Spring is a time of renewal and rejuvenation, when many people focus on getting their homes cleaned up and ready for the warmer months ahead. It is also a great time to get your finances – including your credit – in order. So, if you’ve been neglecting your credit like those old dusty boxes of clothes you can’t quite part with yet, use the spirit of spring cleaning to spruce up your finances.

Experian has developed four tips to help you spring clean your credit:

1. Know your report and your score
Despite what you may have heard, accessing your own credit report does not affect your credit scores. Reviewing a credit report results in what is called a “soft pull,” or “soft inquiry,” meaning it will only be seen on a personal credit report, not the ones lenders use. Everyone should check their reports at least annually. It’s part of good credit management. You can get your credit report at www.experian.com. Purchasing a scored report will help you identify the factors in your report that are most influencing your credit risk.

2. Pay your bills on time
Paying your bills on time is the single most important contributor to a good credit score. If a bill is not paid in a timely manner, the delinquent payment may be reported as late to a credit bureau. Delinquent payments and collections can have a major negative impact on credit scores. Even if the debt you owe is a small amount, it is crucial that you make payments on time. In addition, you should minimize outstanding debt, avoid overextending yourself and refrain from applying for credit needlessly.

3. Start paying off your credit card debt and leave the account open
Paying down debts and paying off credit cards is always good for your credit, but closing a credit account could have a negative impact on your credit scores, at least for a short time. Some people start with their smallest debt. They can pay it off fairly quickly, which gives them a sense of accomplishment. That payment amount can then be added to the payments for a larger debt so that it can be paid off more quickly. Others start with a large debt and get it out of the way. Getting a big weight off your shoulders can help knock out the remaining debts faster. If one debt has a higher finance charge, it is always smart to pay the most toward the balance of that account. That’s because so much of your money is going toward fees and interest and is not lowering the amount of the debt. When it is paid off, all the money you were paying in interest can be applied to the balance of another account.

4. Use credit wisely
Once you’ve paid down your debts, continue to use your credit cards and pay the bills on time each month, and keep your balances low. Credit scoring systems not only look at individual credit card balances, they also consider something called your utilization rate (or balance to credit limit ratio). Your utilization rate is the total of the balances on all of your credit cards compared to the total of the credit limits on all of your credit cards. For example, if your credit card’s limit is $10,000 and you owe $2,500 – your credit utilization rate is 25 percent. According to Experian, consumers on average are utilizing more of their available credit. At the end of 2009, the average utilization was 22.1 percent compared to the same time last year when average utilization was at 19.1 percent. Closing accounts reduces your available credit, which can increase your utilization ratio or balance-to-limit ratio – a sign of risk that can negatively impact credit scores.

While there is no quick fix for bad credit scores, there are straightforward steps we can all take to help clean up and improve our financial well-being. So when you’re clearing out the clutter in your living room, don’t forget to review your finances and see what else you can do to get organized for the spring season.

Related posts:

1. Time your debts to improve your credit report score
2. Planning Spring Home Improvements? Know the Score First
3. How much you owe affects your credit report score

For owners of new and young small businesses, there are a plethora of elements that need to be managed and overseen every day to ensure success. While focusing on income, expenditures, employees and marketing, thinking about your business’ credit can sometimes fall by the wayside.

To ignore your business credit score could be a fatal mistake. It’s an essential link in the chain of success. If you’re concerned about your company’s image that your customer base sees, you should be just as concerned about how your business credit looks to essential people like lenders and potential business partners. And, just think of how your personal credit can affect your life – the difficulties that bad credit poses for an individual can end up plaguing your firm too. It’s also important to remember that anyone can view your business credit report and score for any reason, unlike the information in your personal credit file.

With the everyday rush of tasks that comes with small business ownership, it can seem difficult to add yet another thing to monitor, but your company depends on it, especially small businesses looking to grow. There are good resources out there that can help you learn to manage your business credit. Experian is one company that excels in helping businesses with their credit, offering business credit reports (singly or in subscription packages) that detail payment trends, credit risk scores, monitoring alerts, industry benchmark data and more.

