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The information in your credit report can affect many areas of your life, so it's important to keep track of what's in it. If you find information that is incorrect for any reason, it's your job to dispute that information in order to have it removed from the report. Only you are looking out for your own credit rating, so it's to your advantage to pay attention to your report. 

There are actually three credit reports: from Experian, Equifax, and Trans Union. Monitoring all three of these credit reports is essential because the information can differ from report to report. 

Follow this process to ensure your credit reports are accurate:

1. Request your credit report. The fastest way to get a copy of your credit report is to visit AnnualCreditReport.com, where you're entitled to receive a copy of each of your three reports for free once per year.
   • If you haven't been following what's in your credit reports, start out by requesting all three reports at once, because the information they contain can actually vary quite significantly, depending on who has reported what to them. The differences from one report to the next can amount to a significant credit score difference.
   • Once you've obtained and corrected past information in your reports, you can stay updated by spreading out your credit report requests to every 4 months. Simply request your report from one of the credit reporting agencies every 4 months, and over the course of a year, you'll have received all three.
   • Of course, correct important mistakes in all 3 of them if you find an error.
2. Verifying information accuracy. Comb over all three credit reports carefully in search of incorrect or inaccurate information. Any detail that isn't right should be changed, even if it's just a wrong address, because these pieces of information can have an impact on how lenders view you.
3. Contact the credit reporting agency. If you find information that needs to be changed in your credit report, the next step is to contact the agency in charge of that specific report. It can take some time to dispute incorrect information, so the sooner you begin, the better.
4. Writing a dispute letter. You can find sample dispute letters online that will give you a good starting point for writing this letter. Be professional and include all of the necessary proof that the information is incorrect so the credit agency can make the change.
   • Include copies of any documents that support your position. Do not include the originals.
5. Disputing an item. Typically, the credit agency (Experian, Equifax, or Trans Union) will contact the company that reported the false information, and an investigation will follow to determine whether or not the information is inaccurate.
6. Add accounts to your file. If not all of your credit accounts are being reflected on your credit file, then you may want to ensure that missing information is added. You can achieve this by contacting the companies that aren't reporting your credit history and asking them to begin reporting for you.
   • Not every company is going to want to report this information for you, so it can take some time for you to have this information added to your account. However, if you're diligent, you should be able to have the information added.
7. Following up. Follow up on your requests if you don't hear anything from the credit reporting company within 30 days, as this is the normal length of time for an investigation

The power is in your hands to keep your credit report in good standing. If there is inaccurate information in your credit report, or if important information is missing, then take the steps to get the information corrected. Your next job, home, or loan may depend on it.

Your credit score not only determines whether or not you can get a credit card, mortgage, or auto loan, it’s also a critical factor in determining the interest rate you have attached to those items. A low credit score can cost a lot of money over your lifetime. 

Not everyone is aware of the many factors that determine a credit score. It’s easy to make assumptions that seem logical, but are actually false. Acting on incorrect beliefs is a sure way to make a critical mistake.

Save money and make your financial life easier by avoiding these seven credit destroyers:

