The Simple Dollar: “Best Free Credit Report Site of 2014” plus 2 more
The Simple Dollar: “Best Free Credit Report Site of 2014” plus 2 more |
| Best Free Credit Report Site of 2014 Posted: 17 Oct 2014 01:00 PM PDT Credit is a very important part of your adult life, yet it's often neglected by any school curriculum while you're learning the ins and outs of life. Every U.S. citizen who needs to be extended a line of credit, obtain a job, have a cell phone, and/or rent a dwelling needs to stay on top of their credit. Luckily, there are a lot of different tools out there to obtain free credit reports. You can either sign up for a free trial from a more comprehensive site or sign up with one of the free credit-report sites that don't always offer full reports but do typically provide many helpful credit tools. The Simple Dollar's Top PicksHere are the top two free-trial credit report sites: Here are the top four free credit-report sites: Free-Trial Credit Report SitesIf you're planning to make a large investment or gain new employment in the near future, you should really consider a credit monitoring and identity theft service from a company like Identity Guard®. The worst situation would be to have your ducks in a row — save up for a down payment, find your dream home, see your future right in front of you — only to find out you have been denied the loan because you failed to take action monitoring your credit and protecting yourself from identity theft.
In order to avoid timely resolutions and costly errors, be proactive by monitoring your credit reports regularly. Let's see who’s offering the most extensive monitoring services with a free trial. Identity Guard®Identity Guard® is a comprehensive credit monitoring and identity-theft protection service. They offer a 30-day free trial. You can either choose to cancel your subscription prior to the end of your free trial or select from a range of customizable options depending on the level of service you need. What's included in your free trial:
Trusted ID®Trusted ID® is another great resource for monitoring both your credit and protecting yourself from identity theft. Make sure you sign up for the IDEssentials™ plan that includes a 14-day free trial with credit reports from all three major credit reporting agencies, Experian, Equifax, and TransUnion. What's included in your free trial:
Free Credit Report SitesFree credit report sites are great. However, keep in mind that these are still businesses and their ultimate goal is likely to generate revenue. Sites like Credit Sesame, Credit Karma™, and Quizzle® are all partnered with one of the major credit-reporting agencies. Two big items to be aware of:
Also, none of the free credit report sites provide a FICO score, which is used by over 90% of lenders to determine your creditworthiness. If you need to monitor your FICO score, I would suggest signing up with myFICO, which also monitors identity theft. AnnualCreditReport.comThe Fair Credit Reporting Act (FCRA) ensures that each U.S. resident is able to obtain a free copy of their credit reports every year from each of the three major nationwide credit-reporting companies, Experian, Equifax, and TransUnion. AnnualCreditReport.com is the only website authorized to fill orders for your free annual credit report. Unless you're paying for a more comprehensive credit-monitoring service like Identity Guard®, which provides monthly reports from all three major credit reporting agencies, you absolutely should take advantage of this opportunity. You will receive a copy of only the reports, which can be requested for instant delivery online or shipped within 15 days if requested by mail or phone. Getting a credit score comes with a fee. Credit SesameCredit Sesame is exclusively partnered with Experian. They are unique in that they have branched out into the identity theft market and provide up to $50,000 identity-theft insurance and ID restoration assistance. They also are more highly monetized than their counterparts, Credit Karma™ and Quizzle, by tailoring their credit tools to push products more than advice. However, identity theft insurance is a huge bonus from a free service. With Credit Sesame, you can expect:
Credit Karma™Credit Karma™ is exclusively partnered with TransUnion. They are known for their wide range of credit tools, including a credit report card, credit comparison, credit score simulator, calculators, advice columns, etc. Their website is intuitive and user friendly. You will likely see fewer ads than their counterparts, Credit Sesame and Quizzle, but you'll only get a partial one-bureau credit report. With Credit Karma™, you can expect:
Quizzle®Quizzle® is exclusively partnered with Equifax, though they used to partner with Experian. With this new development, now consumers have access to all three major credit bureaus through a free online monitoring service. Quizzle® is more transparent about the fact that they'll be providing you financial advice tied to products that fit your financial information, and that they're partnered with some big loan companies like Quicken Loans. They are unique in that they provide a full credit report from credit reporting agency Equifax every six months. Their counterparts, Credit Sesame and Credit Karma™, only provide partial reports from their respective partnered credit-reporting agencies. With Quizzle®, you can expect:
