FYI Finance
How to Find Out What Credit Agencies are Saying About You
You may not know it, but businesses and credit agencies are talking about you behind your back, circulating reports and giving intimate, sometimes erroneous and painful, details of your financial life.
Did you miss two car payments when you were ill?
Did a creditor take you to court for refusing--rightfully--to pay for shoddy work?
Did your ex-wife or ex-husband spread false reports about your money-laundering habits?
All these and other items, including false and incomplete information, may be in the credit reports that agencies use to determine your credit rating. Some 2 billion pieces of information are downloaded every month to update the information on you and other consumers. With so much information going into the system and no one to verify whether it's a rumor or a fact, it's nearly impossible to prevent mistakes. It's even possible for someone else's credit report to "bleed" into your file.
To make things worse, there is not one, but at least three major credit files maintained on you from three different companies. In addition to the "big three" credit agencies--Equifax, Experian, TransUnion--smaller agencies also sell information about your financial life. With so many people circulating so much information, it's vitally important that you find out what they are saying about you.
"If you don't check your credit report at least twice a year, you're going to find all kinds of problems," says Dean Taylor, a business manager for an automobile dealership outside Atlanta. "It is crucial."
Taylor, who's worked at the dealership arranging financing and checking credit reports for seven years, says that the "big three" credit bureaus are not credit verifiers; they simply report information they receive.
Many times that's not enough. A poor credit report can lead to a negative credit rating, which in turn can result in a denial of a home or car loan, apartment rental or even a job. So it's important to verify the information on your credit report and protect your credit rating. Don't wait until your house is on the market and the bank's holding up your new home or car loan because of a fixable mistake.
OBTAIN COPIES OF EACH REPORT
The first step in verifying or correcting your credit report is to actually see a copy of the report. Make sure you check credit reports from all three credit bureaus, because information may be reported differently. Visit the Equifax, TransUnion or Experian Web sites or one of the many online credit services to obtain a copy of your credit report at least once a year to keep track of truth and fiction. You also can order your credit report by phone or mail.
Expect to pay between $8 and $15, unless you live in Colorado, Georgia, Maryland, Vermont, Massachusetts or New Jersey, where it's free. You may also qualify for a free copy of your credit report if you've recently been denied credit, are a victim of fraud, have moved, or become unemployed.
Mary Grate-Pyos, a financial expert in the Washington, D.C., area says the individual credit report basically tells everything about your financial life. It shows your spending habits, employment record, how often and when you make payments, and how much credit you have. "More often than not," Grate-Pyos says, "there's incorrect information on the credit report."
RECOGNIZE COMMON MISTAKES AND REPORT THEM
Improperly recorded payments are the most common disputes on credit reports, says Taylor of Atlanta. Whether it be a late fee that you didn't know about or the wrong amount recorded by the bank, it's important to stay on top of your credit accounts.
The Fair Credit Reporting Act requires creditors to give accurate information to credit bureaus and gives bureaus 30 days to correct the mistakes. Creditors have 30 days to respond to a request or the credit bureau will delete the information for lack of verification. If errors aren't deleted within 30 days, send a complaint to the Federal Trade Commission's Consumer Response Center. It's up to you and the creditor to make sure the information is correct.
If the investigation doesn't resolve the dispute, you may add a brief statement to your credit report that explains your position on disputing the report. For example, if you got behind on your bills because of medical reasons, a death in the family or unemployment, potential creditors may take that under consideration.
AVOID THE QUICK FIX
Watch out for the seams that promise to clean up your credit for a fee. Legally, correct information can't be taken out of your report. Nevertheless, some companies charge high fees to "fix" your credit report by giving you a fake Social Security number or taking out your middle initial. They even write to the creditor to dispute the claim--something you can do for free.
If your report contains negative information that you know is true, fix the problem yourself. Arrange for payment so that you can start to rebuild your credit record. And if you're unable to pay the bill for some reason, contact your creditors and tell them you intend to pay the debt. In some cases, they will give you additional time before reporting you to a collection agency.
COPYRIGHT 2000 Johnson Publishing Co.
COPYRIGHT 2000 Gale Group
Christmas Shopping, Without the Debt
Do you treat your Christmas spending as an annual budget item? If yes is your answer, then you’ll ahead of the game and do not find yourself with inflated credit card bills in January. Did you say no? You wait until Thanksgiving to start thinking about your shopping. If this is the case, you’re going to have a January holiday hangover every year. In other words, you’ll find yourself digging out of debt at the beginning of every year.
First make a contract with yourself. What do I mean by making a contract with yourself? Select the maximum amount you can spend for Christmas and stick to it. Sounds like you need a budget doesn’t it.
