Get Finances in Order With These Apps

Is one of your New Year’s resolutions to get your finances in better shape? Or manage your expenses more accurately? Maybe it’s both…or more. The good news is there are plenty of powerful, smart, and free apps to try out for the New Year. Here’s a roundup of some of the most talked-about ones by finance experts. All are free and available for iOS (iPhone), Android, and some for Windows.

Personal Finance

No surprise that Mint.com is one of the most popular personal finance sites out on the market.  Its app offers a secure way to track all of your accounts and credit cards in one location on the go. You can slice and dice account data to create graphs that show you the bigger money picture. You can also set alerts and reminders.

Dollarbird works from a calendar-based design to track expenses and income and also allows you to set up recurring transactions and bill reminders. You can also get a snapshot of where your money is going and even create a five-year financial projection plan.

Credit Cards and Check Management

Billguard monitors those “gray charges” on your credit card statements. It flags questionable or unwanted purchases and highlights merchants who frequently charge for products or services that are unnecessary or oddball fees.

MintBills (formerly Check) This app lets you pay checks from your mobile phone, either manually or by scheduling automatic payments. It also monitors bank or credit card accounts and notifies you if your checking account balance or credit limit is at risk.

Monitor everything about your credit score with the CreditKarma app.  Get notifications if and when there are changes to your credit report and a “report card” on factors impacting your credit score number.

Take the work out of expense reports

Hate keeping tracks of your work expenses? Most find it painful. Whether you’re a small business or employee, Expensify makes it easier with the ability to scan receipts, track mileage, and even link debit and credit cards. You can view usage and even create expense reports. Travel bonus: it allows you to set up currency converters and flight alerts.

For the online shopper

Slice offers its own version of “one stop shopping” for all of your online purchasing needs: track packages, view your spending habits, and also find out if there are price reductions that you can claim with a merchant after the purchase date. It also provides shopping insights and consumer recalls information.

Sharing the cost?

We all know how fun it is to split dinner three ways (or more). Square Cash makes it easy to link your debit card to the software and securely send and request money through email. You can beef up online protection with a security code too. Transactions typically take one to two business days.

Another big player in this market is Google Wallet. It allows you to send money to any user in the U.S. You can also track online orders and view your purchase history when you have the free Google Wallet Card.

So get ready, set, and app up for your personal finance needs in 2015.

 

 

 

 

What You Need to Dispute a Credit Report Mistake

Have you ever found a mistake on one of your credit reports? If so, you’re familiar with the feelings of anger and injustice that come with discovering you’re being accused of something that isn’t true. Translating your motivation to fix the false information into a successful dispute takes more than just a sense of unfairness though—it requires specific steps to remedy the problem. Here’s what you need to get on the “fact track.”

Get updated credit reports
To start with, there are many different kinds and sources of credit reports. While there are three main credit bureaus that compile credit files—Equifax, Experian, and TransUnion—there are many different formats in which the information they record gets reported. To effectively and efficiently complete disputes with the credit bureaus, you’ll need copies of the consumer reports the credit bureaus produce. Without these reports, your dispute will be very difficult—if not impossible.

You are entitled to the reports free once per year according to federal law. You can get them by calling 877.322.8228 or by visiting www.annualcreditreport.com.

Gather all incorrect information
There can be many reasons for a mistake on your report. A common one is mistaken identity: Incorrect information on one of your credit reports may be due to having a name, address, or Social Security number that is similar to another person. For this reason, it’s important to make a comprehensive list of all mistakes on your credit reports, even if your first look only turned up a single error. The list should include wrong names, addresses, employers, and birth dates.

Know your report identifier
When you contact the credit bureaus to dispute what you believe to be a mistake in your credit file, the bureaus may ask that you provide a report number or code so they can refer to the right credit report. You’ll need reports and report identifiers from each of the credit bureaus to ensure that the problem information is removed from all of your reports.

Get dispute website/phone numbers
While you do have the right to dispute credit file errors in writing, this method generally takes much longer than the online or phone options. Below is contact information for each of the three major bureaus.

Equifax
www.equifax.com
Phone number for disputes provided on your credit report

Experian
www.experian.com
Phone number for disputes provided on your credit report

TransUnion
www.transunion.com
800-916-8800

Keep track of progress
Ideally, your disputes will be processed quickly and you’ll receive a response promptly, but this isn’t always the case. Keep track of the dispute confirmation codes you are given by the credit bureaus. If entering your dispute online, print out the confirmation page after your dispute has been completed. With a phone dispute, have a pad and pen handy to record the confirmation code, the time you called, and the names of any customer service representatives you spoke with.

