Free credit score?

money layeredWhen consumers get their credit report for free, some are surprised it doesn’t contain their credit score. The three digit score is a staple in the consumer financial industry, yet it doesn’t come with our free credit reports. It’s mystifying, but the excuse has always been that as long as your report is clean your score will be good. Many consumer advocates are trying to change that, and introduced in Congress the Free Access to Credit Scores Act to make the score available for free with your credit report.

A solid credit score will earn you cheaper rates on mortgages, bank loans, credit cards, and possibly even insurance premiums. Yet, companies want consumers to pay $10-15 for their score. Your other option is to enroll in a “free” trial that ends up costing you money.

To get a so-called free credit score, you’re often enrolled in a trial for credit monitoring services that can be costly. Enrolling in these programs may not even give you a meaningful score. The Consumer Financial Protection Bureau found about one in five consumers may not even get the score they would if they obtained it from a lender. The consumer watchdog advises against paying for credit monitoring.

Under this proposed law, the free score would be a reliable score actually used by lenders rather than an “informational” score. You would have access to all scores from the previous year that are stored in your file, and information accessed about your creditworthiness.

Currently, you are entitled to a score if it results in adverse action like denial of a loan.

While this is debated in Congress, now is a great time to remind you about your free credit report. You can access it through Annual Credit Report.

Hopefully we are one step closer to seeing our score as well as our report.

Related links you may like:
1 in 5 credit reports have mistakes
When you can see your credit score
Fixing a mistake on your credit report

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Tweet your way to customer satisfaction

airline lineThere is an art to complaining, and I’ve always tried to emphasize that to consumers who call me for help. If you don’t approach the situation properly, you may be your own worst enemy and end up with no resolution. How the times have changed. I started out in the business teaching people how to complain properly in writing, and then with online disputes, and now it’s turned to social media disputes. If used effectively, Twitter and Facebook are great tools to get customer satisfaction.

Facebook and Twitter have evolved into sounding boards and real time reflections of a company’s customer satisfaction. Companies are beginning to realize they need to manage their social media pages. Some businesses are better than others in dealing with this new frontier in customer service.

Recently, I put social media complaints to the test. We were flying back to Kansas City, and of course it was snowing in Cleveland. Many airline sites now allow you to track the history of your plane, so you can see if it’s on time or delayed in another part of the country. I noticed that our plane was delayed in Canada and still had to go to New York and New Hampshire before making its way to Cleveland. Based on the available data, I knew our plane was going to be four to five hours late.

I called the airline and tried to use the old fashioned version of customer service. After waiting on the phone for a half hour, I got a representative who offered me no help. She just repeated what the computer said. The plane was on a short delay, even though digging deeper on that same computer system showed at least a four hour delay based on all the cities that plane had to visit before Cleveland.

There was another plane leaving for Kansas City just two hours after our scheduled flight. I asked for seats on that plane. I was told that wasn’t possible.

Out of complete desperation, I got on Twitter and shared my travel story making sure I mentioned the airline. Within minutes, I got a direct message from the airline asking me for my reservation #. I sent it back to the airline, and they asked if I wanted to get on the 8 PM flight. Within 30-40 minutes, I had two seats on the 8 o’clock flight.

Once it was resolved, I tweeted my satisfaction showing the airline I appreciated what they did.

When we arrived at the airport to depart Cleveland, we saw long lines of frustrated passengers trying to rearrange their flights with customer service. People were waiting in line and on the phone. I wanted to get on the loud speaker and tell all those people to hang up and get out of line and get online. Sharing your travel nightmare on Twitter or Facebook is quick, easy, and the best way to get customer satisfaction.

Airline social media pages are full of customers who are asking for help, and full of responses from the airlines. While many airlines monitor their social media page, some companies don’t respond to these types of complaints. Some consumers say their complaints are even erased from some Facebook pages.

I think companies need to improve their social media response efforts, so the expectation of a response is more uniform. That being said, customers also need to improve their attitudes toward companies.

I’ve always found that you’re more likely to achieve a resolution if you put aside your deepest hatred for the company. Keep a level head, and share your story in a concise and friendly manner. Don’t be accusatory or sarcastic. Just use straight-forward language and sell yourself as an appealing and appeasble customer.

Next time you have a problem, try social media. You might be surprised at the response.

