Personal finance tips: The risks of medical credit cards, and more

Saving on back-to-school purchases

Back-to-school shopping isn't the "frenzied one-day spending spree" it used to be, said Kaitlyn Krasselt at USA Today. Families are expected to spend an average of $670 on school supplies, clothes, and electronics this year, but more parents "are shopping strategically online and picking up additional in-store items when necessary," spreading out their purchases over time. For the essentials, experts say the best way to save is to avoid brick-and-mortar stores altogether and wait for Labor Day sales. In the meantime, late July and early August can be a great time to cash in on deals for classroom supplies, while big-ticket items like laptops are likely to go on sale in August, "when 62 percent of all 2013 laptop deals occurred."

5 tips to manage your credit

1. Check your credit report 
   The first step on your journey to maintain or improve your credit is finding out your credit score and reviewing your credit report. The FICO score is the most frequently used type of credit score. It's a measure of risk that calculates the odds of you repaying lenders based on your financial history and the terms of the loan. To do this, it uses the information in your credit report. FICO scores can range from 300 to 850. The higher your credit score, the more likely you will be approved for loans and possibly lower interest rates. You can check your credit report once a year for free through the Equifax, Experian, and TransUnion at www.creditchecktotal.com. Once you view your report, look for any discrepancies or delinquencies and be sure to resolve them right away.
2. Understanding different credit score inquiries 
   There are two types of credit score inquiries: hard or soft, depending on who is pulling your credit. When a lender or business obtains a copy of your credit report in response to an application for credit, it results in a hard inquiry. Hard inquiries can take a few points off your credit score. Soft inquiries occur when a person or company (a prospective employer, for example) checks your credit report as part of a background check. Soft inquiries have no effect on your credit score. Checking your own credit counts as a soft inquiry. That means you can check your own score as many times as you like without any risk of hurting your score. It makes sense to check your credit report and score regularly, particularly if you’re concerned about identity theft or reporting errors.
3. Make payments on time 
   This one may seem obvious, but paying your bills on time is one of the simplest ways to earn and keep good credit. Potential lenders want to know if you typically pay your bills on time. This doesn't just include installment loans and credit cards, it also applies to things like your cell phone and utility bills. Consider utilizing bill pay or automatic payments to ensure your bills are paid on time.
4. Length of credit 
   Generally, your credit score will increase the longer you have credit established. However, length of credit history doesn't overshadow the rest of the report. Negative marks on a credit report can bring down your score. Length of credit history is determined by how long your accounts have been open, with consideration given to your oldest account and your newest account, and how often you use those accounts. You should consider length of established credit before transferring balances from an old account to a new account. While a credit card company may offer a 0% APR on balance transfers when opening a new account, you should consider if trading old debt for new debt is worth the impact to your credit. Ultimately, if you're able to pay off the balance of your credit card with the 0% promotion, it will benefit you it the long run.
5. Mix of credit accounts 
   Potential lenders want to know how you manage your debts. Having a mix of active credit accounts, such as credit cards, retail accounts, auto loans, and mortgages, allows potential lenders to see that you're able to manage debt responsibly. While having different types of credit accounts plays a role in your credit scores, you shouldn't open up credit accounts you don't intend to use.

10 Steps to Repair, Rebuild, and Protect Your Credit

Have you had one or more financial misfortunes over the past several years and now have a less than ideal credit score? If so, you’re certainly not alone. Credit scores have been one of the biggest victims of the financial crisis and the recession. Unfortunately, that number can determine not only whether you can get credit and what interest rates you’ll pay but they can also affect your insurance premiums and even your ability to get a job.

1) Fix any errors in your credit report. It’s bad enough if you’ve made your share of mistakes in the past so you certainly don’t want to be penalized for ones you didn’t make as well. About 70% of credit reports have them so there’s a good chance at least one of yours does too. You can get a free copy of each of your 3 credit reports every 12 months, at creditchecktotal.com . Once you get your report, you can then correct any errors you find that could be hurting your score.

