Credit Freeze, Fraud and You

Credit Freeze, Fraud and You
What is a credit freeze and what makes it different from
credit fraud alert? The credit freeze was first introduced
in California in 2003. Today, however, a credit freeze can
be done in all 38 States and can be requested from any of
the three major credit bureaus- Equifax, Experian and
TransUnion.

Once a consumer puts a freeze on his credit , no lender,
insurer, employer or anyone else can make an inquiry or
request on his credit report. The fact is, not even you,
can look into your credit report unless you order the
credit bureau to "unfreeze" or "thaw" your credit.

Unlike a credit fraud alert which only lasts for up to 90
days, a credit freeze will last for as long as the owner of
the report doesn't request that his report be thawed.
Therefore, if you want to apply for a new credit card or
you plan to get a loan, you need to notify the credit
bureau in advance to get the freeze be lifted.

The unfreezing of the credit report can take from within
minutes or up to a week, depending on the State or the
credit bureau issuing the report. You have the option to
choose whether you want to unfreeze your credit report
permanently or for just a limited time period. Also, within
this period, you can limit the list of people who can look
in your report.

Why Freeze your Credit

Putting your credit report on a freeze definitely gives you
more protection from identity theft or fraud. Going through
the procedures of freezing and unfreezing and paying a
certain amount, usually about $10 each time is definitely
worth spending your money on rather than risk being
victimized by ID theft or fraud.

How do you ask for a credit freeze?

A fraud alert can be done by phone but if you want to
freeze your report, you need to send a letter of request to
the credit bureau via registered mail. Generally, at least
two proofs of residency such as a billing statement or a
copy of your driver's license is required. The cost for a
credit freeze ranges from $10 to $12. Unfreezing or thawing
will also cost you about $10 to $12 for each bureau.

More Credit Precautions

But aside from putting your credit report on a freeze, what
other steps can you do on your own? Here are valuable tips
you should not overlook:

* Shred all receipts, past billing statements, and old
documents that contain your bank information or any of your
personal details on it. If you don't have shredder, tear
the document into tiny bits and throw the pieces in
separate trash bins.

* Don't write your bank information, credit card numbers,
PIN codes or passwords on just any sheet of paper. Keep all
these important details in one log book and keep it in a
secured place or a locked storage.

* If you want to use your credit card for shopping online,
ask your credit card company for a different credit card
number that you can use exclusively for online transactions.

* Access your online account regularly. Most credit cards
today provide an online account service where you can check
the status of your account over the internet at any time.
Thus, you don't have to go out of your way to visit your
local bank to update yourself. It takes only five minutes
at most to access your account from your computer.

* Sign up for your credit card's fraud protection service.
Some credit cards provide this feature automatically but if
your credit card doesn't, it's a good idea to sign up. This
service will give a quicker response from your credit card
issuer in case your wallet or your credit card gets stolen.

* If you need to get in touch with an agent from any of
three credit bureaus- Experian, Equifax or Trans Union- by
phone, visit gethuman.com to access the latest contact
numbers where you can speak with a human representative
from the credit bureaus and not just a recorded message.

----------------------------------------------------
Melanie Mathis is a credit analyst and a writer for 8
years. She has been participating in the programs of NHBS,
Inc such as their continuous effort in giving out Free
Credit Repair and Building Ebook. NHBS also has a list of
recommended bad credit credit cards.
Copyright 2008.
http://www.newhorizon.org/Info/unsecured.htm

The Facts of Life - or - The story of the birds and the bills

The Facts of Life — or — The story of the birds and the bills
FACT: Money has very little to do how much you love someone
. . . but it has a lot to do with how much you fight with
that person, especially if that's your husband, wife,
boyfriend or girlfriend.

Let's face it, if you and your spouse have vastly different
opinions about money, how to spend it, how to save it and
how much credit to take on....and if you make financial and
credit decisions that don't jibe with one another's
beliefs, well you might as well get ready now, because you
are heading for some pretty serious relationship problems.

Love is powerful, it's an emotion, but it will not solve
your rational financial problems. So here are 5 financial
facts to consider as you and your significant other head
hand in hand down the road to financial bliss:

1. How you spend money has nothing to do with how you feel
about each other.
2. The two of you were probably raised differently when it
came to money, so you naturally have different outlooks
now.
3. You probably value money and credit differently.
4. The two of you may spend money differently.
5. The two of you probably save money differently.

With that many differences, it's easy to see why so many
couples disagree about money, savings and credit. The good
news is that this makes you a perfectly normal couple.

