Put It All on the Table

When you sign up for a financial service, you need to make sure everything comes out. Do not try to skirt the issue and do not let them try to do the same. Come to the table and tell them you want to be aware of every fee that will be charged and what fees might pop up down the road. Question every fee and make sure that it is something that is legit. If you have any questions about a certain fee then make sure you ask it. This is your money so it needs to be going to things that will help you out at all times. This is why you must come to the negotiating table ready and willing to talk about all the possible fees you face.

Report Any Fee That Was Not Agreed Upon

If you hear about the all the fees then make sure you continue to check and make sure everything is in order. If you ever are charged a fee that you were not told about and you to agree upon then you must report it. Let them know that this was not part of the plan and that they must get you an explanation on why this all came about. Tell them that you were informed of all the fee options and this was not one of them. Do not let them try to pull a fast one on you. Fight anything that pops up out of the clear blue sky. Do not let them push you around either.

The Worst Fee is the Fee You Ignore

In the end the worst thing you can do is ignore a bad fee. If you ignore it then the company will just assume that this is something that they can get away with. Wrong! No one should get away with false fees. Get to know everything you can about how they work fees and then call their bluff if they ever try to get out of line. The last thing you should ever want to do is just flat out ignore something that is going wrong. You want to be on top of your game at all times. The company will know that you truly mean business and want to get things right.

Additional Resources:

• Break Free from Wallet-Squeezing Fees
• How to Avoid Hidden Travel Fees

What’re some of the most important aspects of being able to retire comfortably? Most experts would agree it’s starting early and knowing where to put your money. For many people, it’s difficult to do either of these because they aren’t familiar with all the different terms involved with a retirement savings. There are a dozen ways you can set up your retirement savings, but it’s important to choose the method that best fits your needs. If you’re not sure where to start with your retirement savings, read up about these key terms.

Retirement Savings Terms You Should Know

Mutual Funds
One of the most common forms of investment is mutual funds. They are actually a collection of stocks, bonds, and other securities held by a group of investors who share losses and earnings based off the funds performance.

Annuities
Annuities are great for people on fixed incomes or saving for retirement. An annuity can help provide life-time income as they typically work by an insurance company making periodic payments to the investor for a specified period of time.

Social Security
Social Security refers to the United States’ government’s retirement supplement plan. Much of the payroll taxes from employers and employees go to this program and eventually trickle back to you later in life.

401(k)
You’ve probably at least heard of a 401(k) at some point if you’ve ever had a job and you may contributing to it already. A 401(k) is a retirement program that most employers offer, which you can easily make contributions to by having the money come out of your paychecks. Some employers will even match whatever amount you put into your 401(k).

Roth 401(k)
A Roth 401(k) is very similar to a regular 401(k), except that you have the option of letting your contributions be taxed before going into a retirement fund that remains tax free forever.

Individual Retirement Account (IRA)
An IRA is basically a retirement account, but with some tax advantages. You can make contributions to your account up to your earned income, which remains tax free until you begin making withdrawals.

Additional Resources

• List of Retirement Terms
• Retirement Planning Glossary

Secured Credit Cards

Opening a secured credit card is a simple and inexpensive way to begin building credit again after your bankruptcy. They are used like any other credit card. The downside is that you’ll have to put down a deposit, which generally is upwards of $200, with your application. Moreover, the interest rates on secured credit cards have much higher interest rates than an ordinary card– 14% and up– and charge an annual fee. Nonetheless, these cards can be a great way to improve your credit score after bankruptcy, if used responsibly.

Other Credit Cards Options

In addition to secured credit cards, many lenders will be willing to offer you unsecured cards. Here’s the rub: These “second chance” cards have much lower credit limits, higher interest rates, and hefty annual fees. You do, however, avoid the deposit required for a secured credit card. Make sure that you keep your balance low and you’ll see your score climb little by little over time. It’s also important to note that having multiple credit cards isn’t always looked down upon by the credit bureaus; it’s the debt to credit availability ratio that matters most.

Things To Look Out For While Rebuilding

One of the most important ways to keep debt in check and increase your credit score is to keep the balances on any cards you have at around 30% or so of the limit. Also, when you file for bankruptcy your mortgage history isn’t reported accurately to credit bureaus any longer, making it look as if you haven’t made your payments on time– which can further damage your ailing credit score. You can either (a) attempt to get a Verification of Mortgage (VOM) from your lender, or (b) refinance your mortgage with an entirely new lender. One last piece of advice: After your bankruptcy you will receive gobs of credit card offers from lenders, but don’t go overboard; and, although you may have been burned by credit cards in the past, don’t fool yourself into believing that you’ll never need credit again– it affects insurance and loan rates, job applications, and much more. Be responsible and you’ll be back on your feet in no time.

Additional Resources

• Credit Repair after Bankruptcy
• Rebuilding Your Credit

Yes! They are Very Helpful!