2) Catch up on any missed payments. If you’re having trouble making payments, you can try to work out a payment plan with your creditors or consult a non-profit credit counseling agency to negotiate on your behalf.

3) Make sure your payments on any debt and other bills like rent and utilities are on time going forward. After all, payment history is the biggest factor in calculating your credit score. You might also be able to get letters of recommendation from these companies when you apply for credit. For those reasons, you may want to consider having your payments automatically deducted from your checking account. Just be sure not to overdraw the account. If you do miss a payment, contact the creditor as soon as possible and ask if they would be willing to remove the late payment from your account as a courtesy and gesture of good will.

4) Of course, you can’t build a positive credit history if you don’t have any credit.  The problem is that it takes credit to get credit. A good place to begin would be to see if your bank will allow you to open a secured credit card. These cards require you to deposit an amount of money usually equal to the credit limit into a special savings account that the bank can collect any missed payments from. This helps to minimize the bank’s risk so it’s relatively easy to get but there’s a chance you may still need a co-signer to qualify.

4 tips for getting your credit score in shape for summer

So here’s a quick four-step workout to get your credit score in shape for summer:

1. Check your credit score. You’ll need a baseline against which to judge your performance, so check your credit score (for free). Two-thirds of people haven’t checked their credit score in the past year, according to the National Foundation for Credit Counseling, which means this simple step alone puts you ahead of the game. You might even discover that your credit is already excellent and you’re perhaps currently overpaying on certain financial products. In such a case, you can get right to upgrading.

2. Review your credit report for errors. To say that credit reports are error-ridden would be an overstatement, but not by much, as roughly a quarter of people have a mistake on one of their files, according to the FTC. Finding a significant error and then successfully completing the dispute process is one of the easiest ways to get a quick credit score bump.

3. Pay down outstanding balances. Credit scores incorporate a metric called “credit utilization,” which is the ratio of your credit card balances to your credit limits. Lower is generally better with this ratio, so try to repay a chunk of a revolving balance, if applicable, or pay your bill a few days prior to your monthly statement being generated in order to reduce the balance reported to the credit bureaus.

4. Satisfy collection accounts. The newest credit-score models stop considering collections accounts once they have been paid. Either paying what you owe in full or negotiating a settlement with the collection company could therefore improve your score, and perhaps your odds of credit card approval.

The final step is to re-check your credit score in about a month. If it’s excellent, you’ll be able to apply for one of the best travel credit cards on the market and perhaps get an initial bonus worth $400 to $625 in travel expenses.

If your score is fair or bad, just make sure and perhaps your odds of credit card approval.

The final step is to re-check your credit score in about a month. If it’s excellent, you’ll be able to apply for one of the best travel credit cards on the market and perhaps get an initial bonus worth $400 to $625 in travel expenses.

If your score is fair or bad, just make sure that you have a card with no annual fee, and focus on the fundamentals of paying your bill on time every month (in full if possible) and using only a portion of your credit line.

6 Tips for Boosting Your Credit Score in 2016

Your credit score affects your financial life in many ways. Car insurance premiums and your interest rate on home and auto loans are determined, in part, by your credit report, and plenty of employers actually check it when deciding whether or not to hire a candidate for employment. With that in mind, it’s in your best interest to not only know your credit score, but to improve it.

Here are six tips for improving your credit score for a fresh financial start in 2016.

1. Pay Your Monthly Bills on Time
Paying monthly bills is a necessary chore that has a definite effect on your credit score. According to the FICO scoring model, your payments account for as much as 35 percent of your total score. Create reminders for due dates or establish a calendar for yourself to ensure you get everything paid on time.

2. Reduce Your Debts
Got credit card debt? Start paying it off now. Part of your credit score is based on the amount of available credit you have, known as your credit utilization ratio. So if you’re carrying high balances, you’ll want to lower them as soon as possible. Create a personal budget with a goal of reducing your spending so that it’s lower than your income. Then, use any monthly surplus for your credit card debts until they’re gone for good.

