Spruce up your finances this spring

Search: Improve your credit rating

- Check your credit hasn't been tampered with
- Tips on avoiding identity theft

The years of easy credit are over - but we still need to borrow. If you're planning to switch credit cards, take out a loan for a car or are looking for a new mortgage to replace your fixed-interest deal, you need to make sure your credit history is as clean and tidy as possible.

Start the financial new year here - these easy tips will help you to make the most of your finances.

• Understand your debts. That means sitting down and working out how much you owe, who you owe and how much interest you're paying. Include credit cards, personal loans for cars, white goods and so on, plus your mortgage. Remember to include informal loans from family and friends.

• See if it would be worth rolling up some of your borrowings into a single, less expensive loan.

• Pay your bills on time - if you miss anything, it could damage your credit rating.

• Keep an eye on your overdraft. Set a budget for yourself, and stick to it so you don't go into the red.

• Start saving. Put aside some money for treats, such as holidays, or you'll feel deprived and be more likely to binge. Keep some ring-fenced for emergencies - replacing the washing machine and so on. And keep the rest for a major project, such as buying a home.

• Consider setting up a pension - you'll need it one day. Research your options carefully, as a formal scheme may not be the best thing for you.

• Shop around - read personal finance pages, financial magazines and specialist web sites and check out the price comparison sites for the best deals. For example, you may be able to swap your credit card to one that offers a lower interest rate, longer grace period, cash-back on your spending or a better loyalty scheme.

• Don't apply for credit unless you're certain this is the deal you want. If you are simply asking for information, make sure the lender realises you are not making a full application, or you could end up with lots of searches on your credit report. These footprints can affect your credit rating - lenders may think you are desperate for money or even that a fraud is being planned.