Stay organized
Start a dispute folder with copies of any supporting documents you have to bolster your case, such as credit card statements, receipts for debts paid, paperwork for dismissed judgments, etc. If your initial online or phone dispute fails, you can always follow up with a dispute in writing that includes your supporting documents. Also include notes or paperwork regarding any previous dispute attempts. Lastly, include in your folder confirmation from the credit bureaus when an item is ultimately removed your reports.

Understand your options
You also have the right to dispute false data with the company that originated it—whether it is a financial institution, mortgage servicer, county courthouse, or other entity. While waiting to hear back on your disputes, contact the information originator to get account documentation. Should you need to file a follow-up dispute in writing, you’ll have even more evidence at your disposal.

There’s never any guarantee a dispute will be resolved as quickly as you’d like. However, doing a little prep work can make it easier to navigate any twists and turns that arise during the process.

What are Bankruptcy Risk Scores?

Although much more information has come to light about credit scores and how they are calculated over the past several years, their cousin the bankruptcy risk score has remained mysterious. While what the general public has been told is limited, a few of the basics are known.

What are they?
Bankruptcy risk scores are an attempt to attach a numerical value to the likelihood you will declare bankruptcy. This differs from credit scores, which attempt to measure the likelihood you will pay back a debt.

How are they calculated?
Like credit scores, bankruptcy risk scores are based on information in your credit report. Companies that calculate bankruptcy scores compare data from past consumers who have declared bankruptcy to the financial aspects of your credit files to arrive at the score. Some companies that sell bankruptcy scores also use transaction data from your credit card provider(s), cross-referencing your activity against recent trends for bankruptcy declarers.

What’s a good score?
Not only do bankruptcy scores use a different scale than credit scores, but they also use a rating system in which a lower score is better. Add in the fact that there are several different companies producing scores and it becomes impossible to nail down one milepost for a “good” score.

How do I improve mine?
While the credit bureaus understandably refuse to give away the complete formulas for calculating their scores, they have noted that bankruptcy scores – like credit scores – reward paying bills on time, keeping balances low on revolving accounts, having a variety of types of credit and limiting the number of new credit applications. A couple specific tidbits that have come to light are that bankruptcy scores put a great deal of negative emphasis on consumers who quickly amass large amounts of debt and/or apply for new credit several times in a short period. According to the companies that produce bankruptcy scores, these behaviors are frequently precursors to bankruptcy.

Who uses them?
Just about any lender you would apply for a financial product from has access to bankruptcy scores. They could be used in conjunction with an application for a mortgage, car note, personal loan, credit card, or other form of credit.

How are they used?
Lending experts have pointed out that financial institutions most commonly use bankruptcy risk scores as a backup to credit reports and scores. In other words, they likely wouldn’t be the major determining factor, but a questionable bankruptcy score could still mean you are denied for credit.

How do I get mine?
Unfortunately, you as a consumer do not currently have access to your personal bankruptcy score.

Without a doubt, it’s frustrating to have decisions being made on your financial future with information you don’t have access to. That may change soon, though, as at least two of the major credit bureaus have expressed an interest in selling bankruptcy risk scores to consumers. Stay tuned.

Is a Higher Credit Card Limit Better?

You open the letter from your financial institution to learn that they are offering you a higher limit on your credit card. As you read further, you learn that they are doing so because of your strong credit history and the fact that you have an excellent payment history with the card. But should you accept? There are arguments on both sides.

Yes
Your FICO credit score – the score most commonly used by lenders – calculates into your scoring what percentage of your available credit you are using on your revolving accounts. Since your credit card is a revolving account, a higher limit could quickly mean a higher score. For example, if you currently have $600 in charges on the card and a limit of $1,000, you are using 60% of your available credit. If the limit on the card is raised to $1,800, your usage percentage instantly drops to 33%.

No
You’ve survived just fine with your current limit. No point in opening yourself up to additional temptation that can come with a higher limit. After all, you can improve your usage percentage on the card simply by paying off the balance each month.

Yes
You don’t know what emergencies the future might hold. While the best option for dealing with them is an emergency savings account, a credit card with a higher limit could help you have greater payment flexibility should unforeseen calamities arise.