3. Limit Credit Inquiries
Looking for a new apartment? What about a mortgage? In either situation, try and group your applications together as much as possible. Applications for new lines of credit will generate a “hard pull“ on your credit, and having too many of them in a short period of time can lower your score. However, credit reporting agencies usually consider a group of applications within a short period of time as one pull, as long as they’re in the same category.

Similarly, limit yourself to opening up no more than one or two credit cards per year, which also generate hard pulls. Even if you get a ton of offers in the mail for stellar sign-up bonuses, they’re likely to be offset by the damage to your credit. FICO reports that new credit and credit inquiries account for 10 percent of your total score.

4. Don’t Cancel Old Cards
Have a card you don’t use anymore? Don’t close it. This can negatively affect your score as it lowers your amount of available credit. Instead, use it about once per month and don’t forget to pay the bills in full, and on time.

5. Request Credit Limit Increase
If you only have one card and you’re constantly approaching your spending limit, call the bank and ask for an increase in your credit line. This will raise the amount of available credit, which will eventually improve your score.

6. Take Care of Late Payments Before They Hit Your Score
If you do happen to miss a payment, contact the card issuer immediately. If you have good history built up, the company may agree to not report your late payment. Even if you can’t avoid a late-payment fee, be sure to get your account up to date as soon as possible so you can limit the damage.
Your credit score is yours to own. It reflects your financial history and helps lenders predict how you will manage your finances in the future. Due to the lingering effects of credit, you don’t want to waste any time to improve your credit.

Credit Restoration Is The foremost Way To Transform Your Life!!!!!!

These are the factors that determined the Credit Rating.

1.) Payments history: This is one of the most important factors which determined the credit score. Any statement which says about a late payment of more than 30 days  will reduce the credit scores drastically.

2.) Controls of debt:: Lenders want to see that the borrowers do not take more than what they can afford. Please do not keep more number of credit cards.

3.) Signs of Responsibility and Sensibility: This is what every lender wants to see finally. The score will obviously be very less if the borrower shows any signs of irresponsibility towards paying back his old dues.

4.) Re Aging: This is an action taken to change the credit score drastically. Here the date of last action is changed, especially if the last action caused some damage in the score.

5.) Credit Inquires:  Any inquiry made towards that borrowers is noted down immediately. This actually does not alter the credit score at all. But a complete record of all the inquiries  is also maintained.

Reasons to Make use of Credit Restoration Professional

Using good credit score is among the most often ignored financial characteristics a person provides. If you have a favorable credit record, you can effortlessly qualify for some of the lowest interest rates on a mortgage loans, automobile loans, credit cards, as well as other kind of debt. When you have a bad report, you'll possibly not be accepted or perhaps will pay out more on curiosity and fees when compared to a customer with  a good credit report.

Generally speaking , for the greatest price feasible on fresh mortgage or perhaps financial merchandise, you may need a report associated with 720 to 750., with regard to the lender. Individuals with a Six-hundred credit score or even worse will probably have a problem qualifying for just about any form of credit. If they are authorized, they'll have to pay for a lot more in curiosity and cost.

For all those together with poor credit and also the want to increase their score, working with a credit restoration specialist is actually a good option. Any credit restoration specialist is someone who will be focused on supporting people who have poor credit improve their rating so they can them qualify for the majority of hoe loan along with other bank loans products.

6 tips for Millennials to improve their credit scores

Low credit scores have be burdening many Millennials, and preventing them from buying a home, according to a survey by Trans Union.

The survey showed that 32% of Millennials plan to buy a home in the next 12 months, however 43% currently hold a subprime credit score.

On the other hand, older generations plans to purchase their home is more aligned with their finances, as 17% of those ages 35-54 plan on buying a home within the next year, which is the same percentage of that age group that has a super prime credit score.

