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Financial health is a crucial aspect of your overall well-being.
This newsletter covers a variety of financial topics to help
consumers improve their financial well-being.
Alternative Financial Service Providers Association
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YOUR 500 x 200 BANNER HERE
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"We were there when you needed us and always will be;
now let us help you reach your goals."
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This One Mistake Can Tank Your Credit Score 100 Points Instantly
Good credit is the foundation of a healthy financial life. Without it, you’ll pay more to borrow money, get locked out of the best offers and even struggle to rent an apartment or get a job.
Unfortunately, one colossal mistake can ruin years of careful credit-building for even those with the highest scores.
Lamine Zarrad, a former national bank examiner for the United States Treasury, is the CEO and founder of StellarFi, a credit-building tool that helps struggling users rebuild.
He cautions anyone who cares about their financial well-being to avoid the one massive misstep that can instantly tank your score by 100 points or more.
No Matter What Else You Do, Never Miss a Payment
Read more at GOBankingRates
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10 Credit Score Myths You Should Stop Believing
Considering how ubiquitous credit card usage has become, there’s a surprising amount of misinformation out in the world regarding credit scores. A credit score is simply a numerical representation that lenders use to determine the likelihood that a borrower will pay them back. It’s derived from a number of specific criteria that assess the general credit risk of a borrower, from the amount of debt they already have to their payment history and other factors.
Although credit scoring companies like FICO and VantageScore publicize what information goes into a credit score, there’s still plenty of speculation about what exactly moves the needle when it comes to an individual’s credit score. Here are some common credit score myths, along with explanations of what can really make your credit score rise or fall.
1. Does Checking My Credit Score Online Affect My Score?
Read more at GOBankingRates
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I’m a Bank Teller: Here Are 10 Mistakes You Are Making With Your Banking
With most people living busy lives, juggling work, family and social obligations, things like banking are probably not top of mind.
You probably think about your banking only when you pay bills online or go to the ATM, but this may not be nearly enough consideration to avoid making some costly mistakes. What you don’t know or haven’t paid attention to can eat into your savings or cause financial problems that are better to avoid.
GOBankingRates spoke with Kimberlie McGee, currently a head teller at Addition Financial Credit Union in Florida, and Sherry Dvorak, a teller and manager of Amalgamated Bank of Chicago’s Warrenville branch. They shared some mistakes you may be making with your banking.
Failing To Review Account Statements
Read more at GOBankingRates
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What to do if you can’t open a bank account
Key takeaways
- Common reasons consumers are turned down for a bank account include a history of overdrafts, unpaid bank fees or suspected fraud.
- Applications can also be denied due to mistakes on one's checking account report.
- If you've been denied a bank account, ask the bank why this happened.
- Depending on why you were turned down, you may be able to move forward by clearing up your checking account report, trying a different bank or using alternative banking products.
Setting up a bank account can be the first step in getting your financial future on track. But just like with a credit card application, not everyone gets approved for a bank account.
If you’re struggling to open a bank account, you’re not alone. Many consumers are unable to open accounts because of problems with a past bank account, such as unpaid fees or a history of overdrawing the account. No matter what circumstances brought you to this point, there are still options, though they may take some persistence.
Read more at BANKRATE
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10 Things To Do Now If You Have a 500 Credit Score
A poor credit score can be damaging and demoralizing — particularly when you apply for a mortgage, personal loan or new car loan. FICO credit scores range from 300 to 850, and the higher the score, the less risk is associated with lending money or credit to you. Whether it’s checking your credit score consistently to make sure you’re on track, making timely payments or developing better credit habits to improve your score, little changes can make a big difference in a short period of time.
10 Things To Do To Raise Your 500 Credit Score
Most negative assessments on your credit report generally can last up to seven years, making it essential to take steps toward raising your credit score immediately. If you have a low score, these 10 tips can help you move it toward the good credit end of the scale:
- Make payments on time
- Keep your credit utilization ratio low
- Pay down existing debt
- Avoid using your cards with a zero balance
- Create a budget
Read more at GO Banking Rates
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Steps for getting an auto loan
Getting a new car or auto loan affects your overall money picture. Whether you’re a first-time borrower or a pro, seeing what questions to ask and steps to take can help you avoid common pitfalls, so you can drive off the lot with confidence.
1. Know before you shop for a car or auto loan
By asking questions before you shop, you’re more likely to get the best interest rates and loan terms for your budget, save yourself valuable time and money, and reduce stress.
Start by asking yourself these questions
2. See different ways to get an auto loan
When financing a new vehicle, you have options. Learn the most common ways to get an auto loan and how to compare interest rates and terms to find the best one for your budget.
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Where can I get my credit scores?
You can get a credit score for free from many credit card companies or other lenders you use, and from nonprofit credit and housing counselors. You can pay for a credit score service, which might include credit monitoring or other services.
