A Financial Tips Checklist for Fall

With Fall just around the corner,now is the time to protect what you have sown and reap your harvest with these financial tips:

Phishing Online
If you receive an e-mail supposedly sent from your bank or credit card company asking you to update your account information and passwords because of suspected fraudulent activity going on with the account, do not respond. Your bank or credit card company already has your account information. By clicking on the site and providing your personal information, you immediately become part of an illegal identity theft collection system. Never provide personal and financial information online, unless you have initiated the e-mail.

When Disaster Strikes
If you had to vacate your home today because of a hurricane, flood or other disaster, be sure your important papers and documents such as insurance policies, social security cards, credit card and bank account numbers are where you can access either originals or copies. Be sure you have enough checks with you to last a few weeks and have your checking account number with you if you need to make a payment over the phone. Your debit card will provide quick access to cash in case your bank may not be able to function as usual for a brief period.

How to Combat Identity Theft on your Computer
The Federal Deposit Insurance Corporation suggests the following steps:
• Be sure your virus protection programs on your computer are updated regularly.
• Do not open files sent to you by someone that you do not know.
• Use firewall protection on your computer.
• Use a secure browser.
• Do not store personal financial information on your laptop computer in case it is stolen.
• Before disposing of an old computer, be sure to delete personal information.

Conquering the Clutter in your Financial Closet
You need only to keep credit card receipts, ATM transactions, deposit and debit card receipts until you verify the transaction on your monthly statements and then you can shred them. Always remember that any financial transaction, receipt or account statement should be shredded. NEVER throw them in the trash. PERMANENT items you may want to keep:
• Educational records
• Employment records
• Health records
• Retirement and Pension Plan information
• Contents of your safe deposit box
CURRENT items, which need to be reviewed every 3-6 years, before deciding whether to continue keeping or shredding them include:
• Cancelled checks
• Bank statements
• Insurance policies
• Home purchase, repair and improvement records
• Warranties
• Income tax records

Advantages of Direct Deposit
• You don’t have to worry about lost checks should the postal service be disrupted due to a terrorism attack or other catastrophe;
• Your money is safe in your account, even if the weather outside is frightful and you can’t get to the bank or you’re sunning at the beach on vacation;
• You don’t have to stand watch at your mailbox until your check arrives, fearful that some thief might steal your check; and
• You don’t have to wait in long teller lines at the bank to do yourself what could be done for you—easily, conveniently and efficiently.

Monitoring Your Credit Report
You are entitled to a free credit report from each
of the three national credit reporting companies each year. Log on to www.annualcreditreport.com. You may also call 877.322.8228 to request the form. While you’re checking your credit report, you will also have an opportunity to check your credit score. This report will cost you a nominal fee, but it is important to know your score. Each year on your selected date, you will be able to order your free credit report and purchase a copy of your credit score.
These are just a few suggestions from your local community banker for a bountiful financial harvest.
This information is provided with the understanding that the association is not engaged in rendering specific legal, accounting, or other professional services. If specific expert assistance is required, the services of a competent, professional person should be sought.

Provided as a public service by the Pennsylvania Association of Community Bankers.
Contact: 717.231.7447

