Have you been victimized by identity theft?
Mood:  a-ok
Topic: ID Theft
If you think your identity has been stolen, here's what to do now:

1. Contact the fraud departments (information listed below) of any one of the three major credit bureaus to place a fraud alert on your credit file. The fraud alert requests creditors to contact you before opening any new accounts or making any changes to your existing accounts. As soon as the credit bureau confirms your fraud alert, the other two credit bureaus will be automatically notified to place fraud alerts, and all three credit reports will be sent to you free of charge.

Equifax - www.equifax.com
800-525-6285 or write to:
P.O. Box 740241, Atlanta, GA 30374-0241

Experian - www.experian.com
888-EXPERIAN (397-3742) or write to:
P.O. Box 9530, Allen TX 75013

Trans Union - www.transunion.com
800-680-7289 or write:
Fraud Victim Assistance Division, P.O. Box 6790, Fullerton, CA 92634

2. Close the accounts that you know or believe have been tampered with or opened fraudulently. Use the ID Theft Affidavit when disputing new unauthorized accounts.

3. File a police report. Get a copy of the report to submit to your creditors and others that may require proof of the crime.

4. File your complaint with the FTC. The FTC maintains a database of identity theft cases used by law enforcement agencies for investigations. Filing a complaint also helps us learn more about identity theft and the problems victims are having so that we can better assist you.

(compliments of the Federal Trade Commission).

Credit Union vs. Bank FAQ
Topic: FAQs
Credit Union vs. Bank FAQ

Q: What is the difference between a bank and a credit union?

A: There are several differences:

1. A bank is open to the public so anyone can join (except for a few rare exceptions) while a credit union is open only to those who are eligible. Eligibility for credit unions usually falls under the categories of where one works, lives, worships, or attends school.

2. A bank is owned by stockholders so profits go to them; a credit union is a non-profit organization which means it is owned by the members and run by a board of directors (who are unpaid volunteers). Furthermore, as is the case with all non-profit organizations, "profits" go back to the member or are reinvested into the credit union.

Q: What is the real benefit of joining a credit union? I mean isn't it just about the same as a bank anyway?

The biggest reason for joining a credit union (as opposed to a bank) would be for better member services and better interest rates. Banks see their accountholders as "customers" while credit unions see them as "members." The words may be synonymous in most conversation, but the fact is that credit unions strive to treat their accountholders with better service than a bank would. And for good reason: a credit union member (the accountholder) has far greater power and control than a bank customer does. Each year credit unions hold an annual meeting in which changes for the credit union are voted on. The credit union members get to vote based on a one-member, one-vote structure. A bank, on the other hand, is a for-profit, public company whose stockholders vote according to the number of shares of stock they own.

Furthermore, credit unions tend to charge lower fees on accounts and offer better interest rates than banks do because of the checks and balances system created by the board of directors.

Q: How do I know which credit unions I am eligible for?

A: One excellent site is http://www.howtojoinacu.org/quicksearch.cfm. That site allows you to search the US for credit unions you might be eligible for. Each search gives you a list of available credit unions. If you happen to live in a state who does not show up on the drop down menu, visit this site to search for a credit union.

I strongly suggest you either visit each credit union's website or contact them to see if you truly are eligible. For example, I did a search for Portland, OR and several of the matches were for credit unions that required I live in, work in, or worship in particular areas of Portland (not just anywhere in the city of Portland).

Also, you can click on this link to see a list of each state's Credit Union League

Check 21 FAQ
Mood:  hungry
Topic: FAQs
Check 21 FAQ

Q: What exactly is Check 21?

A: Check 21 is a federal law that was passed on October 28, 2004 which is designed to speed up the check clearing process for financial institutions. Although the law was passed in 2004, banks are not, at this time, required to process all checks according to the Check 21 law. The law simply gives them the opportunity to clear checks quickly; it does not require it at this time.

Q: But what exactly does that mean to me as a check-writer?

A: What this means is that anyone who writes a check should have funds in their account prior to writing that check. Since nobody knows exactly which institutions currently use Check 21, you never know if a check that you write that usually took a week to clear could clear within a few hrs or a few days.

In the past many people would do what is called "floating checks." Floating checks is when someone would write a check knowing that they didn't have funds in their account currently, but by the time the check travels halfway around the country to clear and process through their account, the funds would be available. Some people get away with this; I am a witness to tell you that many people do not. What most people don't realize, however, is that floating checks is illegal. So, please, don't cry to your institution that they are being unfair by charging you a fee to clear your checks before your deposit arrives.

