Articles

Please click on one of the articles listed below to learn more about various finance-related topics of interest:

Five Easy Steps to Fixing Your Credit

Although there are numerous companies out there that can help you repair your credit (for a fee), any educated consumer can take control of their credit, correct mistakes within their credit reports, and enforce their federal rights when appropriate corrections have not been made.

Here are some steps you can take to get your credit report fixed:

Step 1: Get Copies of Your Credit Reports
Send a written letter to each of the major credit reporting agencies requesting a copy of your credit report. Or you can request it online at www.experian.com, www.equifax.com, and www.transunion.com/direct. The reports will cost you about $9.00 each. For a free credit report, visit www.annualcreditreport.com or call 1-877-322-8228.

Step 2: Examine All Credit Entries
Once you receive all three of your consumer credit reports, thoroughly review every account and company name on your reports. Make sure that all of the information is accurate. Make detailed notes of any errors you find, because you will use this information to create a second letter to request that your report be corrected.

Step 3: Examine All Credit Inquiries
Thoroughly examine and review every person and company listed that has obtained your credit report. If there are inquiries that you don't recognize, try to investigate them and eliminate any possibility that the access to your credit report was permissible.

Step 4: Send A Correction Request Letter
Create a second letter to all of the credit reporting agencies that are showing inaccurate information. Tell them you want the inaccuracies corrected.

Step 5: Review Your Updated Credit Reports
Within 30 days of sending your “correction request” letter, you can expect to receive a copy of an updated credit report showing what corrections have been made, what has been deleted, and what remains unchanged.

Your claims under the Federal Credit Reporting Act must be made within a two-year period, or they will be forever barred by the applicable statute of limitations. You may wish to consult a competent attorney if you have inaccurate information on your credit report that the credit bureaus will not remove.

*Some information from this article was obtained from the Federal Trade Commission web site.

ATM Safety Tips

With thousands of automated teller machines (ATMs) across the country accounting for billions of dollars in transactions annually, many people are taking advantage of the convenience of today's technology.

But as is the case with anything popular, ATM users can become victims of crime. Please take the following precautions to ensure your safety:

Be aware of your surroundings when using an ATM, particularly during the hours of darkness.

Always be accompanied by another person when using an ATM during the hours of darkness.

Refrain from displaying cash. Place cash in your pocket as soon as a transaction is completed, and count your cash in the safety of a locked enclosure such as a car or home.

Use another ATM or return at a later time if anything suspicious is noticed when using or considering using an ATM.

Report all crimes immediately to the operator of the ATM or to local law enforcement officials.

Beware of Fraudulent E-mail Schemes

Recently, many Americans have received a series of fraudulent e-mails which direct them to web sites where they are asked to verify sensitive personal information. The e-mails claim that the individual’s personal information is necessary to assist in the fight against terrorism or for some other important purpose. These e-mails are supposedly sent from actual government agencies, and the web sites to which the email recipients are directed are often very similar to, if not actual clones of official government or company sites.

The fraudulent e-mails are part of a scam known as “phishing.” Phishing is the fraudulent scheme of sending an e-mail to a user falsely claiming to be a legitimate company. The email attempts to con the user into surrendering private information that could later be used for identity theft. The e-mail directs the user to visit a web site where they are asked to update personal information, such as name, account and credit card numbers, passwords and social security numbers. The web site, however, is bogus and set up only to steal the user’s information.

Please be aware that St. Louis Community Credit Union and agencies of the federal government do not request personal information by e-mail.

You can protect yourself from this latest identity theft scam by following these useful tips:

If you get an email that warns you, with little or no notice, that an account of yours will be closed unless you reconfirm your billing information, do not reply or click on the link in the email. Instead, contact the company cited in the email using a telephone number or web site address you know to be genuine.
Avoid emailing personal and financial information. Before submitting financial information through a web site, look for the "padlock" icon on the browser's status bar. It signals that your information is secure during transmission.
Review credit card and account statements as soon as you receive them to determine whether there are any unauthorized charges.

