"When a person with experience meets a person with money, the person with experience will get the money. And the person with the money will get some experience." - Leonard Lauder

SavingAdvice.com Blog

Bridging the gap between saving money and investing

Credit

Free Credit Freezes and Other Legal Changes You Should Know

By Leave a Comment

Free Credit Freezes And More Credit Changes You Need To Know
Although big banks stole most of the spotlight in the Economic Growth, Regulatory Relief, and Consumer Protection Act, the new law includes improved fraud alerts and credit freezes for consumers.

The law President Trump signed late last week had attempted to dismantle the post-credit crisis legislation known as Dodd-Frank. While it achieves some of that for big banks, it also gives consumers some additional tools to protect their credit reports.

Improved Fraud Alerts

Fraud alerts notify lenders that someone else may try to apply for credit in your name. Lenders must then take reasonable steps to verify the identity of anyone requesting credit in your name.

To take pre-emptive action, you can file an initial fraud alert with one of the three major credit bureaus (Equifax, Experian, and TransUnion). The bureau that receives the filing will notify the other two bureaus.

Under current law, initial fraud alerts only last for ninety days. The new act extends them to one year. Initial fraud alerts are still free, and they can still be re-applied after the time lapses.

If you are a confirmed victim of identity theft or fraud, you can place an extended fraud alert for up to seven years. That remains unchanged.

Free Credit Freezes

When you apply a credit freeze, no potential creditor can access your credit report to establish a new line of credit – even if you are the one making the request.

To apply for new credit, you must remove the credit freeze (also known as thawing the account) prior to submitting the credit application and reapply the freeze after the new account has been established.

You must freeze your account at each of the three credit bureaus individually.

Fees for Freezes

Currently, state laws govern the fees associated with each freeze or thaw. Typically, freezes and thaws are free for confirmed victims of credit fraud and range from $2 to $10 for other consumers.

In some states, you could pay up to $30 for each freeze or thaw. The new legislation eliminates these fees, making credit freezes free to all.

Critics note that by placing credit freeze policy under federal law, state laws with stronger protections may be pre-empted.

State or Federal Oversight

The battle between state and federal oversight is likely to continue – but, in the meantime, most consumers will benefit from free credit freezes and thaws.

Credit protections for children were also addressed in the new bill. Child identity theft usually isn’t spotted until many years later, when the child’s credit is already ruined.

Under the new law, representatives of minors aged sixteen and under can prevent theft by freezing their child’s credit for free. They may ask that a file be established for their child to freeze it, also for free.

Effective Dates

These changes are set to take effect in September — 120 days after the President signed the bill.

To be sure you understand the provisions of your state laws and how they may change, contact your state Attorney General’s office and any other state office responsible for consumer protection laws.

Remove Bad Information

Other reporting changes to the credit bureaus are designed to make it easier to remove adverse information from your credit report.

You may be able to remove defaulted private student loans from your credit report if you’re involved in a loan rehabilitation program through your lender and you make enough on-time payments to demonstrate both willingness and ability to pay off the loan on time from that point forward.

Veterans with Medical Debt

If you’re a veteran with medical debt, the new law offers further relief. Your medical debt can’t be reported to the bureaus until one year after the medical services took place.

Under current law, the grace period for reporting is 180 days from default of the medical debt.

If you’re a veteran with medical debt in collections, the debt must be removed from credit reports when the debt is paid, settled, or assumed by the Department of Veteran Affairs. Generally, removal takes seven years under existing law.)

If you’re on active military duty, you will also be able to sign up for free credit monitoring through the credit bureaus. Some sites already do this for free, but the new Act requires the offer.

The Takeaway

Whether you look at the dismantling of Dodd-Frank as correcting regulatory overreach or as the gateway to the next recession, the new bill’s effects on credit reports and credit freezes can help you in the short term – if you choose to use them.

Note that almost all of the legislative changes are passive. If you don’t use fraud alerts or credit freezes, the new rules have no effect on you at all.

Similarly, a lender isn’t going to remove a private student loan default from your credit report unless you ask.

Credit Management

Proper credit management requires action on your part. Check your accounts and your credit report regularly for signs of identity theft or fraud.

Promptly correct any errors that you find with the credit bureaus. If any of these new provisions can improve your credit score, apply them at the first opportunity.

Finally, take advantage of fraud alerts or credit freezes as they may apply to your situation. Either one may cause mild inconvenience, but that’s nothing compared to the misery of rebuilding your credit after criminals have destroyed it.

