Manage Your Credit & Identity

Credit Report Reminder from Jill Russo Foster: Start 2013 with good financial information

It’s January 2013! Time to start the year off right!

This month use Experian

Hello, it’s Jill again, reminding you to get your finances in order for the New Year by checking your credit report.

Order your credit report from www.AnnualCreditReport.com. This is the ONLY authorized source for the no cost annual credit report that’s yours by law. You have the right to know. Exercise your rights! Learn more.

When ordering online:

Select your state, then click Request Report.
Fill out your information, then click Continue.
When it asks you to select a service, select Experian.

Not comfortable ordering online? There are three ways you can order your report:

Order online at www.AnnualCreditReport.com. By ordering online you can have your report back in minutes!
Mail your postal order by downloading the form at www.AnnualCreditReport.com
Call in your order at 1-877-322-8228

It doesn’t matter how you get your report, the most important thing is that you do! Then…

Review it for accuracy!
Follow the instructions with the report to correct any errors.
And, always remember to keep copies for your records.

Were you hoping to get your credit score instead? Try CreditKarma.com. CreditKarma does not supply a FICO score, but it does provide scores from TransUnion and VantageScore. And, there’s no charge for you. CreditKarma funds their service through website advertising.

May you have a blessed and successful year!

P.S. I’ll give you another reminder in May and September to help you stay up-to-date on your credit throughout the year.

Of Breakups and Closed Accounts

In our last issue, we discussed whether you should blend your finances when you get into a relationship. Money will be your biggest source of friction, and having boundaries doesn’t hurt. I listed some of the different financial relationships couples choose. There are different options besides “What’s mine is mine and never ‘ours’ or “It’s all or nothing or I’m out of here.”

Sometimes your best efforts to create a life together fail, and the relationship ends. Today, we’ll discuss how to unblend your finances. Whether you decided to share all of your accounts, or only share expenses, you should separate your finances as soon as possible, because you can be sure that someone’s name is on the wrong paperwork.

Take a look at your…

Rent or Mortgage: Who is on the lease agreement or loan? It should be the one who actually lives there. Ignore that piece of wisdom and risk having your home sold out from under you.

Utilities, cable, and cell phone: Whose name is on the accounts? They should be in the name of the person using them. If you don’t transfer ownership, you could have your utilities cut off without notice.

Insurance: This includes car, apartment, home, life, and medical. You don’t want to be without insurance, and you don’t want your money going to the wrong person if you don’t update your beneficiaries.

Credit cards and loans: Do you want to have your credit affected by charges that aren’t yours, or be forced to make payments on a car you don’t use?

“But Jill,” you say, “these all sound like things that happen in a hostile breakup. We’re not like that.” Even if your breakup is friendly, and your ex is as trustworthy and competent as a super hero’s alter ego, you still need to separate your accounts to protect yourself in case something happens to one of you. If one of you dies, or is mentally incapacitated, the law won’t recognize verbal agreements or promises. They only see whose name is on a piece of paper.

Let’s talk about verbal agreements. Let’s say the house and car loan are in your name, but you want to be nice. You don’t need them, and your ex does. Your ex has agreed to make payments, so it’s no big deal, right?

Wrong. Your credit will take a hit with the first missed, or late, payment. And, you may not be able to get a new car or house for yourself because your debt to income ratio is too high. The bank won’t take verbal agreements with your ex into consideration when you apply for your loan.

Here’s something else to think about: Can you maintain your current lifestyle if you live separately?

If you end up with the house or the car, can you afford the payments? Can you pay for the utilities, the maintenance and the insurance? You may have to make tough decisions, because you could be without the things you need to live if you don’t plan ahead.

Too many people have found themselves temporarily homeless, or had their credit ruined, after a breakup. Don’t let this happen to you.

It’s September! Kick off to better credit!

It’s time to order your next credit report
This month use TransUnion

Hello everyone! This is your quarterly reminder from me.

Order your free credit report from www.AnnualCreditReport.com.

AnnualCreditReport.com is the ONLY authorized source for a truly FREE annual credit report that’s yours by law. You have the right to know. Exercise your rights! Learn more.

When ordering online:

Select your state, then click Request Report.
Fill out your information, then click Continue.
When it asks you to select a service, select TransUnion.

Not comfortable ordering online? There are three ways you can order your report:

Order online at www.AnnualCreditReport.com. By ordering online you can have your report back in minutes!
Mail your postal order by downloading the form at www.AnnualCreditReport.com
Call in your order at 1-877-322-8228

It doesn’t matter how you get your report, the most important thing is that you do! Then…

Review it for accuracy!
Follow the instructions with the report to correct any errors.
And, always remember to keep copies for your records.

Do you want to know your credit score? Use CreditKarma.com. Credit Karma will give you a close approximation of your FICO score, and it’s free.

Wishing you the best for the school year and the coming holiday season!