Free Credit Report ScamsBe leary of companies that have "free credit report" or "free credit score" in their name. As mentioned, only Annualcreditreport.com is authorized to fill orders for your free annual credit reports. Other websites that claim to offer "free" services often come with strings attached, most of which are an initial free service that comes with a fee after the trial period. If you're being asked to provide any payment information upon signing up for a "free" service, make sure you investigate further. Those, and a few others, that are listed in the Free Trial Credit Report Site section are very clear about the free portion being a trial period for a potential longer and more comprehensive subscription to credit solutions. In addition to fees, know that AnnualCreditReport.com and the nationwide credit-reporting companies will not reach out to you to obtain personal information. If you're contacted by anyone claiming to be one of the three major credit-reporting agencies (Experian, Equifax, or TransUnion) or AnnualCreditReport.com, do not provide any of your personal information and make sure to contact the Federal Trade Commission (FTC) at spam@uce.gov. Why Accessing Your Credit Report Is ImportantThere is often a misconception that credit is something you own, bestowed upon you along with your Social Security number, a long list of freedoms, and access to free education. The truth is that credit is a product. We may feel we should have the right to full access and knowledge of accurate credit reports since they are used to determine many of our financial opportunities. The reality of the situation is that credit reporting agencies do the dirty work of continuously compiling up-to-date information on your home address, financial obligations, and payment history. This information is then sold as detailed reports to third parties, such as creditors, employers, and insurers, in order to determine one's creditworthiness.
Who Has Access to My Credit Report?Don't be afraid your credit report is out there for the taking. The Fair Credit Reporting Act (FCRA) protects you when it comes to who can access your credit reports. You have to give written permission to anyone requesting access to your report including, but not limited to, the following:
In order for a business to obtain a copy of your credit report, they must have a “permissible purpose,” as defined in section 604 of the Fair Credit Reporting Act (FCRA). Why Comprehensive Credit Monitoring Might Be Better for YouThe Federal Trade Commission (FTC) reported a study to Congress in 2012 concerning the accuracy of information in credit reports, specifically from the three major credit-reporting agencies. The study concluded that more than one in four people had potential errors on at least one of their credit reports, bringing light to the importance of monitoring all three credit reports.
You may be able to access your credit reports more often than just annually, but not under the best circumstances. Under federal law, you have the right to an additional free credit report based on the following:
By proactively monitoring your credit, you can stay ahead of this list. While employment may not be as much in your control, do not fall victim to being denied a position due to something as simple as your credit score. According to the Society for Human Resources Management, 47% of employers use credit reports when making a hiring decision. ConclusionThe best thing you can do for yourself and your financial future is to take responsibility and ensure your credit reports are accurate. The amount of money you can save from having the best possible credit score is monumental. At a minimum, request a copy of your credit reports from each of the three major credit-reporting agencies. If it's in your budget, sign up for one of the credit and identity theft monitoring services like Identity Guard® or Trusted ID® to ensure you're proactively nurturing your credit score. That way, you can aim to pay the least amount of interest on all of your future investments, saving you huge amounts in the long run. The post Best Free Credit Report Site of 2014 appeared first on The Simple Dollar. |
| Student Loan Forgiveness Series: Volunteering Posted: 17 Oct 2014 11:00 AM PDT Dealing with student loan debt can seem unbearable and overwhelming. As mentioned in the article, 15 Ways To Deal with Student Loan Debt, the average college graduate owes a whopping $40,000 after graduation, but almost 19% owes $50,000 and above and 5.6% owes over $100,000. That’s not the best way to start your financial future. Maybe in college you worked hard to save money, diligently keeping your student loan debt in mind. Maybe you made some huge financial mistakes during college and ended up taking out much more than you imagined. Whatever road you took to have this student loan debt, now is the time to start planning your exit route. One idea often thrown around when talking about student loan debt is the option of Student Loan Forgiveness. Student Loan Forgiveness is simply what it sounds like – a portion of your student loan debt gets forgiven, and you no longer owe that set amount of money. Pretty sweet, right? Many people don't explore this "too good to be true" option since they don't know about it, they don't understand it, or they don't think they'd qualify for such an amazing benefit. That is exactly why I decided to write this Student Loan Forgiveness Series, exploring different ways you can eliminate your student loan debt. First up, volunteering. Pro and Cons of Volunteering for Student Loan ForgivenessBefore I jump into the actual opportunities, first we need to consider the positive and negative factors of opting to volunteer to help ease or eliminate your student loan debt: Positives