Filing your taxes for free

money angle Tax time is agonizing for many as they try to navigate the maze of rules and forms that is the Internal Revenue Service. Computer programs have made it much easier to calculate your taxes for cheap. Before you pickup a program at the store or consider hiring a CPA or tax professional, check to see if you can get  your taxes done for free.

The IRS offers a service called VITA or Volunteer Income Tax Assistance for anyone making $51,000 or less. I used it when I first started in this business and made peanuts. While it’s a good service, you need to be careful. Most of the tax returns these volunteers prepare are simple. However, if you freelance as I did back then to make some extra money be careful. My taxes were done wrong, and then I was stuck fixing the mistakes by myself years later when they were spotted. The volunteer didn’t fully compute the business tax properly for independent contractors and I ended up owing a few dollars more. It wasn’t much money, but it was a headache to fix the mistake.

I still saved money with the volunteers because I got my taxes done for free, but I spent hours fixing their mistakes that were duplicated for a few years.

That was back in the days when people filed paper returns. Now, that computers do the hard work for you those mistakes are less likely to happen. The IRS also has Free File programs which allow you to prepare your taxes for free with online software if you make $57,000 or less. While it’s called Free File, you need to read the fine print on the individual company you choose. It’s only free to file your federal return, and some sites charge you a high fee to file your state return.

Check a few sites before you decide on a company. You should be able to get your state taxes filed for under $20.

 

Registering for your wedding

Chef Wes

My husband using some of our new kitchen tools.

If you’re having a summer or fall wedding, this is a good time to start thinking about creating a gift registry. It’s a great time to reinvigorate your fiance, and get them involved in the planning. My husband loved registering and checking out all the kitchen gadgets. The key is to give your guests choices.

First, you need to choose where to register. I suggest shopping the stores before you choose one. Go to two or three and figure out if they have what you’d like to have in your home.

Look for products in a wide variety of price points as every guest will have a different giving level especially if your guests are from different parts of the country. Having lived in several parts of the country, I’ve realized there are huge differences in price points for weddings. Some of it’s personal, but a good chunk of decisions are regional.

When you’re browsing the store, it can be overwhelming because you’re deciding on so many things. What kind of dishes, pots and pans, or mixer do you want for the next 20 years?

Be realistic. It’s easy to get carried away and register for items that you’ll never use. We had a few on our list, that we’ve used once in six months. I tried repeatedly to get some removed from our list, but my husband insisted we would need it. I just rolled my eyes and let him relish in the fun of registering. He is handy in the kitchen, and the last thing I wanted to do was discourage him from planning and cooking.

The stores all offer different programs. They want you to sit through their speech about the pros and cons before they allow you to register. One store even wanted to follow us through the store to make suggestions. Luckily, we convinced them otherwise telling them we already did a site survey and knew what we wanted.

Some stores give you cash back on a percentage of the purchases made from your registry. Others, give you nothing for bringing dozens of your friends and family to their store to shop. Also, consider shipping and handling. Many stores will charge you for it online while others give you free shipping for orders over $99. Bed Bath & Beyond will only ship for free if you find a promotional code or if you go to the store and don’t find the item you need.

We registered at Macy’s and Bed Bath & Beyond, and by far the majority of our guests bought items at Bed Bath & Beyond.

Once all the registering is done, sit back and relax. It’s like Christmas everyday as you get close to the wedding and have gifts arriving. I laughed at some that arrived in huge boxes with a small kitchen gadget in them. Another one arrived with cups wrapped in just a few pieces of paper. Needless to say some were broken and we called for replacements.

Finally, keep track of everything as you receive it. It gets confusing as the gifts start piling up. We waited to send thank you notes until after our wedding so we could send notes with our wedding pictures on them, and I think some guests would have prefered thank you notes as the gifts arrived. I say this because when you send something you always wonder if the recipient got it. We had people asking if we received gifts, and I felt bad when they inquired. It’s just something to consider when you’re figuring out the best way to thank someone.

Just make sure you take the time to write a thank you note at some point. I can’t tell you how many weddings I went to where the bride and groom never said a word about the gift. I don’t want a big pat on the back, but I want to know you received it and put it to use.