Furthermore, some have taken advantage of the float by "check kiting." Kiting checks is done by writing several checks on several different banking accounts and depositing some of those checks to cover other checks you had written from each different bank account. As you can imagine, check kiting gets very complicated and more often than not, those who kite are unable to keep up. This too is illegal, of course. One reason Check 21 was passed was to attempt to stop check floating and kiting.

Q: Since checks could clear sooner through my account, does that mean financial institutions won't hold my check deposits as long?

No. Although Check 21 may eventually cause financial institutions to loosen the grip on their check hold policies, the Check 21 law itself does nothing to change check holds. Generally, banks can hold local checks for up to two business days, out-of-town checks for up to five business days, and other types of checks (e.g., checks over $5,000, checks drawn on new accounts, checks written against consistently overdrawn accounts, etc.) for up to thirty business days. You must keep this in mind when depositing checks. You want to make sure that funds are not only deposited into your account, but also that they are fully available before you write checks.

For more information on Check 21, please visit:
Frequently Asked Questions about Check 21

Debit and Credit card FAQ (Frequently Asked Questions):
Topic: FAQs
Debit and Credit card FAQ:

Q: What is the difference between a debit and credit card?

A: In a nutshell, a debit card accesses an account where funds are saved (usually either savings or checking) whereas a credit card accesses an loan account which needs to be paid off eventually. This means, if you have the money already to spend, you can use the debit card. If you do not have the money as of yet (but hopefully will soon) then you have to use a credit card.

Both cards require an "approval" of sorts from a financial institution. The credit card has more strict guidelines (since the lender has to assume you will have the money to pay it off eventually) than a debit card. But even debit cards are not given out to just anyone.

So you might ask yourself at this point, "if a debit card requires funds to be in the account to use it, why would someone need to be approved for one?" Well, the quick answer would be that a debit card requires approval much like a checking account requires one: a financial institution must protect itself from the costs associated with customers misusing or abusing accounts. The much longer answer involves a discussion about floating checks, check kiting, debit card fraud, and the like. So, just like a financial institution wants to protect itself from those who might misuse credit cards, they also want to protect themselves from those who would misuse debit cards.

Q: What is the physical difference between a debit card and a credit card? In other words, how do I know just from looking at my card whether it is a debit or credit card?

A: Usually a debit card will have "debit card" or "check card" listed somewhere on it (usually the upper right corner), but sometimes there is no visual difference between the two cards. Another good trick is to look at the back of the card. Although this by no means guarantees what sort of card it is, credit cards often times have fewer logos/icons on the back of the card than debit cards do. The best bet, of course, is to either contact the institution that the card belongs to. You may worry that this might be "too dumb" of a question to ask, but trust me, I know from experience that there are far worse questions asked of us in the financial fields. Not to mention, contacting them is another good way to get all your questions answered. At the very least, pay attention when you receive statements in the mail. If the statement lists an amount due and a due date, it is definitely a credit card; if it just lists beginning and ending balances with transactions listed between, it's a debit card.

Q: I used my debit/credit card at a store and was declined. I know that I had enough in my account/credit limit available to authorize the charge, so why was it declined?

A: The only surefire way to know exactly why the card was declined is to contact the institution that holds that card every time you are declined. Furthermore, make sure that if you want to know why the card was declined you contact them within a day or two of the decline since they may have limits as to how far back they can research a reason for decline. I have dealt with numerous people who ask why their card was declined, only to find out it was declined over a week ago. I then inform them that I can no longer see the reason for denial.

I can tell you that 9 times out of 10, the reason for a decline is either the expiration date is mismatched or the address the merchant enters doesn't match what the address that the institution has for the mutual customer.

Another common reason for a decline would be that an attempt never actually shows as being made on the card. This happens when either the merchant's systems are down, or the financial institution's systems are down. In either case, there is not a whole lot either one can do until the systems come back up. It would be much like getting mad at your friend for not calling you after you find out a tree knocked out his phone line. Not a whole lot either of you can do until the phone line is fixed.

Latte Factor
Mood:  spacey
Topic: tips on saving/investing
If you saved $5 per day, you'd be a millionaire in 41 years. If you save $10 per day, you'll do it in just 34 years. But the average American lives paycheck to paycheck, so where would they find that kind of extra money?

One answer: the latte factor.

The latte factor is the name given to the concept of seemingly insignificant purchases adding up to very significant costs. The easiest example: the latte. The average latte runs around $3. Simply cut out the lattes (and a few other insignificant purchases) and *boom* you can be financially free.