Trans Union Senior Vice President Ken Chaplin gave these tips to help Millennials improve their credit:

1. Check your credit report first

Chaplin suggests checking one’s credit report three months before starting the home buying process to ensure that your score is in a healthy range.

2. Start planning early

Because building credit can take a while, Chaplin suggests that future home buyers keep an eye on their credit, and how their spending affects it.

3. Build credit

Building credit is necessary, and can be done through paying your bills on time, maintaining a low credit utilization ratio and factoring existing payments such as student loans and rent into your report.

4. Set realistic goals

The more money put down on a home, they lower the monthly mortgage payment will be, however home buyers should not plan to put down more than they can afford, according to Chaplin. Home buyers should also remember to factor closing costs into their budget.

5. Do your homework

Home buyers should research mortgage rates to see if the rate they are offered is competitive.

6. Keep an open mind

Although building credit and preparing finances may take time, Chaplin said future home buyers should have patience and be willing to delay home ownership, rather than give it up.

If seeking to improve their credit scores, Millennials can check out these tips from Experian on the fastest ways to improve credit scores. 

What Is a Good Credit-Building Timeframe?

Starting over or starting from scratch with your credit? Be patient.

Building up a brand-new credit history or re-establishing credit after some credit missteps (such as late payments) takes time.

Give yourself at least a year to see some progress with your credit.

Payment history accounts for 35% of a credit score and establishing or re-establishing your credit with a solid year of on-time payments on a credit account, such as a credit card or credit builder loan, is a good way to go.

Building Credit with a Credit Card

A secured credit card is a good credit-building option. With a secured card, you make a deposit with a lender and your deposit is used as a credit line.

Make sure to choose a secured card from a lender that reports to all three major credit reporting agencies — Equifax, Experian and TransUnion.

To build credit with a secured card, make a series of on-time monthly payments and use no more than 10% of your credit line. Stick to small purchases that you can pay off with ease each month.

After a year or more of on-time payments, reach out to your lender about applying for an unsecured credit card account.

Credit Builder Loans

Another credit building option is to apply for a credit builder loan from a credit union. These loans, which have terms of six to 18 months, are good alternatives to credit cards and good credit building tools in their own right.

With a credit builder loan, the money being borrowed is placed in a savings account.  And once you pay off a credit builder loan through a series of payments over the course of the six- to 18-month term, you will get access to the money in the savings account.

Loan amounts for credit builder loans can be small, just $500.  So there’s no need to borrow a lot of money to build a healthy credit record.

For maximum credit-building, choose a credit builder loan that reports to all three credit reporting agencies.

6 Tips for Boosting Your Credit Score in 2016

Your credit score affects your financial life in many ways. Car insurance premiums and your interest rate on home and auto loans are determined, in part, by your credit report, and plenty of employers actually check it when deciding whether or not to hire a candidate for employment. With that in mind, it's in your best interest to not only know your credit score, but to improve it.

Here are six tips for improving your credit score for a fresh financial start in 2016.

1. Pay Your Monthly Bills on Time
Paying monthly bills is a necessary chore that has a definite effect on your credit score. According to the FICO scoring model, your payments account for as much as 35 percent of your total score. Create reminders for due dates or establish a calendar for yourself to ensure you get everything paid on time.

2. Reduce Your Debts
Got credit card debt? Start paying it off now. Part of your credit score is based on the amount of available credit you have, known as your credit utilization ratio. So if you're carrying high balances, you'll want to lower them as soon as possible. Create a personal budget with a goal of reducing your spending so that it's lower than your income. Then, use any monthly surplus for your credit card debts until they're gone for good.

3. Limit Credit Inquiries
Looking for a new apartment? What about a mortgage? In either situation, try and group your applications together as much as possible. Applications for new lines of credit will generate a "hard pull" on your credit, and having too many of them in a short period of time can lower your score. However, credit reporting agencies usually consider a group of applications within a short period of time as one pull, as long as they're in the same category.

