Protect Your Child’s Identity During Spring Break Trip

Protect Your Child’s Identity During Spring Break Trip

This time of year means Spring Break for college students across the country – a break from studies, lectures and research projects. They can relax and spend time with friends perhaps somewhere warmer, such as the beach.  And while your college student is thoroughly enjoying him or herself this week, as a parent, you’re likely a worried mess the entire time.

Spring break to parents often means extra worry about their children. And as if a week of concern about their physical safety and well-being wasn’t enough, there’s the added fear of your child falling victim to identity theft. 

Your young adult may not make the best financial decisions on a spring break trip -- carelessly using a credit card, not keeping track of their expenses and even worse, and not keeping close tabs on their purse/wallet, credit cards and other personal information.

Vacationers of any type are at an increased risk of identity theft; take into account a young person’s naivety, inattentiveness and tendency to lack caution (especially around peers), and your student may be at an even further increased risk of falling victim to identity theft.

Credit monitoring services can alert you and your child to suspicious activity (like newly opened credit accounts or other lines of credit). Credit monitoring scans your credit information at each of the bureaus (Experian, TransUnion, Equifax) for changes you may (or may not) be aware of.  This could provide you an early warning on certain potential identity theft and fraud. If an issue is found, you would be able to take action immediately.

  

Identity theft services can provide further protection in the form of insurance, identity restoration, a support hotline, and more (including computer security, which could be especially critical in countries or areas with lower network security standards). 

Whether home or on vacation, it’s always good practice to think about the best ways to protect against fraud and identity theft. Ensuring your children are well informed on these matters can help in making their vacation a great one!

Spring Cleaning...For Your Wallet

Spring Cleaning...For Your Wallet

As many of us are busy spring cleaning our homes, we oftentimes forget to spring clean one other very important aspect of our lives -- our wallet.

While it may be easier to keep the proverbial “door to your wallet” closed and ignore the clutter that is inside, making sure your home and your personal finances are all cleaned up is a good thing.

Here are a few tips to get you started:

·         Bring in the Professionals: While from the outside it may not appear as if your wallet is in desperate need of professional help, it's always good to talk with your credit company and bank to get a full picture of your finances before you start cleaning up.

·         Consider Consolidation: Tired of keeping track of numerous credit card bills? Look into finding a zero or low-interest balance transfer credit card with a high enough credit limit, so that you can shift smaller balances all into one place.

·         Keep it Open: Even though you've transferred smaller credit balances onto one card, don't get rid of your unused cards just yet. Remember that credit utilization, or the ratio of credit limit to credit balance, is an important consideration for your credit scores. By closing your cards, you are lowering your credit limit without lowering your credit balance, and you may also be getting rid of cards that are boosting your credit history's length.

·         Reward Yourself: After all of your hard work, be sure to check your cards for any unused reward points you might have forgotten you were earning. Some rewards cards offer limited time perks or have points that expire, so it is always good to keep track of what you're earning.

Of course, cleaning up shouldn't be a once a year occurrence. Daily credit monitoring services can help maintain your credit and allow for early detection of suspicious activity all year round!

Using Your Tax Refund to Pay Down Debt? Think about Your Credit Report.

Using Your Tax Refund to Pay Down Debt? Think about Your Credit Report.

Thinking of using your tax refund to pay down some debt? Great idea. Just be cautious; paying down debt is a smart strategy, but closing lines of credit could hurt, not help your credit report and score.

When lending institutions are deciding whether or not you are creditworthy, they’ll look at your credit score, which is made up of several different factors. Keep in mind that credit scores can vary across credit reporting agencies because how they receive and interpret information from lending institutions may differ slightly. To better understand your score and what it means for your likelihood of receiving credit, here are the main factors that impact your score: 

·         On-time payments: On-time payments are weighted heavily in your credit score. Even one late payment can impact your overall score, so be sure to pay bills on time to keep your score looking good and show lenders that you are a reliable consumer.

·         Age of credit: The ages of your student loans, mortgages, credit cards and other lines of credit are looked at. Lenders like to see long credit histories, as this gives them a better picture of your long-term creditworthiness. This is an important factor, so closing out old credit accounts shortens your age of credit and could reduce the overall credit available to you (and why it is suggested that you do not close old accounts).   

