Personal Financial Fitness Class

at Pima Community College

“Personal Financial Fitness: How Healthy is your bottom line?

Now is the time to tend to your financial future. Receive information and strategies to apply to your finances, expenses, credit, insurance and retirement plans. Gain the knowledge and confidence you need to make better financial decisions.”  

This non-credit course is only $49.  It will be held:

Invest in a morning of valuable, money-saving information, receive the latest info on the covered topics, learn strategies that you can use immediately, and have your questions answered by experts whose specialties include personal money management and budgeting, health and disability insurance ins-and-outs, and financial planning and retirement options.

Dana will provide in-depth information on credit reports and credit scores, and will give attendees detailed information on how to grow their credit rating now, and into the future.   Credit myths, credit monitoring, and identity theft prevention will also be covered.

Details are in PCC’s Course Catalog, page 20, course # FI127.  Go to:
http://www.pima.edu/personalinterest/documents/Activities-SprSum-09.pdf

You can go to PCC’s registration page and reserve your seat now: http://www.pima.edu/personalinterest/RegisterforNonCredit.shtml or call them to register at 520.206.6468. 

You are welcome to contact Dana with questions at 520.296.6167 or dana@completecreditservices.com.  You can also contact us to schedule your own Credit Presentation at your business or with your group or church. 

Be sure to forward this info to your friends and family who like to save money.  Thank you!

According to ITRC, only 2.4% of the 2008 breaches had encryption and only 8.5% of them had password protection.  Obviously, businesses and government have a long way to go to protect sensitive consumer information.

That leaves us, as consumers, to try and protect our information as much as possible.  It is important because inaccurate and fraudulent information on your credit report can lead to lower credit scores. 

WHAT TO DO

Include Credit Monitoring as part of your regular Financial Fitness routine.  Look on your credit  report for accounts, names and addresses that you don’t recognize.  Report the errors to ALL THREE credit bureaus, even if you only looked at one report.  You should receive updated credit reports from all three in response to your letter.

Be proactive with Identity Theft Prevention.  This includes limiting the number of times you give out your Social Security number and regularly shredding all financial and personal statements that are going into the trash.

Take the Identity Theft Quiz provided by ITRC and start using the additional preventative measures that they list.

Respond quickly to any data breach letters you may receive in the mail and follow the instructions completely.  They usually include credit report monitoring which gives an opportunity to check immediately, and into the future, for signs of fraudulent activity.  Be sure to keep copies of everything, especially the initial letter about the breach, as they may be important tools to remove inaccurate accounts from your credit reports in the future.

Be proactive with the businesses your frequently use.  Take the ITRC’s Consumer Risk Test to the places you do business with to find out how much they are doing to protect your personal information.

Better credit scores are part of a good Financial Fitness program and protecting yourself from identity thieves is imperative.  Your information is out there; doing as much as you can to protect it is just plain smart.

CREDIT CARD STATEMENTS
Look at your credit card statements every month to be sure all of the activity on the account is yours.  Unknown charges could be an indicator of fraudulent use and/or identity theft. 
- By contacting the credit card company to report fraudulent charges immediately, you should not be responsible for paying any of those charges.
- By catching identity theft early, you will minimize the amount of time and money spent trying to correct it later.  The chance of a fraudulent account going unpaid and to a collection agency is also reduced.  Collection accounts, whether legitimate or not, are a derogatory item against your score while they are listed on your credit reports.      
Errors do occur
- If there is a duplicate charge for the same item, it raises your account balance which makes your payment higher and also affects the second largest part of your credit score, the balance-to-credit-limit. 
- If your payment is not listed on the correct date, you may receive a late fee and it possibly could end up as a late payment on your credit report, negatively affecting the largest part of your score, your Payment History.
- If you were charged a fee in error, contact the company right away.  Request written confirmation of the correction and be sure to write down the date, time and name of the person you spoke with.

Changes to your account
Some credit card companies are raising interest rates, even on customers with a good payment history. 
- Contact your company and request a lower rate; emphasize your loyalty and timely payments.  You may have to talk to several people before getting to the one that can make a decision.  Keep a written record of the conversation and when they agree to a lower rate, request it in writing.

Some of these companies are lowering credit limits on long-standing accounts, often with no prior notice.
- A lower limit on an account with an existing balance can drastically change your balance-to-credit-limit, impacting your credit scores.