1. Carrying a big balance on your credit cards. While having a lot of debt is never a good idea, using more than 30% of the available credit on your credit cards hurts your credit score.
   • For example, if your credit limit is $10,000, your score drops if your balance is over $3,000. This is commonly referred to as the “utilization ratio.” Keep yours under
2.  30%. Paying late is a huge factor in your credit score. Experts estimate that 35% of your credit score is determined by your payment history. Any late payments will lower your score.
3. Closing credit cards is a credit score killer. This is related to your utilization ratio. By closing a credit card, you lower the amount of credit that’s available to you. Your credit score is also sensitive to the length of your credit history.
4. Defaulting is an obvious credit score mistake. When you fail to pay back a loan you owe to a lender, you can lose as much as 100 points from your credit score. Make every effort to pay back your loans. 
   • If you’re struggling, contact the lender and attempt to make other arrangements. They can be very flexible if failing to do so means not getting their payments.
5. Applying for too much credit. Everyone needs to have some credit, but applying for too much has a negative effect on your score
   • Each time you apply for more credit, your potential lender makes an inquiry of your credit history.
   • Each of those inquiries lowers your credit score.
   • Avoid sending in every credit card offer that shows up in your mailbox.
6. Not having a credit card at all. Many people are getting rid of their credit cards in an effort to avoid debt. Unfortunately, this does nothing to help your credit score. 
   • Experts believe that the ideal credit score includes 2-3 credit cards. Credit diversity can account for as much as 10% of your credit score. 
   • Credit cards help to keep your credit history current.
7. Co-signing for someone else can be a mistake. Putting your credit on the line by co-signing for someone else is a huge risk. Their failure to stay current with the payments can destroy your credit score.
   • You’re equally responsible for that debt, so any late payments or defaults will show up on your own credit report.
   • You can even be subject to collections and lawsuits. If a lender won’t do business with them, you might want to reconsider before co-signing.

By simply avoiding these common mistakes, you can’t help but have a great score that will guarantee you the lowest interest rates, even if your credit score is poor now. It may take time to boost your credit score, but it’s definitely possible.

Give your credit score the amount of attention it deserves. It makes life a lot easier!

When you’re newly married, you’ll probably face some new challenges and might not feel that you’re ready for these new responsibilities. A lot of young couples don’t anticipate how different managing their finances can be once they get married.

It’s important to understand how merging your finances will impact the way you spend and manage money. There are common mistakes most couples make, and you can avoid some difficulties by being aware of these errors. 

These are the five most common money mistakes young couples make:

1. Not communicating about money. It’s crucial to talk about money and agree on how you wish to spend and save money as a couple. You’ll find yourselves fighting over money issues if you avoid this for too long or if one spouse isn’t upfront about money.
2. Failing to build your savings. You might feel that you’re not earning enough to save money, but most couples can find at least a little to save by cutting back on the more flexible expenses. Cover your bases and prepare for a brighter future by saving for these events: 
   • Starting a family. Going through a pregnancy and raising a baby is expensive!
   • When you’re ready to settle down, you’ll need a down payment to buy a home.
   • Children’s education. College is expensive and it is never too early to start 1saving.
   • Health expenses. Open a health savings account if you don’t have a comprehensive health insurance policy.
   • Retirement. Being young means you can take more risks when you invest and saving up early will help you retire more comfortably. It also gives your savings time to grow from the interest you’ll earn over many years.
3. Failing to effectively manage debts and credit cards. Some couples encounter challenges because one person wasn’t upfront about how deeply they’re in debt or because they use their credit card too often. Even though both spouses still have separate credit scores, both should be responsible for managing debt and credit: 
   • Set some goals and strategies to raise both your credit scores.
   • Decide what your credit cards should be used for and how much you can charge on them.
   • Make paying off your loans or outstanding credit card balances a priority.
4. Buying a house before you’re ready. You’ll see benefits in waiting until you’re financially stabile before purchasing a house. There are still some costly mistakes to avoid once you are ready to buy a home:
   • Buying a house that is too expensive to fix or maintain.
   • Applying for a mortgage you can’t afford.
   • Not making a down payment that is large enough to lower your mortgage.
   • Failing to take advantage of the help available to first-time buyers.
   • Buying a house before taking the time to raise your credit score.
5. Not looking for ways to strengthen your financial standing. You can set some financial goals and do your best to save money, but most young couples eventually need to find a way to earn a higher income to meet their goals.
   • You could, for instance, make some plans for your career, move to a city where you can get better jobs, or decide to go back to school.

If you think you’re making any of these mistakes, it’s a great time to schedule a money discussion. Make plans to bypass these mistakes and get started on the right track for a bright financial future together.

It’s possible to raise your credit score with some simple changes. Credit scores affect insurance rates, loan interest rates, and other important financial products. A higher score can lead to a brighter financial future.