If you would like to monitor your credit to prevent identity theft and see your credit reports and scores, check out our free credit monitoring service.

This article was provided by our partners at moneytips.com. Photo ©iStockphoto.com/Robertindiana

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Read More

Uh, Oh, Identity Theft by a Friend or Relative — What to Do?

By Leave a Comment

identity theft by a friend or relative

According to a 2018 survey, nearly 60 million Americans have dealt with identity theft at some point in their lives. While many people assume that strangers are the only threat, some people have their identities stolen by someone they know.

Since friends and family typically have access to intimate details about your life, it’s easier for them to accomplish identity theft than many would like to believe.

Being a victim of identity fraud is always hard, but, when the identity theft is by a friend or relative, the blow is crushing. Luckily, you can move forward from this event by following the steps below.

1. Get Your Credit Reports

One of the first things you need to do is review your credit reports from all three bureaus. The easiest way is through AnnualCreditReport.com.

The process is fairly easy. You’ll need to confirm your identity and request your report from each bureau. You’re entitled to one free credit report from each bureau per year.

2. Set up a Fraud Alert

You’ll also need to contact at least one of the three credit bureaus and add a fraud alert. This locks down your account for 30 days, during which time no one can open new credit in your name.

However, if you can provide a police report documenting the issue, you can get a longer-lasting fraud alert; alternatively, you could just set up a reminder on your phone to renew the alert every 30 days.

Even if you aren’t sure if you’re a victim yet, a fraud alert gives you time to sort out the situation safely.

3. Notify the FTC

While federal authorities only pursue larger cases, the FTC monitors all incidents of identity theft. Let the agency know about your situation by filling out an ID theft complaint and affidavit form.

Doing so helps the government spot patterns and find ways to create a more robust system.

4. Call Creditors

Once you know which companies have fraudulent accounts or activity, you need to reach out quickly. Ask to speak with their fraud department and let them know your identity was stolen.

You can request they close or freeze the accounts, ensuring no new charges will occur. In some cases, they’ll require an FTC identity theft report to document your case, so you want to handle that first.

5. Change Your Passwords

Regardless of whether you can confirm any fraudulent activity taking place using your identity or accounts, you’ll want to be proactive about security.

Change all of your online passwords, along with personal identification numbers associated with any cards you might have.

6. File a Police Report

The person who stole your identity isn’t automatically pursued by law enforcement. For that to happen, you need to file a police report.

Bring a copy of your FTC report along with your identification, proof of address (like a utility bill), and any evidence of the theft to your local police department and ask to file a report.

Once the report is complete, make a copy. That way, if a creditor requires that document, you have it available.

7. Monitor Your Credit Report

Signs of identity theft might not show up in any of your credit reports right away — so you’ll want to check them on a regular basis and follow up on anything you dispute.

Consider signing up for any of the free services that enable you to keep tabs on all three bureaus’ reports in one place.

Carefully read your credit reports to see whether any information changes and notify the bureaus of anything that’s amiss.

Provide them with a copy of your FTC identity theft report (if you haven’t done so already). Once they have this document, they have to block any new changes to your records.

8. Contact the Social Security Administration

In some cases, an identity thief uses a person’s Social Security Number to secure employment. If that happened to you, contact your local Social Security Office for assistance.

9. Watch for Crimes in Your Name

Unfortunately, it’s not uncommon that an identity thief might supply your identifying information after being arrested for a crime.

This is why it’s a good idea to file that police report as soon as you learn of the identity theft — but if you learn of additional crimes being perpetrated with your contact information, you should file an additional report regarding the impersonation.

Provide law enforcement with copies of your ID, a photograph, and your fingerprints. Request that officers compare your information to the criminal’s and remove your name from the records once they confirm you didn’t commit the crime.

With each visit to the police department, make a point of recording the name and contact information of every officer you speak to while resolving the issue.

Request a clearance letter or certificate of release as well. This document says you were innocent. Keep the letter in a safe place.

10. Watch for Tax Theft

Be prepared for the possibility that the identity thief might try to file a fraudulent tax return on your behalf and attempt to claim your refund — file your taxes early so that no one else can horn in on what’s yours.

It’s also a good idea to complete an IRS identity theft affidavit to further prevent any would-be thief from claiming your return.

11. Watch for New Account Openings

Identity thieves may try to open new accounts in your name. They could be credit cards or utilities, for instance.

You can find a comprehensive list of steps to take in these scenarios at IdentityTheft.gov.