Improving Your Credit Score
Many Americans are feeling trapped in the current economic climate, facing foreclosure on their homes and living on credit cards to make it from month to month. Now, more than ever, it is important to maintain a high credit score and know what is in your personal credit report.
You first need to understand that, under federal law, you are entitled to a free credit report from each of the three national credit reporting companies each year.
To get started, select a date on the calendar. Let’s start today. Go to your computer and log on to www.annualcreditreport.com. Be sure to order your report from this website. Other sites will charge you a fee. Using the date you select, you will be able to receive another free report each year by logging on and requesting your credit report. You may also call 877.322.8228 to request the form.
While you’re checking on your credit report, you will also have an opportunity to check your credit score. This report will cost you a nominal fee, but it is important to know your score.
Each year on your selected date, you will be able to order your free credit report and purchase a copy of your credit score.
What is a credit score?
The three national credit reporting bureaus —Experian, Equifax and TransUnion — keep reports based on information they receive from companies who have extended credit to you. These reports include information such as your payment history, the length of your credit history, and the types of credit you have and the amounts you owe. From that information, they derive your credit score, which can range anywhere from 300 to a perfect 850. Keep in mind that the higher your score, the better interest rates you’ll receive. For example, consumers with a credit score above 700 generally receive lower interest rates and those with a credit score of 760 or higher will receive the lowest interest rates. The median credit score is 723. Consumers with the highest credit scores usually pose a lower risk as a potential borrower. If you’re thinking about buying a new car or purchasing a new home, your 3-digit credit score will in large part determine your interest rate.
How is your credit score calculated?
According to one financial planning expert, your credit score is calculated using this formula:
• 10% is based on the types of credit in use, including the number of accounts and the mix of those accounts.
• 35% is based on your payment history. Do you pay your bills on time? Do you have any bankruptcies, judgment liens or foreclosures on your record?
• 30% is based on the amounts owed on available credit cards and installment loans.
• 15% is based on the length of your credit history.
• 10% is based on the number of new credit accounts opened recently.
How can you improve your credit score?
• Pay your bills on time. If you find it difficult to make time to sit down and pay your bills on a regular basis, consider setting up an automatic payment system through your bank, so you’re never late. Of course, be sure you have enough money in your account to avoid overdrafts.
• Be sure you don’t have too much credit. Too many credit cards and installment accounts can negatively affect your credit score.
• Don’t max out your credit cards and keep balances on your credit cards low. Experts suggest you keep your debt ratio on your credit cards under 50%. If you have a $5000 limit, don’t carry a balance more than $2500.
• Don’t open a lot of credit cards you don’t need.
• Pay down those credit cards with the highest interest rates first.
• Carefully review your credit report and correct any errors immediately.
Credit is a good thing, but we all know what they
say about too much of a good thing. Use credit responsibly and you’ll find your lender will offer you the lowest interest rate when you go to purchase that new home or automobile.
This information is provided with the understanding that the association is not engaged in rendering specific legal, accounting, or other professional services. If specific expert assistance is required, the services of a competent, professional person should be sought.
Provided as a public service by the Pennsylvania Association of Community Bankers.
Contact: Pennsylvania Association of Community Bankers 717.231.7447

Online BillPay Will Keep You On Time

We’ve become a nation of time-savers. One of the simplest and most burgeoning time savers is online bill pay. By using online bill pay, we can save time, postage and ensure that our bill payments arrive on time.
Some people are hesitant to use this service because they don’t understand how it works, are distrustful of putting financial information on the web or prefer the traditional method of paying bills by writing a check so they can have a paper trail.
There are three ways to pay your bills online:
First, you may want to check with your community bank or other financial institution to determine whether they offer online bill pay to their customers. Many financial institutions offer online bill pay as a free service to their customers. You simply set up an online account on the bank’s secure server, register your bills and schedule payment dates.
Secondly, you may want to use a third-party bill pay service to set up accounts for all of your monthly bills. This system works in the same manner. Just be sure the service you select has a safe encrypted Internet site. To ensure that you are not being directed to a fraudulent site, look for an image of a “padlock” in the lower portion of your computer screen. When you double-click the “padlock”, you’ll be able to read the certification information on the pop-up screen. If there is no “padlock” image, you need to keep searching for another secure bill pay service.
As a third alternative, many companies accept online payments without charging you a fee.
Additionally, once you set up an online bill pay account with one of your creditors, the company will send you an e-mail reminder that your bill payment is due and then send you a follow-up e-mail after you confirm your payment.
With online bill pay, you can schedule your payment “due date” and won’t have to worry about finding time to sit down and write checks. Should you be on vacation or have an emergency situation, you don’t have to worry about paying your bills. With your established due date, the bank online bill pay service will automatically deduct your stated amount from your account. Just be sure that you have enough money in your bank account each month to cover your payments.
If you are really serious about getting all of that clutter off your desk, you can also request that your creditor e-mail your statement to you. At the click of a button, you can access all of your account information whenever it is convenient for you. You can review payment history, transactions and recent activity so you will know if someone is using your account without authorization without waiting for a statement in the mail. Once you see how easy an online bill pay service can be, you’ll wonder why it took you so long to get started. Just remember to always use caution any time you transact business via the Internet. Be sure
to use a reliable and trusted company with a secure server.
This information is provided with the understanding that the association is not engaged in rendering specific legal, accounting, or other professional services. If specific expert assistance is required, the services of a competent, professional person should be sought.
Provided as a public service by the Pennsylvania Association of Community Bankers.
Contact: Pennsylvania Association of Community Bankers (717) 231-7447

You're Entitled to a Free Credit Report!!
Thanks to a recent change in federal laws, Americans are now entitled to receive one free copy of their credit report every year from each of the nation's top three credit reporting agencies - Equifax, Experian and TransUnion.

And according to the Federal Trade Commission (FTC), the only website authorized to provide those free reports is www.annualcreditreport.com.

However, there are plenty of companies that charge consumers for access to their credit reports, so the FTC cautions you to type that web address carefully to avoid accidentally ending up on a site that charges a fee for a service you're entitled to receive for free.