Sep 27, 2007
Give it to me
Let's liven this forum up a little bit. Have an opinion or thoughts about any of these posts? I hope so. Perhaps you've been inspired, maybe you think I'm full of gravy, or perhaps you have an alternative suggestion. Please let me and everyone else know. Your feedback of any nature is appreciated.
Sep 25, 2007
Rewards Strategy
Okay, you've qualified for a "rewards" account with a major credit card. What's next? Congratulations, first of all. Second, keep your account in good order and avoid forfeiting those glorious rewards. See previous posting, Protecting Rewards and Your APR.
We all love little perks, right? Whether it's the free apple pie after dinner at your local dive, a free drink from the chummy bartender or even a discount on the cable, everyone appreciates a little love now and then.
If you don't already have a credit card with rewards, you can check the options at any of your major banks. I recommend shopping around and looking at the rewards structure. If you're looking at a miles account, do your miles expire after a certain period, are there blackout dates or seat restrictions? (You do want to fly first class, right?) Also, can you fly any airline and anywhere in the world? These are all things to consider when shopping around for a miles card. See this link or visit the website of your favorite large bank, http://www.creditcards.com/.
Once you have that rewards account going, you may want to maximize its potential to secure the greatest rewards. What's that mean? Use your card to your heart's delight.
If nothing else, follow my strategy: move your household bills to that account to have them paid automatically on the due date. Then, instead of writing a check or sending e-payment to your power company or your trash collector, send the payment to your credit card company to avoid finance charges. You're still paying your bills, but by another method, and now you're reaping rewards. That can quickly add up. I'm looking at about 700 miles a month using this strategy and considering moving my used truck payment on there as well- another 300 miles a month.-SH
We all love little perks, right? Whether it's the free apple pie after dinner at your local dive, a free drink from the chummy bartender or even a discount on the cable, everyone appreciates a little love now and then.
If you don't already have a credit card with rewards, you can check the options at any of your major banks. I recommend shopping around and looking at the rewards structure. If you're looking at a miles account, do your miles expire after a certain period, are there blackout dates or seat restrictions? (You do want to fly first class, right?) Also, can you fly any airline and anywhere in the world? These are all things to consider when shopping around for a miles card. See this link or visit the website of your favorite large bank, http://www.creditcards.com/.
Once you have that rewards account going, you may want to maximize its potential to secure the greatest rewards. What's that mean? Use your card to your heart's delight.
If nothing else, follow my strategy: move your household bills to that account to have them paid automatically on the due date. Then, instead of writing a check or sending e-payment to your power company or your trash collector, send the payment to your credit card company to avoid finance charges. You're still paying your bills, but by another method, and now you're reaping rewards. That can quickly add up. I'm looking at about 700 miles a month using this strategy and considering moving my used truck payment on there as well- another 300 miles a month.-SH
Sep 24, 2007
Stomping Out Identity Theft
Identity theft strikes nearly 10 million Americans each year, according to a 2003 study by the Federal Trade Commission. The numbers have climbed even higher as credit card thieves have stooped to even lower depths to steal your personal information. They are sly SOBs and getting craftier all the time.
Yes, that may be a bit of paranoia talking, but this comes from an identity theft victim. Most of us go about living our lives without such worries, thank God, but if you happen to receive a call from your credit card company requesting confirmation of your recent activity, I'd recommend calling them back immediately.
Other potential signs that something may be going on:
- One of your creditors tells you that they received an application for credit with your name and social security number.
- You find your credit card or debit card suspended or restricted when you know you have plenty of available credit or money in the bank.
- Incoming calls or letters advise you have been approved or denied by a creditor to which you never applied. (I hear about a lot of these where I work.)
- You receive credit card, utility or phone bills in your name for which you never applied.
- You haven't seen your credit card statements in some time, and/or you notice that not all of your mail is delivered to you.
- Your credit card statement includes transactions that you don’t remember.
- A collection agency tells you they are calling for a defaulted account established with your identity, but you don't remember opening the account.