Now, as the economy begins to recover, is the time to start focusing on your business credit score. Here are some tips from Experian to get you started.

1. Check – Know what is in your business credit report at all times and understand your business credit score. Your business credit report is used to make important financial decisions about your company – how much money lenders will loan, how much credit suppliers will extend and what interest rates to charge.

2. Correct – Be proactive. Make sure your business information is accurate and up-to-date. Outdated or incorrect information can give the wrong impressions about your business, resulting in unfavorable decisions that negatively impact your bottom line.

3. Protect – Monitor your report regularly and sign up for alerts that warn you of changes that could indicate fraudulent use of your business credit information. Popular alerts include notifications on inquiries and new trade lines. Furthermore, protect your business from non-paying customers, partners and suppliers by checking their business credit report before doing business with them.

4. Separate – Many small business owners don’t separate personal from business expenses and therefore don’t build business credit tradelines. In the beginning when starting a business, using personal guarantees and credit is needed. However, the weakness of relying solely on personal credit is clear. If your business ever becomes at risk, your personal credit score becomes at risk as well. Failing to separate business from personal credit also can limit your business growth potentials.

5. Grow – Managing the factors that drive your score can make a positive impact and lead to more opportunities to grow your business, ranging from gaining capital to gaining customers. Therefore, take good care of your small business name and reputation. Choose to work with lenders, suppliers and creditors that report your payment history to the credit bureaus. And of course, pay your bills on time.

When you take the time to build and maintain your business credit report, you’ll be building your business’ reputation and ability to succeed.

Related posts:

1. Troubleshooting a Low Credit Report Score
2. Protecting your rebuilt nest egg: ID theft basics for boomers
3. Spring Credit Cleaning

Year in and year out, getting out of debt consistently ranks among New Year’s top 10 resolutions. If your household is like many American households struggling with the recession, or worse, unemployment, getting out of debt will be close to the top of your list again for 2010. Unfortunately, like other tough habits to break, it can be difficult to get out of debt after developing spending habits that have heavily relied on borrowing from credit cards and home equity loans.

While some households can slowly work their way out of debt, others that have been affected by a recent job loss may have no choice. If you’re among the more than 70 percent of American workers who are living paycheck to paycheck or must immediately cut expenses due to sudden unemployment, here are seven tips from FindLaw.com, one of the world’s leading online sources for legal information, on how you can get your new year off to a great start by reducing and eliminating your debt.

* Write down your goal. Give power and energy to your goal to get out of debt by writing it down on a piece of paper and taping it to your refrigerator. Be clear. Write down how much you’re in debt, your goal date for being debt-free and your determination to cut expenses and stop needless spending. In addition, write down what you dream of achieving – buying your own home, or paying for a child’s college education – to give you and your family added purpose as to why it’s so important to get out of debt now.

* Get help now. Some households need expert help to get out of debt and create new spending and saving behaviors. Seek the assistance of a debt management or credit counselor, available through many social service agencies. Try visiting the United Way at www.liveunited.org. If you are at risk of going into foreclosure, call (888) 995-HOPE for a toll-free foreclosure prevention hotline sponsored by NeighborWorks America and the Homeownership Preservation Foundation. Beware of any debt management companies that demand payment up front for their services, which is a telltale sign of a scam.

* Call your creditors. Don’t wait for your creditors to call you. Call them to negotiate a new payment plan that you can realistically handle, including lower interest rates on your credit cards. It’s not uncommon for many Americans who are deeply in debt to be strapped with interest rates as high as 30 percent. Don’t be afraid to ask a creditor to settle a debt for a lower amount than what you currently owe.

* Cut back to the essentials. Cut your expenses to the essentials – food, clothing, shelter and transportation. Stop eating out. Cut out the afternoon candy bar and soda pop and start drinking more water. Stop buying lottery tickets. Start taking the bus or the train to work or, better yet, start biking or walking to and from work. Drop cable and your cell phone.

* Don’t skip these expenses. Depending upon the laws in your state, there may be some expenses that you must incur, such as auto and medical insurance, student loan payments, child support payments, license fees and, of course, paying local taxes as well as state and federal income taxes, according to FindLaw.com. Skip any of these expenses and you may wind up with much bigger legal headaches.

