Forgo credit cards to keep spending in check

So how can you cut back? One option is simply to leave your plastic at home for a few months at a time. A credit card needs to be used only about once every six months or so for the credit line on the account to count toward your FICO score, said Barry Paperno, a spokesman for Fair Isaac Corp., the company that created the FICO credit score.

Making small charges on your card once every few months may improve your score more than frequently running up big charges, Paperno said. That's because your credit utilization -- the percentage of your credit line that's in use -- makes up 30% of your score. So the smaller your outstanding balance in relation to your credit line, the better.

For the same reason, keep in mind that closing your credit cards could lower your score if you have outstanding debt. If you're still determined to rid yourself of plastic, try to whittle down your balance before doing so. Cancel one card at a time, and wait a few months in between each cancellation to lessen the effect on your score.

For Kira Limer, not using credit cards makes it easier to stick to her guiding financial principle: Don't spend money you don't have. It also makes it easier to keep a running tally in her head of how much she's got in the bank.

"If I had a credit card, it would be more difficult to keep track. It could be a lot more trouble than it's worth," said Limer, a 25-year-old New York City resident.

Instead, she relies on a debit card for day-to-day expenses.

"I just like to know for sure I'm not spending beyond my means," said Limer, a resource librarian at an architecture firm.