Similarly, limit yourself to opening up no more than one or two credit cards per year, which also generate hard pulls. Even if you get a ton of offers in the mail for stellar sign-up bonuses, they're likely to be offset by the damage to your credit. FICO reports that new credit and credit inquiries account for 10 percent of your total score.

4. Don't Cancel Old Cards
Have a card you don't use anymore? Don't close it. This can negatively affect your score as it lowers your amount of available credit. Instead, use it about once per month and don't forget to pay the bills in full, and on time.

5. Request Credit Limit Increase
If you only have one card and you're constantly approaching your spending limit, call the bank and ask for an increase in your credit line. This will raise the amount of available credit, which will eventually improve your score.

6. Take Care of Late Payments Before They Hit Your Score
If you do happen to miss a payment, contact the card issuer immediately. If you have good history built up, the company may agree to not report your late payment. Even if you can't avoid a late-payment fee, be sure to get your account up to date as soon as possible so you can limit the damage.
Your credit score is yours to own. It reflects your financial history and helps lenders predict how you will manage your finances in the future. Due to the lingering effects of credit, you don't want to waste any time to improve your credit.

8 Credit Card Tips That Will Last a Lifetime!!!

8 Credit Card Tips That Will Last a Lifetime!!!

Credit card tips can change with the wind — or as you enter different stages in life. If you’re young and trying to build credit, start with a low credit limit. If you travel a lot, consider an airline or hotel credit card. If you have a lot of debt, it’s a good time to put those cards on ice. Great credit? Look into what rewards you might qualify for. All this advice can, at times, get a little overwhelming. Fortunately, there are certain credit card habits that will always apply. Here are 10 basic credit card tips that will last your lifetime.

1. Try to Pay Your Statement Balance in Full

Paying interest increases the cost of everything you purchase with your credit card, so you should try to avoid carrying a balance as often as possible. If you do have to carry a balance, try to keep it below at least 30% (ideally 10%) of your available credit limit. Doing so will help keep your credit score intact. You can come up with a payment plan to get rid of any existing credit card debt you have here.

2. Never Make a Late Payment

Late payments can result in costly fees, damaged credit and sky-high penalty annual percentage rates. Fortunately, there are many tools that you can use to make on-time payments including e-mail and text alerts or automatic payments that you can initiate with your issuer.

3. Carefully Examine Every Statement

Credit card users enjoy robust protections against fraudulent transactions, but you may have to report the activity to your issuer to take full advantage of them. Regularly reviewing your credit card statements can help you spot fraud as soon as it occurs. Calling your issuer immediately to dispute the charges and have the card replaced can help ensure you’re not on the hook for them.

4. It Never Hurts to Ask

If you have ever made a late payment by accident, then you’ve probably incurred a late fee. But if you take the time to ask for the fee to be removed, many card issuers will do so. You can also try asking for annual fees and foreign transaction fees to be waived, for your interest rate to be lowered or for your credit limit to be raised. (Keep in mind, the last two may result in a hard inquiry on your credit report, which could ding your credit score.)

5. Read Your Terms and Conditions

It’s important to thoroughly read the terms and conditions associated with any credit card you are using or are thinking of applying for. You’ll want to know, for instance, what fees will be imposed and when, if an APR change may go into effect and what your rewards programs entails. You should also check your privacy agreement and whether your card is subject to an arbitration clause.

6. Keep Track of Your Credit

The most important way to ensure that your credit card spending habits are in line is to regularly check your credit. Some credit card issuers now offer free monthly FICO credit scores on your statement. You can also request free copies of your credit reports each year from CreditcheckTotal.com and view your credit scores for free each month on Credit.com.

7. Regularly Re-evaluate Your Credit Cards

The only constant in the credit card industry is change, so it’s important to regularly take a look at the credit cards that are in your wallet. Then, examine the market to see if there are newer products available that will better meet your needs — which may have changed since the last time you comparison-shopped for cards.

8. Avoid Cash Withdrawals

Nearly all credit cards impose cash advance fees and very high cash advance APRs, so you should avoid using your credit card for cash at all costs. Remember, it’s always better to use your ATM card when you need cash.

