| Managing your money |
You may have
had a checking account
before you came to college. You may even
have had a credit card before you came to college.
But many students never have, and the prices
and policies involved can be a shock to those not used to the world of
money. Did you know, for instance, that
the minimum payment on your credit card might not even cover one
month's
interest? Or that your financial
institution (your credit union or bank) charges you a
fee for a check someone else writes to you if it doesn't
clear? Until you've had a chance to
plan, study, and gain experience, though, we're here to share some of
our experience
with you and help you avoid common mistakes.
We are the staff of your local Credit Union.
Choosing a Financial Institution
Keeping Track of Your Account
ATM and Debit Cards
Credit Bureaus and Reports
Guarding Your Assets
Counseling for Tigers Credit Union members at the Office
of Financial Success
Conclusion
| Choosing a financial institution |
How do you decide where to put your
money? You will definitely want to get
at least a savings account, and probably a checking account. A lot of students come to college planning
not to have either one, and think that they will get along just fine. Some of them probably do.
But an account is not just a place to put
money. It's also a list of services
provided by the financial institution, and you can take advantage of
these
services.
All financial institutions offer
certain basic services. These include
security for your cash, some form of insurance for your deposit, and a
record
of transactions that have passed through your account.
Most offer more: checking services, interest
on savings accounts, money orders, travelers’ checks, cashiers’ checks
– the list
runs on. You will want to examine the
services of each financial institution that you are considering for
your
account and decide which ones you will need.
Many credit unions and banks offer special student accounts that
may be
worth checking into.
In addition to the services, it is
important to look at the fees involved.
Some financial institutions will charge you a monthly fee, a
yearly fee,
sometimes even a fee per check. Many
also charge for travelers’ checks, cashiers’ checks, wire transfers,
and other
special services. Although these fees
may be small – say, two dollars per month for your checking account and
five
cents per check – they can quickly add up.
There will also be fees if you bounce checks, and some
institutions may
even charge if your balance drops below a certain level.
Of course you don't want to bounce checks or
be low on cash, but accidents do happen, so check into these amounts as
well.
Finally, before you decide on a home
for your money, talk to some of the students who have been on campus
for a
while. (Don't worry,
the rumors about what they will do to freshman are mostly not true.) They will often be happy to tell you where
they have their accounts, where they have had accounts in the past,
where they
have had trouble, and where they have been happiest.
Ask specifically about the credit unions and
banks that you are considering, and think about any that they may
recommend. You don't want to pass up a
great deal just because you never heard about it!
| Keeping
track of your account |
Your balance
Your savings account shouldn't be
too hard to keep track of, because you probably won't have too many
transactions going in and out of it.
Just be sure to write down every deposit and withdrawal you
make, and be
careful when you use ATM's! It's easy to
lose track of your withdrawals, so always make sure you record them. Your financial institution can provide you
with a small ledger to do this, or you can use a notebook that you
dedicate to
the task. Be sure to compare your monthly
savings statement with your own records to make sure that you and the
institution agree.
Your checking account will be more
difficult to keep track of because you will probably write lots of
checks, as
well as having ATM withdrawals, regular withdrawals, and deposits. Despite the added difficulties, you will have
to make sure that you know what is in there so that your checks all
clear. Begin by keeping track of every
check that
you write. It's a good idea to get
copy-through checks, which make a carbon copy of themselves whenever
you write
one. This way you know exactly where,
when, and for how much you wrote each check.
If you don't have copy-through checks, you have to write each
one down
in your check ledger, which is the small lined booklet that fits into
the upper
part of your checkbook. You should
receive a free ledger every time you order checks.
You will also need to keep track of
your withdrawals, deposits, and transfers.
Whether you
do these transactions in your credit union or an ATM, you will receive
a
receipt. Save these receipts until you
can write them down and balance your account.
Balancing your account should be
done on a regular basis. Some people do
this in their check ledger, but most use a separate notebook or even a
computer
program like Excel or Quicken. However
you do it, the procedure is the same: take your starting balance, add
any
deposits or transfers
in, and subtract any checks you've written, transfers out, ATM
withdrawals,
fees, etc. For instance, suppose that
you open a checking account on January 1 with $100.