BANK STATEMENTS
Banks are among the many companies raising fees to increase their bottom line.  Check your statement to be sure you are not being charged for fees that you shouldn’t have.  A recent article in the Wall Street Journal highlighted the $25 monthly fee that was being charged on the “free” checking account.
- Contact your bank immediately to request the fees be removed and the charges reversed.  As always, get it in writing to protect yourself.
- Ask for an account review to be certain that you are receiving the best services available for your type of account usage.

BILLING STATEMENTS
Solicitations for products and services often look like legitimate bills that arrive in the mail.  And these companies are counting on most people being too busy to read all the fine print on the statement or too worried about having an unpaid bill to check into it further. 
- Don’t just pay a bill if you do not recognize it immediately.  Take the time to investigate the statement before sending a check.

This applies to business owners, too.  The Arizona Republic reports on a scam that is targeting businesses by sending a notice that corporations need to file their “Annual Minutes Disclosure Statement” along with a bill for $125.  None of this is legit, although it looks and sounds real.  And people send in their money thinking they need to do so to stay in compliance.
- Always read your billing statements, especially if you are a business owner.  Take the time to contact the actual government agency if you receive something you are not sure about; or contact the Better Business Bureau for verification.

You can grow and protect your good credit by following a Personal Financial Fitness Plan.  We can provide detailed information to help your credit rating with your Credit Analysis.  And keep reading those statements.

We are pleased to announce Credit Building 101 for Students.  This do-it-yourself guide covers everything from what is a credit report and why does it matter, to getting that first credit account and using it to build up a good credit score, along with a track-your-progress checklist. 

Most people do not get consumer credit education in school and need accurate information NOW, before they make financial mistakes that stay with their credit history for years.  This comprehensive guide is available now for only $50.  Order yours today by clicking here.

There may be many things that our one vote will not impact in this year’s election.  Our vote may not make a huge difference in the nation’s economic challenges.  But we can elect to change some things in our own financial world.

We can become informed.  Just like people researched and learned about the proposals, referendums and candidates in their own state and city, as well as learning about the presidential contenders, we can take the same initiative for learning about personal finance.  

Start with tracking household spending.  Know where your money is going; you may be surprised.

Make a budget.  And then leave it out where you’ll see it again and actually use it.  Schedule it into your planner: “Budget Review”, 30 minutes.  At least once a month, right next to “Balance Checkbook”.Review your monthly expenses to see if any can be cut or reduced.  Are you still paying for long distance on the landline when you always use the cell phone for long distance calls?  Do you need the extra tiers of cable service or will basic cable be okay?

Decide to put some money into savings.  Do it consistently, even if it is just $10 a month.  

Have an insurance checkup.  Are you with the same company that you had 10 years ago?  And with the same coverage?  Ask your agent for a review to see if you can get more benefit for less cost.  If not, shop around to be sure you have the best policy and rate for your family’s needs.

Learn about your credit and what you can do to make it better.  Whether we like it or not, our credit score has become a major factor in most of the financial situations in our lives.  Do you have good credit?  If so, do you know why?  What are you doing to keep it that way? 

Just by reading this, you’re further ahead than so many people who don’t have a clue about their credit, don’t have a plan for their future and aren’t doing anything to change it.  Good for you!

For more information, you can contact us for your professional Credit Report Review and an in-depth Credit Analysis to improve your Personal Financial Fitness.  Because YOU get to decide.  Be proactive and vote for your financial future.

The most common problem seems to be when people submit their paperwork for deferment or forbearance and somewhere in the paper trail among the many companies that are involved in servicing student loans, a late payment of 60 or 90 days is reported to the credit bureaus, even though the official paperwork was submitted in a timely manner.  This appears regularly when the loan(s) are sold or transferred from one servicing agency to another.

Student loans that are not consolidated typically report each semester’s loan as a separate item with many consumers having 4 and as many as 12+ open loans in their credit file.  If each of these shows just two erroneous late payments, the compounded impact on credit scores can be severe.  Additionally, these late payments are usually reported as 90 or 120 days late.  In the credit score formula, a 60 day late payment hurts your score more than a 30 day; a 90 day is worse than a 60 day, etc.   As you can see, the negative impact on credit scores can be extreme.

WHAT TO DO
If you have student loans, or had them sometime in the past, check your credit reports.  Look at each student loan to see if there are any late payments listed.  If so, look at the dates the late payments are reported for.  If you know you were still in school or the loans were in deferment at that time, write to the credit bureaus for correction.

Remember, if you aren’t monitoring and correcting your credit, who is?  

For more information on Credit Building as part of your Financial Fitness, order your Credit Analysis today.