Are your friends and relatives ready for electronic federal benefits?

piggy bank, moneyThe federal government is going high-tech and paying benefits electronically like Social Security. All federal benefits and non-tax payments will be directly deposited into your account starting March 1 since electronic checks are safer, easier, and more reliable than paper checks. This will be a big switch for Ohio residents, as the state has the 5th largest number of people receiving paper checks from the Social Security Administration.

If you receive benefits from the Social Security Administration, Veterans Affairs, Railroad Retirement Board, Office of Personnel Management, or Department of Labor (Black Lung) you will need to make the switch. Time is running out. You need to add a bank account number or sign up for a Direct Express card account by March 1, 2013.

Seal of the United States Social Security Admi...

Seal of the United States Social Security Administration. It appears on Social Security cards. (Photo credit: Wikipedia)

The Direct Express card is a prepaid debit card. You can make purchases, get cash pack, or make payments if MasterCard is accepted at those locations or by those service providers.

Some people may feel this is inconvenient especially in Ohio where a large number of people still receive paper checks and across the nation for the elderly population collecting social security benefits. While some older Americans use computers, many have no idea how to turn on the power. It’s a necesary change, though.

It’s a move that is long overdue.  Identity theft is rampant, and this will put people at less risk. With paper checks, anyone can steal it and potentially steal your personal information. Also, this will save the government money. It cost the government $120 million dollars to distribute paper checks. That number keeps growing as baby boomers are retiring. In Ohio alone, the savings will be more than $2 million a year.

If you have relatives or friends who are effected, make sure you help them out with the change.

1 in 5 consumers has a mistake on their credit report – have you checked your report?

Credit card cash registerWe rely on our credit to buy homes, get a credit card, and get a job. A new report by the Federal Trade Commission found five percent of consumers had errors on their report that could lead them to pay higher prices for everyday products like auto loans and insurance. Plus, one in five consumers had an error on at least one of their three credit reports. So, when was the last time you checked your credit report?

“These are eye-opening numbers for American consumers,” said Howard Shelanski, Director of the FTC’s Bureau of Economics.  “The results of this first-of-its-kind study make it clear that consumers should check their credit reports regularly.  If they don’t, they are potentially putting their pocketbooks at risk.”

While there are horror stories out there from consumers who disputed mistakes only to have it stay on their account, the Congressionally mandated report by the FTC found four out of five consumers who filed a dispute saw a modification to their report.

A January NewsChannel 5 story I did featuring a Northeast Ohio woman who had her credit report file mixed with another woman’s.

credit reportYou can get a free report through the website, Annual Credit Report. It is the only free site where you can get a report. The other ones you’ve heard of , perhaps because of the catchy jingle on TV, will charge you fees or enroll you in a free trial program. Use Annual Credit Report to access your reports.

You will have to give your social security number, and answer a series of multiple choice questions. This is to prove you are who you say you are so your information is not released to an identity thief.

Look for mistakes and dispute them
Review the reports carefully. You will have access to three reports, one from each of the three credit reporting agencies. If you want to keep tabs on your credit year round, check one report every four months from Annual Credit Report. For example, check TransUnion in January via Annual Credit Report. In May, check Experian through Annual Credit Report. In September, check Equifax through Annual Credit Report. It does not matter which order you check the reports.

If you find a mistake, dispute it. It’s best to start a paper trail of your dispute so print off any online disputes you file. Some attorneys will even suggest you mail a certified copy of the dispute so you have the paper trail.

The dispute process is explained at the end of the credit report.

If you can’t get the problem resolved on your own, report it to your Attorney General or the Consumer Financial Protection Bureau. This is a government agency that recently began regulating and monitoring consumer reporting agencies.

Credit report vs credit score
money angle You will not get your score through Annual Credit Report, and don’t be tricked into paying to get your score. There are dozens of companies that will charge you or enroll you in a free trial to get your score. Be careful with these companies, and understand exactly what you are signing up for before you give out your credit card information.

You may be able to get your credit score for free if a company runs your credit to determine your eligibility for a product. Some companies automatically send it to you, and other times you have to ask. If you are denied credit, the company must give you a copy of the score that made you ineligible for the financial product.

Medical shopping to reduce your costs

Prescription medicationsMedical costs are skyrocketing, and many employees are paying a bigger share of their expenses as employers switch to high deductible health plans. In some cases, the deductible is $5,000+ for a family. While you can put money away tax-free to help you reach your deductible, it’s still a large chunk of change. That’s why it’s essential to be a smart shopper for medical expenses.