Actually credit repair letters can be very helpful to your cause. If you need help preparing a letter then there are plenty of websites that have some samples for you. You need to make sure that you follow through with this and look to get the results that you desire. Do not let them treat you any differently and make sure that they are willing to provide you with a unique service that fits what you are trying to accomplish. If you use a credit repair correctly that you will see the result that you had hoped for in the first place. Make sure it works.

Do Not Say Too Much

A lot of samples you might be able to find on the internet will tell you to do more then you have to. You should not say too much on your credit repair letter. You want to say what you desire and then make sure that the rest will stand up on its own. Sometimes people will be turned off by a letter that is too demanding as well as a letter that asks for things that are too difficult. This is why you just need to stick with the basics and get your credit repair point across. Handle your role in this whole proceeding as flawless as you can.

Make Sure That Your Point is Clear

When you write a credit repair letter you need to make sure that it has a clear point. Make sure you are clear about what you desire and do not leave anything up to interpretation. Some companies can draw their own conclusions, which may not be exactly what you wanted them to do. This is why you should not state too much, and make sure what you do state is clear and understandable. Do not make this more challenging for yourself or for them then it needs to be. They will be glad that you are taking for time to remain calm and clear.

Additional Resources:

• Lenders Move to Remove Credit Repair Schemes
• How Can I Fix My Credit Score?

What You Will Use It For

You need to know how you will use this card. Are you going to use it to make many purchases on, or are you going to keep it in a drawer and only use it when you really need to? You might be trying to use these cards to transfer a balance, which is another good option. Each different card will have a different impact on what it will help you accomplish. You should not assume that every card will work the same and that it does not matter what you get. You really need to take a look at where you are financially and where you plan to be. Then you need to make your decision based on the answers you give yourself.

Credit Limits You Want

Some people will want to get the highest credit limit possible. This is not going to happen right away. You need to show them that you are able to manage your money. If you want a higher credit limit then you might have to pay more in interest and you might have some added fees. Just know that the more you expect out of the credit card company the more they will expect out of you. If you want a basic card with a basic credit limit then ask about that. On the other hand, if you do not expect too much then you do not want to be caught paying more then you need.

Added Bonuses and Incentives

You can just stick with a normal card and be done with it. That is not a bad thing. If you want travel rewards, business rewards, any rewards programs at all then you will need to ask about it. Be prepared to show them that you can handle this, and also be prepared to pay a little bit more. If you want rewards then you will have to make sure you look into it. If you do not want rewards then do not get them forced upon you. Bonuses and incentives can be a nice addition to your credit card though and they can have some big benefits.

Additional Resources:

• Finding the Right Credit Cards to Take Overseas
• Credit Card Tips for the College Graduate

Improving Your Credit Score

First off, minimize your credit inquiries. Inquiries can cost you up to 50 points on your credit score– so don’t go overboard. Second, don’t close your existing credit accounts, because this reduces your line of credit and, thus, your score. Your credit history benefits from the availability of credit; your debt to credit availability ratio is widened by leaving open existing credit cards. Just because you’ve paid off a credit card doesn’t mean you should close the account. Lastly, distribute your debt evenly across several cards to improve your debt to credit availability ratio. Let’s say you have one credit card with a substantial amount of debt on it and several other cards with much lower balances: Spreading the debt from the first card over the others equally can raise your credit score. Changing your credit score takes time and patience, but it can be improved with some simple long-term decisions.

Credit Repair

So you don’t have that 700+ credit score that you’re looking for. Don’t despair. You can improve your score regardless of what it is– some people just have a lot more room for improvement than others. You can choose to repair your credit on your own (there are many resources available on the internet to help you get started), or you can get in touch with a credit repair agency if you don’t feel comfortable doing it alone. Either way, you’ll want to acquaint yourself with the regulations maintained by Federal Trade Commission (FTC). There are hundreds of companies specializing in credit repair that can help you out, but there are also plenty of scams aimed at the already vulnerable. Don’t let them kick you while you’re down. With time and effort you can improve your credit score and ensure that you’re getting the best rates on your investments.

Additional Resources

• AnnualCreditReport.com
• Credit & Loans

Get Your Credit Report and Know the Errors

In order to fight off the errors you need to know what they are. You might have thought that your few errors were small, but this is something that you need to make sure of. This is why you must request your credit report. Get to know the errors and how they are affecting you. Make sure you know how you screwed up and what you need to do in order to fix this trouble that is coming along. Some people just want to fix their errors without taking the time to look at their credit report. This is not something that will turn out successful for you. You can only really eliminate the errors when you know exactly what needs to be done. It is easy to get your credit report, and obtaining this report is something that you should be doing anyways.

Make Sure You Pay Up

If you owe money and this is the reason that your report is off, then you can handle it yourself. You need to figure out how much money you owe and then you need to pay up and quickly as you can. Do not let payments linger around any longer then you have let them already. Figure out the exact amount and get it taken care of. If you cannot pay the exact amount right now, then pay as much as you can and see if the company will help you with some sort of payment plan. A lot of people find that they have credit report errors just because they did not pay the money back. Do not let this go any further. Put an end to this nonpayment immediately. The companies will be happy you paid them back and you will be relieved.