So how do you manage your household finances with this
difference of opinion? Here are a few simple suggestions
that could help smooth out the potentially rough road:

1. Get real: is it the money or the relationship?

If you constantly argue about money, it may be indicative
of other issues in your relationship. The person who makes
more money shouldn't have any more power, leverage or
responsibility in a relationship.

2. Fight right

Fighting about finances is ok. It can actually be a good
thing, if you do it right. That means learning to fight
fair. When you hear voices starting to get louder, take
action quickly. Calmly explain your concerns and your
goals. Threats and anger are never constructive. State your
case and be respectful. If you have the stomach for risk
and your partner is financially conservative, don't be
pushy about it. Find the middle ground.

3. Keep your eye on the prize and keep your finances on
auto-pilot.

With all you have going on, it's easy to take your eyes off
long-term goals. You both have to agree on your big-picture
goals—things like saving up for a home down payment,
funding your IRAs, or paying off the mortgage ahead of
schedule so you can retire debt-free. Then, whatever your
goals are, set up an automated way to fund those goals.
Automate and you don't have to argue.

4. Divide and conquer

Ok, so maybe you're the one who gets stuck doing the bills,
handling the banking, balancing the checkbook, etc. Maybe
your spouse refuses to, or simply isn't good at it. Or
maybe you both are trying to retain total control, and
butting heads. This is a perfect time to set regular
meetings to discuss your spending patterns and financial
plans. 5. Make sure you're on the same page...right from
the start.

If you're engaged to be married or thinking about it, now
is the time to really talk about your finances. You need to
know if she's a shop-a-holic or if he's a compulsive
gambler. It's better to get things out in the open now, so
you know what you're getting into.

While you're at it, you should explore each other's
thoughts on credit card debt, renting vs. buying, your plan
to save for retirement and the kids' education. If your
fiancé has problems with your finances or doesn't want to
change, then you need to seriously rethink the
relationship. It could be headed for disaster.

----------------------------------------------------
TransUnion's TrueCredit empowers consumers to manage their
credit health, providing information on credit-related
issues that range from the significance of a credit report
to identity theft protection. TrueCredit's offerings
include educational materials, free monthly newsletters and
online products, including credit reports, credit and
insurance scores, credit monitoring, debt management tools
and identity theft insurance services.
http://www.truecredit.com/

6 Tips to Retire a Young Military Millionaire

6 Tips to Retire a Young Military Millionaire
One of the biggest advantages of joining the military young
is that steady paycheck can help you become a young
military millionaire. There are simple steps that you can
take that will put you on the right track to an early
military retirement.

Attention young military personnel. You can turn that
military paycheck into a million just by following a
simple, consistent, investment plan. Just by automatically
investing on a regular basis you could be on your way to an
early military retirement. For example:

-A $174 invested monthly starting at 18 years old could
make you a young military millionaire by age 53.

-A $701 invested monthly starting at 18 years old could
make you a young military millionaire by age 40.

Knowing how to handle your military money gives you
advantages that the most people miss out on. You can
afford an early military retirement just by following a
simple investment strategy. Starting an investment plan
young may be enough to ensure you become a young military
millionaire.

Becoming a young military millionaire is easy when you
start at a young age because you have the power of
'compounding interest' on your side. Compounding interest
is defined as the interest earned from the initial money
you personally invested from your military money plus the
interest earned from the amount your investments have
already returned. To clarify, the money that you already
made from your investments starts to earn you money. So
year after year you are making money off money you already
made from your investments.

By investing your military paycheck at a young age you are
able to fully harness the power of compounding interest.
This is because you're earning a return (making money) on
what your investments have already paid you. The younger
you start the faster and larger your investment account may
grow. That's why investing while you're young and earning a
steady military paycheck gives you a huge advantage.

1) Save Money. The first step on the road to becoming a
young military millionaire is to set up a simple savings
plan. Pay yourself first by setting money aside into an
investment before you start spending your military money.
The habit of paying yourself first will benefit you
throughout your life and will help you retire young.

2) Invest Young. You may not of been taught how to invest
in high school but don't let that hold you back. There
are simple investments available to the beginner investors
that will get allow you to invest your military money young.

The stock market offers some investment vehicles that are
perfect for the new military investor. There are
lower-risk investments that offer the potential for
long-term gains that may help you to put your military
money to work.

One type of investment, known as broad based market index
investments, may offer you a simple way to get your
military money working for you. 'Broad market index
investments' are simply investments in the overall market
like the NASDQ 100 and S&P 500. For example, you can
invest in all 500 stocks of the S&P 500 with one simple
broad market investment index investment vehicle. The S&P
500 index is one way for the new military investor to
profit from the stock market without having to have a lot
of experience.