Identity Theft by a Friend or Relative

While you typically have to deal with a lot of red tape when trying to minimize the damage caused by identity theft, don’t take any shortcuts: You might not be able to see the full effects of this crime until it’s way too late — because someone who already knows you can cause a lot more problems than a stranger.

When the perpetrator’s a friend or relative, you really need to put in more effort to tamp out the crime. If you can stay the course and be thorough about following all of the steps listed above, you’ll eventually get it taken care of.

Readers, have you ever been a victim of identity theft or fraud — if so, what were your experiences in combatting it? If you haven’t experienced it, what sorts of things are you doing to protect yourself, if anything?

Read More

Looking for more information about identity theft? Give these articles a try:

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

What to Look for in a Business Credit Card

By Leave a Comment

best business credit card
Are you thinking about applying for a business credit card? Do you have reason to believe that one of these could be just what your company needs? Do you already have some ideas about how you will use your credit card?

It’s easy to believe that one business credit card is as good as the next, but nothing could be further from the truth. Even if two offers appear similar, you should keep this in mind: there are always finer details that set them apart.

If you find yourself searching for the perfect business credit card, here are a few things that you should focus on:

1. Interest Rate

It goes without saying that you want to secure a card with the lowest possible interest rate. This way, if you carry a balance from month to month you aren’t running into heavy finance charges.

Some business credit cards are better than others in regards to the interest rate, so make sure you check on this before applying.

2. Reward Program

There is nothing better than earning points for every dollar you spend. When you do this, you won’t feel nearly as bad about using your credit card.

Don’t assume that every offer has a reward program. Also, make sure you learn more about the finer details, including how you earn points and what they can be used for.

3. Good Reputation

Thanks to the internet, it’s simple to understand which business credit cards have the best reputation among others.

As you read reviews, you’ll come to find that some offers are well thought of while others are talked down on, time and time again.

You can’t believe everything you read online, but you should definitely take the time to browse a few reviews before applying for a credit card. If different people have the same complaint, there’s a good chance it’s true. This could sway your decision.

4. Online Account Access

With online account access, you never have to worry about calling a representative on the phone. Also, this makes it much easier to track your spending and rewards.

Most business credit cards have online account access, but you should still check on this before you do anything. You want to know exactly what you will get once you create an account.

5. Low or No Fees

While you may not mind a few fees, especially if you are getting something in return, you need to have a clear idea of what these are.

For example, many business credit cards have an annual fee. In some cases, this can reach as high as $500, so you need to know exactly what to expect.

Before you apply for any credit card, request a list of fees. Once you review these, you’ll have a better idea of if the fees will come into play in the future, as well as how they will impact you.

You Have Options

The nice thing about a business credit card is that you have plenty of options. You don’t have to concern yourself if you run into an offer that doesn’t suit you. Instead, you can search for something that is better suited to your current needs.  Don’t make the mistake of jumping at the first offer that’s thrown at you.  

Remember this: you can learn a lot about credit cards by searching online. As long as you keep an open mind, you’ll eventually find yourself narrowing your options and closing in on the card that best suits your company.

Final Thoughts

No two people are the same, so the way you search for a business credit card may not be identical to the next person. A digital marketing agency in Los Angeles will have different needs from an agricultural company in Ohio.

Fortunately, when you know what you’re looking for, everything will come together. At that point, you’ll have a clear idea of what to do next in order to put the process behind you once and for all.

Do you have any experience applying for and using a business credit card? Is there anything you did, in particular, to find the right offer without delay? Would you have done anything differently if given the chance? Share your experiences and top tips in the comment section below. When you do this, you may be able to help another business owner choose the credit card that makes the most sense for them – and that’s something you should be proud of!  

Five Reasons Why Saying No to Credit is a Good Idea

By Leave a Comment

saying no to credit
In May 2017, consumer borrowing in the US increased by $18.4 billion, according to the Federal Reserve. This was the highest increase in six months. The increase in borrowing is largely due to increased consumer confidence in the economic situation, given the upturn in the job market and the stock exchange.

Borrowing is not necessarily a bad thing for individuals. It can help with the purchase of major items such as property and vehicles. Borrowing also increases consumer spending which helps to boost the economy. But, we live in a society which often relies too much on credit. So, when is it a good idea to say no?