·         Open Credit Card Utilization Rate: This is the rate of credit available to you compared to the amount you are currently using. Those with lower utilization rates (those who have the credit available, but aren’t currently using it) are more likely to have higher credit scores. So, avoid carrying high balances on your credit cards. Paying off as much of your monthly balance as possible could also benefit your score.

·         Hard Credit Inquires: Applications for credit cards, loans (personal, student, auto, etc.) and mortgages result in hard inquires, which signals to lenders that you are in need of credit.  Multiple hard inquiries could lower your score, so avoid this problem by only applying for credit when necessary and applying for one line of credit at a time.

·         Derogatory Marks: Liens, foreclosures, bankruptcies and accounts in collection can stay on your report for seven to 10 years. These signal to lenders that you have had problems managing your credit in the past, and may mean that you may not be approved for credit in the future.  

·         Mix of Accounts: Contrary to what you may think, those with varied accounts usually have higher scores (a mix of mortgages, credit cards, student loans, etc.). But, don’t open accounts just to increase the number of accounts you have. Instead, open new accounts as you can manage, make your payments on time and slowly and steadily build up your credit, keeping in mind that the above factors do not work independently of one another, but together, as an overall picture of your creditworthiness.

Check your credit report regularly – from each of the three credit bureaus (Experian, TransUnion and Equifax) to make sure that you understand how these factors can impact your scores. And don’t worry -- checking your own report does not negatively impact your scores.

Don't Let Sporting Event Hype Get to Your Identity

Don't Let Sporting Event Hype Get to Your Identity

With the NBA playoffs just kicking off, many sports fans are doing just about everything they can to get their hands on tickets and memorabilia. However, consumers need to be wary of websites and individuals who claim to be selling the real thing only to take credit card numbers and personal information, leaving you with a case of identity theft and disappointment.

In order to ensure you get what’s expected, review these tips:

·         Does the price for those coveted courtside seats sound too good to be true? Then it probably is. Tickets, especially last minute tickets for huge sporting events, are always going to be expensive.

·         Beware of low quality, or even counterfeit, products.

·         If you are purchasing last minute tickets or memorabilia, never perform a wire transfer. Once your money is gone, it's almost impossible to trace or get the funds back.

·         While Craigslist and like type classified sites are a convenient source for finding everything from appliances and furniture to coveted sports event tickets, always take precautions in who you’re dealing with. Always make sure you know what the tickets are supposed to look like, check to make sure all of the information looks correct, and request a receipt and pay in cash when at all possible. This way, if your tickets do end up being fake, you won't have given away your valuable personal information.

If you do end up giving away critical personal information, having identity theft protection can help facilitate an easier process of restoring your identity. Or at the very least, making you aware there’s a potential issue. Monitoring your credit reports and scores for unexpected changes can also help tip you off to possible identity theft. 

The safest route is to always buy from legitimate web sites and ticket sources. While the pricing may be steeper than you might like, you'll know you are dealing with a trustworthy vendor. And as long as you're there to see your team's game-winning shot, it'll be worth it, right? That and the peace of mind, knowing your critical identity information is safe.

Buying a Car for your Graduate? What to Do Before Going to the Dealership

Buying a Car for your Graduate? What to Do Before Going to the Dealership

Buying a car for your high school student? Many parents look to purchase vehicles for their high-school or college-aged children either for graduation, summer jobs or sending them off to college. If you are in that position, there are a few things to do now to get ready for the major purchase of a new car.

 
Before you go to a dealer, do your research online first to compare vehicles and get familiar with features and prices. Edmunds and Kelley Blue Book are reputable resources for information gathering. Know the fair purchase price of the cars you are considering before you enter a dealership, so you will have the knowledge to negotiate on a price.

You also need to decide the price range you would like to stay within. Even if your child will be responsible for the payments, insurance or maintenance, consider the total price of ownership of the vehicle. Be realistic in what you can afford if your child is unable to keep up his or her end of the deal. If your name is on the vehicle, you’ll be responsible for making sure payments get made; so, be careful not to bite off more than you can chew.

You could also look into financing options. You can usually find good deals on new car financing at a dealership during manufacturer sales events. However, if you are buying a used car, contact your bank or credit union, which may be able to offer you a better interest rate than the dealership. 

