As of August 15, 2010, the banks and credit unions will no longer pay debit and ATM charges if you do not have enough money in your account. Instead the purchase will be declined.  If you want to continue receiving overdraft protection, you must opt-in to your bank’s overdraft plan. Banks and credit unions are beginning to send out notices for opting-in or out now.

If you decide to opt-out, you will be allowed to opt-in later. You can also cancel your opt-in agreement at any time.

Currently, if you have Overdraft Protection, and you use your ATM card to make a purchase or withdraw money and you do not have enough funds in your account, the bank or credit union will allow the purchase to go through, but will charge you an overdraft fee. These fees can be as much as $20-$30 per transaction. If you make several purchases without enough money in your account, the fees can really add up.

The new laws do not cover checks or automatic bill payments. The bank may still automatically enroll you in their standard overdraft service for these types of transactions or they may require that you make a choice to opt-in or out of this service as well. If you do not want the standard overdraft coverage, talk to your bank. Some banks allow cancellation of the coverage and others do not.

Whether you decide to opt-in to debit and ATM overdraft protection, it is important to remember that every dollar you pay in fees is a dollar you lose. It may have gone towards your retirement, vacation, new car, new house, etc. If you are struggling to make ends meet and need help managing your money talk to a certified credit counselor.

The course covers the benefits of working with a mainstream financial institution in order to meet your financial service needs and avoid losing money by using check cashing or payday lending services. In addition, participants will learn how to:

• Find out what information is being stored about you in ChexSystems;
• What to do about negative information in ChexSystems or other bounced check registries;
• How to keep your account balanced and;
• How to keep your account safe.

The CheckWise web based education and tracking system has many advantages for the student. You will enjoy the easy to navigate format and upon completion of CheckWise, you may print a certificate of achievement. Completing this program and any other requirements of a financial institution may help you to open a checking account at participating financial institutions.  You may present the certificate to a bank or credit union in your area or provide the bank or credit union a telephone number which they can call to verify that you completed the course.

Take the next step and learn about the benefits of being a member of a bank or credit union. Visit us online at www.myfinancialgoals.org to learn how to register and pay for this new service.

• Less than perfect credit?
• No credit?
• Bankruptcy?
• No problem! Generic lending company can help you get approved for a loan right now!

We have all heard the commercials or even seen them in the Internet. Some company offering a loan to help you meet your needs regardless of your credit qualifications. Unfortunately, these offers are often scams or loans that leave consumers worse off financially than they were when they started.

Here are some more warning signs that a lender you are considering is actually operating a scam.

1. The guarantee. A legitimate company will not guarantee they can provide you a loan, “regardless of your credit.” Loans made without accessing your credit report will, most likely, have numerous fees and high interest rates.  You will pay a lot more for the “privilege” of getting a loan regardless of your credit history.
2. Fees. We mentioned fees above. It is a good practice to ask lenders about their fees. A good lender is clear and upfront about their fees. In a typical loan, fees are deducted from the amount you borrow and paid to the lender when the loan closes.  Other lenders may require you pay them upfront in exchange for the loan. This type of agreement is usually a scam.
3. Another indicator a lender is not practicing ethically is if they offer loans over the phone, and then ask you to pay for the loan before it comes through. According to the Federal Trade Commission, this type of lending practice is illegal.[1] 
4. Wiring money. A particularly distressing scam is one where an individual is offered money in exchange for cashing a check and wiring money back to someone else. The check is not legitimate and unfortunately, the consumer who cashes the check is often confronted with repaying the funds or faces potential prosecution.

So what are some ways to protect yourself from these scams? Always take the time to determine if the lender you are dealing with is licensed in your state. Start by visiting your State Attorney General’s office. If they do not have this type of information, they will know what agency in your state does.  Being licensed does not mean the lender is wonderful, but it is a way of determining whether they are trying to obey the laws of your state.

Also, if someone offers you cash in exchange for cashing a check, walk away. This is definitely a scam. And remember, you should not have to pay money in advance in order to receive a loan.

If you are unsure whether a lender is legitimate, ask a friend or family member to look over paperwork with you. You can also shop around for the best loan available. If one lender believes you are loan worthy, then chances are, someone else will too.

For more information on how to recognize loan and financial scams, and for other options on how to manage your finances, call and speak to a certified credit counselor. They are available Monday through Friday, 6:00 a.m. to 7:00 p.m. PST at 1(888)282-5492.