Negatives
Volunteer Opportunities Offering Help With Student Loan DebtWith that said and done, if you still think volunteering for loan forgiveness is right for you, it's time to explore opportunities. Here are some examples of programs that offer assistance with your student loans for volunteering: SponsorChange.orgSponsorChange matches skill-based volunteers with nonprofits, while volunteers get assistance paying their student loan debts by sponsors who are willing to donate money. These nonprofits are eager to get the assistance of college-educated volunteers to help with their cause. Right now, opportunities are limited to certain cities, but it is expected to expand soon. First, create a profile so SponsorChange can match you with a nonprofit that is currently seeking someone with your skill set, experience, education, or passion for their specific cause. According to the website, each completed project comes with $1,000 toward your student loan debt, which you will get directly deposited to your account. Besides strangers, your sponsors can also include your family, friends, and coworkers, so encourage them to sign up as well. You can also encourage nonprofits to sign up, especially if you’re already volunteering with one. Nonprofits are required to be a 501(c)(3) Non-Profit Organization or Pending with a well-detailed service project and a defined scope. Qualifying Loans include:Stafford loans For more information, visit their website. ZeroboundZerobound is somewhat similar to SponsorChange. The organization connects volunteers with sponsors and organizations that are in need of assistance. Besides doing good and helping the community, volunteers are rewarded by getting any funds raised deposited toward their student loan debt. As a graduate, you first determine an amount you would like to raise over a specific period of time. Then, recruit donors to give toward your fundraising goals while Zerobound also recruits sponsors. Once your project is complete, the funds you raised are given to your student loan company. You'll also create a profile with your story and volunteer experience to inspire people to donate to your efforts. Like SponsorChange, they also allow you to recruit your own "sponsors," including family, friends, coworkers, and whoever else you spread the news to. You don't need to pay taxes on the money you raised from your sponsors, as they are considered gifts. However, you may be subject tax by any company sponsors. Zerobound takes a 2.9% processing fee and a $0.30 transaction fee on all transactions. Then, there's a 5% service fee on all funds raised for successful campaigns and an 8% fee if volunteers don't reach their goal. Also keep in mind they have eligibility requirements for organizations. Right now, they allow community organizations, nonprofit organizations, and government agencies. For more information, visit their website. AmeriCorpsAmeriCorps connects volunteers with nonprofits, public agencies, community groups, faith-based groups, and schools across the country. According to Finaid.org, if you volunteer with AmeriCorps for 12 months, you can receive a $7,400 stipend plus $4,725 to be used toward your student loans. However, that specific amount, known as the Segal AmeriCorps Education Award, varies from year to year and is based on the current U.S. Department of Education's Pell Grant amount. This amount is not only eligible for existing student loans, but it can also be applied for future college expenses as well. You're also able to split it up. For example, if you wanted, you could apply half of your award to your current student-loan debt. The other portion can be used for graduate school as long as you're using it prior to its expiration. AmeriCorps can also assist with student loans by the possibility of deferring them during your service and even possibly getting the interest paid. Be sure to apply for this award prior to your service to ensure you qualify. Other benefits can include training, a living allowance, and health insurance. Qualifying Loans include:Stafford loans For more information, visit their website. Volunteers In Service to America (VISTA)With AmeriCorp's Volunteers In Service to America, or VISTA, you'll be working with private, nonprofit groups that are working towards eliminating illiteracy, poverty, homelessness, and hunger. You'll need to make a year-long, full-time commitment to serve with a specific organization in some of "our nation's poorest urban and rural areas." According to NationalService.gov, volunteers work on the organizational, administrative, and financial capacity of organizations as opposed to directly tutoring children or literally building homes. Some examples include organizing shelter and job opportunities for victims of disasters, expanding programs to help low-income families obtain health insurance, and setting up transitional housing for the homeless hoping to turn their lives around. Like AmeriCorps, you'll then be eligible for the Segal AmeriCorps Education Award after completion of your service. According to FinAid.org, you'll receive $4,725 for 1,700 hours of service, but again, that number changes based on the current U.S. Department of Education's Pell Grant amount. During that time, you'll receive also receive a "modest" living allowance and health benefits. For more information, visit their website. Peace CorpsPeace Corps members volunteer in more than 70 developing countries. Opportunities range from teaching conversational English to teaching AIDS prevention: Some of the opportunities include:
