If You Haven't Checked Your Credit Report This Year, Do It Now. No, Really

Updated Oct. 5, 2021 - First published on Sept. 10, 2019

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Don't wait to check your credit report. Checking it now may save you frustration, legwork, and even money.

Your credit report affects more than your credit card's interest rate and your odds of being approved for a loan. It may damage your ability to get a job, rent an apartment, or get affordable car insurance. If you haven't checked your credit report recently, you could be sending the wrong message to more people than you realize.

Not convinced you need to check your credit report now? Keep reading to learn the reasons you'll change your mind.

Your credit report may contain errors

According to the Federal Trade Commission, 20% of Americans have incorrect information on their credit reports. If your rental application, credit card application, or job opportunity was denied due to some clerical error, you'd be mad, right? Prevent this by checking your credit report regularly.

Check your credit report for accuracy, keeping an eye out for the following:

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Late payments -- Was the payment in fact late, or did the creditor make a mistake?
Active accounts -- Do all the accounts belong to you?
Closed accounts -- Did you close the accounts, or was there a mistake?
New inquiries -- Did you initiate the inquiries, or is it possible that someone else has stolen your identity?
Collections -- Are the collection accounts accurate?

If something doesn’t seem right, contact the reporting credit bureau first. All three bureaus -- Equifax, Experian, and Transunion -- provide an online dispute form. Complete it with as much information as possible and include any supporting documents you have to prove your point. Each dispute must include the facts and the action you request (removal or correction).

After contacting the appropriate credit bureau, contact the creditor that reported the inaccurate information. Write the creditor a letter with the same details and reasons and provide the documentation you have to prove your request.

If the creditor sticks with its original report and the credit bureau doesn't come up with different findings, the bureau must include a statement of your dispute on the credit report for future creditors to see.

Checking your credit report long before you'll be subject to a credit check for a loan, job, or credit card application is important. An inaccurate credit report can lead you to be denied a loan, a lease, or even a job. On top of that, it may cause you to pay higher interest rates on loans, higher premiums on insurance, and higher APRs on credit cards.

Someone may have stolen your identity

According to Javelin's 2018 Identity Fraud Report, 16.7 million Americans were victims of identity fraud in 2018. Identity fraud can include opening new accounts in your name and using your existing accounts, such as credit cards, to make fraudulent purchases.

While you may see unauthorized transactions on your statement from an established account early on, it's less obvious when someone opens an account in your name. With no knowledge of the account, some victims only find out once they start receiving collection calls for unpaid balances. At this point, it could take months to fix the situation. Once you find out, file an identity Theft Report with the FTC and place a credit freeze on your account.

Checking your credit report now may help soften the blow and decrease the amount of work you have to do to repair the damage.

You need to answer to future lenders if you want new credit

If you plan to apply for new credit in the near future, lenders will look at your credit report. Knowing what's on it helps determine your next steps.

If your credit is in worse shape than you thought, take the time to correct it before applying for the new loan. For example, catching up on late payments, taking care of collections, or decreasing excessive credit card debt may help your credit score and chances of loan approval.

You may also find accounts that don't belong to you on your credit report. Lenders use all debts reporting on your credit report to determine your debt-to-income ratio. Accounts that don't belong to you could inflate your DTI ratio, decreasing your chances of loan or credit card approval.

Even if the information on your credit report is accurate, you need to know what it says. Maybe you forgot about the 30-day late payment you made one year ago or the medical account that accidentally went to collections. Preparing yourself ahead of time can help you have a productive conversation with your potential lender.

Your new potential job may depend on your credit report

16% of employers check all applicants' credit before making a hiring decision for all positions, according to the National Association of Professional Background Screeners

Employers look for red flags on your credit report that may signify trouble. They look closely at your credit balances, as well as your history of filing for bankruptcy. Employers want to know if you're in any type of financial distress that may cause you to resort to illegal tactics, such as theft or bribery.

Employers also look at your credit report to get a feeling of your sense of responsibility. If your credit report has numerous late payments or excessive outstanding debt, it could be a sign of irresponsibility. While credit checks are most common for executive, managerial, or money-handling positions, any employer may ask to pull your credit before making a decision (though they can't do so without your written permission).

You get a free credit report from each credit bureau

Thanks to the Fair and Accurate Credit Transactions Act of 2003, you can receive a free credit report from each of the three credit bureaus per year. Just visit AnnualCreditReport.com to get started. Rather than waiting until the end of the year to pull all three reports, spread them out throughout the year. This way you may catch issues with your credit early on and take the necessary steps to fix them right away.