You have more than one credit score. Scores can be calculated using different data on you from different credit reporting companies or can be calculated at different times. Lenders also use different credit scores for different types of loans. This means it’s normal to see credit scores that are slightly different.
There are a few main ways to get your credit scores.
1. Check your credit card or other loan statement
Many major credit card companies and other lenders provide credit scores for their customers. The score could be listed on your monthly statement or can be found by logging in to your account online.
Read more at Consumer Financial Protection Bureau (CFPB)
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3 Expenses You Should Never Put on a Credit Card
Icharge almost everything on my credit cards to earn rewards. In fact, I'm a huge proponent of using cards regularly because they make it easy to track your spending, they can help you get cash back or points that reduce your costs, and they can help you build good credit.
But there are some expenses you absolutely shouldn't put on a card. Read on to find out why charging some items could be a disaster for your personal finances.
1. Mortgage or rent payments
Mortgage and rent payments cannot be paid directly with a credit card in most situations. You'd have to take a cash advance to get money from your card, which typically is very expensive.
It's common for a cash advance to come with a higher APR than regular purchases on your card and there's often an upfront fee that could range from 3% to 5% of the amount of cash you're accessing from your card.
Read more at The Motley Fool
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YOUR 500 x 200 BANNER HERE
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4 Ways To Manage Your Money Without a Bank Account
If you find yourself without access to a bank account, don’t fret. Experts say it’s still possible to manage your money effectively.
“Financial exclusion is the term used to describe the situation where millions of people in the world do not have access to formal financial services,” explained Kevin Huffman, owner of Kriminil Trading. “For those without bank accounts, the objective of managing money can seem quite uneasy. Fortunately there are ways of handling money in a more safe and effective manner.”
Below are a few ways you can do this without a bank account.
Use Mobile Money Services or Digital Wallets
One approach, according to Huffman, is to make use of mobile money services. “Mobile money is a service that enables users to store, send and receive money through their mobile phones,” he said.
Read more at GOBankingRates
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What happens if my car is repossessed?
You have certain rights and protections if you’re at risk of or have had your car repossessed.
Losing a car to repossession can be financially and emotionally difficult. However, you do have certain rights and protections if your car has been repossessed because you were unable to make your car payments.
Auto loan servicers must ensure that every repossession is lawful. If you believe your repossession is an error, contact your lender or servicer immediately, and if you’re not able to resolve it, you can submit a complaint and/or pursue a legal action in court.
Being notified before your car is repossessed
In many states, a lender can repossess a vehicle – without a warning or a court order – after you’ve missed payment, but other states require lenders or servicers to send you a notice before repossession, alerting you to what payments have been missed and allowing you time to make them up.
Read more at Consumer Financial Protection Bureau (CFPB)
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Navigator Credit Union: Five steps to guide you toward financial wellness
MOBILE, Ala. (WALA) - October is Financial Planning Month, and that means it is time to get down to business. Before the year wraps up, take time to evaluate where you have come, where you are and where you are heading. Navigator Credit Union has five steps for creating a financial plan that works for you.
Take time to imagine your future.
Before you dive into crunching numbers, take time to imagine your future self. What will you look like? What will you need? Who will depend on you? How will you need to support them financially and yourself?
Building an emotional connection with your future self is critical to motivating you to set up healthy financial habits today. So, in your financial planning, make sure to keep your future self in mind. The choices you make today will impact the person you are tomorrow.
Read more at FOX10TV.COM
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Checklist for opening a bank or credit union account: CFPB
You may decide that a checking or savings account is the right product
for you. If you do, opening an account at a bank or credit union is quite simple.
Opening an account at a bank or credit union
- First, you may want to get a recommendation from
- a trusted friend or family member for a bank or
- credit union. Find out about:
- The fees they charge
- The services they offer, like online bill paymentor a mobile app
- The interest they pay for savings accounts
- You usually need to make an initial deposit between $25 and $100 to open a savings or checking account.
Read more at Consumer Financial Protection Bureau (CFPB)
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Why do businesses require a signature for credit card purchases?
Key takeaways
- Signatures traditionally served as a security measure on credit card transactions, verifying ownership by matching signatures at the point of sale.
- With the introduction of chip-and-PIN technology, networks often won't require a card signature.
- Yet some retailers still require credit card transactions due to older systems, broken chip card readers or the need to accept tips.
- The role of signatures in credit card transactions is likely to decrease as technology becomes more sophisticated.
The use of signatures to verify credit transactions dates back to ancient times, with the practice even mentioned in the Talmud. Carried over into the credit card era, signatures serve to confirm a person’s identity and consent for payments and borrowing. It’s changing, though: Most credit card transactions today don’t require the buyer to sign for a purchase, with a few key holdouts.