There are two separate pots of money you can tap into when making energy efficient improvements to your home; tax credits offered by the federal government and Energy Star Appliance Rebates offered through your state. 

Federal tax credits will be available through 2010 for thirty percent of the purchase or up to $1,500.  Tax credits are offered on items such as; windows, doors, insulation, roofs, air conditioning units, furnaces, biomass stoves, solar panels and more.  For more information visit Energy Star .

All 50 States, Washington DC, and 5 US territories will have an ENERGY STAR Appliance Rebate program.  Each state has its own timeline for launching the program and will announce the details and rules for how to apply.  If you are in the market for a new appliance check your states approved efficient appliance programs.  

For more information visit the Database for State Incentives for Renewables & Efficiency  or the Department or Energy  Recovery Act Clearinghouse at 1-888-DOE-RCVY.  You may also find other special offers and rebates from Energy Star by using the rebate locator.

For questions 1 – 11 select (A) Always, (S) Sometimes, or (N) Never.

For questions 12 – 15 select (T) True or (F) False.

  Scoring

How Did You Score?

26 to 30 points

A score of 26 to 30 points suggests that you are handling your finances very well. Keep up the good work!

21 – 25 points

A score of 21 to 25 points suggest that you are successful at managing some aspects of your financial life; however, you may want to investigate opportunities for increasing your savings or reducing your debts.

16 – 20

A score of 16 to 20 points suggests that while you typically manage your finances well, you are probably missing some items that can either improve your current situation or protect you from future hardship. You may benefit by talking to a credit counselor and developing a step-by-step approach for managing your money.

0 – 15

A score of 0 to 15 points suggests that you need to improve your money management skills to protect yourself and your finances. Think about taking a financial education course or talking to a credit counselor to help you learn ways to successfully and effectively manage your finances. 

Educational Credit Management Corp. said the data included names, addresses, Social Security numbers and dates of birth of borrowers, but no financial or bank account information.

The data was on “portable media” that was stolen sometime last weekend, ECMC said in a statement. Company spokesman Paul Kelash wouldn’t specify what was taken, citing the ongoing investigation, but said there were no indications of any misuse of the data.

The St. Paul-based nonprofit said it discovered the theft last Sunday and immediately contacted law enforcement, and made the theft public when it received permission from authorities. The Minnesota Bureau of Criminal Apprehension is leading the investigation.

ECMC said it has arranged with credit protection agency Experian to provide affected borrowers with free credit monitoring and protection services. Borrowers will be receiving letters from ECMC soon on how to sign up, gain access to fraud resolution representatives, and be provided with identity theft insurance coverage.

“We deeply regret that this incident occurred and the stress it has caused our borrowers and our partners and are doing everything we can to help protect our borrowers’ identity and personal information,” Richard Boyle, president and CEO of ECMC, said in the statement.

ECMC is a contractor for the U.S. Department of Education to provide collection and document management services. It guarantees student loans through the Federal Family Education Loan program, and provides support services for student loans that are in default or bankruptcy. The company can act as the guarantor, loan holder or loan servicer.

Department of Education spokesman Justin Hamilton said protecting student privacy is a top priority.

“We are working with ECMC to make sure that affected individuals are provided with resources to protect their information and to provide with them with identity theft insurance,” Hamilton said. said protecting student privacy is a top priority for the agency.

Those who believe they may be affected were encouraged to visit ECMC’s Web site, www.ecmc.org, or call 1-877-449-3568 beginning Saturday.

According to the Privacy Rights Clearinghouse, more than 347 million individuals have been affected by data privacy breaches at hundreds of government agencies, universities and businesses since 2005.

Student loan company: Data on 3.3M people stolen | KOMO News – Breaking News, Sports, Traffic and Weather – Seattle, Washington | National & World News.

In addition, the extension provides a tax credit of $6,500 for families who have already owned a home. In order to qualify, you must have lived in your current home for at least five years.

Finally, for military members who have been assigned overseas, these tax credits have been extended until May of 2011.

So, whether you are a first time home buyer or already a home owner now may be the right time for you to buy. Talk to a realtor and lender to learn more!