3) Consistent Investments. There is a basic military
investment technique called 'dollar cost averaging'. A
dollar cost averaging plan is simply buying a fixed dollar
amount of your broad market index investment at the same
time each month. Your bank and brokerage firm can be
set-up so it automatically invests the amount you want at
the same time each month. Once this structure is set up
you can sit back and just review your monthly statements.
With a consistent military investment plan you could reap
huge profits over a long-term.

The basic investment method discussed will get your
military money working for you. If you're looking to
become a military millionaire young there are other ways
you can increase your returns. The investment vehicles
discussed below take more effort however you will be able
to reach your military millionaire status sooner.

5. Real estate. Real estate investing can be credited with
making the majority of young millionaires. It gives you
the power of leverage so you are making money of money the
bank loaned you. When done right you could expect to
double your investment each year! Just by purchasing real
estate while you're young could easily make you a young
military millionaire.

The military offers many benefits that will allow you to
become a homeowner. VA loans allow you to borrow 100% of
the purchase price which means you won't need money for a
down payment in most cases. Combine that with BAH (Basic
Allowance for Housing) for civilian housing and you can
have your mortgage payments paid for.

This is a huge benefit because you purchase a $100,000 home
your property could be valued at over $570,000 in 30 years.
The best part is using BAH you could of not even made a
payment with your own money.

6. Entrepreneurship. Being in the military you can start a
part-time business that earns you an extra few hundred a
month or one that surpasses your military paycheck. Either
way it can help you to become a young military millionaire
or just added another income so you can invest more. There
are also tax benefits available to business owners that
will keep more of your military paycheck money in your
pocket.

Becoming an entrepreneur can help you become a young
military millionaire and give you the luxury of being able
to retire young.

The sooner you start investing the sooner you can become a
young military millionaire. Start now and the take steps
to become a young military millionaire today!

----------------------------------------------------
Give yourself the freedom that you deserve by learning the
simple military money lessons that will help you afford
what you want now and allow you to retire young. Visit
Vince Shorb's, 'Financially Free by 30' site now at
http://www.FreeBy30.com for free video lessons.

Credit Card Protection Plans: Smart Money Or Money in the Wind?

Credit Card Protection Plans: Smart Money Or Money in the Wind?
After a hard day's work, you sit down to the dinner table
looking forward to a nice, relaxing meal with those you
love, and the inevitable happens: your telephone rings.

It's your credit card company and it's imperative that they
speak with you right now. Your heart stops, immediately
fearful of identity theft or unauthorized charges.

Instead of a problem, the representative from your credit
card company launches into a sales pitch for a credit
protection plan. So what are they -and do you need them?

Credit protection plans come in all shapes and sizes, but
they are basically a form of insurance packaged and
promoted as a way for you to protect your credit score and
your pocketbook if certain things take place.

While every credit protection plan is different, most are
designed for credit card accounts and small
un-collateralized consumer loans. These credit protection
plans claim that they will step in and make your minimum
monthly payment if certain calamities befall you.

For instance, if you get laid off from your job, go through
divorce, or have a disabling accident, benefits will
supposedly be triggered to help you in your time of need.

Sounds pretty good doesn't it? Here's the kicker: they
rarely work out the way your credit card company claims
they will.

Instead, here's what usually happens: you discover that the
credit protection plan you've been so diligently making
monthly payments on has more loopholes than a corporate
income tax bill.

There are a few credit card protection plans that offer
decent benefits and pay off the way they advertise, and
that brings us to another reason I think they're a terrible
idea.

As you know, being smart with your money involves carefully
analyzing potential expenditures and making sound decisions
based on available information.

These credit protection plans are pretty pricey; most will
run you between $.79 — $.89 per month for every $100
of your balance. This is where they get you because most
people think that if they pay off their credit card every
month that they end up with a zero balance.

In the real world that would be true, but to your credit
card company - it's not. If you use your credit card at
any point during the month, you have a balance, because the
credit protection plan fee is charged before any payments
are credited to your account.

So if you were to use your credit card to buy a $5,000
plasma TV with the intention of paying the balance off in
full when your statement comes, you would still be on the
hook for the credit protection plan fee. At $.89 per $100
of your balance, that would come out to $44.50. On the
surface, that doesn't seem like a whole lot of money, but
remember you're planning on paying this card off when you
get your statement.