Only Go Through With It If You Can

If you get your credit report and realize that there are many errors that you did not expect then pull back. Do not just go through with self help if you are not sure you can do it. This is how you will run into more troubles. Make sure that you can self repair your report, but only do so if you have minor mistakes. It is alright to ask for help when it comes to this because it is so important. Nobody is going to blame you if the mistakes are too frequent, and you have to ask for help. This is actually something that is the right thing to do. If you find out you can fix your report on your own the go for it! We are glad you can.

Additional Resources:

• How Can I Fix My Credit Score?
• How to Avoid Credit Counseling Sharks

Making Your Money Real

• For a full week, try living without your debit card and carrying only cash. On the day you begin your test, go to your bank and pull out how much money you think you’ll need to get by. Others who have tried this test are shocked when they find themselves out of cash by the third day so give yourself some extra room. Remember, it’s been shown in numerous studies and surveys that people who carry cash instead of cards spend around 15%-50% less money than those who only carry cards.
• Try associating how much money you want to save with things you can actually avoid spending money on. An example could be eating out three times a week which costs you $20 each time, if you want to save $80 a month then simply eat out one less time per week.
• Rather than thinking about saving as giving up certain luxuries in your life, try to think of it as making exchanges for a certain period of time. For instance, bring your own coffee to work instead of spending $5 at Starbucks or rent a movie rather than spending $15 at the movie theater.
• Still can’t seem to get a real grasp on the concept of money? Rather than creating your budget on paper or a computer, you may need something a little more literal. Grab some bank envelopes and mark each one as a portion of your budget, so one envelope will be for rent, one for food, utilities, and so on. If you find yourself taking money out of envelopes to pay other ones, you’ll know you have some work to do.

Additional Resources

• Instant Budget Maker
• Why It’s Important to Follow Budgeting Guideline

The Federal Deposit Insurance Corporation

After the Glass-Steagall Act of 1933 the United States created the FDIC, or Federal Deposit Insurance Corporation. If your bank is a member of the FDIC, then your checking and savings deposits are insured up to $100,000. This also applies to accounts with different banks. Let’s say you have $200,00: If you keep half in one member bank and the other half in another member bank, then the FDIC insures the entirety of your $200,000. Trusts, joint, and other individual accounts are insured independently. Funds insured by the FDIC include: checking, savings, and money market accounts; interest and outstanding cashier’s checks; and certificates of deposit– along with other accounts similar to those listed.

Uninsured Ways of Losing Money to Your Bank

Although the government protects the money in your accounts, there are several means of losing money that aren’t covered by the FDIC or your bank. These include:

• Deposits exceeding $100,000 at a member bank (excluding retirement accounts)
• embezzlement
• losses resulting from robbery
• the contents of safety deposit boxes
• inaccuracies resulting from bank directors
• illicit access to your account(s), etc

Keeping Your Accounts Protected

Despite extensive government protection of the money kept in your bank accounts, there are still some ways in which your deposits aren’t entirely safe. However, the chances of one of these issues affecting you are slight. The best way of avoiding any issues with your bank is by being aware of how and how you aren’t protected. And now you have an idea of the safeguards already in place.

Additional Resources

• Federal Deposit Insurance Corporation
• MarketWatch.com

Savings Accounts

Most people have an ordinary savings account, which you can get at the majority of retail banks. These accounts are insured by the FDIC for up to $100,000. Most savings accounts have a low interest rate, few fees, and a low minimum balance (sometimes no minimum at all).

Emergency Funds

An emergency fund is a certain amount of money saved for, you guessed it, emergencies. They’re typically kept in a liquid account (such as the aforementioned savings), and it is recommend that you keep three or more months worth of living expenses stored in an emergency fund.

401(k) Plans

Numerous employers offer 401(k) plans, and these allow you to invest a portion of your salary– which may be matched, or partially matched by your employer– in a savings or profit-sharing plan. At the age of 59.5 you may withdraw this amount without incurring any penalties, and taxes on your plan are also postponed until this time.

Mutual Funds

A mutual fund is an investment in bonds, stocks, and similar markets– sometimes a combination of the three– which is shared with other investors and managed by a financial professional.

Roth IRAs

Roth IRAs are a bit different than regular IRAs: withdrawals aren’t taxed if you’re over 59.5 years old and the account has been open for longer than five years. IRA is an acronym for Individual Retirement Account.

Yield Curve

A yield curve is simply a graph showing the relation between maturity of savings and earnings. The lengthier an investment’s maturation, the more you earn. The curve becomes flatter when the rate difference between short- and long-term investments is diminished.

Additional Resources

• Invest Wisely: An Introduction to Mutual Funds
• IRA Online Resource Guide - Information About Roth IRAs