Top 10 Tips for Improving Your Credit in 2016

1. Be sure to pull your free credit report from each of the major credit bureaus at least once a year. Review them to ensure there is no inaccurate information, and report it immediately if you find any.
2. Make sure to always pay your bills on time. Being 30 days late on just one mortgage payment can lower your score by as much as 100 points!
3. Everyone should have at least one credit card open. Having access to that revolving credit and using it responsibly counts for 30 percent of your total FICO score. Just remember, only purchase things that you have cash on hand to pay for, and pay off the entire balance in full every month.
4. If you’re shopping around for a mortgage, loan or anything else that involves a credit check, make sure to do it in a close time span. Multiple inquiries hurt your score, but inquiries that are grouped close together count as just one. Your FICO score will ignore multiple inquires made within 30 days of scoring, while the newest lending software gives you 45 days. However, older software gives you just a 14 day window to shop around.
5. Don’t close out old credit accounts or credit cards. Debt that has been paid in full is good for your report. Plus, the length of time you’ve had credit open helps your score: the age of every account is averaged together, and the older your credit history, the better. In fact, age accounts for 15 percent of your score.
6. Use less than 10 percent of your credit card limit at any given time. Using it sparingly will help to increase your credit score.
7. Negotiate with creditors and collection agencies if you are having difficulty paying off any of your current debts. Be proactive and determine if there are payment plans available that are more realistic for your current financial situation.
8. Eliminate any small balances that remain on your credit accounts, the number of credit cards with balances on them affects your credit score, the fewer you have with a balance, the better
9. Pay your credit card bill in full before the statement goes out. Most credit card companies report to the credit card bureaus at the same time statements go out, so lowering your credit utilization ratio by paying off your cards in advance will impact your score in a positive way.
10. Convert outstanding credit card debt to personal loans if you don’t have the means to pay it down quickly. Credit card debt is more damaging to your credit score, and it can have a higher interest rate, making it harder to pay down.

10 Tips to Live Credit Smart

Your credit report acts as your financial references when you apply for new credit. Whether you’re trying to build credit for the first time or want to re-build your credit standing, the only way to build a strong credit history is to use credit wisely. Following are 10 tried and true tips to Live Credit Smart:

1. Get a copy of your credit report.

Your personal credit report is an easy-to-read record of your credit accounts and total indebtedness. It is a good idea to review your credit report at least once a year and when you’re getting ready to make a major purchase. You can request a copy of your report directly from Experian. You also should consider reviewing your reports from the other national credit reporting companies.

2. Know your credit score.

A credit score translates the information in your credit report into a number reflecting the risk of doing business with you. While there are many different types of credit scoring models, a higher score generally represents lower risk. To check your risk, request a credit score when you order your credit report. You will receive an explanation of what the score means and what from your credit report is most affecting it.

3. Provide complete, accurate and consistent identification on your credit applications.

This helps set up your credit history correctly from the beginning, ensures that your new accounts will be matched to the correct report and minimizes the chance that your credit file will be incomplete.

4. Set up a budget and live within it.

Credit should not be used to live beyond your means. By setting a budget and living within it, you will avoid using credit to overextend yourself.

5. Have some credit, but not too much.

A credit history shows creditors how you manage your debts. Having no credit history can make it difficult to qualify for new credit because creditors have no information to help them make a lending decision. You only need a few active accounts reported to the credit reporting companies to demonstrate smart credit management.

6. Pay your bills on time.

Late payments, called delinquencies, negatively impact your credit scores and 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. If you fall behind on your payments, contact your lenders, which may work with you to set up a different payment schedule or interest rate.

7. Have a mixture of credit types.

A mix of accounts can show that you know how to manage all types of credit. It is good to have a history of repaying an installment loan, such as a car or student loan, but a revolving account, such as a credit card, demonstrates more clearly that you can responsibly manage credit because you have to control how much you charge and pay each month.