* Go automatic. Have your employer automatically deposit your paycheck into your bank account. But don’t stop there. Arrange for the most essential bill payments – mortgage, electricity, heat and water – to be automatically withdrawn from your checking account. If you have a mortgage, escrow property taxes to ensure that they’re automatically paid.

* Make more money. At some point, you might realize that you can’t cut any more expenses to make enough headway on your goal of getting out of debt. You might need to make more money by either taking on another job or selling some of your household items. If you take on a second job, look for an opportunity to work for a retailer that offers benefits to part-time workers such as discounts on merchandise and health care benefits.

Related posts:

1. Resolve now to get your debt in check
2. You can reduce your debts even in a tough economy
3. Five basic steps to financial security in any economy

With many signs pointing to the beginnings of a recovery in the housing market, potential home buyers can still find plenty of selection, low prices and low interest rates. If you’re thinking of buying a home, now might be the right time, but before you contact a real estate agent or apply for a mortgage, your top priority should be checking your credit report to see if your credit is in good shape.

Credit – specifically misuse and misunderstanding of credit – spurred the housing crisis, many experts agree. The consequences have included tighter standards from lenders and the need for borrowers to better understand how to use credit wisely.

Interest rates remain low and those with good credit will be better positioned to take advantage of the opportunities currently available in this unique housing market. A good credit report and score can open doors for you in the real estate world, and empower you to secure the best loan and terms possible before you ever tour a single house. Being preapproved for an affordable mortgage can help you move quickly to secure a deal when you find the home of your dreams.

If you’ve already assessed your finances to determine how much mortgage you can afford, you’re ready for the next step – making sure your credit is in top shape to help you get the best possible loan.

Understanding your score and what it means

Lenders consider your credit score and your current credit report when deciding whether or not you’re a good credit risk. Your credit score is a number generated by using statistical models that factor in elements from your credit report. The number can change when information on your credit report changes and it’s calculated at the time a lender requests a copy of your credit report. Different lenders may use different scoring methods, so your score may vary from lender to lender.

Because credit scores are objective and are based on the information in your credit report, they are fairer than the old opinion-based ways of determining a person’s risk level. Your score is a prediction of your likelihood to repay debt responsibly, based on your past credit history and current credit status.

Before you begin contacting potential lenders, check out your credit report, which can be accessed online at Web sites like FreeCreditReport.com.

Know what’s on your credit report

Your credit report is the other major piece of information a lender will consider when deciding whether or not to give you a mortgage loan. Your credit report is basically a summary of your financial behavior, including how you’ve used credit in the past and how well you manage repaying debt. The information on your report comes from creditors, public records and other reliable sources, which report it to the credit bureaus through automated processes.

Credit reports generally include personal data such as variations on your name, your driver’s license number, Social Security number, birth date, current and past employers, and current and past addresses. You’ll also find a listing of your credit accounts, when each account was opened and your payment history for each. If you’ve been involved in court action like bankruptcy or monetary judgments, this information will likely appear on your report as well.

Your report will also show past requests for your credit reports (inquiries) that might come from lenders, insurers, employers or stores. Too many inquiries on your report might make potential lenders think you are trying to overspend, so think carefully before applying for new credit; inquiries stay on your report for two years.

Because your credit report changes every time you use credit, it pays to enroll in a credit monitoring product. Web sites like FreeCreditReport.com make it easy to track both your score over time and monitor your credit report, ensuring you know what’s on your report before a potential lender looks at it.

Buying a home is likely the largest investment you’ll ever make – one that will impact your credit for many years to come. Before you jump into the process of applying for a loan to buy a home, it pays to understand credit, review your report and know your score.

Related posts:

1. How shopping for a loan or a better credit card rate can damage your credit report score
2. The scores that matter post-grad
3. Planning Spring Home Improvements? Know the Score First

The nation’s credit card debt totaled $972.73 billion by the end of 2008, according CreditCards.com.

That’s $8,329 per household – and consumers might think that more department stores would offer layaway to ease a credit crunch. This is especially important to people with low credit scores who get saddled with the high interest rates of poor credit credit cards.