It's easy to get your free credit report, and it won't hurt your credit score. Within a matter of minutes, after verifying your identity, you'll be able to download and view your credit report at your leisure. Take your time reading each line for accuracy. Compare the report to your records and dispute any issues you see immediately.

Don't wait until year-end to check your credit report

Starting now, create a plan to spread out your free credit reports. Even if you don't intend to apply for any new loans in the near future, knowing what is on your credit report can help in other areas of your life. Checking one report every four months gives you a better chance of keeping your credit report accurate and looking attractive to lenders, insurance companies, landlords, and employers.

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4 Little-Known Perks of a Costco Membership

By: Dana George | Updated July 25, 2023- First published on July 25, 2023

Costco has a faithful legion of fans -- otherwise known as members. There are 123 million of them, to be precise. Throughout the years, Costco has added new membership benefits, some less well-known than others. Here are four that members may not realize exist.1. RV parkingWhether you spend part of each year visiting the highways and byways of North America or you're hoping to rent an RV for your next vacation, it's good to know that some Costco locations allow RVs to park overnight in their lots. Free overnight parking can certainly cut down the cost of travel.Consider the convenience. You arrive near closing time, pick up all the items you've already burned through or forgotten to bring, and spend the night in a well-lit lot. Granted, pulling an RV into a (typically) packed Costco lot may not be the easiest thing you've ever done, but once the lot clears out, you may even hear the sound of crickets.Notice we said that some Costcos permit overnight parking for RVs. When a store does not, it's often because local ordinances don't allow it. However, with so many Costcos scattered across the country, you should have options.The easiest way to determine which Costcos allow overnight RV parking is to check this Costco locations finder. Once you see one near where you plan to stay, call that store and ask to speak with the manager. Once you have them on the line, ask about their overnight policy. If the store does permit overnight parking, ask for permission to stay. According to the Camper Report, Costco has rules for campers, so you may want to ask where you can get a copy of those.2. Home, auto, renters, and specialty insuranceIn the back of our minds, most of us realize that Costco offers insurance, but we're not sure of the details. Partnering with CONNECT, powered by American Family, Costco members receive discounted rates on many of their insurance needs. Beyond the initial discount, CONNECT allows you to add more. For example, you may qualify for a safe driving, multi-policy, or student discount.And if you're an Executive member, CONNECT sweetens the pot even more by providing you with benefits like roadside and lockout assistance.At a time when many people are unhappy with the insurance industry, 9 out of 10 members who sign up for CONNECT coverage go on to renew their policy with the insurer.3. Home and business suppliesWhile it may occur to you to pick up envelopes and printer paper at Costco, have you ever taken advantage of the low prices on items like checks, ink stamps, and address labels? Many of the supplies you need to take care of business -- at home or in the office -- are available for up to 50% off.Executive members enjoy an even deeper discount.4. Floral deliveryOnce you factor in delivery costs, sending a lovely bouquet of flowers to someone can cost a small fortune. That's not the case at Costco. Costco's online floral department offers everything from anniversary and graduation bouquets to bulk flowers. And here's where the real savings come in: Delivery is free. The price you see listed on the site, plus tax, is the price you pay.Few things are more frustrating than typing your credit card number into a florist's site, only to learn that delivery costs nearly doubled your purchase price.As Costco layers on new perks, keeping track of them may become even more difficult. It's a good idea to check periodically to see if there are any you're not taking full advantage of.

