10 Tips For Keeping Your Credit Card(s) Safe and Sound

10 tips for keeping your credit card(s) safe and sound:

1. Don’t give your account number over the phone unless you’ve initiated the call. If you’ve dialed a wrong number, don’t give it out at all.

2. Consider a card that has added security features, like a photo ID.

3. Never write your account number or PIN on the outside of an envelope or postcard.

4. Draw a line through blank spaces on charge slips above the total to prevent any changes. You want to tip well, but you do not want to leave room for a dishonest person to take advantage of you either. 

5. Don’t sign a blank charge slip unless absolutely necessary, and only if it’s in an actual store.

6. Save receipts.

7. Always check receipts against your monthly statements. If anything looks fishy, report it within 60 days of the statement’s mailing date.

8. Make a list of card numbers, expiration dates, and the toll-free numbers of your credit card companies. Keep this record in a safe place, separate from where you keep your cards. Use this information if you ever have to report your cards lost or stolen.

9. Carry only the cards you need, especially when traveling. To clarify: you may need 1 or 2 cards. You probably will not need 6.

10. Do not leave cards or receipts lying around your room, no matter where you live.  

What Is A Good Credit Score?

I am often asked, "What is a good credit score?"  Here is a chart that will help you.

• 760 – 850 – Excellent – the best financing terms and represents the best score range

• 700 – 759 – Very Good – qualifies to receive favorable financing

• 675 - 699 - Average – will qualify for most loans

• 620 - 674 - Sub-prime – may qualify but will likely pay higher interest rates

• Below 620 - Risky – might have trouble getting a loan
  
  

What personal information will I find on my credit file?

What personal information will I find on my credit reports?

The data on your credit reports may include:

-Your Name

-Present and Past Address

-Present and Past Employment

-Your Social Security Number

-Your Date of Birth

Typically, this is the personal information you supply when you apply for credit.

What is considered a public record?

Concerning credit bankruptcies, court judgments, and tax liens are most commonly [items] found in the public records section of your credit reports. Public records are available to anyone who requests to see them.  

How long can information stay on my credit file?

Generally, information can remain in your credit file for around 7 years from the date of default.

Is It Best To Buy A New Car Before Or After I Buy My House?

I am often asked, "Is it best to buy a new car before or after I buy my new house?"

If your goal is to refinance or purchase a home within the next 6-12 months, it is likely best to wait until after you close on your home before taking out any additional new loans, including but not limited to auto loans. New indebtedness may cause your credit scores to drop by lowering your average age of accounts, increasing your number of accounts with balances, and adding new hard inquiries to your credit report(s). Therefore, a new loan could have a negative impact upon your credit scores even if you are making all of the payments on time. 

Furthermore, the new loan may have an effect upon the size of home loan for which you can qualify as the new loan will likely have to be factored into your DTI (Debt to Income Ratio).  Simply put the new loan, whether car or any other type of financing, could lengthen your time frame before you would be eligible to purchase/refinance your home and would likely cause you to qualify for a smaller home loan amount than you would have previously. 

If you are considering trading in, refinancing, or buying a car it is probably best to wait until after you close on your new home loan to do so.

Are You Aware of The New Federal Housing Credit?

There is a lot of confusion about a new federal housing tax credit that was part of the new stimulus package passed by Congress and signed into law by President Obama this week.

According toFederalHousingTaxCredit.com Congress enacted a bigger and better home buyer tax credit.  A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid. For more details on frequently asked questions you can go to http://www.federalhousingtaxcredit.com/2009/faq.php#1.