8. Keep credit card balances low.

High outstanding debt can affect your credit scores because it results in a high utilization rate, or balance-to-limit ratio, making you appear to be an increased credit risk. Keeping your balances low compared with credit limits shows that you aren’t tempted to charge more than you can pay and can handle larger amounts of available credit.

9. Use caution when closing accounts.

Closing an account isn’t always a good thing because it can result in an increase to your utilization rate. However, if you want to eliminate a few cards with high interest rates or fees – and you have ample credit available to you – the impact on your credit score should be relatively minor.

10. Apply for and open new credit accounts only as needed.

Apply for and open new credit accounts only as needed. Recent inquiries indicate you may have taken on new debt that isn’t yet shown on your credit report, and many inquiries in a short time might suggest you are trying to live on borrowed money.

Steps to Lowering Debt and Saving More Money for Your Retirement

The start of a new year is a good opportunity to embark on strategies to lower your debt,increase your savings and maximize your retirement portfolio even if you were not among the fortunate ones to receive a raise or bonus.

Ramping up the balance in your 401(k) or IRA while reducing your credit card debt and increasing your rainy day fund for emergencies can be achieved by paying fewer fees and taxes and devising a plan.

“Whatever your goals are for 2016 or beyond, you need a plan to get there,” said Jamie Hopkins, a retirement professor at the American College of Financial Services in Bryn Mawr, Pa. “This could start with a short term plan for the year and develop into a long-term plan for retirement.”

How to Decrease Debt

Lower and eliminate your debt, especially your credit cards by always paying on time and more than the minimum, said Andrew Housser, co-CEO of Freedom Financial Network, a San Mateo, Calif.-based debt resolution company.

“The first and best rule is to never charge more in any given month than you can repay that month,” he said. “Even adding just $10 to your payment or rounding payments up to the next $10 or $100 increment will make a huge difference.”

Spending less money means taking a harsh look at your budget and financial plan so you can “spot areas that you are overspending,” said Hopkins. Set aside a certain amount of money for savings with each paycheck you receive and saving at least 10% of your income is recommended.

“Another great way to spot areas you overspend is to look at your free year-end review that is offered by most credit card companies and banks,” he said. “This can show you where you spend your money during the year and help you reduce some of those expenses this coming year.”

Ways to Increase Savings

Reduce the amount of your health insurance premiums by quitting smoking since in many states, companies charge smokers more, said Nate Purpura, vice president of consumer affairs at eHealth.com, an online health insurance exchange based in Mountain View, Calif.

In 2015, smokers paid an average monthly health insurance premium of $311 while non-smokers paid only $272, according to eHealth’s data. If you can beat smoking this year, you may qualify for lower premiums next year.

Opening a flexible spending account, or FSA, gives you the opportunity to pay for medical, dependent care or transportation costs with pre-tax dollars set aside with every paycheck, said Greg McBride, chief financial analyst for Bankrate, the North Palm Beach, Fla. based financial content company.

Lower your taxable income by contributing to a health savings account known as an HSA, which you can open as long as your deductible is at least $1,300. Since HSAs mirror IRA accounts, you can save money by paying fewer taxes while also saving for medical expenses such as copays, deductibles or dental care, said Nate Purpura, vice president of consumer affairs at eHealth.com, an online health insurance exchange based in Mountain View, Calif. Any money you don’t spend will rollover like an IRA and can be another vehicle to increase your retirement savings.

“You can deposit money into your HSA until April 15, 2016 for the 2015 tax year,” he said.

Some estimates predict that the average taxpayer will overpay their federal income taxby $1,000 this year, which is “money being held without earning any interest,” said Bruce McClary, spokesperson for the National Foundation for Credit Counseling, a Washington, D.C-based non-profit organization.

“If you have too much money being withheld from your paycheck for taxes, take time to adjust your withholding,” he said. “You will want to match the total amount withheld to the amount you will expect to pay when taxes are filed.”