I'm not sure who exactly gets credit for coining the term "latte factor" but I first heard about it from David Bach's book, "The Automatic Millionaire." I suggest everyone reads that book. A quick search online, however, tends to give credit to several different people for coining the phrase.

Nonetheless, the concept is very simple; the actual implementation of it may not be, though.

I would be pressed to argue that coffee is one of the things that the average American purchases regularly, and it is also one of the things that they regularly overpay for. Regardless of whether you visit coffee shops or not, it is hard to deny the fact that places like Starbucks gets far more out of you and your money than you get out of them and their coffee.

Coffee shops are not entirely evil, of course. Even I enjoy an occasional night out with friends or family just lounging around at a coffee shop talking about the good ol’ days or whatever we happen to talk about. But the key word there is “occasional.” The “latte factor” wouldn’t necessarily refer to the occasional coffee shop visit, just like diets don’t focus on an occasional cookie. In either case, the true problem lies in consistently “breaking the rules” so to speak; the daily coffee or cookie. That’s where the problem lies. And we all know just how easy it is to say, “hey it’s just one coffee” or “hey it’s only a couple of dollars.” But just like a few cookies day after day can add up to larger pant sizes, a coffee a day (or a few a week even) can add up to lower bank accounts and more money problems.

Finance Advice Website!
Mood:  party time!
I decided to open up a website for my finance advice rather than just posting blogs...this way I figure it's easier to store and allow others to retrieve information than just simply posting day after day.

The website is https://bdehler2004.tripod.com/advice

Managing a credit card
Mood:  caffeinated
Topic: credit cards
For today I'm going to talk about credit cards. First I'm going to mention the "rules" of managing a credit card, and soon after I will get into the "rules" of picking a credit card.

(Just FYI: when I have a list of rules like this, clicking on each rule will automatically take you to the paragraph that explains each one)

1. Pay your charge card in full each month.
2. If you are unable to pay 100% of the balance, pay as much as you can as soon as possible.
3. Do not keep a balance in your credit card unless necessary (see below).


You should do everything in your power to pay down (and preferably pay off) your credit cards as soon as possible. Each card gives you a grace period (usually a minimum of 20 - 30 days) in which you can, in essense, borrow the funds without ever paying interest on them. It is important to know when the statement ending date is as well as the due date. For instance, where I work, the statement ending date is the 10th of each month, the due date is usually the 4th or 5th of the month. At the end of business on the 10th, the Visa statement is produced and mailed to our members. The statement totals up all of the charges and credits made previously and it will tell you the total due, and the date it is due. If you pay 100% of this balance by the due date, you will never pay finance charges on your Visa. Easier said than done, though, right?

Keep in mind that every day you have an outstanding (i.e. unpaid) balance on your Visa card past this due date, you will pay interest. Just how much interest you pay depends on how credit card bank calculates interest. Some are generous enough to only charge interest on the difference between the balance due and what was paid (known as the adjusted balance method). In this case, if the bill was $1,350 and you paid $1,000 by the due date, then you would only end up being charged interest on $350. At a 10% interest rate, that would equate to $35 per year, or about 10 cents per day ($350 X 10.25% / 365 days).

Some financial institutions are not that generous. Some force you to pay interest on the average balance (which gets into very complicated mathematics) while others charge interest on the entire amount if the entire amount is not paid in full (known as the previous balance method). The latter one is how the financial institution I work at runs. I've seen someone pay all but the change due on their bill and get socked with $10 or $20 in interest. Of course when they bring this up to their attention we happily reverse it (cause let's face it, putting your foot down over charging $20 since the member was 47 cents short on his payment is a little excessive).

To continue the above example: if I paid $1000 of my $1350 balance due, I would be left, of course, with a $350 balance. But rather than paying 10 cents a day for each day after the due date, I would pay 37 cents a day (or $135 per year). This may only sound like, well, pennies to you (cause technically it is) but the differences are astonishing when you consider the average American has over $4,000 in credit card debt. At this point, you can see where "just pennies" really matters.

Still even other financial institutions charge interest to purchases made between the statement ending date and when a payment is actually received. This is the most favorable method for banks (and therefore least favorable to us customers) and is known as the one-cycle or two-cycle average daily balance. I would like to think that very few banks still do this, but you definitely want to read the fine print to find out if the credit card you have or are looking to get is from one of them!

