Opting out of junk mail

Over the Thanksgiving holiday, my relatives started talking about how they were so sick of receiving handfuls credit card offers in the mail each day. Once again, I reminded them that stopping these credit card offers is a simple as calling 1-888-5-OPT-OUT. I give out this toll-free phone number so often these days that I now have it memorized!

Give yourself an early Christmas present, call 1-888-5-OUT-OPT or go online to the official FTC opt out website to remove your name from the credit bureau third party mailing lists. This opt out program even includes the elusive Innovis, that is commonly called the "forth credit bureau." Opting out doesn't make it harder for your to apply and open new accounts. It just means that you will have to go looking for credit card and loan offers on your own instead of being bombarded by them in the mail each day. Leaving you with more room in the mailbox for Christmas cards and gifts this holiday season.

Healthy holiday credit

Gerri Detweiler, a CreditBloggers.com contributor and personal finance guru, appeared on NBC Nightly News with Brian Williams last night. The segment was about using your credit cards responsibly during the holiday shopping season:

"Your credit is more important than ever," says credit expert Gerri Detweiler, author of "The Ultimate Credit Handbook." "It may determine not only what you pay for loans," she says, "but also what you pay for auto insurance, homeowner’s insurance, whether you get the cell phone plan you want, even if you get the job that you hope to get."

You can read the full transcript of Gerri's NBC appearance or watch the video segment online here. If you have a question for Gerri or any of the other CreditBloggers.com experts, feel free to email us anytime!

Blogs we like: The Budgeting Babe

If you would rather shop for Manolos than think about mutual funds,  The Budgeting Babe may be the blog for you! This personal finance blog at http://budgetingbabe.blogspot.com/ takes a common sense approach to savings, money management and more. Be sure to check out this post on why women should save more for retirement than men. Based out of Chicago, The Budgeting Babe is a great source for fun and rational financial tips!

How phishing works

HowStuffWorks, the bastion of cool information online, has published a new article about how phishing works. Phishing is a specific kind of cyber-identity theft where a thief sends fake emails that appear to be authentic. When you login through these emails to what you are lead to believe is really your Amazon, PayPal or Bank of America account, the thief steals your personal information.

A few months ago, I was in contact with a young mother who had received an email that looked like it was from eBay. The message said that there was a problem with her account and she needed to make some updates online. When she clicked on the links in the email she was sent to a web page that looked like eBay but was actually a fake. She entered her mailing address, birth date, credit card information and finally even her Social Security number before she discovered it was a scam. She spent the next few weeks closing all of her accounts, reporting the crime and worrying about the consequences of what she had done.

Web sites that are commonly misrepresented by phishers have now developed special websites just to inform consumers about these scams. For example, eBay has an online "Spoof Email Tutorial" that is definitely worth reading. When you are not sure about the authenticity of an email, check that the email address and URL of the site is authentic. You can also contact the business by phone to see if it is real or a phishing scam. Or, even better, type in the URL yourself instead of following the links in the email provided. It's better to be safe than sorry.

Closing Credit Cards?

Most folks realize that credit scores are important, but many don’t realize that common misconceptions may cause some to unknowingly lower their own score.  The issue of “too many credit cards” was one example which surfaced at recent seminars I taught at ING Direct Cafés in New York and Philadelphia. Most folks commonly assume it’s bad to have “too many” cards, and therefore should close those seldom used. This could be true, but then again, it could be wrong. First of all, like everything with credit scoring, there’s not one magic, “correct number” of credit cards. It all depends, because data on your credit cards is weighed against all other data in your credit report. But, it’s important to know that closing credit cards can lower your score.  Here’s why.

•  30% of your FICO score is based on credit utilization, that is, the ratio between your balances and credit limits on your revolving credit. Cards are scored one at a time and then again collectively
•  15% of your FICO score is based on length of credit history.