During the month of January you have the
following transactions:
1/1: Make
original deposit of $100, cash
1/8: Withdraw
$10 from an ATM
1/8: $1
fee for the ATM
1/14: Write
check # 101 for $20
1/14: Write
check # 102 for $10
1/19: Transfer
$15 to savings
1/23: Write
check # 103 for $25
1/25: Deposit
$150 check
1/29: Write
check # 104 for $50
1/31: Deposit
$75 check
On January 20, your
balance would be $44:
$ 100
-$ 10
-$
1
-$ 20
-$ 10
-$ 15
$ 44
On January 31, your
balance would be $194
$ 44
-$ 25
+$ 150
-$ 50
+$ 75
$
194
As you
can see, balancing your checkbook isn't that difficult as long as
you keep on top of it. If you haven't
touched it in six months, it can get confusing!
Another reason to balance it on a regular basis is to insure
that you
and your financial institution both have the same transactions recorded
for the
same amounts. You should check your
monthly statement against your personal records to insure that they
match. If you do find a discrepancy
between your
records and theirs, contact them to find out what the problem is.
Reconciling your
balance to your statement
If you keep careful records of your
transactions and balance, you should always know how much money you
have in
your account. However, sometimes your
records won't match those of your financial institution.
This may be because one of you has made a
mistake. The other main reason why your
balances may not be the same is because of float. Float is what happens when you write a check
or make a deposit that takes some time to process.
For instance, in the example above, if you
wrote check # 102 on the 14th, it will be a while before
that cash
actually comes out of your account. Even
if the person to whom you wrote it takes it to his or her financial
institution
the same day, that institution will have to
process
it. It will then be sent to your
institution, which will also process it.
Either one may also send it through another party, such as a
processing
center. In general, it takes three days
or so for a check to clear – that is, for it to officially come out of
your
account.
You need to be careful not to count
on the float period for checks. If you
know that you don't currently have enough money for a certain check,
but you're
going to make a deposit tomorrow that will cover it, it's better to
wait until
after you've made the deposit to write the check. Float
periods vary greatly, and you can't
count on always having three days or so.
In fact, if the person to whom you write the check has an
account at the
same financial institution as you, it could clear the same day! It's safer not to make assumptions with your
account.
So what do you do when you receive
your statement and find that it doesn't match your records? You need to reconcile your
account balance to your statement. Continuing
the example given above, suppose
that you receive your statement on February 1, and that it covers the
entire
month of January. You haven't made any
transactions since the deposit on the 31st.
You know that your balance is $194. But
your statement says:
Beginning balance:
$0
1/1: $100
deposit
1/8: $10
ATM withdrawal
1/8: $1
ATM fee
1/19: Check
# 101 cleared, in the amount of $20
1/19: $15
transfer to savings
1/25: $150
deposit
1/30: Check
# 103 cleared, in the amount of $25
Ending balance:
$179
Why is there a
difference? Compare your statement with
the original transactions, repeated below:
1/1: Make
original deposit of $100, cash
1/8: Withdraw
$10 from an ATM
1/8: $1
fee for the ATM
1/14: Write
check # 101 for $20
1/14: Write
check # 102 for $10
1/19: Transfer
$15 to savings
1/23: Write
check # 103 for $25
1/25: Deposit
$150 check
1/29: Write
check # 104 for $50
1/31: Deposit
$75 check
There
are three transactions missing from your statement: check # 102,
check # 104, and the deposit that you made on the 31st. Why aren't they there? To
begin with, check # 102 probably just
hasn't been presented to the other person's bank yet.
Sometimes people will wait a long time before
they cash or deposit a check, and you need to remember which ones
haven't been
cleared yet so that you don't get any unpleasant surprises. It may also be in transit right now. Check # 104 is the same: either it hasn't
been presented, or it is in transit. As
for the deposit, there are two possibilities.