Think again, at least in Frankfort.

Of seven major department stores locally, only Kmart and Sears offer bona fide layaways.

Kmart always had a layaway and Sears began offering it around Christmas last year. Both are owned by Sears Holdings Corp. and offer similar plans, store officials say.

Customers pay 10 percent down on purchases and a $5 service fee at Kmart. At Sears, customers pay between 15 and 20 percent up front.

Both plans have $10 cancellation fees and span eight weeks, with remaining balances spaced by the time frame. Customers must make payments at least once every two weeks.

Layaway does not involve a credit check, according to store officials. Items are held until they’re fully paid and there’s no interest.

“I just think it’s more convenient than anything,” Kmart associate Judy Jones told The State Journal. “People enjoy knowing they have a product guaranteed on hold.”

She added that with Christmas coming up, layaway gives customers an affordable alternative to buying gifts on credit.

Jones says the store sees four to five new layaways on a weekday. Weekend layaways balloon to between 15 and 20.

Many parents took advantage of Kmart’s layaways as school approached, Jones said.

“A lot of parents put back-to-school clothes on layaway as well as school supplies,” she said.

Sears’ human resource official Donna King says the store decided to continue its layaway after Christmas last year, and its layaways dwindled recently. Sixty percent of people cancel them before the items are paid off.

“People mostly put clothes on layaway,” she said. “After about six weeks, clothes start to go on clearance, so it’s cheaper for people just to buy their clothes then rather than keep making layaway payments.”

With TVs, King says price drops don’t happen as quickly or regularly, so they stay on layaway more frequently. Only “two or three” are on layaway right now.

King says Sears will likely see an increase in layaway during Christmas, especially on their hard-line items – TVs and other appliances.

Offering layaway is a way for customers who aren’t eligible for credit cards or with poor credit history to purchase items, she said.

“Some people don’t qualify [for an in-store credit card], so layaway is an option for them.”

Sears still offers a store credit card, and products can be paid in 12-month or 18-month deferred payments, depending on the items.

While other major department stores don’t offer total layaways, Walmart and Big Lots have some form in select departments.

Walmart still offers layaway on jewelry, but ended the practice as a whole in 2006. Big Lots offers a similar program on furniture, according to a sales associate.

Other department stores – Kohl’s, JCPenney and Elder-Beerman, either declined comment or cited company policy when asked why they don’t offer layaways.

Source: The State Journal, Frankfort, KY

Related posts:

1. Discovering financial aid opportunities in the current economy
2. Five ways to save time and money on your taxes
3. How to avoid fake check scams

NewswireToday – /newswire/ – Boston, MA, United States – Is Recent Credit Card Fraud Could Had Been Avoided? Identity theft is a serious crime. Some say that companies should not keep transactions records, others say they must, who to believe?

If you think your identity or credit card info have been stolen, here’s what you must do:

A/ Contact the fraud departments of any one of the three major credit bureaus to place a fraud alert on your credit file. The fraud alert requests creditors to contact you before opening any new accounts or making any changes to your existing accounts. As soon as the credit bureau confirms your fraud alert, the other two credit bureaus will be automatically notified to place fraud alerts. Once the alert is placed, you may order a free copy of your credit report from all three major credit bureaus.

* Consumers in the Western states B Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming B can order their free reports beginning December 1, 2004.

* Consumers in the Midwestern states B Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin B can order their free reports beginning March 1, 2005.

* Consumers in the Southern states B Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas B can order their free reports beginning June 1, 2005.

* Consumers in the Eastern states B Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia B District of Columbia, Puerto Rico, and all U.S. territories can order their free reports beginning September 1, 2005.

B/ Close the accounts that you know or believe have been tampered with or opened fraudulently. Use the ID Theft Affidavit when disputing new unauthorized accounts. ftc.gov/bcp/conline/pubs/credit/affidavit.pdf

C/ File your complaint with the FTC. The FTC maintains a database of identity theft cases used by law enforcement agencies for investigations. Filing a complaint also helps us learn more about identity theft and the problems victims are having so that we can better assist you.