Consider using these ideas to raise your credit score:

1. Piggyback on good credit histories. You can use a family member’s or friend’s good credit history to help you.
   • If you add yourself to an account in good standing, your credit score will go up.
   • Most credit cards allow users to add family members and distant relatives to their accounts.
   • You’ll be an authorized user on the account and able to make purchases and pay the bills.
2. Keep old accounts open. It’s important to keep older accounts like credit cards open because they influence credit scores. Credit scores can decrease if you close accounts.
   • Account age also matters. Scores are affected positively by older accounts because they show a history of maintaining credit.
   • Plus, these old accounts add to the amount of credit you have access to, thus lowering the percentage of available credit you’re using, which raises your score.
3. Set up auto-payments. Automatic payments are a convenient way to pay bills every month. They’re also an easy way to avoid a late payment and a fee. Auto-payments can help improve your credit score by preventing these issues
4. Pay credit card bills more than once a month. Credit scores rely on a debt utilization ratio. This ratio compares how much debt you have to the size of your credit limit.
   • One way to improve credit scores is to lower the debt utilization ratio.
   • Paying your credit card bills more than once a month can help you improve the score by decreasing the ratio. Extra payments lower your debt while increasing how much credit is available during the month.
5. Ask for good-will deletions. It’s possible to ask credit reporting agencies and lenders for good-will deletions. 
   • Late fees, late payments, or unpaid bills can affect credit scores. A good-will deletion is a request to remove these items based on a prior good history. This method works best if you’re a long-term customer with few issues.
6. Avoid pre-approved offers. The pre-approved offers that come in the mail usually require a credit check, and multiple credit checks affect your credit score by lowering it.
   • It’s also beneficial to avoid creating too many accounts. It’s easier to manage a smaller number, so you’re less likely to make mistakes.
7. Avoid new utility accounts. Utilities like gas, electricity, and phone services require credit checks that lower scores. It’s better to transfer utilities to a new address instead of opening new ones.
8. Remember library fines. Did you return all of your library books? Unpaid fines can decrease your credit score, and libraries can send unpaid bills to collection agencies
9. Avoid online quote comparisons. Online quotes for insurance or loans count as inquiries on your credit score. These credit checks affect the score each time you ask for a quote.
   • Getting quotes from multiple websites can lead to many credit checks. It’s best to narrow down the options before getting a quote, so your score isn’t affected.
10. Establish long-term credit. Instead of switching to a new company that promises lower rates for a few months, consider staying with the previous one.
    • Credit scores go up based on positive, long-term relationships with lenders.
    • It may be tempting to take the lower credit card offer from another company to move balances, but your score may suffer.

It’s possible to raise credit scores with several strategies. Careful planning is an important part of getting a higher score.

College is expensive! Sixty percent of those who graduate from college with a bachelor's degree also graduate with around $26,000 worth of student loans. For those who go on to pursue a postgraduate degree, the debt can be significantly higher. 

Luckily, there are some ways to reduce, and in some cases eliminate, this debt.

Loan Forgiveness Programs 

There are several programs you may want to consider that can eliminate part or all of those loans:

1. Volunteer for community service. If you apply to the AmeriCorps program, you can help people in your community while also reducing your debt. The program will repay part of your loans based on your service. 
   • The Peace Corps and Volunteers in Service to America also offer loan forgiveness programs.
2. Military service can help you pay for school. If you enlist in the military before you start college, you can get help paying for your schooling. 
   • There are some loan forgiveness programs available if you enlist after you’ve graduated.
   • Speak to a military recruiter about a plan that could work for you.
3. The profession you choose may help you pay down your debt. If you pursue a career in teaching or the healthcare field, speak to your employer or Human 1Resources Department about programs to reduce or pay off your debt from student loans.