1. When credit decreases the ability to save

If you can just pile more purchases onto a credit card why should you bother to save for that new outfit, or the latest iPhone? It’s easy to just carry on spending on your card, and think about the consequences later. This is not a good use of credit. If you really want to buy an expensive item, open a savings account and put some money away each month. There is a wide variety of banks to choose from, and you also have the option of using a Credit Union; click this link, for more information. It’s important to learn the art of saving; for the present, and to make sure you are financially secure in the future.

2. When budgeting skills are affected

Budgeting is an art that is often neglected when credit is available. Put the credit card away, and start working out how much you can afford to spend. You need to list your expenditure each month; split it into three amounts, the amount you spend on bills, the amount you need to pay for costs such as food and social activities and an amount to put away for pension savings, or towards expected high expenditure. Remember, experts suggest you should have at least three months usual income saved for any emergencies that occur. If you budget wisely, and have an emergency fund, you are less likely to have to reach for a credit card. 

3. To avoid credit card interest rates

When people start to use a credit card they often intend to pay it off as soon as they are paid. They do not think they are going to have to pay interest. Realistically, this is often not the case. Life gets in the way, and you end up not paying the amount owed off in full. You start to pay interest and then you think that if you are paying anyway, you may as well use the card again. Pretty soon you can find yourself struggling to pay, and what started off as just a one-off spend, turns into a worrying problem. 

4. To avoid problems with your credit score

Using a small credit facility, and paying as you agreed, can help to build your credit score. If you want to obtain credit such as a mortgage, it’s better to have a reliable credit history than no credit history at all. However, using a lot of different credit providers, and not keeping up with payments, can have an adverse effect on your credit score, which can make purchasing a home or a car virtually impossible.

5. To really enjoy spending money

This may seem like a contradictory reason to say no to credit; but it’s not. If you save your earnings so that you can afford an expensive meal out or a new watch, the whole experience is more enjoyable. You can just relax in the knowledge that you have paid for something upfront and you do not have to think about making payments for months to come.

Credit is not something you should always say no to; after all, a mortgage helps you get on the property ladder. But you should say no to credit for all the reasons above, if you want to keep your finances in good health.

Photo: US Transactions Corporation

How to Pay for Plastic Surgery with Bad Credit

By Leave a Comment

how to pay for plastic surgery with bad credit
The popularity of plastic surgery can be greatly attributed to Hollywood and modern television. While many reconstructive surgeries are sought for a seeming “improvement” of one’s physical appearance, there are times when they are needed out of medical necessity. Regardless of your reason for seeking it out, it will be hard to receive such a procedure if your finances are not strong. So, here is how to pay for plastic surgery with bad credit.

Before Starting, Fix Your Credit

While it is possible to pay for plastic surgery with poor credit, it is difficult. Prior to speaking with a surgeon, consider fixing your credit first. This will avoid hurting it further. There are a few ways you can work on improving your credit, such as:

  • Opening a savings account (if you do not already have one)
  • Dispute items from your credit report (cautiously)
  • Don’t reach your monthly limit on your credit card just because you can (and keep your balances low)
  • Create positive credit history through a secured credit card

We highly recommend not pursuing a non-medical necessity surgery not covered by insurance with a bad credit score. Most are for personal improvement, and therefore, likely not a part of your insurance plan. However, if you are still adamant on the procedure of your choice, you can, surprisingly, still pay for it with a low credit score.

How to Pay for Plastic Surgery with Bad Credit

In an article titled, “Financing Plastic Surgery: 10 Options,” by Emma Johnson on CreditCard.com, the following is recommended:

  • Loans: Two types of loans can generally be used for the operations.
    • Regular: Your bank or local credit union could sign off on an unsecured loan for you. Unfortunately, using a loan means the procedure could end up costing you more due to interest rates. On the bright side, you can receive a loan with a fixed interest rate, keeping the interest from increasing over time. If you choose a secured loan, you would guarantee an asset for collateral for the purpose of any missed payments, but you would also be provided with lower interest rates.
    • Medical: Unsecured medical loans are offered by a doctor or a third party site like doctors. With a lower credit score, this may be a way to still receive borrowed money; however, you need to be aware that these types of loans usually have higher interest rates.
  • Credit Cards: Speaking of borrowed money, paying for plastic surgery with plastic could be another option. If you use a card with an interest rate lower than 10% for your desired or needed procedures, you can not only cover the costs of your surgery but also build your credit (as long as you are paying your balances on time).
  • Payment Plans: Some surgeons may offer payment plans of their own. These may be based on your income or budget, depending on the practice. Although, keep in mind that many medical offices will still not perform the procedure until the balance is paid in full. There may also be no interest rates involved in this type of arrangement, but you could still be sent to collections for missing a payment.
  • Savings: Lastly, you could pull from your own savings to pay for plastic surgery. This would be the least risky as far as hurting your credit any further. Of course, you should put a plan of action into place to replenish the account to ensure future security for emergencies.