P.S. This is your final reminder for this year. New reminders will begin in January.

Step One to Having it All

One of my clients told me that a 6-figure income would give her everything she wanted. She could pay the bills, have a home, save for the future, travel, and indulge in all the little things.

I gently pointed out that there are a lot of 6-figure earners who wished they made more money. A bigger income means a bigger mortgage and a more expensive lifestyle. High earners often find themselves pushed to their budget limits, balancing debt against what feels like a meager paycheck.

That’s human nature for you. We pick up more than we can carry, then blame nature for not gifting us with extra arms. We grab for everything, instead of just those things that make us feel fulfilled.

You can have it all (maybe not at once), as long as you know what having it all means to you. The key is in knowing what will really make you happy, having a plan, and working towards your goals.

When my client dreamed of making 6-figures, I believe she was really fantasizing about the freedom of living debt-free, with money in the bank for travel, retirement and a comfortable home life. But, without a plan and goals, she would have fallen into the big-earner/big-spender debt trap.

You may already know what you want, but, if you are living your life day to day with no goals, how do you expect to get to where you want to go? You may not even know if you are headed in the right direction without action steps to judge your progress.

The first step is to set a goal. What is it? Do you want to eliminate your debt, save for a vacation, save for a down payment on a home, start an emergency fund, save for retirement, your children’s education, or something else? Remember the goal must be reasonable and measurable.

Examples of wishy-washy goals:

I want to get out of debt by the end of the year (may not be reasonable).
I want to have an emergency fund (not measurable).

Examples of reasonable and measurable goals:

I want to pay an extra $100 per month, and stop creating new debt, to eliminate my debt in two years.
I will save $20 per week to build an emergency savings of $1,000.

This is Step One: determine your goal(s). Write them down and put them where you will see them every day.

In our next Quick Tips, we’ll discuss Step Two and the action steps you’ll take to have it all.

Identity Theft is on the Rise

It’s up to you to take precautions.

Take these steps to protect your identity:

Beware of solicitations asking for your personal information. They might call, email or text. If you didn’t initiate the communication, don’t give out your information. If they claim to be from customer service, hang up and call the number found on your statement.

Review your bank and credit card statements and question any activity you are unsure of.

Be careful with your paperwork. Take your receipts with you when you make a purchase or use an ATM. When it’s safe to dispose of old receipts, statements, or other paperwork containing your personal information always shred them. Never just throw them away.

Review your credit reports a minimum of three times per year for incorrect information and dispute it.

Keep your home computers up to date with antivirus software. Remember, it can get outdated quickly, so do your updates on a regular basis.

Change your internet passwords regularly. Don’t use easy to guess passwords.

Make sure you pick up your incoming mail as soon as possible and never use your home mailbox for outgoing mail. Always bring it to the post office or a mailbox.

None of these precautions will help you if someone has stolen your information from the database of a company you deal with. But, if you are vigilant about your identity, you can catch any fraudulent activity early on.

Before you head out for your summer vacation…

Take these precautions so you can enjoy a safe and worry-free trip.

Call your credit card companies to let them know where you will be. Your credit card company will know it’s you making the charges and will let them go through.

Put a hold on postal mail, newspapers, and any other regular deliveries before you go. You don’t want mail piling up advertising a vacant house.

Clean out your wallet. Remove all items that will not be necessary (that includes your checkbook). Carry two credit cards, and if you are traveling with someone, have different credit cards in case one wallet is stolen.

If you need to use an ATM, use one at a bank (preferably in a lobby). They are less likely to be tampered with.

Be careful when using hotel computers and Wi-Fi networks. Do not access your financial accounts as identity theft can be right around the corner.

Beware of fake calls from the “front desk”. If you receive a call from the hotel front desk telling you your credit card didn’t go through, it could be a scam. Thank the caller, and then go to the front desk in person to straighten this out. Never give your personal information over the phone to someone who calls you.

Taking a few precautions before, and during, your vacation may save you from financial troubles when you get back.

Clean out your wallet before you take a vacation

While you’re packing your suitcase, don’t forget to properly pack your wallet. You want to bring only those items necessary for your trip.

This is one of those little tasks many people forget before leaving home on a vacation, a long weekend, or any other trip.

For example, you might want to carry only one or two credit cards. If you’re traveling with a spouse, don’t carry the same credit cards. If one of you loses his wallet and has to cancel the VISA card, you could still have your MasterCard or American Express.

What about the cards you leave at home? They should be locked up in a safe place (not left in a drawer). It’s impossible to keep your travels secret. The wrong people might know that your house will be empty for the next week.

But, back to your missing wallet. How did that happen? Did you forget it somewhere, or did you leave it unattended in the wrong place?

You may feel paranoid about leaving your wallet back at the hotel, but it’s much worse to keep your valuables in a beach bag while you’re in the water. Most hotels have safes which allow you to lock up you valuables before you head to the beach.