Financial Hardship Programs 

If you don’t have a job, earn very little, or your loans are a large percentage of your earnings, one of these plans may be able to help:

1. Income Contingent Repayment Plan (ICRP). This program applies specifically to Federal Direct loans that aren’t PLUS loans. 
   • ICRP bases the amount of your monthly loan payments on how much money you earn. The payments can be as little as a few dollars per month. Even better, once you’ve made these small payments for twenty-five years, any debt remaining on the loan is forgiven.
2. Income Sensitive Repayment Plan (ISRP) for your FFEL loan. The amount of the loan, your income, and size of your family all determine how much you will need to pay each month.
   • The payments you make have to be at least enough to cover any interest that accrues, and the loan must be paid off within 10 years.
3. Income Based Repayment Plan (IBRP). This plan is available on both FFELs and Federal Direct loans. IBRP offers flexible payment options for twenty-five years. After this time, the rest of the loan is forgiven.
   • In order to qualify for this plan, you can’t be in default on your loan payments.
4. Hardship Repayment Plan on Perkins Loans. This plan has a minimum payment of $40/month. There are also extensions under certain circumstances, such as if you’ve been without work for a while or if you have a long illness.

More Programs - No Financial Hardship

These options can also help you, even if you’re not having hard times financially:

1.  Loan consolidation. Combine several high-interest loans into just one, lower-interest loan. This option allows you to get a lower interest rate and cut down on multiple payments.
2. Defer your student loans. If you're experiencing economic hardship, a period of unemployment, or if you’re going back to school, you may be allowed to defer your student loan payments until a later time.
3. Get a loan forbearance to give yourself more time to pay off the loan. A forbearance is a temporary reduction in payments.
   • A lender may grant you a forbearance if you’re unable to pay off your loan after a certain number of years. They may also grant a forbearance if your payments on your student loan are greater than 20% of the money you earn each month or if you run into a number of other unforeseen problems.

These tips and payment plans can help you manage and pay off your student loans. Consulting with a financial expert can bring to light additional ideas that can help, too.

Most people view estate planning in the same way they view a root canal: Put it off until the pain is too great to ignore any longer. Also, those with little income or net worth believe that estate planning doesn't apply to their situation. But estate planning is much more than just the allocation of cash, real estate, and other assets. There are other things to consider, too.

There are many errors that occur again and again in estate planning. Avoiding these mistakes is half the battle.

Steer clear of these mistakes for a successful estate plan:

1. Procrastination. Estate planning is a little like completing a tax return. No one really wants to do it. But it's so important to push your reticence aside and get it done!
2. Not paying attention to the conflicts that exist within your beneficiaries and estate plan. For example, if your will declares that your husband receive your retirement account, but your ex-husband's name is still listed as the beneficiary, this could prove to be a big challenge.
3. Not using the unified credit to your advantage. This only applies to those with a significant net worth, but this mistake is made regularly. In most cases, assets pass to the surviving spouse. Up to $5,250,000 can be excluded from taxation.
   • If this isn't handled properly, though, the surviving spouse will only have their exclusion available when passing assets on to their heirs.
   • There are ways to potentially shelter this money from taxation in the future. One solution is a credit shelter trust.
4. Not having adequate life insurance. Life insurance can be a great estate-planning tool for the affluent, but life insurance is vital to those with low income as well.
   • Consider how your family will survive financially if you or your spouse were to die unexpectedly.
   • If you have significant wealth, you might consider using life insurance in conjunction with an irrevocable trust for tax purposes. An attorney that specializes in estate planning can make recommendations based on your unique situation and explain the details.
5. Creating a plan that lacks flexibility. Creating a plan with a little wiggle room will allow your heirs to take advantage of any new laws as well as use the assets in the most advantageous fashion.
6. Not gifting assets. Up to $14,000 can be gifted to each beneficiary per year without incurring a gift tax. This can be a great way of reducing the taxes imposed on your estate at the time of your death. You also have the chance to see how well your beneficiaries can manage your assets.
   • Additionally, you have the advantage of being able to witness someone enjoying your assets. You can't do that after you're gone!

Estate planning isn't the most enjoyable activity, but it is likely to be one of the most important things you do for your family.