One of the largest benefit programs for working families is also one of the most overlooked. It’s called the Earned Income Tax Credit (EITC) and, as the name implies, it’s for people who work for a living but don’t make a lot of money.

Rural residents, self-employed people such as farmers, childless workers and grandparents raising grandchildren are among those who may be eligible, but often fail to claim EITC. [2] You could receive a credit of up to $5,657 when you file your 2009 taxes. If you are owed a refund, this credit would increase the amount you receive. If you owe taxes, the credit may lower or eliminate the amount of tax you have to pay. You could use this money to catch up on bills, build up your savings or open a bank account.

IRS income eligibility guidelines

In addition you:

• Must have a valid social security number for each individual listed on your tax return.
• Must have earned income from employment or from self-employment.
• Cannot file taxes using the “married filing separately,” status.
• Must be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien and filing a joint tax return.
• Cannot be a qualifying child of another person.

If you do not have a qualifying child, you must:

• Be age 25 but under 65 at the end of the year,
• Live in the U.S. for more than half of the year,
• Not qualify as a dependent of another person.

It is clear to see how EITC can make life a little easier in these hard times. A married couple with three children and an income ranging from $12,570 to $21,420 could be eligible for the maximum tax credit of $5,657.   Taxpayers making as much as $48,279 could qualify for EITC and can get tax returns prepared for no charge at a Volunteer Income Tax Assistance site or AARP Tax Assistance site in their local community. Many communities offer 211 or 311 telephone numbers to locate vital services. If not, you can call the IRS volunteer assistance locator number at 1-800-906-9887 to locate free tax assistance in your community.

[2] Internal Revenue Service, Final Breath Easier. http://www.eitc.irs.gov/public/site_files/FINAL_BREATH_EASIER_7×10_local.pdf

1. Open a checking and savings account at a bank or credit union, manage your accounts carefully and never bounce checks. This is the initial step to take to start proving your credit worthiness.
    
2. Get a copy of your credit report from all three of the major credit bureaus once per year and check the accuracy of your reports. If you find discrepancies, follow the directions on the report and dispute them with the credit bureau. There may be inaccuracies on your credit reports and it is up to you to monitor them. You are entitled to one free copy of your report from each bureau once per year. Go to www.annualcreditreport.com or call 1-877-322-8228.
    
3. Pay all of your bills on time, every time. Your payment history accounts for 35% of your credit score and it only takes one missed payment to hurt your score. Set up automatic payments when possible and keep a calendar of due dates and a payment reminder system.
    
4. On your revolving accounts (credit cards) keep the balance you owe under 30% of your credit limit. One more thing; paying your bill in full each month is the smartest way to use credit and will have the greatest positive impact on your score.
    
5. Be sure that your lenders are reporting your credit limits accurately. If the limits are too low, it can affect your score. Remember the 30% rule!
    
6. Do not apply for more credit if you already have open, unused credit lines. Also, do not open new accounts simply to pay off existing accounts. Opening several new accounts can cause your score to drop.
    
7. If you do not have a credit history and are trying to build one, consider a secured credit card, but shop carefully! The lender will require you to deposit money up to the credit limit. Try your own bank or credit union first and make sure that the card you pick:
    
   1. Has no (or a very low) application or annual fee
   2. Converts to a regular unsecured credit card after 12 – 18 months of on-time payments
   3. Will be reported to all three credit bureaus. If the issuer does not report to the credit bureaus, the card will not help build your credit history

    

8. Keep older credit card accounts open. *One thing you shouldn’t do if you’re just trying to boost your score is close unused accounts, says Craig Watts, consumer affairs manager for Fair Isaac Corp. “If someone tells you to close unused accounts to improve your score, they’re pulling your leg,” he says. “It won’t help you and it can hurt you.”
    
9. Be patient. It takes time to build or rebuild credit. Continue paying all of your debt on time, and if you are behind on accounts – get current.
    
10. Look for help if you feel overwhelmed. Credit counselors can help you put together a plan to manage your credit. You can find a credit counselor by contacting the Association of Independent Consumer Credit Counseling Agencies by visiting www.aiccca.org, or calling them at 1-866-703-8787.
     

Source:

*Curry, Pat. 2007 August 3. Tips for Boosting Your Credit Score. Bankrate.com. Retrieved from http://www.bankrate.com/finance/credit-debt/tips-for-boosting-your-credit-score-1.aspx.