By
Miranda Marquit
Monday, April 26, 2010, 06:15 AM
Category:
Money Matters
We know that having a good credit score is important. Indeed, your credit score is used by a number of people (other than loan officers and credit card companies), from insurance companies to employers, to determine your reliability, based on your financial reputation. But it's a good idea to know more than just your credit score; you should also be up-to-date on what's going on with your credit report. Your credit score is based on your credit report, and you should know what's in there.
Free credit report
There are ads all over the place for free credit reports. However, it is vital that you read the fine print attached to these offers. Most often, you only get your free credit report after you have signed up for a credit monitoring service.This service costs money each month, and may even charge additional fees if the company challenges something on your credit report (which it will do, even if no error has been made). In truth, you are better off monitoring your own credit, checking your credit report for errors on a regular basis -- even if you have to pay a little bit to access your credit report.
The good news is that you don't have to pay for all of your access to your credit report. There is a truly free way to check your credit report.
Truly free credit report -- by law
By law, the three major credit bureaus (TransUnion, Experian, Equifax) are required to let you have one free copy of your credit report each year. You can visit www.annualcreditreport.com and see a free copy from each of the major bureaus. Some folks actually spread this out, getting one copy from one bureau every four months. This can be one way to monitor your credit regularly without paying a cent. However, it is important to note that the companies may not all have the same information, so you might not catch everything.
Finally, it is worth noting that if you are denied credit, you are entitled to a free copy of your credit report from the source, as long as you ask, in writing, within 60 days.
Don't get sucked in by companies that offer "free" credit reports. Instead, get the copy you are entitled to by law, and cough up the approximately $15 if you want to check another time during the year.
-- Miranda
image source: sxc.hu
By
Miranda Marquit
Monday, April 19, 2010, 05:00 AM
Category:
Money Matters
Now that tax day has passed, you might be anxiously looking forward to your tax return. Indeed, if you filed electronically and did so early, you might already have your tax return back. Before you spend your tax return, consider three suggestions for how to use it to your advantage:
1. Pay Down Debt
One of the best things you can do for your financial situation is to pay down debt -- and pay it down as quickly as possible. This is because the interest you pay on debt (especially credit card debt) doesn't provide you any benefit: it goes straight into someone else's pocket. If you have debt, one of the best things you can do for your finances is to pay it down. Having a big chunk of money, like what you get from a tax return, can put a sizable dent in your debt.
2. Pad Your Emergency Fund
Having an emergency fund in some sort of liquid account that allows you to earn interest is a good way to provide some sort of a safety net. If your debt is mostly under control, but you are concerned about your emergency fund, it is a good idea pad it up. Many financial experts recommend that you have between six months and a year's worth of expenses in an emergency fund. While your tax refund will probably not fully fund your emergency savings, you are likely to get a little closer to your goal with the help of your tax return.
3. Invest
Another option is to invest your tax return. If you have a tax return, you have already been giving the government an interest-free loan. Once you have your money back, you can make for it -- at least a little -- by investing it. This can include increasing your retirement account contribution, adding to a 529 college savings plan or beginning to invest in a DRIP.
No matter what you decide to do with your tax return, you will better your situation if you consider the future, rather than just spending it all at once on a consumer item that you don't actually need.
-- Miranda
By
Miranda Marquit
Monday, April 12, 2010, 06:00 AM
Category:
Money Matters
April 15th is alarmingly close -- nearly upon us! Are you ready?
If you aren't quite ready for tax day, you do have some options. Whether your tax return isn't prepared or you can't afford to pay what you owe to the IRS, you do have options that can help you avoid the worst penalties. Here are some things to consider if you aren't quite ready for April 15th:
Not ready to file
There are many reasons that you might not be ready to file your tax return on April 15th. Whether you just haven't managed to get all your documentation together, or you are planning to open an IRA or take advantage of the home buyer tax credit, you can file an extension. Use Form 4868 on the IRS web-site to file an extension. You don't actually have to list a reason, and anyone is eligible to get a six month extension to file a tax return. Your best bet is to e-file your extension, or to send a paper copy certified mail so that you can prove that you did, in fact, send your extension form on time.
The caveat: realize that, even though you don't have to have your tax return filled out, you still have to pay your taxes by April 15th. Do a best guess on how much you will owe, and pay that. If you underpay, you will have to pay interest on the difference.
Can't pay what you owe
Many people find that they can't afford what they owe in taxes. In such cases, it is possible to set up an installments plan with the IRS -- provided you owe less than $25,000. You can contact the IRS, and they will assess your case and decide what to offer. You will have to pay interest and some fees, since it is a loan, but the costs are generally less than you would pay for credit cards or payday loans, and often competitive with bank fees and charges.
Realize that simply failing to file, or ignoring your taxes, will not go away. In fact, there are rather hefty fines for both. So if you aren't ready for April 15th, consider your options, and address the problem as quickly as possible.
-- Miranda
Image source: U.S. Department of the Treasury
By
Miranda Marquit
Monday, April 05, 2010, 07:19 AM
Category:
Money Matters
One of the most common things you will see these days as you shop around for great deals and savings is the idea of paying less - as long as you are willing to sign a contract for a certain length of service. Of course, if you decide to break that contract, you end up with termination fees that can be quite hefty. Here are some of the items that you are mostly likely to see termination fees for:
- Gym memberships
- Cell phone service
- Cable or satellite TV service
- Internet service
- Auto leases
- Apartment or home rental leases
- Bank CDs (even this savings vehicle can cost you if you try to withdraw early)
It is also worth noting that some mortgages come with prepayment penalties, so if you refinance your home or pay off your mortgage early, you will have to pay a fee.
Before you sign on the dotted line, it is a good idea to find out what the early termination fees are. Examine your spending habits and consider your needs and wants. If you are fairly certain that you will be able to fulfill the contract, go ahead sign. However, be warned that if something changes in your situation, it could be made even more difficult by the payment of an early termination fee. Weigh your options and see if you can some other provider with lower fees, or that doesn't charge them at all.
-- Miranda
Image source and credit: www.localfitness.com.au