January 1, 2010. Today is the first day of a whole new year. It’s time to change those calendars, get used to writing dates with a new set of numbers, and start fulfilling those New Year’s resolutions.

Every year, a good number of us list down one or a few things we wish to change or improve in ourselves on the coming year. It could be anything from losing weight to being more patient with the people at work. If improving your credit scores is part of your list of New Year’s resolutions, here are some tips on how to successfully keep your financial promises this year.

Read and Review Your Credit Reports

Each year, we are entitled to receive a free credit report from the three major credit bureaus (Equifax, Experian and TransUnion). Take advantage of this privilege and use these free credit reports to monitor your credit history. Check the report for any inaccuracies. Striking out any records that are already expired or don’t really belong to your account is one of the easiest ways to improve your credit score. If you are sure there is false or inaccurate information in your credit report, do not hesitate to report it to the responsible credit reporting agency. You can even file a formal dispute. Disputing credit report information is free and relatively hassle-free as it can be done online when you check your credit report.

Get Out of Debt

Whether it’s the two dollars you owe your officemate for buying you a cup of coffee the other day, or the piling stack of unpaid bills you have left unopened and deliberately forgotten under your desk drawer, you need to cough up the money to relieve you of the debt. Your debit-to-credit limit ratio counts for 30% of your credit score. You should aim to carry balances that add up to less than 10% of your total credit limit to acquire the maximum score benefit.

The best way to solve your debts is to set a detailed long-term financial plan that will allow you to reduce the amount you owe while ensuring on-time payments to creditors. This may seem easier said than done but that only depends on your resolve.

Pay on Time All the Time

By improving your payment history, you will be ensuring approximately 35% positive output on your credit score. This is a great deal, especially if you are able to keep it up consecutively and for a long period of time. Establishing a long history of good credit use shows that you are a responsible borrower. This counts for around 10% of your credit score.

Avoid Unnecessary Inquiries

Just as you shouldn’t be too rash to close your old accounts so long as there is a way to salvage it, you shouldn’t be too greedy in applying for new credit accounts. Apply for new credit in moderation and only when you are sure that you want the account. The number of recent inquiries on your credit report counts for 10% of your credit score.