Be sure to report suspicious activity to the FTC. If you believe you've been scammed, file your complaint at www.ftc.gov, and then visit the FTC's Identity Theft web site at www.ftc.gov/idtheft to learn how to minimize your risk of damage from identity theft. You can also contact the Social Security Administration at 1-800-269-0271 or St. Louis Community Credit Union for assistance.

The Latest Phishing Scam!

Email fraud and phishing are two of the most dangerous security threats delivered in email, often resulting in identity theft, financial losses and compromised security. Email forgery is practically impossible to detect by reading email content because graphic images and content are often copied from legitimate email messages.

Identity theft attacks are typically initiated through email by scammers pretending to be well-known companies. These messages encourage you to click on links within the message to visit a website that may ask for account numbers, passwords and other personal information.

Unfortunately, many people believe they are protected from phishing scams and email fraud by their antivirus, firewall, antispam and antispyware software. In fact, these software products do not prevent email fraud and many victims using these security products are ironically at increased risk because they have been lulled into a false sense of security.

But now identity thieves have yet another approach!

The latest fraud trend surrounding phishing scams entails the use of Voice over Internet Protocol – or VoIP – phone systems, which aid criminals in the capture of your cardholder data.

In essence, criminals set up a false, automated phone center and send out phishing emails directing you to dial the VoIP telephone number instead of going to a website to update your personal information. Once you dial into the fraudulent phone number, you are directed to enter your personal information, often including card number, PIN, etc. Through the VoIP line, the thieves are able to capture your personal information.

Unfortunately, automated phone systems have been commonplace for the last 10 years, and consumers are accustomed to dealing with them. Again, a false sense of security exists in using automated phone systems.

Here are your best defenses to avoid VoIP fraud:

· Do NOT respond to any email that directs you to update your personal information by dialing a telephone number. Only use the customer service number printed on the back of any credit card.

· Keep in mind that St. Louis Community Credit Union – and most any organization with whom you have a business relationship – will NEVER initiate emails or phone calls requesting personal information from you.

If you follow these basic rules, your chances of avoiding ID Theft are greatly reduced.

Protect Yourself from Plastic Card Loss

Here are a few tips to consider when using credit, debit or ATM cards:

Sign your card(s) upon receipt and destroy or cut up your expired cards.

Should you be re-issued a credit, debit or ATM card that you no longer wish to use, destroy the card and advise the card issuer in writing that you no longer want the card.

Keep all cards in your wallet in such a way that you will immediately notice if one is missing.

Do not carry unnecessary cards with you. Treat your cards as if they were cash.

NEVER leave your cards in a vehicle. Glove compartments are vulnerable to thieves.

At home, keep your cards out of sight. There have been numerous cases of cards being stolen by babysitters, guests, neighbors and relatives.

Make sure your card is returned to you after each purchase – and that the card returned to you is actually yours.

NEVER lend your cards to a friend, and do not disclose your PIN to anyone.

Keep your receipts and invoices, and check them against your statements to verify the correct billing.

If requested, provide a merchant your identification. This merchant cares enough to try to protect you.

Should you discover fraudulent activity on your bill or statement, or if your card is lost or stolen, be sure to call the card issuer immediately.

In case of theft, notify the police, as well.

Five Steps to Organizing Your Finances

Here's a five-step action plan to help you take control of your money.

Set up a financial filing system.
Create a personalized filing system by labeling accordion file pockets with broad financial categories. Then label regular file folders with subcategories that fit your situation and file them into the accordion pockets.

Gather records.
Look through your records to identify missing information. Gather copies of your health, disability, life, homeowners, and vehicle insurance policies, and get a copy of your credit report.

Size up your situation.
Add the estimated current value of all assets, including your home, car, personal property, savings, investments, and retirement accounts. Next, add all liabilities, including mortgage, credit card balances, and any other outstanding debt. Then subtract liabilities from assets to figure net worth.

Then, make a list of income and expenses by reviewing paycheck stubs, checkbook register, and credit card statements from the past year. Finally, track your spending for a month by saving all receipts or recording cash purchases in a notebook. A money management software program helps organize spending by category.

Chart a course.
Set financial goals, both long-term (saving for retirement) and short-term (buying a house or car), and figure how much money you'll need for each. Create a target saving and spending plan that meets needs using your list of income expenses. For a month or more, track actual spending to see how you're doing, making changes as necessary.