D/ File a police report. Get a copy of the report to submit to your creditors and others that may require proof of the crime.

Source: Federal Trade Commission

Related posts:

1. Protecting your rebuilt nest egg: ID theft basics for boomers
2. Rising Identity Theft Causing Increased Credit Problems
3. How shopping for a loan or a better credit card rate can damage your credit report score

If you’ve been paying attention to celebrity news, you’ve probably noticed several cases where courts are tied up with relatives and lawyers fighting over estates, children and money. One reason these cases take time – and money – to be resolved is because of the absence of an updated will.

No matter how young, healthy, wealthy or prepared for retirement you are, you can’t predict what will happen in the future. But you can make your wishes for the future known, especially those that involve your family after your death.

A last will could be the most important document you ever sign. Without one, the courts determine what happens to your assets – and your minor children – when you die.

“Individuals of all ages and stages in life need to think about and create a will so their final wishes are followed,” says Brian Liu, co-founder and chairman of LegalZoom.com. “Having a last will is very important for families. This protects loved ones and reduces – or even eliminates – confusion during a very difficult time.”

Here are three reasons everyone should organize a last will:

1. Children. If you have minor children, you need to specify guardians. A will allows you – and not court system – to determine who would best care for your children and raise them the way you would rear them.

2. Property. Recording your wishes for the distribution of your assets and property not only ensures that your decisions are honored but it can also help your family avoid destructive conflicts over these issues.

3. Final decisions. Grieving the loss of a loved one is hard enough to handle. Sparing your loved ones the stress and anxiety of determining how you would like to be honored and remembered can be avoided with a will.

Preparing a last will isn’t difficult, and services like LegalZoom.com make the process easier and affordable. LegalZoom helps you create reliable legal documents from your home or office. Simply answer a few questions online and your documents will be prepared within 48 hours. Your answers are reviewed for consistency and common mistakes, and the company guarantees your satisfaction.

By completing a last will online and keeping it updated, you can have all of your final wishes followed, and save your family plenty of stress.

Related posts:

1. Five ways to save time and money on your taxes
2. These are the legal credit repair professionals we recommend – and the reasons why
3. Taking control of credit scores

Virtually everyone today is feeling the affect of the current economy; none of us is untouched by it. Here’s the good news. If you can anticipate financial changes and develop a sound financial plan, you can protect yourself and your family today, and for many years to come.

Achieve financial security by following five basic steps:

1. Begin an emergency cash fund

* Create a savings account and resolve to pay yourself first by setting aside 5 to 10 percent of your salary each month.
* Automatically transfer money from your checking account to your savings so that you’re not tempted to spend the funds elsewhere.
* Aim to save three to six months of living expenses in the account for emergencies.

2. Pay down your credit cards

* Credit card debt is the No. 1 obstacle to a secure financial future, and knowing your credit score is essential.
* You’re allowed one free credit check annually with each of the major credit bureaus: Experian, TransUnion and Equifax.
* Check your credit score; it determines your interest rates on loans and credit cards, and may help save you money throughout your life.
* Check your report for errors and report any immediately. Bureaus are required to investigate and correct errors once you report them.
* If you feel you need further assistance with your credit contact the National Foundation for Credit Counseling at (800) 388-2227.

3. Create a financial plan using life insurance as the foundation

* Purchase life insurance. It is the foundation of a strong financial plan and can protect your family during an unexpected turn of events, such as loss of life or loss of income.
* Educate yourself. Certain types of policies accumulate cash value that can be used for larger expenses, such as college, while others may be used to help create a legacy of giving that can last for generations to come.
* An insufficient life insurance plan can expose your family to significant financial risks. To learn more about life insurance, call (866) 331-3078 and speak with a life insurance specialist with SBLI USA, a company that specializes in life insurance policies. Or, go to www.sbliusa.com to get a free, no-obligation quote.