Here is a pretty good comparison of the different interest rates are charged:

http://www.ca.uky.edu/agc/pubs/fcs5/fcs5111/fcs5111.pdf

The third rule listed above is to only keep a balance in a charge card unless absolutely necessary. What do I mean by "absolutely necessary?" Well, for the most part it means not holding a savings/checking account balance while you are paying interest on a charge card. The only real exception to this would be if the card you have charges you for cash advances (such as 3% of the amount advanced). The institution that I work at does not charge for such advances, so there is no real reason why anyone should have $1,000 in their savings/checking and they are only making the minimum $25 payment on their credit card with a $500 balance. Even if your rent is $700 and due in a few weeks, it is worth it to our cardholders to pay off the Visa (leaving their checking account balance at $500) then borrowing the remaining $200 in a few weeks to pay your rent. This will, of course, then leave your checking account with a 0 balance (unless you make a deposit before then) but do not fear, you can always borrow more from the Visa. I cannot emphasize enough, though, that this is only the case if there is no cash advance fee from the credit card bank.

You may be thinking to yourself, "what sense does it make to pay off the charge card, then just borrow from it two weeks later?"

I would only respond by saying, "what sense does it make to earn 1% interest (give or take) on your savings while paying 10% - 20% (give or take) on your charge card?" Even worse than that, the interest you gain on your savings accounts is taxable; your charge card interest paid is not tax deductable. What this means is, if you have a couple thousand dollars in your savings, and a couple thousand dollars due on your Visa, at the end of the year your financial institution will notify the IRS that you earned, for instance, $30 of interest on your savings account. The fact that you paid $300 of interest on your Visa will not be known to them. Again, $30 may not sound like much when factoring your taxes, but it may turn out to be enough to bump you into the next tax bracket. I earned $11 last year in interest and I came very close to being bumped into the next tax bracket. So, why wouldn't it make sense to earn only $25 in interest in savings and pay just $250 on your Visa?

Get Your Free Credit Report!
Mood:  hungry
Topic: credit reports
Did you know you are (or will be shortly) entitled to one free credit report per year from each of the three credit reporting agencies (Experian, Equifax, and Transunion)?

Those of us on the west coast and midwest are currently eligible. The southeast and northeast will be eligible by the end of the year.

Go to www.annualcreditreport.com to see if/when you are eligible as well as to get your free reports.

I cannot stress enough how important it is to get your free credit reports and, more importantly, to correct any mistakes on them. I speak with members all the time who I have to decline for a checking account or debit card simply because of information on their credit report that they deny belongs to them. (I don't work on consumer loans at all so I can't claim to deny any loans due to credit issues; but people are undoubtably affected when applying for loans as well)

Keep in mind: it is not the reponsibility of the financial institution to double check information on these credit reports. If you apply for a car loan and the loan officer pulls a credit report and it shows 10 items that have gone to collections, you will most likely be denied credit. Even if these 10 collections items are in error/not your fault. It is your responsibilty to correct mystakes on your own report. So, please, get your free report each year and ensure that all the information is accurate.

I had a coworker who pulled her report only to find out that there were multiple mistakes on her credit reports that traced back upwards of 5 years. I found a couple of mistakes on my reports as well (accounts that showed still being open even though they were closed). So you never know what wrong information might be affecting the next auto loan, or even job you apply for.

Welcome!
Mood:  cheeky
Topic: rambling
Hey everyone! Welcome to my finance blog. :)

This is the second weblog I've made through tripod. My first one is full of just my own thoughts and other interesting/informative things. That can be found at https://bdehler2004.tripod.com/blog

Anyway, I work for a credit union in Oregon and I have come across countless people who really could use financial advice. By "financial advice" I don't mean just stock picks or advice on which life insurance policy might be right for them. Most people could use advice on those things, but at this point I am not intelligent enough, nor am I licensed, to give such advice.

The sort of advice I'm referring to is basic stuff that I imagine everyone should already know: how to balance a checkbook, information on how credit works, how Visa cards work, best places to save money in the short run, etc. I was completely surprised to see how many people don't know these things. Everyone has to learn these things somehow (either the easy way or the hard way) so I figured why not be the one to help them figure it out?

I will try to sort the different posts by categories: this one is under "rambling" while the other ones will be under "Visa" or "credit information" or whatever I decide to file it under.

Also, this might end up changing into a different website or design. I might decide rather than a blog to make it into more of a user friendly website where people can search for information. We'll see how things work as time goes. As for now, I'm going to send this one, and then follow it up with a few pieces of information I'd like to share right off the bat. And always, feel free to comment on the website or email me personally at bdehler2004@yahoo.com

Enjoy!