Brush up on money management basics.
Contact or visit St. Louis Community Credit Union for more information about how to save wisely.

Save Money by Paying Your Bills in a Timely Manner

Like most Americans, you're probably busy juggling a family, a job, and your finances. There's a lot to think about. Is it really such a big deal if just one of your monthly payments is a bit late?

Actually, it is, as it could mean higher rates and fees on all your accounts, including credit cards and auto insurance.

Credit counselors say more companies are referring to credit reports when deciding whether to raise interest rates or even insurance rates. If a customer's credit report is trouble-free, that customer may get a higher credit limit. But negative information could send rates soaring.

Does slightly dented credit necessarily make you a bad driver? Some auto insurers think so, and are using credit data to determine insurance rates. According to a study by the Insurance Information Association, drivers with poor credit file 40 percent more claims than drivers with squeaky-clean credit reports.

You can avoid rate hikes with the following tips:

Compile a list of all your accounts, their due dates, balances and credit limits
If an account’s due date falls during a tight time of the month, call the card issuer and ask to have the date changed
Pay your bills as soon as you get them
Check all your accounts carefully
Get a copy of your credit report once a year to check for errors

Be Aware of ATM Scams

Thieves are placing a thin, clear, plastic “sleeve” into the card slot of various automated teller machines in an effort to steal ATM cards and Personal ID Numbers (PIN). Here’s how it works…

When you insert your card into a machine that has been tampered with, the machine cannot read the strip – so it keeps asking you to enter your PIN. As you do so, the thief is watching you from a distance and is able to identify your PIN. Eventually, you give up, thinking the ATM has captured your card. Once you walk away, the thief removes the plastic sleeve and your card, and makes a withdrawal from your account using your PIN.

The best way to foil this scam is to run your finger along the card slot before inserting your card. The sleeve has a couple of tiny prongs that the thieves use to remove it from the slot.

Law enforcement officials would like as many people as possible to be aware of this scam, so please pass this information along to relatives and friends.

Avoid Frequent Calls to Home Insurer

According to The Wall Street Journal, a few innocent phone calls to your home insurer asking whether or not your policy covers certain damages could result in higher premiums or even a dropped policy.

Some home insurers count policy owner inquiries as unpaid losses. Most insurance companies feed both paid and unpaid loss information into a centralized database called the Comprehensive Loss Underwriting Exchange (CLUE). When a homeowner applies for a new policy, the company usually refers to a copy of the CLUE report. More than one reported loss, depending on how serious it was, could double or even triple premiums. Some homeowners have been denied coverage altogether.

Here are some ways to protect your CLUE report:

First, review your policy carefully. There’s no need to call your insurance company if the information is available somewhere else.
Avoid calling your insurer unless you’re going to file a claim.
Likewise, report only major damage, since reporting small damages can fill your report with unnecessary claims.

Be Sure to Have a Joint Owner on Your Account

Do you have a joint owner or beneficiary assigned to your St. Louis Community Credit Union account?

You may want to check with us to be sure. Often times, members neglect to designate a beneficiary, thus causing untimely complications in the event of their death.

By having a joint owner or beneficiary on your account, you avoid the risk of having your money wind up in probate and provide a suitable way to bequeath it to a loved one.

So please consider making such arrangements with your credit union account. During their time of sorrow, your family members will be glad you did.

Budgeting: The Key to Financial Security

Many people need help establishing a budget because they can't pay their bills. Or they want to accomplish something big – like buying a house or saving for college – and they don't see how they're going to do it.

The first thing is to look at your checkbook and get an idea of what your monthly bills and expenditures are versus your actual income. It’s amazing how many people don't understand where their money goes. Once you have this information down on paper, it’s a lot easier to plan for them each and every month.

After you establish your income and expenses, you must determine what your pay periods are and when your bills are due. You should put aside about half the money you'll need for bills the month before. That way, you don't end up spending your entire paycheck on bills and having nothing left to live on. It spreads the load over a four-week period.

The next step is to work on ways to cut expenses.