The first step I highly recommend here folks is remain calm. I know that may seem a bit impossible to expect. I was taken for more than $15,000 by someone using my identity. I still don't know how they got my information. I may never know, but I suspect they hacked into my computer. Get a very good firewall on your computer.
Immediately after you discover fraudulent activity, you want to contact that creditor and advise them of this. Next, contact any of the three credit bureau agencies and ask that agency to put a fraud alert up on your credit bureau report. I recommend TransUnion (www.transunion.com), 800-680-7289. Call any of the three requesting this action and the other two agencies will pick it up automatically. This is at no cost to you. You may want to contact law enforcement as well.
Once the fraud alert is in place, anytime anyone attempts to open an account in your name and/or SSN, you will be alerted and that application will be put on hold until you approve it. This is a temporary measure that stays in place for 90 days; however, an extended alert can be put into place for seven years. This might be a wise action if you have seen anything unusual.
If you decide to go with the extended alert, the credit bureaus will require you to provide more information: proof of your identity, including your SSN, and a copy of an identity theft report from any law enforcement agency. I contacted law enforcement about the same time they contacted me. (This also involved a stolen car listed at eBay in my name. Don't ask, but rest assured, I'm no thief.)
In any case, you can get more information on the identity theft report at www.consumer.gov/idtheft. I hope you never have to experience this.
Now here's the important part. YOU CAN TAKE MEASURES TO AVOID THIS. These include:
- Never share your personal information with anyone outside of your family or household.
- Don't loan your credit card to anyone.
- Don't share your personal information (name, address, date of birth, SSN) or credit card number or banking info with any who calls you on the know unless you can confirm that person's identity. If it sounds fishy, it probably is.
- Last, but not least, stay on top of your own credit. This is easy and cheap. (IT'S FREE.) Read on.
Everyone in America is now entitled to one free credit report a year from each of the three agencies: TransUnion, Experian and Equifax. You can gather those free of charge at www.annualcreditreport.com. This is the only free, legitimate government-endorsed website created for the purpose of the annual credit bureau report mandate. What I strongly recommend is not to pull all three at once, although you're certainly welcome to do so. I'd suggest starting with one, maybe TransUnion, and then pulling another one 4 months later, followed by the next 4 months after that, and then repeating the process. Time-consuming? Slightly, but well worth your time. Best of luck.-SH
Yes, that may be a bit of paranoia talking, but this comes from an identity theft victim. Most of us go about living our lives without such worries, thank God, but if you happen to receive a call from your credit card company requesting confirmation of your recent activity, I'd recommend calling them back immediately.
Other potential signs that something may be going on:
- One of your creditors tells you that they received an application for credit with your name and social security number.
- You find your credit card or debit card suspended or restricted when you know you have plenty of available credit or money in the bank.
- Incoming calls or letters advise you have been approved or denied by a creditor to which you never applied. (I hear about a lot of these where I work.)
- You receive credit card, utility or phone bills in your name for which you never applied.
- You haven't seen your credit card statements in some time, and/or you notice that not all of your mail is delivered to you.
- Your credit card statement includes transactions that you don’t remember.
- A collection agency tells you they are calling for a defaulted account established with your identity, but you don't remember opening the account.
The first step I highly recommend here folks is remain calm. I know that may seem a bit impossible to expect. I was taken for more than $15,000 by someone using my identity. I still don't know how they got my information. I may never know, but I suspect they hacked into my computer. Get a very good firewall on your computer.
Immediately after you discover fraudulent activity, you want to contact that creditor and advise them of this. Next, contact any of the three credit bureau agencies and ask that agency to put a fraud alert up on your credit bureau report. I recommend TransUnion (www.transunion.com), 800-680-7289. Call any of the three requesting this action and the other two agencies will pick it up automatically. This is at no cost to you. You may want to contact law enforcement as well.
Once the fraud alert is in place, anytime anyone attempts to open an account in your name and/or SSN, you will be alerted and that application will be put on hold until you approve it. This is a temporary measure that stays in place for 90 days; however, an extended alert can be put into place for seven years. This might be a wise action if you have seen anything unusual.