No
In the case of identity theft, a criminal might be able to rack up more charges if your card has a high limit. Be aware, though, that your responsibility for these kinds of charges is limited by federal laws – and possibly by the credit card issuer. The main downside will probably be in the amount of hassle you have to endure to get your record cleared.

Yes
Credit may not always be so readily available. You may not think you need it now, but who knows what your plans will hold in the future. Maybe in a few years you will want to start a business or put some of the expenses of furthering your education on the card.

No
If you are considering asking for a higher limit, be very careful to check your credit reports and scores before you do so. Some people have found that when they contacted their credit card issuer to request an increased limit, an account review was conducted that actually resulted in their limit being lowered.

Yes
When it comes to having available credit, you’re better off in terms of your FICO score to have a few cards with high limits rather than several cards with lower limits. Not only can applying for new credit cards bring down your score, but having a high overall number of cards can ding your rating too.

There isn’t anything necessarily bad about a higher credit limit. You do, however, need to think about your tendencies and goals before taking on a higher limit. That way, you can be guaranteed you have the limit that works best for you.

Credit Builder Loans: What You Should Know

A secured credit card can be a wonderful way to build a positive credit record. However, credit builder loans shouldn’t be ignored as an option for establishing a strong credit history.

How does it work?
There are a couple different types of credit builder loans that are the most popular. In the first type, the “loaned” money is actually put into a savings account for you at the financial institution issuing the loan. You make monthly payments on this money so that by the end of the payoff period, you have access to the money you paid, plus any interest that may have accrued.

The second type of credit builder loan is similar to a secured credit card in that you are essentially putting down a lump sum security deposit and then being extended credit in that same amount. In the case of this type of credit builder loan, you pay down the line of credit that was given to you as a result of your deposit.

How does it help?
Credit builder loans are reported to your credit files and show up on your credit reports just like unsecured personal loans. Because of this, the (hopefully) positive payment history can be a boon to your credit. Also keep in mind that having both a revolving account and an installment account on your credit reports helps your FICO score. So if you already have a revolving account – like a credit card or line of credit – on your reports, but not an installment account, a credit builder loan can add that installment account for you. However, if you already have another installment account like a car note, personal loan or mortgage in your credit file, you may not be helped much by adding another one.

Is it better than a secured credit card?
Neither a credit builder loan nor a secured card is inherently better. Both can enhance your credit profile when used properly. However, if you are worried that using a secured credit card might encourage you to make unwise purchases, a secured loan may make more sense for you.

What questions should I ask?
As with any loan, you should always make sure you understand:

• The total amount of the loan
• The interest rate you pay vs. what you earn
• The term (length of payoff time) for the loan
• The monthly payment
• Loan origination or closing fees
• Fees for missed payments
• Credit bureaus loan payments will be reported to (the more the better)

It’s important to know that the interest you pay on a credit builder loan may be higher than what your deposit it earning. However, when used wisely, a credit builder loan can help you build the kind of credit standing that will save you thousands down the line on car loans, mortgage payments or other credit expenses.

Opening the Hood on Auto Credit Scores

You’ve accessed your credit scores in preparation for buying a vehicle. You’ve done everything in your power to get your scores as high as possible. Then you sit down with your lender only to be told they use something called “auto credit scores.” No need to get flustered. While there are a few key differences, auto credit scores are pretty similar to general credit scores. Once you know the ways they vary from your general credit scores, you can quickly understand how to master yours.

What’s different?
Auto credit scores normally put greater emphasis on:

• Whether or not you’ve had an auto loan or lease in the past (having at least one is better)
• Payment on vehicle loans or leases (missed payments are bad)
• Settlement for less than the amount owed on an auto loan or lease (bad)
• Auto loan or lease sent to collections (bad)
• Repossession of a vehicle (bad)

How do I know which kind of score is being used?
As with any type of loan application, your best method is to simply ask the lender what type of score they will be using to consider your application. In the vast majority of cases, a lender will use an auto credit score for an auto loan or lease.

How do I get my auto credit score and report?
Before you run off to the internet trying to get your auto credit reports, know that the information used to compile auto credit scores comes from the information that is already in your regular credit reports from Equifax, Experian and TransUnion. You can get those for free once a year by calling 877-322-8228 or visiting www.annualcreditreport.com. Odds are that you won’t be able to get a copy of your auto credit report unless it is provided by a lender.