Once you complete your service, you may be eligible for partial loan forgiveness under the Public Service Loan Forgiveness (PSLF). However, the only student loans eligible for this forgiveness plan are ones that were received under the William D. Ford Federal Direct Loan Program (Direct Loan). Other loans may be eligible for PSLF if you consolidate them into a Direct Consolidation Loan. Be sure to speak with a recruiter to understand the specifics prior to enrolling. To be eligible for this forgiveness program, you'll still need to make qualifying payments under a specific repayment plan during your service. However, this also includes income-driven repayment plans and, since you won't be earning much in the Peace Corps, this monthly payment can be very low, even zero. You may also be eligible for partial cancellation of a Perkins loan depending on your loan lender. According to FinAid.org, that cancellation can be up to 15% of your Perkins loan for each year of service with the Peace Corps. Other student loan benefits with the Peace Corps can include temporary deferment of Stafford, Perkins, and Consolidation loans during your service. Other perks include an allowance of $7,425 upon completion of service, full medical and dental coverage, a monthly living and housing allowance, 48 paid vacation days, travel to and from country of service, and language and cross-cultural training. For more information on the Peace Corps, visit their website. Things to Keep in Mind for Any Student Loan ForgivenessOnce you think you have the chance to get a portion of your student loans forgiven, it can be quite tempting to instantly sign up. But before you apply and especially before you sign a contact, you need to thoroughly understand how you will receive this loan reimbursement and what you'll be doing to get this. Here is what you need to know:
The post Student Loan Forgiveness Series: Volunteering appeared first on The Simple Dollar. |
| Posted: 17 Oct 2014 07:00 AM PDT On September 18, the S&P 500 closed the day at 2,011.36. As of my writing, the S&P 500 sits at 1,864.84. In other words, the S&P 500 has lost 7.3% of its value in less than a month. Let’s put that in dollars and cents. Let’s say that on September 18, I had $100,000 in my retirement account invested in a stock mutual fund that’s made up of something very similar to the S&P 500. This is pretty typical for people who are saving hard for their retirement. Right now, that investment is only worth $92,715.38. $7,284.62 has vanished into thin air. If you had $500,000 invested on September 18, $36,423.12 has vanished since then. That kind of quick drop is scary to a lot of people. It’s not altogether different than the feeling you get when you’re riding a roller coaster and you start to drop off of a tall hill. It can make you feel a bit queasy if you think about it too much. In the last few days, I’ve received a couple of messages from worried readers who have watched their retirement savings drop so quickly and have asked me if they should be doing anything. My answer? No. Here’s why. Stock Investments Are Long-Term InvestmentsFirst of all, as an individual investor, you shouldn’t have much money in stocks if you’re not investing for the long term. By long term, I mean ten years at a minimum. If you plan on using money before the ten year mark, it shouldn’t be invested in stocks. Why is that? The biggest reason is that stocks are volatile. Over the short term – say, a year – stocks can gain a lot or lose a lot. If you’re invested broadly in the stock market (as most people are, in a mutual fund), you can have years where your investment goes up by 25% or drops by 40% (as in 2008). It’s really hard to predict which of those two it will be. I like to use the typical person’s diet as an example of volatility. On some days, you’ll eat a big unhealthy meal or two and your calorie count for that day is really high. On other days, you’ll eat a small healthy breakfast, skip lunch, and eat a simple homemade dinner – your calorie count is really low that day. It’s volatile. Over the long term, though, the average is usually pretty sensible – but that doesn’t mean that every day or every week will be perfect. That’s why you shouldn’t measure the success of your dietary choices based on your weight after one day or one week. Instead, you should look at a lot of measurements over a long period of time and the trend matters more than anything. A few measurements, particularly ones placed close together, aren’t too relevant. The stock market is just like that. In the short term, stocks might dip – imagine your weight the morning after you eat low-sodium foods and drop some water weight – or they might shoot up – imagine your weight the evening after you eat two or three really heavy meals. Over the long run, though, they’ll