If you decide to go with the extended alert, the credit bureaus will require you to provide more information: proof of your identity, including your SSN, and a copy of an identity theft report from any law enforcement agency. I contacted law enforcement about the same time they contacted me. (This also involved a stolen car listed at eBay in my name. Don't ask, but rest assured, I'm no thief.)
In any case, you can get more information on the identity theft report at www.consumer.gov/idtheft. I hope you never have to experience this.
Now here's the important part. YOU CAN TAKE MEASURES TO AVOID THIS. These include:
- Never share your personal information with anyone outside of your family or household.
- Don't loan your credit card to anyone.
- Don't share your personal information (name, address, date of birth, SSN) or credit card number or banking info with any who calls you on the know unless you can confirm that person's identity. If it sounds fishy, it probably is.
- Last, but not least, stay on top of your own credit. This is easy and cheap. (IT'S FREE.) Read on.
Everyone in America is now entitled to one free credit report a year from each of the three agencies: TransUnion, Experian and Equifax. You can gather those free of charge at www.annualcreditreport.com. This is the only free, legitimate government-endorsed website created for the purpose of the annual credit bureau report mandate. What I strongly recommend is not to pull all three at once, although you're certainly welcome to do so. I'd suggest starting with one, maybe TransUnion, and then pulling another one 4 months later, followed by the next 4 months after that, and then repeating the process. Time-consuming? Slightly, but well worth your time. Best of luck.-SH
Sep 22, 2007
Consumer Tip: College Bound?
FYI. In case you haven't noticed lately, college tuition costs keep rising. So does the cost of text books and everything associated with eduation.
Some fun facts from the College Savings Plan Network:
- 529 savings plans can be used at virtually any accredited college or university in the U.S. and at some foreign schools.
- Earnings from 529 plans are not taxed when used to pay for eligible college expenses.
- The account owner of a 529 plan maintains control over the use of the account.
- Your 529 plan contribution qualifies for the $12,000 annual gift tax exclusion.
- 529 plans come in two varieties: college savings plans and prepaid tuition plans.
- 529 plans can be used to pay for tuition, room and board, fees, books, supplies, and equipment required for enrollment.
- Some states offer an income tax deduction based on your contributions into a 529 plan.
- There are no income limitations on a person's ability to contribute to an account.
- Most need-based financial aid comes in the form of student loans.
- Over the past decade, college expenses at public universities have risen nearly 51%. Where will that be in another 10 years when Junior is approaching his senior year in HS?
- High school graduates are more likely to go on to college today than in the past. Sixty-three percent of the year 2000 high school graduates had enrolled in college by the following fall, up from 52 percent of the class of 1970. (US Bureau of Labor Statistics)
- College graduates age 25 and over earn nearly twice as much as workers who stopped with a high school diploma.
- Among men, median earnings of four-year college graduates were 19 percent higher than median earnings of high school graduates in 1975. The gap grew to 37 percent in 1985, 56 percent in 1995, and 63 percent in 2005.
- Among women, median earnings of four-year college graduates were 37 percent higher than median earnings of high school graduates in 1975. The gap grew to 47 percent in 1985, and 71 percent in 1995. It was 70 percent in 2005.
- Minimum contributions can be as little as $15.
- In most states, you can contribute as much as $300,000 or more per beneficiary.
- More than $105 billion has been invested in 529 plans across the country.
- More than 9 million 529 accounts have been opened.
What if Junior just got out of diapers and you're finding the cost of daycare, after-school day, and Elmo toys is still eating up anything you have to even start an initial deposit on a 529 plan? You're in luck today people. There are several programs out there that won't cost you a dime, yet will help build a pool of money for Junior's future tuition, or contribute to a 529 plan.
Consider these:
Upromise (www.upromise.com), which offers members rebates that are automatically deposited into a pool that you can use for future tuition or have deposited directly into your 529 plan. Friends and family members can join your network and all they have to do to contribute is continue their regular shopping patterns. Well worth your time. Wife and I enrolled in this about five years ago.
BabyMint (www.babymint.com) is another one that offers rebates for online purchases and gift certificates. Checks or rebates can even be directed to Junior's savings account, mutual fund account or 529 plan. Family and friends can help on this one too.