When you close credit cards you reduce your credit limits and eliminate potentially helpful length of history. A separate analysis, unrelated to FICO scores, sometimes is made by mortgage lenders who see that a mortgage applicant could seriously change the debt-to-income ratio if the applicant used all of the available revolving credit. Even so, most mortgage lenders look at the FICO score first, so tread carefully.

There will be another seminar at ING Direct’s Los Angeles Café on Thursday, Dec. 1. (11175   Santa Monica Blvd., @ I-405 Exit)  Evan Hendricks is Author of, "Credit Scores and Credit Reports: How The System Really Works, What You Can Do"

   

Black Monday Online

Everyone has heard of Black Friday, the day after Thanksgiving sale stampede. But have you heard of Black Monday? The Monday after Thanksgiving weekend is the biggest online shopping day of the holiday season. According to this Washington Post article, over 36% of people will do some of the holiday shopping online while at work. Here are some tips for a happy Black Monday:

• Only enter your personal information on secure and trusted websites. Secure websites have "https" in the URL and the lock symbol in the corner of the browser.
• Don't forget to calculate your shipping and tax costs. These could add up to a lot of extra expense.
• Use a credit card while shopping online instead of a debit card. A credit card will be easier to track and has more security protections.
• Know your employer's policies. Most employers aren't too concerned about a little online shopping at work but it may be a big deal for some. Trust your instincts when it comes to shopping at work or having packages delivered to your office.
• Limit the number of stores to save on shipping. Instead of ordering one thing from five websites, see if you can order all five from one store. This could help you cut down on your shipping costs.
• Watch out for "phishing" emails or "pharming" web sites. These sites look authentic but are actually fakes set up by ID thieves. Check the URL of the site and investigate anything suspicious before entering your information.

Black Friday boot camp

The jam-packed holiday sale day after Thanksgiving is commonly known as "Black Friday." This is the day you hear news about stampedes at Wal-Mart and people camping out in front of Macy's. If you are planning on joining the mobs this Friday, here are some tips to keep in mind:

• Make all your purchases on one credit card so they are easier to track. Or better yet, pay with cash!
• Don't go overboard. Just because it is on sale, doesn't make it a good gift or something you need to buy.
• Keep all your receipts and compare them with your purchases and credit card charges. In the Black Friday chaos, it's easy for a mistake to have been made.
• Watch out for receipts printed with your full credit or debit card number. This is more common that you would think. Shred this kind of receipt before throwing it away in order to guard against identity theft.

For more tips on the first weekend of holiday shopping, Deeper Motive has a great post all about staying sane on Black Friday.

Dealing with doctor's bills

A trip to the doctor's this morning for a pulled tendon got me thinking again about the costs and pitfalls of medical bills. Combining this simple doctor's visit with a prescription, lab work and trip to the physical therapist, makes the total bill for this simple injury pretty hefty. Luckily, I have health insurance...right?

Even health insurance coverage may not be enough to prevent medical bills from causing financial distress. According to a report by Harvard's law and medical schools, costly illnesses trigger about half of all personal bankruptcy filings. And most shockingly, more than 75% of those people had health insurance.

“Unless you’re Bill Gates, you’re just one serious illness away from bankruptcy,” said Dr. David Himmelstein, the study’s lead author and an associate professor of medicine. “Most of the medically bankrupt were average Americans who happened to get sick.”

The moral to this story? Have good insurance and prepare for the worst case situation. If you were hit by a car or diagnosed with cancer today would you have enough savings and available credit to help you get through it financially?

How do credit scores work?

How Stuff Works, the publisher of detailed articles books about the inner workings of aspirin and digital cameras, also has articles about money, credit and personal finance topics. From how credit scores work to 401(k) and mortgage explanations, this site is a unique resources for helpful and clear articles on complex financial matters. You can also search for almost any topic under the sun.

Making your financial dreams a reality

We all have financial dreams. From reducing our debts to retiring early, these dreams can become a reality with a little planning. I am about to start working on article about setting goals for achieving big financial dreams. What's your dream? Share it in the comments section below.