A business colleague who owns a mortgage company showed me how to increase my credit score by 50 points. It's so simple, quick, and easy. All you have to do is opt-out of recieving all those pre-screened credit card offers you don't need or want in the first place. According to my colleague, doing so will increase your credit score by 50 points.
The request is made directly to the credit reporting companies through an official Comsumer Credit Reporting Industry website. Simply go to www.optoutprescreen.com . The process takes 5 minutes to complete and 5 days to take effect. You do have to enter your name, mailing address, and social security number.
Be sure to select the five year option rather than the permanent option. The permanent option requires paperwork to be mailed. However, it may be the preferred option for those hesitant to enter thier social online.
Should you ever change your mind and actually want to receive those pre-screened credit offers, no problem. Simply return to the site and opt in.
Wednesday, September 20, 2006
Wednesday, February 15, 2006
The Shrinking Warranty
If you have recently purchased an electronic device or major appliance from Best Buy, Circuit City, Sam's Club, or even Wal-Mart chances are you were offered an extended warranty for an additional fee. Depending on the original price of the item this fee can range from $12.99 to $700. Are you inclined to answer yes and purchase the added warranty? Here are some tips to help you evaluate the value of the extended warranty purchase.
In a recent article published in my local newspaper William Mauldin described the point of purchase extended warranty as "almost a license to print money" for the seller, not the buyer. He states that up to 50% or more of the profits from the sale of the extended warranty end up in the pockets of the seller. Extended warranty sales are big business, totalling $16 billion in 2005. A large portion of the bottom line profits from Best Buy and Circuit City are now generated from the sale of extended warranties, not products.
It is true that the warranties issued by the manufacturers are shrinking in efforts to keep the price of goods competitive with foreign labor and low cost imports. So what is the prudent buyer to do?
Less than 10% of digital cameras require repairs within the first three years of purchase. Breakdowns within the first three years are also unlikely for most major household appliances like refridgerators and washing machines. Repair costs are relatively modest. If you have a lemon, it will most likely become apparrent within the time frame of the original manufacturers warranty.
So the moral of the story is - except in rare instances say no to the extended warranty offer. Usually it's just money out of your pocket into theirs. You are better off taking your chances and paying for the occaisional repair yourself.
Are you money smart? Take my survey and find out. Give yourself 5 points for each yes answer. Add up your total score. A perfect score is 100.
Click button to take survey.
In a recent article published in my local newspaper William Mauldin described the point of purchase extended warranty as "almost a license to print money" for the seller, not the buyer. He states that up to 50% or more of the profits from the sale of the extended warranty end up in the pockets of the seller. Extended warranty sales are big business, totalling $16 billion in 2005. A large portion of the bottom line profits from Best Buy and Circuit City are now generated from the sale of extended warranties, not products.
It is true that the warranties issued by the manufacturers are shrinking in efforts to keep the price of goods competitive with foreign labor and low cost imports. So what is the prudent buyer to do?
- Do read the warranty, know its conditions and provisions. Sometimes the product must be returned in original packaging.
- Know if your credit card account automatically doubles the length of the manufacturer's warranty (some do). If so, make the electronic or major appliance purchase on the card, but pay it off immediately and keep the reciept.
- Do send in the warranty card, often requiring a copy of the purchase receipt for validation.
- Avoid purchasing extended warranties altogether except for laptop computers, plasma televisions, and watches.
Less than 10% of digital cameras require repairs within the first three years of purchase. Breakdowns within the first three years are also unlikely for most major household appliances like refridgerators and washing machines. Repair costs are relatively modest. If you have a lemon, it will most likely become apparrent within the time frame of the original manufacturers warranty.
So the moral of the story is - except in rare instances say no to the extended warranty offer. Usually it's just money out of your pocket into theirs. You are better off taking your chances and paying for the occaisional repair yourself.
Are you money smart? Take my survey and find out. Give yourself 5 points for each yes answer. Add up your total score. A perfect score is 100.
Click button to take survey.
Monday, January 02, 2006
A Merry Christmas Without January Regrets
How did you do this holiday season? Were you able to stick to your budget or did you overextend yourself? Will you be surprised at the new balance when the credit card statements arrive in the mail this month? Read on for a sure fire way to avoid overextending yourself next year.
The absolute best way I know of to truly have a Merry Christmas (or Happy Hanukkah) without January regrets is to plan ahead. Remember back when your employer or bank would set up something called a Christmas Club? A set amount was deducted from each paycheck and placed in a special account called a Christmas Fund. At the end of the year before Christmas, a check was presented to you for the full amount of the fund for your use during the season.
You can do the same thing for yourself. Calculate what you spent on the holiday. Be sure to include the cost of any special clothing, food and beverage, and travel. Divide the total amount by 11. The result is the amount of money each month you need to set aside in your personal Christmas Fund beginning this month. Open an interest bearing savings account at your bank or credit union. Transfer or deposit the set amount monthly. It is best if you can set up an automatic deposit to guard against forgetfulness or lack of tenacity.
This is a form of planning for the unexpected. In reality you are planning for an expected, but not a monthly occurring expense. If you will do as suggested, you will enjoy a holiday without financial woes or January regrets. The last thing you want is to still be paying on a credit card funded holiday a year later.
The absolute best way I know of to truly have a Merry Christmas (or Happy Hanukkah) without January regrets is to plan ahead. Remember back when your employer or bank would set up something called a Christmas Club? A set amount was deducted from each paycheck and placed in a special account called a Christmas Fund. At the end of the year before Christmas, a check was presented to you for the full amount of the fund for your use during the season.
You can do the same thing for yourself. Calculate what you spent on the holiday. Be sure to include the cost of any special clothing, food and beverage, and travel. Divide the total amount by 11. The result is the amount of money each month you need to set aside in your personal Christmas Fund beginning this month. Open an interest bearing savings account at your bank or credit union. Transfer or deposit the set amount monthly. It is best if you can set up an automatic deposit to guard against forgetfulness or lack of tenacity.
This is a form of planning for the unexpected. In reality you are planning for an expected, but not a monthly occurring expense. If you will do as suggested, you will enjoy a holiday without financial woes or January regrets. The last thing you want is to still be paying on a credit card funded holiday a year later.
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