Remember, the second largest part of the FICO credit score is the Amounts Owed; this accounts for 30% of your scores.  With the continued uncertainties in today’s economic climate, many credit card companies are lowering the limit on their customers’ accounts.  Typically, this is a precautionary measure that financial companies are taking to reduce the risk to their bottom line.

Suddenly, that $10,000 Visa that you’ve had for 12 years now has a $5000 credit limit, effectively cutting your available credit in half.  If your balance was $4000 on the Visa, your ratio Utilization Ratio (Amounts Owed) just went from 40% to 80%.  And your credit rating will most likely be headed down.

WHAT TO DO
1)  Keep credit card balances under 50% of the credit limit.  The closer your account is to being “maxed out” or fully utilized, the more detrimental the impact on your scores.                                 

2)  Check your statements every month.  Make sure the credit limit hasn’t changed; often this is the only place you’ll find out as most companies do not send a letter to notify you the way they do when they decide to raise your limit.  Monitoring your statements all the time is also a good idea to be sure there are no duplicate or unknown charges on your account or no surprise changes on your interest rate.

3)  If your account limit is lowered, take the time to write to the company to find out why.  Explain that you are a customer in good standing for ___# of years, that you always pay your bill on time and do not understand why they took this action.  You may want to tell them you are okay with the limit being raised, just be sure NOT to request a credit increase or it may be treated like a new application where they check your credit, which can result in an Inquiry and count against your scores.

If you are ready to improve your Financial Fitness, contact us today for your complete Credit Analysis.  You can take control of your credit instead of feeling like it is controlling you.

You may have started out with some credit cards that charge an annual fee.  Some cards, such as certain American Express accounts, most likely always will.  But with the increasing amount of competition among credit card issuers, some companies may be willing to forego the annual fee to keep a good, long-time customer.   You can compare credit card offers at Bankrate, Inc.

WHAT TO DO
1) Check your statements.  If you recently opened an account, look at the first statement you received; it should show the annual fee, if any.  If you have had a credit card for many years, you can look at the past twelve statements to see if an annual fee is assessed.  You may also be able to find this out by reviewing your account information online.

2) Once you have confirmed that you have an annual fee, call the toll free customer service number listed on the statement or back of the credit card.   Tell them you want to request removal of the annual fee from your account.  They will probably tell you they can’t do that.

3) Ask to speak with their supervisor or manager, someone who has the authority to make that decision.  You may need to speak with three or four different representatives in the company before getting to one that can remove the annual fee.  Keep notes of the date, time and names of people you talk to.

4) Tell them you want the annual fee removed from your account.  Tell them you are customer in good standing for the past _____ years and could easily go to a different company that does not charge an annual fee for their credit cards. 
If they are resistant, ask them to note in their records that you called to give them an opportunity to keep your business, but for the small sum of $_____ (whatever your annual fee is), they are leaving you no choice but to look at other options with other credit cards.

5) When they agree to remove the fee, get it in writing.  Ask that they send written confirmation that this account will no longer be charged an annual fee and that your account will be credited this year’s fee if you were already charged for it.

6) FOLLOW UP.  Mark your planner or calendar to be sure to check the next statement for verification that everything was done according to the agreement over the phone.  If not, call them immediately with all of your notes handy to make your case.

NOTE: You are more likely to have the fee waived if you have not been late on your payments, have a relatively low balance compared to the credit limit, and are friendly when you call.

It may take a little of your time, but by eliminating just one annual fee, you may save enough for a tank of gasoline or a couple bags of groceries.   In today’s economy, every little bit seems to help.

As part of your personal Financial Fitness plan, you can get your Credit Analysis that includes more money saving strategies to help you take control of your credit, instead of feeling like it is controlling you.

1) CHANGE YOUR MIND

-Decide that you want to be debt free and have no credit card debt.  This includes major credit cards, retail store accounts and gasoline cards.  Be realistic and realize that this will take time and probably will not be easy.  Remind yourself of your long-range financial goals to keep motivated and on track.

-Credit cards are not money, they are convenience loans.  There is no federal limit to the interest rate that credit card companies can charge and many states do not have usury laws, meaning there is no state cap on the interest rate. Eight of the top ten credit card issuers have their charter in states with no usury laws.

-Credit cards are not free, they cost you money.  Many credit cards charge an annual fee; others require a minimum, monthly payment of less than 5% of the account balance.  This can lead to a longer period of time before the account is paid off and subsequently, more interest charges over that time.