EdExpress (www.edexpress.com) is another option that lets family and friends contribute.
Some fun facts from the College Savings Plan Network:
- 529 savings plans can be used at virtually any accredited college or university in the U.S. and at some foreign schools.
- Earnings from 529 plans are not taxed when used to pay for eligible college expenses.
- The account owner of a 529 plan maintains control over the use of the account.
- Your 529 plan contribution qualifies for the $12,000 annual gift tax exclusion.
- 529 plans come in two varieties: college savings plans and prepaid tuition plans.
- 529 plans can be used to pay for tuition, room and board, fees, books, supplies, and equipment required for enrollment.
- Some states offer an income tax deduction based on your contributions into a 529 plan.
- There are no income limitations on a person's ability to contribute to an account.
- Most need-based financial aid comes in the form of student loans.
- Over the past decade, college expenses at public universities have risen nearly 51%. Where will that be in another 10 years when Junior is approaching his senior year in HS?
- High school graduates are more likely to go on to college today than in the past. Sixty-three percent of the year 2000 high school graduates had enrolled in college by the following fall, up from 52 percent of the class of 1970. (US Bureau of Labor Statistics)
- College graduates age 25 and over earn nearly twice as much as workers who stopped with a high school diploma.
- Among men, median earnings of four-year college graduates were 19 percent higher than median earnings of high school graduates in 1975. The gap grew to 37 percent in 1985, 56 percent in 1995, and 63 percent in 2005.
- Among women, median earnings of four-year college graduates were 37 percent higher than median earnings of high school graduates in 1975. The gap grew to 47 percent in 1985, and 71 percent in 1995. It was 70 percent in 2005.
- Minimum contributions can be as little as $15.
- In most states, you can contribute as much as $300,000 or more per beneficiary.
- More than $105 billion has been invested in 529 plans across the country.
- More than 9 million 529 accounts have been opened.
What if Junior just got out of diapers and you're finding the cost of daycare, after-school day, and Elmo toys is still eating up anything you have to even start an initial deposit on a 529 plan? You're in luck today people. There are several programs out there that won't cost you a dime, yet will help build a pool of money for Junior's future tuition, or contribute to a 529 plan.
Consider these:
Upromise (www.upromise.com), which offers members rebates that are automatically deposited into a pool that you can use for future tuition or have deposited directly into your 529 plan. Friends and family members can join your network and all they have to do to contribute is continue their regular shopping patterns. Well worth your time. Wife and I enrolled in this about five years ago.
BabyMint (www.babymint.com) is another one that offers rebates for online purchases and gift certificates. Checks or rebates can even be directed to Junior's savings account, mutual fund account or 529 plan. Family and friends can help on this one too.
EdExpress (www.edexpress.com) is another option that lets family and friends contribute.
Sep 20, 2007
Need your guidance
I have a few ideas for future columns here, but I'm looking for your suggestions. Attach any tips to this posting. I promise to research anything I'm unfamiliar with and will not delve into anything not related to financial issues, saving or investing. -SH
Sep 19, 2007
Protecting Rewards AND your APR
Yep, I'm afraid I've heard more than one grown man cry on my shoulder. I'm not talking about my brother after going through the latest loss of female companionship. (No names, but you know who you are!)
The guys who have cried on my shoulder are not barflies at the corner pub, but clients I have dealt with who have lost their rewards. Got rewards? Great, aren't they? We all love extra perks, right?
If so, this message is for you. DO EVERYTHING YOU CAN TO GET YOUR PAYMENTS IN ON TIME. Now, most of us are fairly conscientious, and if you're like me, you might even consider yourself a bit obsessive about bill paying. I paid rent and auto payments weeks early for years. My landlords always loved to see me and I usually received very prompt repairs, whenever necessary. Still continue that habit to this day, creating my lovely FICO score of 755. Not too shabby. And don't tell me yours is 1000 please. Anything over a 750 is excellent and it only goes up to 850.