What if you’re just at the beach for the day? Leaving your wallet in the car is not a great choice, either. Parking lots near tourist destinations are popular targets. If you have to leave it in the car, keep it in a not-so-obvious place so it’s not easy to find in a smash-and-grab.

Taking a few simple steps to protect your wallet, and your identity, ahead of time can save your vacation, and hours of your valuable time. You don’t want to have to clean up an identity-theft mess after your vacation.

When you co-sign, you’re responsible for payments

When you co-sign a friend’s loan, you are taking out a loan. Yes, you read that right!

You are agreeing to make the payments if the borrower does not. But, the borrower is your friend and he would never do that to you, right…?

… Maybe. Not on purpose, but if he’s not very good with money, or has money troubles, it could “just happen.”

A lender only asks for a co-signer if the borrower isn’t creditworthy on his own. The lender could have good reason if your friend has a poor credit history, or doesn’t make enough money for a loan of that size. Or, it could simply be that the lender has no proof that your friend is good with money, because your friend has never taken out a loan or had a credit card before.

Because they are unsure about your friend, they’re counting on you to step up and take responsibility if things go badly.

Remember, if your friend doesn’t make the payments in a timely manner, or doesn’t make them at all, it will show up on YOUR credit history as well as his, and hurt your credit score.

If your friend is too embarrassed, or too disorganized, to tell you that he hasn’t been paying the loan, you might have to make a really big payment to get the loan current again.

And by then, the damage to your credit score will already be done. It will take years for the late payment history to drop off your report.

I know you want to help your friends, but, think carefully before you make a decision that could change your finances for the worse.

It’s May! Relax this summer knowing you’ve checked your credit!

It’s time to order your next credit report
This month use Equifax

Hello everyone! This is your quarterly reminder from me.
Order your free credit report from www.AnnualCreditReport.com.

AnnualCreditReport.com is the ONLY authorized source for a truly FREE annual credit report that’s yours by law. You have the right to know. Exercise your rights! Learn more.

When ordering online:

Select your state, then click Request Report.
Fill out your information, then click Continue.
When it asks you to select a service, select Equifax.

Not comfortable ordering online? There are three ways you can order your report:

Order online at www.AnnualCreditReport.com. By ordering online you can have your report back in minutes!
Mail your postal order by downloading the form at www.AnnualCreditReport.com
Call in your order at 1-877-322-8228

It doesn’t matter how you get your report, the most important thing is that you do! Then…

Review it for accuracy!
Follow the instructions with the report to correct any errors.
And, always remember to keep copies for your records.

Do you want to know your credit score? Use CreditKarma.com. Credit Karma will give you a close approximation of your FICO score, and it’s free.

May you have a sunny and profitable summer!

P.S. You will receive another reminder in September, allowing you to stay up-to-date on your credit throughout the year.

Don’t Pay a Service! You Can Easily Monitor Your Own Credit

Credit Report Shock

Identity theft is one of the biggest fears plaguing consumers these days. It was interesting to catch a scene on a crime show recently where a waitress is caught hiding a portable credit card swiper under her apron, then using it to steal her customer’s credit card information. YES, this does happen in real life.

Identity theft isn’t the only thing that can hurt your credit. Banks make mistakes, family members make late-payments on jointly shared accounts, you might have a payment dispute with a fraudulent company. I could go on, but you get the idea. Life happens.

The only way to protect yourself is to consistently monitor your credit. Most people believe that you have to pay an outside company to have your credit monitored. I disagree! I do it myself.

Once you get in the habit of monitoring your credit, it gets easier and becomes an almost compulsive habit. You’ll feel that you have much more control over your life and finances.

How to Monitor Your Own Credit

1. Look over your credit report three times per year minimum. You can do this by visiting www.AnnualCreditReport.com and ordering one report every four months. It’s completely free. If you subscribe to Quick Tips, you’ll get a reminder email with instructions in January, May and September.

2. Check your credit score at www.CreditKarma.com every month to see if there are any changes. This is also free. Monitoring changes in your score can alert you to hidden issues.

3. Monitor your bank accounts (checking, savings, etc.) to see if there are any unusual transactions. Most banks have online access, so you can easily check any time you get online. My virtual bank accounts actually email me with every transaction, so that’s an added plus.

4. Monitor your credit card accounts. I get online and check each and every account to see what’s happening. I do this every week or so, just to be on the safe side. These days, people can even scan credit card information through your wallet or purse from a distance. It doesn’t hurt to be careful.

Yes, taking these steps can take up some time, but it’s well worth it. Even with my busy schedule, I am able to find the time to monitor my credit. I am comfortable checking my accounts and credit, and I don’t feel it’s necessary to pay for a monitoring service. You may not find that it’s worth your time, but remember, it’s absolutely free to give it a try.