average out to their long term trend, just like your weight. Stocks Go Up Over the Long TermTake a look at this chart. It shows the history of the S&P 500 since 1960. What you’ll notice is that, over that time frame, stock values are constantly going up (with some significant wobble). How about this chart? Here, you can see the Dow Jones Industrial Average since 1900 – that’s more than 110 years of data. Imagine that – it looks an awful lot like the other chart, featuring a pretty constant upward trend (with some significant wobble). Warren Buffett states that it’s realistic to expect a 7% average return from the stock market over the long haul. What’s the point here? Stocks go up over the long term. As long as most Americans work – and they do – and as long as worker productivity keeps going up – and it does, practically like clockwork – companies will produce more and become more valuable, causing their stocks to inevitably rise in value over the long term. Short-Term Dips Are NormalWhenever people start selling off stocks, the price drops. That makes sense. If lots of people are selling, that means there are more sellers than buyers and thus in order to sell, the sellers have to drop that selling price. It’s no different than items that don’t sell at the store – eventually the price drops and they go on “clearance,” right? There are all kinds of reasons for people to sell. Maybe the person needs cash for retirement. Maybe they’re just shifting their investments around. Sometimes, people sell because they see other people selling. Eventually, though, someone is going to buy. Remember, stocks hold their value because of the future of those companies. If that company looks healthy for the next several years and is paying out dividends, that stock is going to always have at least some value. As the price drops, it’s eventually going to become a bargain. When that happens, a lot of buyers come out of the woodwork to get that bargain. You can think of a stock market dip as being like a mild version of a Black Friday sale. People see bargains on those stocks, so they open up their wallets and buy. This is why stock market dips always end and start rebounding. Eventually, the people who are selling run out of things to sell and the people buying “bargains” increases in number. This type of “dip” happens very regularly. There are tiny dips on a daily basis. There are bigger dips – up to 10% of the value of the market – that happen over the course of a few weeks almost yearly. Every decade or so, there’s an even bigger dip – 20% or 30% or 40%. At the end of those dips – every time in the history of American business – things rebound and the value goes back up to where it was before and beyond. If You Sell Now, You’ll Lose Money (Unless You’re Insanely Lucky)The only reason to sell stocks is either when you actually need the money or when your timeframe is getting short enough that you want your money in something less volatile. If you try to “guess” the right time to sell to make a profit, you’re going to run into several factors that work against you every time. First, you’re going to get hit with a tax bill on that sale. This is always true, but if you’re selling with the intent of buying later, some of the proceeds from your sale are going to vanish into Uncle Sam’s coffers, meaning you’re not going to be able to buy as much as you once have. (This doesn’t matter in a 401(k) because all of the taxes are deferred – as long as you keep the money in the account, you can buy and sell individual investments as you please.) Second, you’re likely to miss out on some dividends. If you have your money out of the market for three months, you’re going to miss out on a dividend payment. If you’re out for a year, you’re going to miss out on several. That’s money you won’t receive. Third, you’re probably missing the “top” of the market. That’s because you’re not psychic. No one is. If you sell right now, you already missed out on a hefty chunk of the drop. Fourth, you’ll probably miss the “bottom” of the market when you buy back in. Again, that’s because you’re not psychic. No one is. Unless you guess perfectly, you’ll probably miss at least some of the rebound from the true bottom. Finally, you may incur brokerage fees on both the “sell” and the “buy.” When you sell off your stocks, your brokerage will probably ding you with a fee. The same will likely happen whenever you buy back in. This also eats into whatever you gain. In other words, if you time things perfectly and hit both the “top” and the “bottom” at the right moment, you might come out ahead – but you won’t come out as ahead as you thought. If you miss either the “top” (for selling) or the “bottom” (for buying), you’re running a healthy risk of losing money on the move. Again, only sell stocks when you’re either cashing out for good or you’re moving to something with different volatility and long-term risk for good. Just Sit TightIt’s completely normal to worry a little when your stocks drop. The thing you should resist is the desire to make a move. If you do make a move, it’s very likely that you’re going to lose money compared to just sitting still and riding out the drop. So just sit tight and don’t make a panicked move. You’ll be glad you did. The post The Panic Button appeared first on The Simple Dollar. |
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