What areas are most fruitful for budget cutting? People are most unrealistic about their entertainment expenses. Especially eating out, including take-out, because you don't usually consider it part of your food budget.

People don't really budget for maintenance on things like cars and homes, either. And a lot of folks are surprised at how much they spend on gifts.

But the biggest culprit is credit cards. If you’re not careful, credit cards can make it so easy to spend money on things you don’t necessarily need. You have to prioritize what you want to spend your money on if you ever want to accomplish anything with it.

And if you pay for child care because you’re a two-income family, be sure that the second income is well worth it. Often times, your actual take-home pay is much less than you realize because of child care costs and the incidentals that come with it. Remember… It’s not what you make. It’s what you keep.

Finally, stay the course and have some patience. Look for signs that show your budgeting efforts are paying dividends. First, get yourself out of debt. Then learn to live within your means. Within six to nine months, you're going to find yourself much better off.

Identity Theft – Don’t Be A Victim!

Identity theft occurs when someone uses your personal information to obtain credit, retirement benefits or gain access to your financial accounts.

A common example is when a thief applies for credit using someone else’s name and social security number. The thief will apply for as many credit cards as possible, make purchases and cash advances up to the maximum credit amount, and never make a payment.

Victims usually become aware of the problem when applying for legitimate credit in their own name. They soon discover that the thief ruined their credit, and they are left to clean up the mess. The process can take months. In the meantime, the victims can lose access to credit, personal checking account funds, employment opportunities, social security benefits and more.

While thieves use all sorts of means to steal an identity, including credit card numbers, drivers’ licenses, e-mail addresses, employee ID numbers and financial institution account numbers, the most popular is a social security number.

There are numerous measures you can take to help protect your identity, including:

Avoid carrying ALL of your credit cards, social security number and other identification at any one time.

Do not keep your password or PIN with your ATM card. MEMORIZE IT!

Don't give out personal information, including credit card and social security numbers, over the phone unless you initiated the call.

Do not give your password or PIN to family members or friends. "Friendly fraud" is on the increase. You forfeit your rights by allowing them to borrow or use your card.

Review your monthly statements carefully. Report any discrepancies immediately.

Request a credit report on a regular basis, and verify the credit listed.

If expecting a new or reissued ATM, debit or credit card, watch the mail and report if the card is not received as expected.

Keep your copy of credit card receipts to verify against your statement. Don't leave them in the bag with your purchase(s) or discard them in a public wastebasket.

Shred all documents with personal information before discarding them. This includes credit union statements, phone bills, pre-approved credit card offers, copies of charge-slips, or ATM receipts.

If creating a new PIN or password, do not use the last four digits of your social security number, your birth date or anything else that could be easily guessed or discovered by a thief.

When using an ATM or making a long distance phone call from a pay phone, be cautious to shield your PIN entry. Thieves use binoculars and high-powered cameras to view your entry.

If you notice a decrease in mail to any one person in your household, or do not receive anticipated statements, contact the post office and/or your creditor(s) to verify the address they show for all accounts. Account takeovers are accomplished by changing the address on an individual and then requesting credit cards, etc.

If you move, remember to notify ALL creditors of your new address to ensure statements and renewal cards are forwarded to the correct address.

Do not have your social security number or driver's license number printed on your checks.

If you conduct transactions over the Internet, be sure that your transmittal of any personal information is protected by encryption.

If you become the victim of identity theft, please contact the Social Security Administration at 1-800-269-0271 or St. Louis Community Credit Union for assistance.

Important Phone Numbers

Experian
To report fraud: 1-800-301-7195
To order one annual credit report free: 1-888-397-3742

Equifax
To report fraud: 1-800-525-6285
To order copy of credit report: 1-800-685-1111

Trans Union
To report fraud: 1-800-680-7289
To order copy of credit report: 1-800-916-8800

Social Security Administration
To report fraud: 1-800-269-0271

Check Fraud Agencies
ChexSystems 1-800-328-5121 (closed checking only)
TeleChek 1-800-710-9898
National Processing Co. (NPC) 1-800-526-5380
CheckRite 1-800-766-2748
Equifax 1-800-437-5120