Everyone should have a basic estate plan that spells out their wishes. This is important even if there are no children or assets. An attorney can be invaluable unless your estate is very simple. And even then, the $100+ it will cost to have an attorney take a look at your documents will be money well spent.

Offshore bank accounts frequently make us think of very wealthy people trying to avoid taxes. But the truth is the average person can open an offshore bank account quite easily. Doing this can be financially prudent, too, even if you're not rolling in money.

Regardless of whether you have $10,000 to deposit or $100,000, offshore accounts can be significant tax advantages for account holders who make foreign investments. Usually this involves setting up a foreign corporation. There's also much greater privacy; in many jurisdictions there are favorable laws to protect the identity of account holders.

These accounts can also provide excellent asset protection; assets held in foreign banks can be extremely difficult to seize. Commonly, wealthy persons facing lawsuits transfer assets offshore.

All offshore banking jurisdictions have their own laws and regulations; you'll need to do some research to see which one best meets your needs. And keep in mind that the tax laws around foreign accounts are tightening all the time. Uncle Sam always wants his money.

Offshore Account Requirements

Offshore accounts are usually somewhat expensive to set up. The minimum required initial deposit can be quite high. However, there are options for those without a big bank account.

In addition to your initial deposit, most offshore banks require these items to set up an account:

1. Identification documents. The basic requirements are really no different than opening a bank account in the United States. You'll need to provide the basics like name, social security number, driver's license or passport, and address. Also, be ready with the real thing; notarized copies of your documents are usually required.
   • These banks are quite serious about verifying your actual address since there may be tax implications. Of course, this depends on the country in which you live.
2. Current bank statements. Offshore banks may require that you submit your last 6-12 months of statements from your current bank. They're also likely to ask you about the nature of the transactions you're planning on making. Offshore banks are under increased pressure to avoid supporting illegal activities, whether knowingly or unknowingly.
3. Choose a currency for your account. Unlike at your local bank, you'll have to choose a currency. This can be advantageous if other currencies are currently stronger than the US dollar. There can also be additional taxes imposed on interest earned in accounts held in a foreign currency. Be sure to talk to your tax advisor first.

Deposits to your offshore account can only be made by international electronic wire transfers from a local bank. Domestic checks are generally not accepted and traveling around the world to deposit cash is impractical. Check local fees for these transfers before you choose a local bank to provide that service.

Withdrawing money, on the other hand, is quite easy. Most banks will issue a debit/ATM card that can be used anywhere. Some offshore banks will provide checks, but these are unlikely to be accepted as a form of payment in most situations.

One other practical consideration for withdrawals is to have a local bank account and use the same international wire transfer method you use for making deposits. This provides the best of both worlds, since you can move large sums of money around via wire transfers and withdraw smaller amounts with your ATM card.

Could an Offshore Account Benefit You?

Though there's a lot of glamour and mystique around offshore bank accounts, you can see that acquiring one is largely similar to opening a regular bank account down the street. There are some additional steps to ensure that you don't have any criminal intent, but that's one of the only major differences.

Of course, you'll have to select a currency and decide on the best method for handling deposits and withdrawals. This will take a little research. But the small amount of work involved may be worthwhile if an offshore account satisfies your financial needs. Investigate your options today. You may be surprised at how beneficial these accounts can be.

Non-financial decisions can have a huge impact on your money situation. You might be surprised at how much influence your choices have over your debt, future earning potential, and retirement.

Those that are financially successful tend to consider the potential impact of all decisions, including those that have nothing to do with money.