SNAP Benefits Will Increase in 2024. Here's How Much a Family of 4 Will Receive

By: Emma Newbery | Updated Aug. 7, 2023- First published on Aug. 7, 2023

Are SNAP benefits enough?A monthly payment of $973 for a household of four equates to around $8 per person per day. While SNAP benefits aren't designed to cover everything, it isn't easy to feed a family on around $2.66 per person per meal. Indeed, research from the Urban Institute showed that the maximum benefits often don't cover a family's food costs. "Amid inflation, SNAP benefits did not cover the cost of a meal in 99 percent of counties in 2022," said the report.The new benefit amount -- a monthly increase of $34 for a household of four -- is roughly in line with cost-of-living increases measured by the Bureau of Labor Statistics (BLS). Its latest Consumer Price Index figures show that the cost of all items in June, 2023 was up 3% over the year before. However, inflation does not impact all aspects of life equally.The BLS data also shows that food at home increased by 5.7% year over year. The new SNAP benefits do not match this. Hypothetically, a 5.7% increase in benefits for a family of four would mean a new monthly payment of $992, rather than the planned $973.In addition, this year brought the end of the pandemic-era emergency food benefits throughout the country. According to CBPP calculations, this meant the average person received about $90 a month less in SNAP benefits. Even factoring in the increased SNAP benefit amount, many households have seen a significant drop in their food benefit amount, and the revised 2024 payments will do little to close this gap.How to make your SNAP benefits go furtherIt can take time and energy to provide healthy food for your family on a strict budget. The challenge is that in a busy household, time and energy are also limited resources. Even so, if you can carve out some time to plan your grocery-shopping trip, it can make a big difference.Here are some ways you might stretch your SNAP benefits a little:Use cash back apps and coupons: Look for cash back apps that work in stores that take your EBT card. You'll usually need to download an app and then scan your receipt after you've been to the store. Pay attention to coupons, whether in store or online as these can often carry hefty discounts.Always shop with a list: Planning your food shopping is one of the best ways to reduce costs. Even more so if you use a cash back app or coupons. Check what offers are available on items you normally buy before you go shopping. Mark the items that qualify for rewards or discounts on your list, so you don't miss them when you're shopping.Look for double up programs: There are Double Up Food Bucks or other programs in various states that essentially give you two for one on all produce at participating farmers markets and stores. It's a great way to get more fruit and vegetables for your SNAP dollars.Buy in bulk and batch cook: It isn't always easy to find the extra cash for bulk buying when you're eking out every cent. However, if you can manage it, you may be able to save both money and time. You might, for example, batch cook a stew and freeze portions for future meals.Unfortunately, food insecurity still impacts many American households. If you don't have enough money to feed your family this month, look for additional help. Find out what food pantries and soup kitchens are operating in your area on which days, and whether you'll need to present any documents. Call United Way at 211 for information about assistance programs in your area.

Does Your Income Make You Upper Class, Middle Class, or Lower Class?

By: Christy Bieber | Updated Sept. 5, 2023- First published on Sept. 5, 2023

Incomes vary widely across the United States, with some people making many times the amount that others earn. If you've ever wondered how your personal finances stack up, and what "class" your income officially puts you in, here's what you need to know.What income do you need to be upper, middle, or lower class?Based on 2021 data, here's what you would need to earn in order to be in each class:Lower class: This is defined as the bottom 20% of earners. Those in the lower class have an income at or below $28,007.Lower middle class: This is defined as individuals in the 20th to 40th percentile of household income. Earnings among this group are between $28,008 and $55,000Middle class: The middle class is officially those whose earnings put them in the 40th to 60th percentile of household income. The income range is $55,001 to $89,744.Upper middle class: Anyone with earnings in the 60th to 80th percentile would be considered upper middle class. Those in the upper middle class have incomes between $89,745 and $149,131.Upper class: Finally, the upper class is the top 20% of earners and they have incomes of $149,132 or higher.Take a look at these numbers and see where you fall based on your own earnings. And remember, this is a snapshot in time -- your earnings can change throughout your life, and so can your class designation.Will your success be determined by your income and class?It's probably not a surprise that those in the upper classes or in the upper middle class do have a higher net worth than those in the lower class or the lower middle class. But the disparity is greater than you might think. While the median net worth of those with incomes of $149,132 or higher is $805,400, the median net worth of those in the lower class is just $12,000.Your income impacts how easy it is for you to build wealth. If you make more money, it is easier to save it and invest it in a brokerage account where it can work for you. If you make less money, then you may struggle even to cover the necessities out of your checking account, much less to buy valuable assets that help you grow richer over time.But that doesn't mean people who don't make a lot of money can't be a financial success. A lot depends on what you do with the money you actually have, including how much you spend and how much you save.There are plenty of people who make over $100,000 a year who live paycheck to paycheck, and plenty of people with incomes that put them squarely in the lower or lower middle class who have diligently saved and grown quite wealthy over many years.Here's how you can improve your standingDon't be discouraged if you aren't in the class you hope to be. For one thing, you have opportunities to increase your income by taking the following steps:Learning new job skills: You could obtain a certification, take part in a management training program at work, or take some classes to develop skills that may help you get promoted (such as computer training courses or public speaking classes), depending on your industry.Take on a side hustle: The average side hustle brings in $483 per month, which is a good amount of extra money that could make a meaningful difference in your income.Work some extra hours: If your company allows you to work overtime, take advantage of it, as many people are paid time and a half for overtime hours.Negotiate your salary: According to Pew Research, when workers negotiated for higher pay, 28% said they received the extra money they asked for and 38% indicated they were given more than originally offered but less than their ask. Whether you are getting a new job or staying at your current job but feel you're underpaid, it doesn't hurt to make a request for more money -- especially if you can find salary data to back up the fact that others in your industry are paid more.And even if your earnings never put you in the top 20% of earners, you can still have a rich life and end up with the financial security you deserve -- especially if you prioritize saving as much as you can for as long as you can.