Finally, be sure to know your credit score and related credit information. Check your credit report and scores from each of the bureaus to know exactly where you stand in terms of credit before you visit an auto dealership. Knowing your credit will help you know what kind of financing you should be able to receive and negotiate the best rates possible.

Celebrating Earth Day with Eco-Friendly Finances

Celebrating Earth Day with Eco-Friendly Finances

As Earth Day came around again, many people were looking for ways to make their lives more eco-friendly all year long. While many people think of ways to improve the environmental impact of their shopping choices or homes, they oftentimes forget that their finances could also benefit from this trend.

·         Go Paperless: You can help save a tree and still keep track of all your finances with paperless billing and credit monitoring. Many credit card and utility companies will allow you to sign up to receive your bills via email. You can also look into credit monitoring services, which send emails and alerts to help you stay on top of your credit information.

·         Pay Online: In addition to receiving all of your bills online, you should also be paying online. You'll save on paper, postage and the fuel required in transporting your check and envelope to its location.  Paying online can also help protect against identity theft, wherein thieves could get access to your outgoing and incoming mail – including sensitive bills.

·         Get Rid of Junk: Tired of getting junk mail? Who isn't? Instead of just promptly throwing all of your junk mail into the trash or recycling bin, take the time to opt out of receiving these messages. In the end, you'll be saving the environment and reducing your risk of identity theft.

·         Affiliate Environmentally: When opening new lines of credit, consider signing up for environmental group affiliate cards, so that each time you use the card, your group will receive a percentage of your purchase.

·         Eco-Reward: Similar to affiliate cards, some reward cards allow you to convert your earned points into donations for environmental groups.

It's time to start making the world a better place -- one less piece of paper at a time. And at the same time, do a better job managing your finances and protecting against identity theft!

Tax Time: Don’t Let an Identity Thief Get Your Refund

Tax Time: Don’t Let an Identity Thief Get Your Refund

Some people dread tax time: the hassle of filing or the possibility of facing a bill to pay is no fun. Some people look forward to tax time: those who are expecting a refund that will help pay for their summer vacation or home improvement project.

But, you know who really loves tax season? Identity thieves. This is because during tax season, personal and financial information is more plentiful and easier than ever for thieves to intercept and secure. In fact, the IRS reports the number of criminal investigations into identity theft cases more than tripled in fiscal year 2012 over 2011.

While identity theft isn’t 100% avoidable, there are a few simple things you can do to protect yourself from falling victim to identity theft during tax time.  We've compiled a list of questions below that, depending how you answer, can reduce your risk of becoming a victim of identity theft. See how you did this tax season:

·        Did you choose a trustworthy tax preparer? – Tax preparers seem to be everywhere this time of year. Be wary of pop-up tax advertisements. A dishonest preparer can easily redirect your tax refund, or worse, take advantage of your personal information and compromise your credit report and score. Do a little research up front by checking out your tax preparer with the Better Business Bureau. Don’t choose tax preparers that charge a percentage of your return as a fee or refuse to quote you an exact fee up front. Lastly, never sign a blank return and always review your completed return before singing it.

·        Did you protect sensitive documents? Think of all the personal information in the financial documents used in tax filing, like your W-2s and interest statements.  In January, did you watch your mailbox for these and ensure they didn't sit in your mailbox longer than necessary? Did you leave these documents out and unsecure, like on your desk at work, in your purse or on your kitchen table. If you filed your taxes by mail, did you drop off your return directly at your post office instead of leaving it your mailbox?

·        Did you keep your Social Security card safe?  Never carry your Social Security card in your wallet or purse where it could be stolen. If stolen, thieves could use your Social Security number to steal your refund or open up lines of credit in your name (and possibly ruin your credit score.) Keep your Social Security card locked up at home.

·        Did you protect your information online?  The IRS does not contact people by email or social media (or by phone or text). If you receive any electronic messages claiming to be from the IRS, they are likely fraudulent. Forward them to phishing@irs.gov. If you are filing online, always use difficult passwords and a secure network to complete your return.

 

You may be a victim of identity theft if you receive a notification from the IRS that states their records show that more than one tax return was filed for you, or you received wages from an employer you don't recognize. If you receive such a letter, contact the IRS’ Identity Protection Specialized Unit immediately at 1-800-908-4490. 

So now that you’ve filed your taxes (or at least filed for an extension), and are hopefully getting a refund, take a little bit of time to ensure your personal information is safe and secure.