2) CHANGE YOUR HABITS

-Do not carry your credit cards.  There will not be an emergency that requires you to have every single credit card with you in your wallet.  This also decreases your chances of being the victim of fraudulent credit card use or identity theft.

-Do not use a credit card for something you do not have the cash for at that moment.  A $500 impulse purchase can cost $625 or more when it finally gets paid off several months later.

-Pay all bills on time, every time.  Especially credit card accounts.  Many companies have included the “Universal Default Policy” in the fine print of their credit card agreement.   This allows them to increase a customer’s interest rate if there are late payments on ANY of the customer’s accounts that are reported to the credit bureaus.  Not just the credit card with their company, ANY other company that reports a late payment can trigger the much higher Universal Default interest rate.

3) MAKE A PLAN

-Stop using the credit cards you have so that you stop accumulating more debt.  If you do not have a budget, make one and stick to it.  Give yourself a certain amount of cash each week and hold yourself accountable to only spending that amount.  Remember your long-term goals are more important to your financial fitness plan than short-term impulses are.

-Contact your credit card companies and request a lower interest rate.  Some online research at sites such as bankrate.com will show what offers the major credit card companies are giving to new customers.  As an established, loyal customer, you can use this information to ask for at least that same rate on your existing accounts.

-Pay off your highest interest rate accounts first.  Pay more than the monthly minimum, even if it is only $5 more.  Do not close credit card accounts when they are paid off.  A major factor in FICO credit scores is the utilization ratio, which is account-balance-to-credit-limit.  Closing accounts decreases the available credit, which makes for a higher ratio and lower scores. 

4) FOLLOW YOUR PLAN

-Continue to use your budget and keep your spending under control.   Once you have eliminated credit card debt, establish your “Smart Fund”.  Start with a goal of at least $1000 in a savings account that can be used for emergencies or unexpected items such as a new car battery or plumbing repair.  Using the Smart Fund instead of a credit card saves money and keeps the credit card debt from returning.  Replenish your Smart Fund as soon as possible.

- Shred the “convenience checks” that credit card companies send to you.  Do not open any new credit card accounts; consumers with long established, good credit do not need more than 3 – 6 open, revolving accounts.

Becoming credit wise and learning how to use credit cards as credit building tools can lead to a better financial future, more money in your pocket and peace of mind.  Contact us today to get your personal Credit Building Plan.

And they do what every single person in America can do for themselves.  For free.

As we always emphasize to our clients, our seminar participants, and even our families, monitor your credit regularly!  It doesn’t cost anything but your time when you use the free annual credit reports you are entitled to.   Schedule it in your planner or on the family calendar.  Everyone gets three reports per year; check one from each credit bureau every four months for year-round monitoring.

LifeLock puts a fraud alert on each of their clients’ credit reports.  Fraud alerts are intended to be used by consumers that have experienced identity theft or whose personal information has been compromised.  Theoretically, a consumer with a fraud alert would be notified by any company that has been asked to lend that consumer money or open a credit account.  The lending company purchases the credit report to determine if they will or will not grant the loan and they see that there is a fraud alert which requires them to contact the person who the credit report is about and verify that it is really them.

Does it work that way?  We can only hope so as reports and statistics about this are few and far between.  The financial industry states that it could be very inconvenient for the consumer who has to wait to be approved for their loan due to the restrictions of the fraud alert.

One concern is that the credit bureaus, who have to pay for the time and expense to place the fraud alert on the credit reports, may enact some future rule or limitation that puts a stop to pre-emptive, continuous fraud alerts such as those that LifeLock is doing.  In fact, Experian, one of the three major credit reporting agencies (bureaus), filed a suit against LifeLock in February in California claiming that the company violates the Fair Credit Reporting Act by placing fraud alerts on behalf of consumers and then renewing them in perpetuity.

Another lawsuit has been filed in Arizona by a Maricopa County resident as a proposed class-action lawsuit claiming that the company is not legally allowed to perform the service it offers and the million-dollar guarantee they offer has so many limitations it is worthless. 

LifeLock does have an additional service that their adult, annual members can purchase for $25 a year per child under 16 years old.  They will check the child’s credit reports and place fraud alerts if warranted.  As we mentioned on March 21, 2008, you can check for a credit report under your child’s name and social security number with the free, annual credit reports.  If they are not available, that is usually a good sign that their information has not been misused.  Mark it on the calendar and do this yourself every six months.

BOTTOM LINE: Save your money, be pro-active and commit to including credit report monitoring as part of your financial fitness routine.