If you don't what to have the conversation with me that begins, "I'm sorry your last payment was 7 days late," then pay your bill on time. Easier said then done? Even easier folks. PLEASE listen here. Attention cardholders with rewards, this is for YOU:
If you don't want to risk losing those rewards, take some steps to avoid losing them. Now I know about 99 percent of everyone is conscientious and makes every effort to get the paper check in the Pony Express (I mean the mail) before the due date, but things happen. I call that life folks. Even yours truly has seen a late payment or two in the last 10 years. But I have never forfeited rewards.
If you have a rewards account, consider these options:
- Arrange for an automatic electronic debit schedule (on a monthly basis) from your checking account using the Billpay option at your bank's website. This takes all of a minute and most sites will even allow you to create an email reminder to self.
- Consider working directly with your credit card company, or financial institution, and perhaps allow them to electronically debit the payment from your checking account. You can sometimes arrange a minimum payment on your account, the balance in full every month, or perhaps a specified dollar figure.
- Don't want to mess with Internet banking and don't want to authorize your credit card company to dip into your checking account? Then you may want to talk to someone at your bank and have them arrange an automatic debit on a certain day toward your account. I'd recommend shooting that out a week before the due date. If that's not a possibility, ask your credit card company if they can move your due date. Or, perhaps consider making two payments or more on the account. Been there, done that. Doing it now.
Things to think about. You don't want to put that new Harley Sportster on your rewards card and then miss your due date the following month by a day, perhaps forfeiting 15,000 points or miles (on a 2-fer card). I'd cry too, if I lost that. Just food for thought.-SH
The guys who have cried on my shoulder are not barflies at the corner pub, but clients I have dealt with who have lost their rewards. Got rewards? Great, aren't they? We all love extra perks, right?
If so, this message is for you. DO EVERYTHING YOU CAN TO GET YOUR PAYMENTS IN ON TIME. Now, most of us are fairly conscientious, and if you're like me, you might even consider yourself a bit obsessive about bill paying. I paid rent and auto payments weeks early for years. My landlords always loved to see me and I usually received very prompt repairs, whenever necessary. Still continue that habit to this day, creating my lovely FICO score of 755. Not too shabby. And don't tell me yours is 1000 please. Anything over a 750 is excellent and it only goes up to 850.
If you don't what to have the conversation with me that begins, "I'm sorry your last payment was 7 days late," then pay your bill on time. Easier said then done? Even easier folks. PLEASE listen here. Attention cardholders with rewards, this is for YOU:
If you don't want to risk losing those rewards, take some steps to avoid losing them. Now I know about 99 percent of everyone is conscientious and makes every effort to get the paper check in the Pony Express (I mean the mail) before the due date, but things happen. I call that life folks. Even yours truly has seen a late payment or two in the last 10 years. But I have never forfeited rewards.
If you have a rewards account, consider these options:
- Arrange for an automatic electronic debit schedule (on a monthly basis) from your checking account using the Billpay option at your bank's website. This takes all of a minute and most sites will even allow you to create an email reminder to self.
- Consider working directly with your credit card company, or financial institution, and perhaps allow them to electronically debit the payment from your checking account. You can sometimes arrange a minimum payment on your account, the balance in full every month, or perhaps a specified dollar figure.
- Don't want to mess with Internet banking and don't want to authorize your credit card company to dip into your checking account? Then you may want to talk to someone at your bank and have them arrange an automatic debit on a certain day toward your account. I'd recommend shooting that out a week before the due date. If that's not a possibility, ask your credit card company if they can move your due date. Or, perhaps consider making two payments or more on the account. Been there, done that. Doing it now.
Things to think about. You don't want to put that new Harley Sportster on your rewards card and then miss your due date the following month by a day, perhaps forfeiting 15,000 points or miles (on a 2-fer card). I'd cry too, if I lost that. Just food for thought.-SH
A few credit card tips
Everyone knows how to avoid the highest credit card rates, right? Pay your bills on time and avoid going overlimit and you won't seen an increase on your APR, right? Wrong.
Check out every single credit card application you can get your dirty little hands on. They all have a disclaimer line: Terms subject to change. It basically means your APR can go up for any reason- sometimes inspired by competitors in the market, or just a sign of the times (the economy stupid). You swear up and down you "signed up" for a fixed APR guaranteed for the life of the loan.