5 of the Best Costco Deals for September 2023

By: Maurie Backman | Updated Sept. 7, 2023- First published on Sept. 7, 2023

Some people try to limit their Costco shopping to groceries and household essentials alone. But Costco's inventory goes well beyond food and basics like toilet paper. You can buy everything from electronics to kitchen gadgets to apparel at Costco, and often at a lower price than at other retailers. You may want to take a look at these specific items from Costco, since they happen to be discounted right now.1. $400 off the Lenovo Slim 7i 16" Intel Evo Platform Touchscreen LaptopA laptop upgrade is probably not something you'll do on a whim, since there's a hefty cost involved. But if you've been saving for a new laptop, you may want to check out this Lenovo model.Right now, Costco has it for $400 off online (though note that prices can vary between Costco's website and what you see at your local warehouse club store). It's powered by a 12th Gen Intel® Core i7-12700H (14-Core) Processor and is wifi- and Bluetooth-enabled. It also features an integrated webcam and a backlit keyboard.Plus, when you buy a laptop at Costco, you get a second year warranty included for free. You also get free tech support should you need help setting your laptop up or navigating issues with it.2. $200 off the Kirkland Signature Stainless Steel 6 Burner Gas GrillGrilling season may be coming to an end. But that actually makes now a good time to buy a new grill, because there's less pressure to make a near-term purchase. You can take your time comparing models and prices to see what works best for you.One option to consider is this Kirkland gas grill. It features 737 square inches of cooking surface, LED knobs, and a grill cover for added protection. Do note, however, that assembly of the grill isn't included in your final price.3. $9 off Speedo Men's Swim TrunksYou'll often hear that the best time to shop for seasonal items is right after their specific season wraps up. So it's not so surprising to see men's swim trunks on sale at Costco right now. If you're looking to stock up for the summer of 2024, it's a good time to pounce, since you're likely to rack up a smaller credit card tab.4. $40 off the Keurig K-Supreme Plus Special Edition Single Serve Coffee MakerA great way to save money is to make coffee at home rather than buy it daily from your local coffee shop. Costco has this Keurig model on sale for $40 off. It allows you to choose between five different brewing strengths and five cup sizes. It also comes with an 18-pod starter pack.5. $8 off the Brother P-Touch PT-2040C Label Maker with SuppliesIf you've been trying to get your home organized, a label maker might help you get the job done. Costco is offering this Brother P-Touch label maker at a discount this month. It allows you to save up to five options for instant reprinting and features easy-to-peel labels for indoor use. You can also personalize your labels with different fonts and emojis.Many people just spent a small fortune of money on back-to-school shopping. So if your personal finances are pretty tight right now, it may not be the best time to jump on these Costco bargains. But if any of these picks fulfill a specific need for you, and you can afford them, then you may want to consider adding them to your shopping cart.

How Much Would the Monthly Car Payment Be on a $50,000 Car?

By: Christy Bieber | Updated Sept. 10, 2023- First published on Sept. 10, 2023

As you can see, a longer payoff term comes with lower monthly payments that could be more affordable. But you significantly increase your interest costs over time if you take many years to repay a loan.And even with a pretty reasonable interest rate and a long payoff time, the monthly payments on a $50,000 car are still very expensive.Can you afford a $50,000 car?In general, you should try to keep your monthly car payments to 10% of your take-home income or less. If you wanted to stick to this rule of thumb and buy a $50,000 car, you would need a monthly take-home income of at least $7,240 if you got a car loan at a below-average rate and stretched out your payoff time for a long time.Many people will find that purchasing such an expensive car really isn't affordable. If that's the case, that's OK. You have a few options, including:Buying a less expensive used car. This is often your best bet, since cars depreciate quickly and you take a huge financial hit if you buy brand new.Saving up to buy a more expensive car so you don't have to borrow as much. If you want a nice new car, there's nothing wrong with prioritizing this in your budget and saving up enough money to make a larger down payment so you can purchase the car and keep your monthly payments reasonable.One technique that worked great for me was buying a cheap used car, paying it off quickly, and then continuing to make "monthly car payments" into a savings account (basically diverting the money I was using to make car payments into savings).After driving the reliable used car for a long time, I ended up with enough money to buy a really nice used car for cash, which I drove for well over a decade while continuing to make "car payments." That, in turn, gave me a big enough balance to finally buy the brand-new car with cash that I'm driving now.Committing to a huge car loan you might not be able to afford is not a smart financial move, so you may want to try my approach -- especially with the price of new cars climbing to a point where borrowing for them may be beyond reach.