----------------------------------------------------
Darrin Roseborsky is a Refinance Specialist with OMAC
Mortgages, seminar speaker and president of
HomeRefinanceCoach.com. Darrin shows people how to MAXIMIZE
their equity PROPERLY and how to choose options that make
the MOST SENSE for their situation! An example of exactly
how this works, is at: http://www.homerefinancecoach.com

Before You Cash Out, Catch Up on Choices

Before You Cash Out, Catch Up on Choices
GRAND RAPIDS, MI - There's a growing trend with U.S.
workers who change jobs - they're cashing out their
retirement accounts. A recent survey of 401(k)
participants, done by Hewitt and Associates, shows that
about half of employees that leave their jobs choose to
cash out their 401(k) plans instead of rolling them over.
This trend might seem harmless at the time, but it can
jeopardize future retirement.

There are several reasons why people are choosing to cash
out now, instead of saving the money for retirement. A
common reason might be the increase of health insurance
premiums. People aren't used to paying several hundred
dollars a month to insure their families. Insurance costs
combined with a loss in stock value or other investments;
make people feel the need for extra money now. They also
believe that they'll make up for it down the road. Many
people would rather pay penalties and taxes than wait for a
larger return. The rising value of real estate has people
believing the value of their homes will replace retirement
savings. And it's true that a lot of money can be tied up
in real estate, but it shouldn't be your only source for
retirement savings.

People need to look at what they will lose by cashing out.
You have to pay income taxes on the withdrawal, which could
end up putting you in a higher tax bracket. Plus, there's
a 10 percent penalty if you're under age 59½ and
more importantly, you give up years of tax-deferred
compounding. With longer life expectancies, you're going
to need enough savings to cover long-term health care.
After you look at what you're going to lose, look at why.
Is it because you need the money to pay off high interest
credit card bills or is it because you don't want to go
through the hassle of transferring the money to another
account? To avoid regret, you should look at all your
choices before making a decision.

Choice #1: Rollover into an IRA - You won't be limited by
the investment options in a new employer's plan and you can
take distributions from the IRA without penalties under
certain circumstances. In short, you'll retain the ability
to borrow from the account.

Choice #2 : Rollover into New Employer's 401(k) - Not all
companies allow such rollovers. But if you like the plan,
the rollover will allow you to consolidate your savings in
one place.

Choice #3: Rollover a Portion - It doesn't have to be all
or nothing. This can be a great option for those that need
money now, but realize they will also need it later.

Choice #4: Liquidate - If it's really going to improve your
life, then it can be a viable option. But there's a
difference between life and lifestyle. Be careful to
distinguish between the two.

We all have trouble saving money, but everyone can do it if
they have a plan. If you're unsure about what you should
do with your 401(k) or retirement plan, seek the advice of
a financial professional you trust. The initial
consultation is usually free.

----------------------------------------------------
In 1999 Daniel Wansten founded Professional Education
Services as one of the nations leading authorities on
solving cash flow problems for families. Daniel has been
seen on TV 13 news and featured in several newspapers and
magazines. For free help on paying the college bill go to
our website http://www.HowToAffordCollege.com and for free
help with rollovers or other financial planning please
contact our office at 866-949-7935.

Credit Card Triggers, how they can just raise your rate!

Credit Card Triggers, how they can just raise your rate!
Have you ever had a credit card company just raise a rate
on you and never tell you why? Do you feel that credit card
companies are trying to scam you? Credit cards are a
necessary evil in todays world because of the added
convenience they provide. There is a reason that credit
card companies send you paper on top of paper with fine
print even those with perfect vision can not read. Even if
you feel they are not trying to scam you, you must at least
admit they follow practices that are unethical at best.
This article will delve into the credit card industry and
some things you may have too watch out for.

According to many experts on the card industry, the credit
card issuers are misleading consumers and making up their
own rules as they go. They advertise with cute commercials,
offer a very low introductory rate, and hire the finest
minds to figure out a way to trap you in the fine print.
The real problem lies in the fact that the industry is
basically unregulated with no over site committees around.
Lets go a little deeper and expose some things.

The industry basically has a couple kind of customers. The
first is the customer who pays off all of the balances
before they are due. There is no profit to the credit card
issuers so these people are called deadbeats. These people
are using cards the way they should, don't buy with money
you don't have and pay before you have any finance charges.
Approximately 33% of all credit card users fall into this
category.

A majority of users carry a balance and are the
"profit-makers" for the banks. The average user runs a
balance of just over 8,000 in credit card debt. These users
pay interest and fees for the privilege of carrying that
balance. Over the last ten years this balance has doubled
and credit card companies are generating record profits.
Last year alone the credit card industry earned an
estimated 30 billion dollars.

