is paid to oneself and there is no need to undergo a credit check. Moreover, 401 K loans do not give limits as to how or where the money will be used.

Credit card cash advance is also a quick way to obtain short-term funds. However, they can be very expensive. The fees and interest rates for cash advances are usually higher than credit card purchases. It does not give a grace period for payment.

Running short on cash can be a challenge especially when the payday is not coming soon. However, short-term emergency funds can be obtained by borrowing from payday lenders, 401K loans or making credit card cash advances.

Related articles

• Why the SEC needs to be well funded (ritholtz.com)
• ‘Dual system’: Minorities lose financial ground, critics say (usatoday.com)

It used to be that “people” made decisions about your credit worthiness. You knew your banker and your handshake was all the collateral you needed. Those days are long gone, and now a single number – your FICO score – determines your credit worthiness.

Several credit models can be used for this article, however we are going to focus on the Fair, Isaac Company model. Better known as FICO.

Your FICO credit score can be used to determine your interest rate and how much credit a lender will give you. So taking care of your score, and keeping your credit clean will save you money.

Getting and improving your credit score is not hard at all, just takes time. Here is a tip or two that will help you improve and increase your score.

FIRST: You need to get a copy of your credit history

There are many reasons you may have no credit history. Maybe you’re just starting out, maybe you pay cash for everything and have never needed a loan. In any case, if you have no credit history, your FICO score is likely to be low.

The easiest way to raise your score is acquire a loan, and pay it off on time. In general, installment loans are weighted more heavily than credit cards. In other words, you will improve your credit score faster if you buy goods with an installment loan, rather than acquiring a credit card.

Another option is to take a $1000 and open a 6 month CD at a bank. Now turn around and get an installment loan using the CD as the collateral. You then take that $1000 loan and do it again at another bank. Do this for a total of 3 times.

Let the CD’s mature, paying only the minimum for the 6 months. Once they mature you cash them out and pay off all three loans. Congratulations…you now have a credit history.

SECOND: Maintain Your Good Credit History

Good job – you have paid your bills on time, and do not have high credit card debt. Here’s some ideas to keep your FICO score as high as possible.

Don’t close your old accounts. One part of your credit score is based on the amount of credit available verses amount of credit used. Closing old accounts can lower this part of your score.

Something to think about. The day of the month you pay off your credit card may have a lot to do with your FICO score. Let?s say you have a $2000 credit card. Every month, you charge about $1800 to that card. And, every month you pay it off. But here’s what happens – your credit card company reports your credit information monthly to FICO, but they report it on the 10th of the month…and you pay on the 15th. This would cause the credit agency to see you carry forward a balance every month. Try changing the payment times…just is sure NEVER to pay late.

THIRD: Fix your bad credit

For whatever reason, if you have a poor credit history, there are things you can do to improve your score. Some of them take time, and you will probably be best served by talking to a credit counselor to be sure that you not only repair your credit history, but also eliminate what caused that poor credit history in the first place.

The FICO score is most affected by your credit history. To repair a low credit score start paying your bills onetime. In order of value you need to pay your Mortgage, Installment loans, and last your credit cards.

The next largest portion of your FICO score is based on how you use credit. The fastest way to improve this is to pay down your credit cards.

When you?re all done with the rest of things…review your credit report. Get one from all the credit agencies. Look for errors and mistakes. Contact them to see if they can remove them or correct the errors.

A good FICO score is a huge part of your financial life. Keep it healthy. Use these tips and watch your score climb.

Doc Schmyz has done real estate deals all over the US and Canada. He built a free free website shares Real estate investing information for all over the US. Find real estate information by state