The Truth About Free Credit Reports

You can probably sing by heart one of the many “free credit report” TV jingles. But what’s the truth about these free reports.

Fact number one: Anyone can get a free credit report, even without using these services. By law, each of the major credit bureaus must provide you with one free report each year. So want a free one? Just log onto the bureau’s website and ask for one…or write them. You can also get a report each time you’re declined credit due to an entry on a particular bureau’s report.

Fact number two: Almost all of the websites advertising a free credit report have something to sell. In most cases, you get the free report by signing up for their credit-report monitoring service (which, of course, costs money).

Fact number three: There is one site which offers, absolutely free, with no strings attached, a copy of all three credit reports. That’s because it’s a site created and coordinated by the three bureaus themselves, in response to federal requirements that they provide this information. That website address is http://www.annualcreditreport.com. And no bad singers are required.

Best Rates on Payday Loans

There are many variables facing a customer in the field of payday loans. You can’t really avoid exorbitant interest rates, but you can minimize them by checking first with your bank branch to see if they offer some sort of payday loan or checking account advance program.

For example, midwest-based U.S. Bank offers a checking account advance option for customers who have signed up for monthly automatic direct deposit of their paychecks from their employer. Customers can do it all with a few clicks of their mouse on U.S. Bank’s website, and all for a 10% fee, which, along with the principal advance, will be automatically paid when your paycheck gets deposited. By comparison, Cashnetusa.com charges an average of 15% interest for basically the same service over the same period, and some payday loan companies charge up to 30%.

The main advice I can give if you are considering a payday loan, is to call your bank first and ask what kind of payday advance services they offer and what fees are associated with it. It’s your money, so don’t rush into using the first payday loan company you find and end up getting overcharged.

Alternatives to Payday Loans

While some people might find it necessary to take out a payday loan, we need not remind you of the steep interest rates you’re agreeing to. If a payday loan seems impossible for you, here are some alternatives:

Ask your creditor if they’ll extend your due date. You’ll be surprised at how many will. Some won’t even charge you a due date, if you ask first.

Ask for overtime. True, this is no miracle solution, but many employers will give you a few hours’ overtime if you ask.

Ask your boss for a payday advance. This accomplishes the same thing as a traditional payday loan, but it won’t cost you the excessive interest rates.

Pawn or sell things you don’t need. You can take care of this at the local pawnshop or on Internet sites such as eBay . Or have a yard sale one weekend to sell many items at once.
Adjust your tax withholding

Adjust your tax withholding. If you’re willing to take a smaller tax refund at tax time, you can bring in a few more dollars by simply adjusting the amount withheld from your pay check. Visit the IRS website for more information.

The Two Most Important Considerations in a Credit Card

Yeah, all the fringe benefits and incentives are great for credit cards. But there are two overriding things that should guide your selection of your next card: the introductory rate and the interest rate.

1. Introductory rate. Most card companies will offer you a special rate when you first sign up which lasts for a limited time. Usually this introductory offer says you will pay zero percent interest on transactions for 6, 8, 12 months or so. Most of these deals will look somewhat alike, but be sure to pay close attention to the length of time for the intro offer. The longer, the better.

2. Interest rate. This is what you’re “buying” each transaction for after the introductory rate expires. This number varies from one card to another, so make sure you check out the rates on several cards to find the best deal. Also, make certain you understand if the interest rate is fixed for the card’s lifetime or is, instead, variable. A variable rate can change–and usually this means it will go higher. Avoid variable rates if possible.

What My Dad Said About Debt Consolidation

Today’s American not only appreciates but expects instant communication, short lines at McDonalds and speedy solutions. And that’s exactly what debt consolidation is: a quick fix. Or is it? I see good and bad with it, but here’s what my Dad always told me.

For some people and some debt levels, consolidation provides an opportunity to balance budgets and work toward early payoffs. For others, the lack of multiple bills provides a false sense of freedom. Depending on the amount, consolidation loans usually require years to repay. How many indebted individuals have the discipline to stick with payments without backsliding into old spending habits? Also, a consolidation loan may cost more in the long run than paying off individual debts would cost. And creditors often secure such loans against a debtor’s home.

The alternative? (No, it’s not winning the lottery.) With or without the support of credit advisers, debtors can make arrangements with creditors to lower payments and pay off debts one at a time, starting with the smallest. Equally crucial: destruction of credit cards, adherence to a cash-based budget—and scrimping. In case you haven’t heard the word “scrimp” since your grandmother lost her teeth, it means “to be sparing or frugal, to economize.” In other words, no more Egg McMuffins on the way to work!

Hey, it worked for Dad.

Automatic Bill Pay by Credit Card

Many utility companies allow you as the consumer to pay your bill automatically through your credit card. This includes electricity, water, telephone, cable, and more. This is a good idea for many people. Having your bills charged to a card will eliminate the likelihood of you forgetting to pay a certain bill or another monthly charge, because the card company pays it every month for you. It’s kind of like having a personal accountant.

Utilities that allow automatic bill pay don’t have to worry about legal actions against those who don’t pay bills, since this is now the credit card company’s concern. However, if you ever stop paying your credit card, the card company will eventually report this to the utility and tell them to start charging the card.

One other advantage to considering: by using a card to automatically pay your bills, you will increase your total number of advantage reward points. You might also earn rewards more quickly during the year. It’s a good idea, as long as you’re consistent in paying off your credit card bill. But get behind on it and you risk losing all utilities attached to it.