Before signing up for cosmetic surgery, make sure you are absolutely sure you want to do this. Never follow through on an impulse, and consider how much this will truly improve your life (if at all). The expense can really add up, and if you’re already hurting financially, you may want to explore other options.

If you’ve been wondering how to pay for plastic surgery with bad credit, know you do have options. We do encourage always building your finances up first, though.

What are your thoughts on the topic? Start a conversation in the comments below or in our forums.

How to Raise Your Credit Score By 200 Points

By 4 Comments

credit score tips, raising your credit score, credit score advice
There are no words to describe the absolute panic someone has when they realize their credit has taken a turn for the worse. Credit scores can keep you from buying a car, renting certain apartments, buying a home and even getting a job.

If you’ve run into a problem with your credit score you’re probably looking for an immediate fix. Sorry to be the Debby Downer but there’s no overnight fix for your credit. MyFico.com suggests that you should think of your credit like your weight. Losing weight isn’t easy. It takes time, just like repairing your credit will take time.

For those of you looking to increase your score, here are some tips on how to raise your credit score by 200 points (relatively quickly):

How to Raise Credit Score By 200 Points

There are a few things you can do right away to help your credit score. Although you won’t see immediate progress, you can start with these steps:

  • Check your credit score and report. If you want to know how to raise your credit score by 200 points you’ll need to know what your score is now (and what it means). You’ll also need to see a full credit report to know what steps you need to take to improve it. See the range of credit scores in the chart below.

How to raise credit score by 200 points

  • Set up payment reminders. Payment reminders are a great way to help increase your credit score. The majority of credit problems are due to nonpayment or late payments. By setting up payment reminders (on your phone, computer or even through your bank) you can stay on top of your bills, which will help your credit over time. Check out the graph below and see how important paying your bills on time is to your credit score:

How to raise credit score by 200 points

  • Reduce your debts. The most obvious piece of advice on how to raise your credit score by 200 points is to reduce your debt. If you have a lot of debt your credit score will remain low.
  • Research secured credit cards. According to Good Financial Cents, a secured credit card is a great way to raise your credit score. A secured credit card is a credit card that you provide cash down payment for. You then use and pay off that credit card over time. Eventually, the credit card company you opened the card with will give you a higher credit line.
    • Put down a cash payment you can afford and use the card sparingly. Make sure that the cash you put down for the secured card is money you can afford not to have in your pocket. Think of it as an emergency savings account that you’ll only use if you can put the money right back.
  • Make payments in full. Once you have a secured credit card (or any line of credit) pay it off in full when you can. This will help you increase your credit score as well.

Keeping Your New and Improved Score

How to raise credit score by 200 points
Knowing how to raise your credit score by 200 points is only a small portion of mending your credit. If you are going to spend the time and energy it takes to raise your score you will want to maintain the score you earned. Here are a few credit tips that will help you keep your score high:

  • Pay your bills on time. As mentioned above paying your bills on time is important for raising your credit score. It is also important for maintaining a credit score.
    • If you are behind on bills, get up-to-date and stay there. Being behind on your bills will hurt your credit score greatly. Get caught up and make sure you stay there.
  • Keep balances low on credit cards. Any lines of credit you have should have no balance or a low balance. Your credit score stays high when your available line of credit remains open.
  • Don’t close unused accounts. If you have any line of credit you don’t use very often, don’t close it! Closing accounts can actually hurt your credit in the long run.
  • Establish new credit history. Once you’ve been able to raise your credit score you’ll want to begin to establish a new credit history. Open new credit card accounts or get a department store charge card. Having more available lines of credit will help your credit score.
    • Don’t open unnecessary accounts. Even though you should open a new account to establish new credit history you shouldn’t open any account you find. Opening too many new accounts, however, can hurt your score.

Even though there’s no sure-fire “how to” to raising your credit score these are all great starting points. The bottom line is that raising your credit score will require work fixing your credit history and being able to maintain the work you’ve done. If you’re looking for more tips check out this video on lesser-known ways to improve your credit score:

Have you raised your credit score a significant amount? We’d love to hear your story. Contact us here.

Photos: Photos by CafeCredit under CC 2.0