Well lets look at ways to curb you Christmas spending:
1. Create a budget.
If you are not setting aside a monthly amount, then you need to start atleast two months prior to Christmas making a list of holiday-related expenses you anticipate. In addition to including gifts, you need to consider travel, Christmas functions, clothes for entertaining, Christmas cards, decorations and hosting expenses.
2. Make a gift list.
Write down the names of each person you need or want to buy a gift, including babysitters and teachers. Set a limit amount for each person on the list. Allow a cushion for unexpected gift expenses. Add the amounts up and make sure you don’t break your contract. If you’re really stressed for cash, is it necessary to buy a gift for each family member? For the adults why not suggest exchanging names. You can also invoke a “make it or bake it” rule. Set a dollar limit per person. Another idea as gifts is to give “coupons” offering a special service you can provide. Some coupons could be for personal services, such as babysitting or running errands. Most adults will appreciate this idea. Children are excited byy opening gifts.
3. Do your research.
Take the time to perules the local retail stores newpaper inserts and go online and check out the cost of an item. www.shopping.com and www.shopping.yahoo.com are helpful websites for product comparison shopping. Also, check out the www.savvy-discounts.com website.
4. Make holiday spending a family project.
If you’re having financial problems, discuss necessary cutbacks in your spending this year. If children understand cutbacks are necessary, it can help ease disappointment and hopefully they’ll adjust their expectations for name brand pricey items. Discuss the need to skip fancy parties and recycle Christmas decorations.
Some people justify putting all of their Christmas shopping on a credit card to obtain a grace period normally offered by credit card companies at holiday time. As we all know life interventions happen and you’re stuck with a big credit card bill at the beginning of the year. If you know you cannot pay all of the purchases off in 30 days, pay cash. Beware of store charge cards. Normally at Christmas time, stores will offer 10% discounts for opening or using your store charge card. Again, if you cannot pay the balance in 30 days, watch out. Store charge cards normally have an interest rate of 21% and if your purchase is not paid off in 30 days, the 10% discount at the time of purchase is not worth it.
by Sandra Jones
Ministry of Finance, Purchasing & Accounting
Retiring? Watch Out for Investment Scams
If you're planning to retire soon, you have a lot to anticipate: more time with your family, the chance to travel, the freedom to pursue your hobbies and so on. Yet, there's one thing you'll want to avoid during your retirement years: investment scams.
Unfortunately, retirees are the number one targets for investment con artist. Unscrupulous stockbrokers and financial planners do engage in abusive practices, and they seek out the elderly. However, you are far from defenseless against this kind of behavior. You can avoid being "scammed" by following these suggestions:
Ask for credentials, background and references.
As amazing as it may seem, anyone can call himself or herself a "financial planner," "financial advisor" or similar term. Before working with anyone, ask for credentials, and find out how this person plans to work with you. You may want to ask these types of questions: " "What securities licenses do you hold?" " "How long has your company been in existence?" " "How are you compensated?" " "How frequently will you communicate with me?" " "Which methods will you employ to determine if an investment is suitable for my risk tolerance and individual needs?" " "Can you give me the names of some references?"
If you are dealing with a reputable financial professional, he or she will be happy to answer there and other questions. But if you notice someone acting nervously or evasively when you pose these inquires, break off communication instantly; you simply cannot afford to trust someone who is less than 100 percent forthcoming with you.
Don't be overly cooperative at first encounter.
If a stranger calls and ask for personal or financial information, be suspicious. Con artist are good at winning their way into people's confidence; furthermore, if you are a polite individual, you may feel it's rude not to listen. This combination of their smooth talk and you good manners can be dangerous. You are under no obligation to listen to anyone on the phone; if you suspect you are talking to a predator, simply hang up or ask to be placed on a "do not all call" list.
Never say yes in "you must act now" offers.
If you receive an investment offer that "must" be acted up immediately, walk away - fast. Any offer that sounds too good to be true. Legitimate investment opportunities will still be around tomorrow and next week.
Always stay in charge of your money.
Never work with anyone who is eager to take "total control" of your money. True investment professionals will make recommendations base on your needs, communicate with you regularly and involve you in every step of the investment process.
Take action immediately if you have trouble retrieving principal.
Unless you are investing in a fixed-term vehicle, such as a bond, you should be able to receive your funds or profits within a reasonable amount of time. If the broker you are working with "stalls" you when you say you want to put out your principal or profits, report him or her to securities regulators, such as the National Association of Securities Dealers. By taking these steps, you can help avoid being victimized by con artists. So, stay vigilant, seek out honest advice and enjoy your retirement years.
Investment Broker