Depending on which score your lender is using, you may not actually be able to access your auto credit score either. This isn’t as bad as it sounds, though. If you can access your general credit score, such as the highly popular FICO scores, you should have a good idea of what your auto score will look like. In most cases, the general credit scores give you a good approximation of what your auto scores will look like.

How do I address my auto score?
To put it simply, always pay your vehicle loans or leases on time and avoid at all costs negative outcomes like collections or repossessions. Since auto scores do also consider other types of credit you have used – like credit cards or mortgages – it’s wise to pay those on time too. In addition, credit scores usually favor those who:

• Keep balances low on revolving accounts, like credit cards or personal lines of credit
• Keep revolving accounts open for an extended period of time
• Have a diversity of types of credit
• Limit their applications for new credit

Auto credit scores aren’t terribly complicated for the most part. Just keep in mind are that if you miss payments or fail to meet your obligations with vehicle leases or loans, doing so will bring down your score and may mean paying more to have access to a vehicle in the future.

Credit Card Cash Advances: What You Need To Know

If you’re in a bind and desperate for money, a cash advance via your credit card can seem like an oasis in the financial wilderness. Be careful, though. There are several key things you need to make sure you are aware of before plunging in.

Interest rate
A common mistake is to assume that the interest rate on cash advances is the same as the interest rate for purchases you make using the card. To avoid being burned, know the interest you’ll be charged before you borrow. Chances are it’s significantly higher than your rate for purchases.

Teaser rates
Does your cash advance come with a low initial rate that quickly jumps if you don’t pay the money back within a certain time? Make sure you’re aware of any rate hikes that could kick in.

Transaction fee
Like the interest rate, the transaction fee can be a real shocker if you haven’t done your homework. If the combination of the interest rate and fees makes a cash advance too expensive for you, explore cheaper options for coming up with some quick cash.

Grace period
When you make a purchase with a credit card, there is normally a grace period before interest is charged on the money borrowed. However, with cash advances, it’s not uncommon for interest to be charged from the moment you complete the transaction.

Payment rules
Since the money you borrow via cash advance gets added to your credit card balance, it’s important to know how the any payments you make for the card will be applied. For example, when you make your regular monthly payment, how much of that gets applied to the cash advance portion of your debt? You don’t want to encounter a situation in which you are only paying on your lower interest debt while the higher interest debt goes untouched.

Credit card cash advances should never be used in lieu of emergency savings or as an excuse to live beyond your means. They should only be considered in emergencies, and even then they should be weighed against cheaper or less risky options.

Business Credit Score FAQs

You’ve heard a lot about your personal credit scores, but if you own a business, you may feel a bit in the dark about how your company’s credit is rated. Like your personal score, though, your business score is fairly straightforward once you understand the basics.

What is it?
As with a personal credit score, a business credit score is an attempt to measure the likelihood of repaying any particular debt. It’s simply a way for other organizations to use measurable data to try to predict the risk of doing business with you. You may also hear the scores referred to as “commercial” or “trade” scores.

Who calculates the scores?
The three major companies computing scores are:

• Dun & Bradstreet
• Equifax
• Experian

As with personal credit ratings, your best bet is to make sure each of your scores with the leading business score calculators is in good shape.

How is it calculated?
Algorithms vary by the company crunching the numbers, but normally the main factors are:

• On-time payment history
• Public records, such as liens, bankruptcies or judgments
• Number of business relationships (higher is better)
• What percentage of your available credit is in use (lower is better)
• How long your business has used credit (longer is better)
• How many credit inquiries have been made (lower is better)
• Type of business
• Size of business/number of employees

What’s a good score?
Business credit scores use different scales than those employed for personal credit scores. For example, Dun & Bradstreet’s popular PAYDEX score ranges from 0-100 (higher is better) with a score of 75 or above considered preferable.

How do I start building a score?
If your business is a sole proprietorship or partnership, incorporate your business as either an LLC or a corporation to begin the process of getting scores. The act of incorporating legally separates your personal and business finances. It also lets you create business credit files separate from your personal ones. Next:

• Apply for an Employer Identification Number (EIN) at irs.gov
• Get a Data Universal Numbering System (DUNS) number at dnb.com and register your business for credit file data collection
• Find companies willing to extend you business credit

Keep in mind that reporting business credit file information is voluntary and that some companies you do business with may not report at all. This is why it’s smart to check your credit files from the major compilers to see what exactly is being registered for your company.