Well... Newsflash here. The only things guaranteed in life are death, taxes and my mama's great cookin. (It's a Southern thang y'all.)
So... Count your lucky stars if your "fixed" APR is sitting at anything below prime right now (currently 8.25). That's a decent card you have there. If you're looking for something lower, there are ways to reach that goal.
First of all, make sure you're using the card you have BEFORE you make a call asking the company to lower the APR from 7.9 percent. You have to remember, these cards are backed by banks and they are in business to make money. They succeed or they get swallowed up. Survival of the fittest and all that jazz.
And before you make that call asking for a lower APR, make sure your payments have been on time. Review your payment history. And make sure you're utilizing the card. If you've been sitting on the card for three years or have it stored in the deep freeze out in the garage, chances are your credit card company won't be able to help you. Scratch their back and they'll try to scratch yours.
Are you seeing credit card offers from other banks? You probably are. Aren't we all? Make sure you read the fine print before taking that worm though. The biggest concerns: your non-introductory rate (after the honeymoon), any fee structure (past due, overlimit, membership fees), and rewards.
Just a start folks. My first of many postings, I hope. Lemme know if you have topics of interest. I hope to touch on retirement planning, stock ventures, 401Ks and just plain ol' consumer saving. Wife and I are big on that. Like to think my coupon queen was inspired by my mother who was another clipper. See future posts for more.-SH
Check out every single credit card application you can get your dirty little hands on. They all have a disclaimer line: Terms subject to change. It basically means your APR can go up for any reason- sometimes inspired by competitors in the market, or just a sign of the times (the economy stupid). You swear up and down you "signed up" for a fixed APR guaranteed for the life of the loan.
Well... Newsflash here. The only things guaranteed in life are death, taxes and my mama's great cookin. (It's a Southern thang y'all.)
So... Count your lucky stars if your "fixed" APR is sitting at anything below prime right now (currently 8.25). That's a decent card you have there. If you're looking for something lower, there are ways to reach that goal.
First of all, make sure you're using the card you have BEFORE you make a call asking the company to lower the APR from 7.9 percent. You have to remember, these cards are backed by banks and they are in business to make money. They succeed or they get swallowed up. Survival of the fittest and all that jazz.
And before you make that call asking for a lower APR, make sure your payments have been on time. Review your payment history. And make sure you're utilizing the card. If you've been sitting on the card for three years or have it stored in the deep freeze out in the garage, chances are your credit card company won't be able to help you. Scratch their back and they'll try to scratch yours.
Are you seeing credit card offers from other banks? You probably are. Aren't we all? Make sure you read the fine print before taking that worm though. The biggest concerns: your non-introductory rate (after the honeymoon), any fee structure (past due, overlimit, membership fees), and rewards.
Just a start folks. My first of many postings, I hope. Lemme know if you have topics of interest. I hope to touch on retirement planning, stock ventures, 401Ks and just plain ol' consumer saving. Wife and I are big on that. Like to think my coupon queen was inspired by my mother who was another clipper. See future posts for more.-SH
Sep 18, 2007
Just a Moment
Just wanted to take a moment to introduce myself and launch this baby. I have a varied background, with more than 10 experience as a print journalist, about 5 years in public relations and several years now in the financial industry. I am NOT a financial analyst, but I'm well read and consider myself fairly educated.
This blog was inspired by many financial questions I've heard over the last few years from customers, friends and family. Please feel free to leave any feedback. It's all welcome. Like I said before, I am NOT an expert, so take it for what's it worth. I will try not to convey any misinformation and a kind reader will pull me aside if an error is found. Keep in mind, much of this blog will be subjective. My opinion versus yours.
This blog was inspired by many financial questions I've heard over the last few years from customers, friends and family. Please feel free to leave any feedback. It's all welcome. Like I said before, I am NOT an expert, so take it for what's it worth. I will try not to convey any misinformation and a kind reader will pull me aside if an error is found. Keep in mind, much of this blog will be subjective. My opinion versus yours.
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