The name of the game today is the 0% interest offer for the
first six months. This can be legitimate if you know how to
use it and of course pay your debts off. The trouble comes
in when you carry over a balance because many times this
will cost you more in the long run. The rate after six
months will jump higher than a normal rate and you will end
up paying more for carrying the charges.

The second way the companies gain massive profit is with
rate hike triggers. The industry provides many reasons to
justify a rate hike and some are legitimate ones. The ones
I am worried about are the deceptive reasons. One of these
ways is how the "default" terms are spelled out in the fine
print. The terms and conditions of this credit card can be
changed at any time, for any reason with a 15 day notice.

The following are ways that can trigger late fees,
penalties, or rate hikes.

Late payments If you don't pay your bills on time, the
company is justified in taking away your rate. You broke
the rules. The problem is the card issuers are becoming
very anti-consumer to help you trip up. One single late pay
or lapse, a payment lost, or a charge on another card can
trigger the rate increase and excessive late fees. I have
even seen card issuers lower the available balance of the
card holder to the exact amount of debt owed and then
charging them an over the limit fee.

Spending on other cards If you don't think the credit card
companies don't know what you are doing with the other
cards think again. As a result if you go over your credit
limit or a late payment on another card it triggers a
"universal default clause". It gives the card issuer the
right to raise your interest rate on a card that you have
never made a late payment too.

Defaulting on non credit card bills Everything is tracked
by the big three credit bureaus and a late pay on a
mortgage, cellular bill, utility, or car payment is readily
available for the credit card issuer. If you default on
anything they will spot and then increase your rate.

When I look back it seems that credit card issuers started
to profit massively when the banking industry successfully
eliminated the limit on interest rate a lender can charge a
borrower. This deregulation and the technology upgrades
that allow for real time tracking of finances, lead to
record profit year after year. Now with nationwide banking
the industry keeps growing and makes even more credit cards
available. The real cost of this credit is actually a lot
more than most people would realize but that is for another
day. If yo get your rate increased I would close out that
card and try to find one with a lower rate. If thats not
possible your only other recourse is to overpay and get rid
of those excess charges. Good Luck

----------------------------------------------------
David Forer is a financial veteran of 15 years. To tap into
his knowledge about credit repair, debt management, and
budgeting go to his blog at
http://www.creditrepairdoneeasy.com and receive a free ten
page report.

Wallet Wellness-Protect Yourself in 3 Steps

Wallet Wellness-Protect Yourself in 3 Steps
I'm borrowing the line from the Capital One TV commercial:
"What's in your wallet?" Do you know? If your wallet was
lost or stolen, would you know what was lost? Of course,
you can always check your records at home, and cancel
everything just to be safe, but what if you're on vacation
or your filing system at home proves less than helpful?
Would you remember to cancel the major credit cards but
forget about the department store cards?

Some folks like a light wallet and carry only what they
need. Others are of the "take it all for convenience"
variety. No matter which category you fit into, if you
don't know exactly what's in your wallet, you could be in
big trouble if these items are lost or stolen. Here are a
few preventative steps that can save you lots of time and
anxiety, both short and long-term:

1. Determine what you need. Do you really need to bring all
your credit cards, bank cards, checkbooks, etc. at all
times, or can you just take what you need when you need it?
Give this some thought. Leaving unnecessary items behind
can not only lower the risk of having them lost or stolen,
it can prevent impulse buying as well.

2. Keep records of your wallet items. Make a record of
everything you keep in your wallet. One way to do this is
to make copies of everything - fronts and backs, making
sure to include the contact phone numbers. Friends of mine
who are professional organizers have suggested making two
copies - one for your own records to be kept in a safe
place, and the other to be kept by a trusted friend to have
in case you can't get to your records immediately. Be sure
to review and update these copies annually, and add or
delete information as accounts are opened or closed.

3. Leave your social security card at home. Your social
security number is the number one item identity thieves
need to make your life a mess, so you should never carry
your social security card with you. If your healthcare
cards use your social security number as your
identification number, here's a clever suggestion - make
copies of your medical insurance card to carry with you
with your social security number blacked out. If you need
the number for a medical visit, you can recite the number
from memory.

A little "wallet wellness" today can prevent a lot of
heartache tomorrow!

----------------------------------------------------
Jill Russo Foster provides practical tips for everyday
finances. Learn more about protecting your credit and
living within your means with Jill's popular free report,
bi-monthly ezine, and credit report reminder program,
available here ==>
http://www.themortgagearrangers.com/resources.asp