Discover the 3 non-financial decisions that have the greatest impact on your financial life:

1. Marriage can have a significant effect on your finances. You might be a great investor. You have your retirement all planned and you stick to your budget 100% of time. But a divorce can cost you half of your assets and potentially have you making payments to your ex for the rest of your life.
   • Marrying a suitable partner is one of the most important factors in determining your financial situation later in life. Think about all the ways your spouse could alter your finances. It's important to choose wisely.
   • Staying married doesn't necessarily result in financial success either. Before getting married, consider your potential spouse's spending habits and current debt.
   • There are other factors to consider, too. Do you both want children? Are you both planning to work? What type of income is your potential spouse likely to generate?
2. Your educational decisions are extremely important. Attending medical school is likely to result in a better income than majoring in English. Higher education isn't necessarily a fitting choice for everyone, but it's something to consider.
   • Reflect on what you love to do, but avoid ignoring the economic implications. Think about how much your education will cost in terms of money and time. Also consider the demand for workers in your chosen field. There's plenty of salary information available. Do some research.
   • The cost of making a poor choice can be considerable. You may be miserable with your job, and then discover that you need to go back to graduate school to stay competitive.
   • Your educational choices can affect your income, employment, and overall happiness.
3. Children greatly impact your money situation. Children are incredibly expensive. Having one or more children can potentially mean the loss of income for several years. Financial priorities can also change when you have kids.
   • There's less opportunity to save and invest. Think about the food, clothes, medical bills, and all other expenses associated with children. That's money that could've been put towards your retirement.
   • The cost of higher education continues to rise. How much will a degree cost in the future? What about if you have three children? Avoid waiting until your kids are in high school to make the necessary financial adjustments.

Many decisions have financial implications, even if they may seem unrelated. Marriage, education, and children can potentially change your financial future in significant ways. Think about the effects these choices can have on your financial well-being.

Sometimes success isn't about making the perfect choice, but rather about refraining from making a poor choice. Take the time to make informed decisions. Your financial future depends on it!

Financial independence is highly desirable. Yet, for some reason, it seems to elude many of us. You've likely tried your hand at many different approaches, yet none have been able to give you the anticipated results.

The good news is that financial independence can be achieved. By making certain adjustments to your life, you'll find yourself starting to build financial independence. So put aside your plan to work harder or put in longer hours and read on to find the answers you’ve been searching for

Following these steps will lead you to financial independence:

1. Eliminate the word “credit” from your vocabulary. Having a good credit score can open up opportunities for you. But living in the credit culture also puts you in a stressful situation.
   • If you’re seeking financial independence, start by doing away with credit
   • You probably have a few credit cards in your wallet. Get rid of them! If that makes you nervous, only keep one for emergencies. Just ensure the credit limit is somewhat in line with the amount of cash you’ve saved.
   • If you're unable to purchase something with cash, it probably means you can't afford it. Live within your means.
   • Avoid borrowing for frivolous expenditures. Those are usually the hardest loans to repay.
2.  Treat needs and wants differently. Take a look at your life. How many of the things you have or do can be considered necessities? If you're honest with yourself, you'll realize you're piling on unnecessary expenses focusing on your wants rather than your needs.
   • Making a list of the things you require for survival is a necessary step for financial independence.
   • Everything that didn’t make the list can easily be eliminated from your expenses each month. Why put that amount of burden on yourself? It's time to give your finances a break.
   • The things you do to maintain a calm existence can be added to your list of necessities. For example, your yoga class may be necessary because of the physical and emotional benefits. But you can reduce the monthly expense by purchasing a yoga DVD and working out at home.
3.  Tap into your skill set. Are you working in a field that you love and that maximizes your skills? If you think about it, you'll realize that you're most productive when you’re doing something you like or are good at.
   • Think about your current job. Is it bringing out the best in you? Or, can you earn more and increase your productivity in another field?
   • Perhaps you can pursue a transfer to another department at your current place of employment. Or maybe you want to move on to something completely different.
4. Save money at all costs. Even if it's a dollar at a time, put aside money for your savings account each month. Learning to save helps you develop an understanding of its importance.
   • One way to save is to request a salary deduction each month. That amount can go to an investment account, which limits your access.
   • Many companies have 401(K) or 403(B) accounts that can get you started with a savings plan. Look into what’s available at your place of employment.
5. After reading this, you'll likely realize it's much easier than you think to make some simple financial adjustments. Give yourself four weeks of this routine and then assess how it’s going. You'll feel encouraged by the positive results!