Read more at BANKRATE
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How to Write a Fraud-Proof Check
It may seem as though check-writing is becoming a lost art, but it remains a popular way to send money. A recent study from Abrigo, which makes fraud-prevention software, found that 61% of Americans still write checks.
If you’re among them, there are a few simple precautions you can take to avoid fraud and theft.
Check washing and ID theft
Check washing scams involve changing the payee names or the dollar amounts on checks and fraudulently depositing them. Criminals may also steal checks from mailboxes and use chemicals to remove — or "wash" off — the ink before rewriting it to themselves.
To avoid falling victim, make sure to fill out all the required fields on a check. If possible, use indelible ink or a gel pen; gel ink is more difficult for criminals to “wash” off than ink from a ballpoint pen.
If a blank space appears to the right of the dollar amount you’ve written, draw a line through the space to help prevent crooks from altering or adding to the amount. Roxann Cooke, senior director of consumer banking at Chase, recommends that you never make a check payable to “cash,” which could allow anyone to deposit it. Instead, write the intended recipient’s name.
Read more at KIPLINGER
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How Much Money Should You Keep in Checking? Here's the Sweet Spot
How great is it to look at your checking account balance and see more money than you need for bills that month? As lovely as it may feel, there's little reason to keep more than you need in checking. In fact, it's costing you money.
Here, we'll look at how you can discover the sweet spot -- the amount of money that will prevent overdrafts while also freeing up your excess cash to earn interest.
How much does the average person have in checking?
Last year, CNBC and Dynata Banking Behaviors conducted a survey. It found that 27% of Americans have less than $500 in checking, 11% carry a balance between $500 and $999, and 23% have between $1,000 and $4,999.
However, a quick Google search found about 100 dramatically different answers to this question. There's no consensus among banking officials, so it's essential that you figure out what's right for you and stick with that number.
Read more at The Ascent
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Steps for getting an auto loan
Getting a new car or auto loan affects your overall money picture. Whether you’re a first-time borrower or a pro, seeing what questions to ask and steps to take can help you avoid common pitfalls, so you can drive off the lot with confidence.
1. Know before you shop for a car or auto loan
By asking questions before you shop, you’re more likely to get the best interest rates and loan terms for your budget, save yourself valuable time and money, and reduce stress.
Start by asking yourself these questions
2. See different ways to get an auto loan
When financing a new vehicle, you have options. Learn the most common ways to get an auto loan and how to compare interest rates and terms to find the best one for your budget.
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Forget Paper Checks: Here's Why It's Time to Use Other Payment Methods
Ever stand in line at the grocery store behind someone paying with a paper check? It can be a frustrating experience -- especially since it seems like many people who still use them don't bother to carry a pen and must take a chance on the store cashier having one that works.
In these moments, I often wonder why people don't apply for a top-rated rewards credit card instead. But I digress.
Paper checks were the norm for non-cash payment methods for many decades, banks still offer them (sometimes for free), and check payments are often the lifeblood for nonprofit donations (in my old career, I deposited many, MANY paper checks from donors). But it's 2024, and it's time to leave paper checks behind (except in rare circumstances). Here's why you should switch to other payment methods.
Check fraud is rampant
This is the biggest reason to ease off using paper checks -- or quit them cold turkey. Paper checks are really easy to steal when mailed. Once criminals have your check, they can "wash" your ink off them and reuse them to drain your bank account.
Read more at The Ascent
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What happens if my car is repossessed?
You have certain rights and protections if you’re at risk of or have had your car repossessed.
Losing a car to repossession can be financially and emotionally difficult. However, you do have certain rights and protections if your car has been repossessed because you were unable to make your car payments.
Auto loan servicers must ensure that every repossession is lawful. If you believe your repossession is an error, contact your lender or servicer immediately, and if you’re not able to resolve it, you can submit a complaint and/or pursue a legal action in court.
Being notified before your car is repossessed
In many states, a lender can repossess a vehicle – without a warning or a court order – after you’ve missed payment, but other states require lenders or servicers to send you a notice before repossession, alerting you to what payments have been missed and allowing you time to make them up.
Read more at Consumer Financial Protection Bureau (CFPB)
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Thank You to the Sponsor of TODAY'S EDITION:
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- AFSPA provides the "Consumer Financial Education Newsletters" as part of its commitment to offering resources and education on financial health
- Our goal is to empower consumers with knowledge to make informed financial decisions
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To ADVERTISE: dan@afspassociation.com
* All content is the opinion or expertise of the writer/publisher
of the article.
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Alternative Financial Service Providers Association (AFSPA)
757.737.4088
315 Tuscarora St., Lewiston, NY 14092
dan@afspassociation.com
www.afspassociation.com
Copyright © AFSPA 2007-2025
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