We shop around for deals to spas, restaurants, and other services. Why not shop around for medical care? Before you get an X-ray or lab work from the provider suggested by your doctor, ask about the cost. Call outside providers especially non-affiliated locations. They often charge cheaper rates.

Also, consider websites like Bid on Health where you can bid on the price of a lab test. They hope to add other services soon. It’s kind of like Priceline for healthcare. A man I spoke to for a NewsChannel 5 story said his winning bid is for a nationally known lab company. The catch: you don’t find out which one until after you bid and win.

With this service, the claim is not submitted through insurance. You pay the price outright, but if you have a high deductible it might be worth it to use this service and forget about your insurance. You can still use your health savings account money.

You can also offer to pay cash especially on expensive procedures like a CT Scan. If you don’t submit the procedure through insurance, some independent imaging centers will give you a big discount. That $1500 imaging test may now be just $300. Ask for that cash discount.

If you need a prescription, see if your doctor can check the prices online. Most doctors offices have a computer in them. Some pharmacies, especially warehouse stores, offer the prices of drugs online. If you don’t belong to a warehouse club, consider a drug that’s free or reduced ($4 or $10) at a nearby pharmacy. If your doctor won’t help you choose a lower priced drug, get out your smartphone and start calling around for prices.

You have options for medical care just like you do any other product or service you buy.  Start asking questions about price, and you’ll be able to find ways to reduce your medical costs.

Fashion trend: rent a dress for a wedding or event

little borrowed dressHow many times have you gone shopping when you had an event or wedding to attend? The damage is often $75-100+ just for that one event. You might wear that dress a few more times, but not too much fearing someone will see you in the same dress at a future event. For men who are shaking their heads, let me introduce you to how women think. Next time they want to spend money for a new outfit, how about suggesting that they rent? It’s been a trend for men for quite some time with tuxedo rentals, and now it’s hitting women’s fashion.

I considered renting bridesmaid dresses for my wedding, but I was running out of time so I decided against it. If you have time, it may be a money-saving option to try. The site, Little Borrowed Dress, rents and sells bridesmaid dresses for $50-75. There are just a few styles to choose from, but dozens of colors. The styles are designed to fit and flatter a variety of shapes and sizes without alternations.

If you are nervous about the sizing, you can visit the showroom in New York City. For all the other bridesmaids who don’t live in NYC, a second rental is sent for free with every dress just in case the first one doesn’t fit.

I think it’s still a little risky if you don’t always wear the same sized dress.  The dresses are shipped two weeks before the wedding which is very last minute if the dresses don’t fit. The company promises to make it right if the dresses don’t fit, but as a bride that’s one element of surprise I don’t need. I was already worried with dresses that I knew were sized for the women. 

Rent the Runway is another option if you’re in the market for an evening gown. My friend used this site, and loved her dress. She had some problems with sizing, but got the company to overnight her a new dress just in time for the big event. It was a little  nerve wracking as it was down to the wire, but she got the dress of her dreams.

Finally, consider shopping a friend’s closet. Chances are you can find a new outfit for free for your next event.

What do you think of this trend? Would you rent a dress? Join the conversation by clicking comment below.

Finding the right bridesmaid dress on a budget

bridesmaidsLooking for bridesmaid dresses was one of the more challenging tasks of planning my wedding. All my bridesmaids live out of town and I wanted a dress that would fit everyone’s body style. I had to accomplish that without ever seeing the dress on them prior to my wedding day. I wanted a light dress because the wedding was on the beach in August and one friend was 9 months pregnant. I also wanted something reasonably priced because as much as we all think we’ll re-wear a bridesmaid dress, it rarely happens. There are ways to accomplish all of these tasks without wasting a lot of time. I’m sharing  my mis-steps to help you check this task off your checklist faster than I did.

I started my search online, but that turned out to be a futile task because the majority of the dresses I liked were not in the store. I tried several stores looking for the dress I wanted, but I never found it other than on the Internet. Save yourself some time, and visit a few retail stores rather than online stores.

Expand your horizons and consider a department store as well as a bridal store to find the style you want. 