4. Empower yourself by creating a budget

* Be prudent with your spending. Write down everything you spend each month and cut back on non-essentials.
* Apply these savings toward reducing your credit card debt. Start by paying off your high-interest cards first.
* Explain to your family that everyone needs to contribute to the expense cutting. Making it a family effort will increase everyone’s willpower.
* Use cost-cutting strategies to make the most of your budget. For example, pay in cash and remove credit cards from your wallet. Re-evaluate extra phone and television features. Or, consider eating at home more often, skipping the movie out and enjoying a night of board games with your family.

5. Optimize your retirement plan

* Many companies offer a 401(k) plan and may match your contributions. Take advantage of these deferred income tax benefits; you could be missing out on free money.
* If your work doesn’t allow you to participate in a 401(k), consider opening up an IRA; or perhaps both. There are different types of IRA’s, so before deciding, investigate your options and find the best IRA type for you.
* Remember, these are long-term retirement plans not short-term savings plans, so be patient and give your money time to grow.

These basic steps will help put you on the path to financial security. If you’re not following at least three of them, begin today. Once you are on your way, you will quickly see how easy it is to incorporate all five into your life.

Related posts:

1. Discovering financial aid opportunities in the current economy
2. You can reduce your debts even in a tough economy
3. Resolve now to get your debt in check

When the shock of shattered nest eggs eased, many Americans got down to the serious work of rebuilding their financial futures. Already, tentative predictions of improvement are replacing dire warnings of doom in headlines across the country.

If you’re a baby boomer, you may be in better financial shape than people in other generations. But you might also feel greater pressure to preserve the wealth you’ve retained and protect your ability to continue saving for retirement. Identity theft is one of the fastest-growing threats to the financial health of Americans.

Identity theft was the top complaint category for all complaints filed in 2008 with the Federal Trade Commission-maintained Consumer Sentinel Network, which catalogs complaints made to the FTC and numerous other agencies, including the Better Business Bureau, the U.S. Postal Service and the National Fraud Information Center. Nearly 314,000 complaints — more than a quarter of all complaints — were related to ID theft, according to the FTC.

The average cost of ID theft is just under $500 per incident, according to research by Javelin Strategy and Research. But for many people, the actual cost can run into the thousands. It makes sense to protect your rebuilt nest egg by taking steps to avoid identity theft.

The FTC recommends a three-pronged approach to avoiding ID theft – deter, detect and defend:

Deterring ID theft

* Always use passwords for credit, bank and other personal accounts, especially if you access them online, and ensure the passwords are not something easy to guess, like your mother’s maiden name or the last four digits of your social security number.

* Inquire about security measures in use by businesses with whom you must share your personal information, such as doctor’s offices or even your own employer.

* Secure your own personal information by shredding documents with identifying information before you trash them at home or at work. Never share personal information over the phone, through mail or online unless you’ve initiated the contact and you’re confident about whom you’re dealing with.

* Don’t carry your SSN card with you and share the number only when absolutely necessary. Ask if you can use an alternate type of ID with companies that request your SSN.

Detecting ID theft

* Keep an eye on your credit report for any suspicious activity. Review your report at least once a year; more often if you’ve previously been a victim of ID theft.

* Watch out for signs your ID has been stolen, such as not receiving expected bills or mail, receiving credit cards you didn’t apply for, calls or letters from debt collectors about products or services you didn’t buy, or unexpectedly being denied credit or being offered unfavorable terms on a new credit application.

Defend against ID theft

Consider enrolling in an ID protection program that helps monitor your credit report. Programs like ProtectMyID.com can help you secure your rebuilt nest egg by helping you keep an eye on your credit report and activity. The product monitors your credit reports at all three major credit reporting bureaus on a daily basis and sends regular “all clear” e-mail alerts to give you peace of mind that there have been no changes to your credit reports.

If suspicious activity such as unauthorized new accounts, credit applications, address or public records changes or potentially negative information appears on your credit files, the product alerts you quickly. What’s more, if your identity is compromised while you’re enrolled with ProtectMyID.com, the company will assign you an identity theft resolution professional to act as your advocate and work with creditors to resolve fraud issues.

Related posts:

1. Recent Credit Card Fraud and ID Theft May Change Consumers’ Behavior and Affects Online Shopping
2. Rising Identity Theft Causing Increased Credit Problems
3. How to avoid fake check scams