Credit Reports

• Every American consumer is entitled to one free credit report from each of the three major credit reporting agencies every 12 months, according to the Federal Trade Commission. Get your credit reports and review them for errors. Check your past addresses, your personal information and your credit accounts. If you see an error, use the dispute process outlined on the report to have it corrected. Incorrect information on your credit report could be lowering your credit score, and that can cause you to lose out on financing or pay more in higher interest rates.
  
  

Budget

• It is easier to address your credit problems when you can analyze them on paper. Create a monthly budget that includes all of your monthly bills versus your monthly income. Pay extra each month to the credit accounts with the highest interest rates and pay them off as soon as you can.
  
  

Credit Cards

• When it comes to improving your personal credit situation, your credit cards can be used in your favor. The older a credit account is on your credit report, the better it is for your credit score, according to financial expert Liz Pulliam Weston on the MSN Money website. Pay your old credit card accounts down, but do not close the accounts. Charge a little each month and then pay off the balance. This will keep your old accounts active and improve your credit score.
  
  

Reporting

• You should always check with a creditor to see if they report accounts to the reporting agencies before signing up, according to credit expert Dani Arthur on the Bankrate website. Accounts such as gasoline cards and local department store cards are sometimes not reported to the agencies. If a creditor does not report accounts, and will not even if you request it, then do not start an account with that company.