If you have a pregnant woman in your bridal party, you don’t necessarily need a maternity line of dresses. By the way, there are very few. My friend just ordered a size she knew would fit with her belly, and I made sure I picked out a dress that would give her room in the belly for her cute baby bump. Just talk to your friend who is pregnant and find out what type of dress will feel most comfortable. If you pick a flattering style for a belly, you don’t have to limit yourself to the few companies that have maternity size.

I had a big problem finding just the right color. I knew I wanted something bright and in the fuchsia/bright pink shade. The colors I liked were not in the store, so I often had to rely on a swatch. The swatches are so small and so difficult to tell the true color.  In this case, it helped to have bridesmaids all across the country because one of my brides was able to try on the dress in one of the targeted colors.

bridesmaidsAfter many stressful weeks, I finally decided on a color and dress style. I was so nervous because a cell phone photos was the closest I got to seeing the dress in the right color and on one of my bridesmaids. I was very relieved when I finally saw the dresses in person.

Once you decide on your dress, look for ways to cut the cost. If you know a good seamstress, you might consider ordering it online. There are many discount sites that sell some of the styles online. Get measured in store, and then order online. Just choose a reliable retailer. Check reviews before ordering because this can be risky if you don’t know anything about the company.

Sometimes the bridal store will sell the dress at a discount online. My friend ordered hers from R.K. Bridal in New York City, and then ordered it for a cheaper price from their website. She had to pay $20 for shipping, but she still saved money off the store retail price.  The order is shipped to your home, and you have to find your own seamstress. 

Even better – how about just renting the dress? I’ll discuss that option in tomorrow’s post.

Related links you may like:
Creating a wedding website
Planning a wedding on a budget
Airport parking that won’t break the bank
Wedding decorations on a budget
Picture perfect honeymoon – best research sites
Do it yourself invitations 

 

Interactive Super Bowl ads raise privacy concerns

nflWhile two brothers will square off for a chance to win the Super Bowl trophy, much of the focus Sunday will not be on the gridiron. In the field of public opinion, it’s the commercials that matter most. This year’s ads are expected to be more interactive than ever as people will have food in one hand and their tablet or smartphone in another. However, some experts say you need to think twice before you let the advertisers win you over.

Coke is asking you to log onto Coke Chase to determine the outcome of its ad. The commercial features three characters as they make their way through the hot desert in pursuit of an ice cold bottle of Coca-Cola. You can choose who receives the Coke. Your options include the cowboys, showgirls, or badlanders. There is even a  hashtag so you can join the conversation for the Coke Chase. At the end of the game, the winner will be revealed in another commercial.

Plus, if you “like” or follow the Coke Chase you will get an undisclsed reward at the end of the game. I wonder what that will be. Maybe a Coke? Here’s the part that worries some consumer advocates. The first 50,000 people who vote and register at MyCokeRewards will receive a thank you coupon for a free Coke, Diet Coke, or Coke Zero.

Neighborhood Housing Services Consumer Law Center said you need to think twice before you sign up for these promotions since you may have to give your contact information. You can sign up with Facebook, thus giving Coke access to your Facebook information. Or, you can sign up by giving your birthdate, phone number, and email address. When you submit that information, you agree to the program rules, terms of use, and privacy policy. However, are you really going to read all three during the Super Bowl?

The Consumer Law Center said, “What people don’t realize is that when they create an on-line account, they are giving the host-company permission to sell that information to anybody who asks. Unfortunately, for the unsuspecting consumer, there is no law that prohibits the host company from sharing or selling your information to ANYbody for ANY purpose.”

The Privacy Policy says your information will be used “to send you advertising/promotional material from some of our affiliates, advertising and strategic partners.”

Since you willingly signed up, that’s considered an inquiry so the Consumer Law Center said the company then has the right to contact you for the next 90 days under the Federal Trade Commission’s telemarketing sales rule. The question is — is it worth it for a free Coke?

These are questions you should ask yourself anytime you sign up for a promotion. Even if you don’t sign up, you need to consider if it’s worth it to give up your social media space to promote a company.  To win a chance to next year’s halftime show, Pepsi wants you to Tweet a hashtag. The more you Tweet the more clues you will unlock the inside track to winning a trip. What’s the chance of wining that trip? Is it worth it to continually retweet just for the chance of winning something?