How do I see the reports and scores?
You’ll need to visit the website of the company whose information you are interested in. The major ones are:

• Dun & Bradstreet – www.dnb.com
• Equifax – www.equifax.com/business
• Experian – www.experian.com/small-business

How often do I need to check it?
Generally speaking, lending professionals advise that business owners check their business credit scores at least once per quarter.

Why does it matter?
If you want to make your business into a big-time moneymaker, you will probably need to apply for a business loan at some point. A good score can mean not only qualifying for a loan, but doing so with the best terms possible. It’s not just about lenders, though. Keep in mind that anyone who potentially encounters risk by entering into or maintaining a business relationship with you may check your scores too. Simply put, a good score can help make it easier and cheaper to do business.

How do I raise the score?
The types of behavior that typically will have the greatest positive effect include:

• Making payments on time
• Avoiding liens, bankruptcies or judgments
• Increasing your number of business relationships
• Keeping your percentage of available credit in use relatively low
• Generating revenue
• Notifying creditors and credit file compiling companies if you find errors on your reports

Is the business score all I need to worry about?
Be advised that some lenders look at a combination of your business and personal scores. In other words, don’t necessarily think that you can skate by with poor consumer scores as long as your business is looking peachy.

Having a strong business score can make your operating costs significantly smaller. For that reason alone, it’s definitely worth it to look into making the most of your score.

Regular vs. Student Credit Card

If you’re a college student, a credit card can be a great way to learn the ins and outs of using credit wisely while also building a nice credit rating. But it’s important to keep in mind that just because your card has the same logo as mom’s or dad’s, that doesn’t mean all the terms are the same.

While credit card companies are willing to offer you a credit card, they still see your student status as a risk. You likely have a small income – if any – and scant experience using credit. Because of these factors, the issuer of your student credit card is probably going to make a few tweaks to the terms for your card. These often include:

• Larger annual fees
• Higher interest rate for charges made to the card
• Lower credit limit
• Scaled-down cash-back offers, reward points or other benefits
• Requirement of a co-signer

If you’re going to use a student credit card – or any credit card for that matter – you need to have a plan in place for how you’re going to use it. If you’re like most college students, your best course of action is to have one regular, fairly small expense that you pay with the card. An example would be a monthly trip to the grocery store.

It’s also vital to know all the particulars of a credit card before you fill out any paperwork or pixelwork. High interest rates or low limits aren’t necessarily deal breakers if you are planning on using the card judiciously and paying it off each month. The annual fee, though, is something generally worth paying attention to since it is a cost you will definitely have to pay.

Many websites allow you to compare various student credit cards, so use their side-by-side charts to identify cards with low fees and other favorable terms. Also be sure to contact your local credit union or community bank to see what they offer. Avoid signing up for a card on-the-spot because you get a free gift or the sales pitch sounds enticing.

Assuming that your plan isn’t to be a student forever, it’s also wise to ask what happens to the card when you are out of school. If you’ve used the card in a responsible way, will the limit be raised and the interest rate dropped? Will you have to open a new account to get better terms? Knowing this before you open the card can make the decision easier.

As long as you know what you are getting into, a student credit card can be a wonderful tool for preparing you for financial life outside of academia. Study up on the important factors and never be afraid to get help for the confusing parts.

Steps for Disposing of a Credit or Debit Card

With all the data breaches and other security issues going on these days, you may be finding yourself replacing credit and debit cards on a regular basis. If you’re using the old method of cutting the card in half and throwing it in the recycling bin, you may not be doing enough to secure your information. Instead, you should:

1. Cut lengthwise (from side-to-side) along the black bar on the back of the card. This will destroy the magnetic strip that houses your vital personal details.

2. Cut the resulting two pieces of card into as many pieces as possible, so that your name, account number, 3-digit security code, etc. are unreadable.

3. Make sure the RFID/smart chip has been cut through and thus destroyed. It is usually a shiny overlay or insert on the front of the card.

4. Dispose of the various pieces of the chopped up card in different recycling or trash receptacles to lessen the chances that an identity thief will be able to reassemble the card.

It may sound like overkill to cut your card into a hundred pieces, but it only takes a little effort and it protects your identity from being taken over by a dumpster diver.