First, you may have made it after the statement was printed, or
so late
in the day that it was officially dated as being made on February 1. In either case, it should appear on your next
statement. The second is that your
financial institution may not officially add it to your account until
it has
cleared the writer's account. In this
case, it should appear on your official record as soon as it does so.
In
order to compare your records to your statement, you must now
reconcile your account. To do this, you
begin with your balance as you have calculated it based on all of your
transactions to date. In this case, the
balance is $194. Now you have to work
backwards: subtract all transactions
that don't appear on your statement that increased the balance of your
account. This means that you subtract
all deposits, transfers in, etc. Next,
you must add all transactions that
donut appear on your statement that decreased the balance of your
account. This means that you add back in
all checks,
withdrawals, fees, transfers out, etc.
The result should be the balance reported on your statement. Here is the math for the earlier example:
$
194
(your balance)
-$
75 (the deposited check)
+$ 10
(for check # 102)
+$ 50
(for check # 104)
$
179
(Congratulations! They match!)
It can be tricky to figure out
whether to add or subtract a certain transaction. Just
remember to start with your
balance. Then, if money came in,
subtract that amount. If money went out,
add it. You should wind up with the
balance on your statement. It takes a
little practice, but write everything down
and go
slowly. You'll get the hang of it.
Overdrafts
It's a fact of life that everyone
makes mistakes. It's also a fact that
college students tend to be broke! When
you combine these two facts, you often wind up with overdrafts, also
known as
bounced checks. In other words, your
balance isn't big enough to cover a check that you wrote.
You should always do your best not
to bounce checks. First of all, your
financial institution will charge you for it.
Second, if it's returned to the person or business to whom
you wrote it, they will often charge you another fee, since their
financial
institution will charge them for the returned check.
Thirdly, they can report you to the police
and have a warrant put out for your arrest.
Fourth, you may live in an area where there is a system that
monitors
checks as you give them to member businesses.
If you bounce a check at any one of these businesses, you will
find that
the entire group will reject your checks for a time.
(
What should you do, then, if you
accidentally lose track of your account and write a bad check? First, put enough money into your account to
cover the non-sufficient funds fee, the check, and any other checks
that you
have written. Next, ask your financial
institution how many times the check has been presented for payment. (Most will be presented twice before they are
returned.) If it comes through again, it
will clear and you'll be fine.
Otherwise, it will be returned to the person to whom you wrote
it. If
this happens, you need to get in contact with this person.
Let them know that you have the money to
cover the check and any fees that they will assess you.
They will usually either take it back to the
bank or ask you to come and pay them in cash.
Whatever you do, don't ignore the
situation! If the person tries to
contact you and can't, they may well contact the police and have a
warrant put
out for your arrest. They may also turn
in your name to a professional collection agency. It
is in your best interest to face up to the
problem and take care of it!
| ATM and Debit Cards |
ATM Cards
ATM's are very convenient, but they
also make it easy to lose track of your balance. When
you use them, make sure that you save
the receipt so that you know exactly what you did and when. Be sure to include these transactions in your
records. Also, remember that your
financial institution and the ATM network may only update each others’
records
once or twice a day. This means that the
balance that you get from an ATM might not include recent transactions
that
have occurred at the institution, and vice versa.
There
are some important security tips that you should remember when
using an ATM card. Never leave the
receipts at the ATM, as some machines print important information on
them, such
as your name and account number. You
should also never use an ATM in a deserted place after dark! It is easy for a robber to hide in around the
corner until you have removed your cash, and then rob you before you
can drive
away. If you need to use an ATM after
dark, pick one that is well lit in a populous area.
Drive past
the machine first, and look behind it to make sure that no one is
hiding behind
it. Then make your withdrawal, make sure
that you have your cash, card, and receipt, and drive away as soon as
you are
done. Don't sit and count your cash, or
go over the receipt.
Your
PIN number is very important.
You should choose a number that you can remember, but not one
that is
obvious, like your birthday or your school id number.
A good idea is to pick a random historical
event, such as the end of World War II, and use the year of that event
for your
PIN – in this case, 1945. It may be
easier for you to remember the event than the number itself, and that
way you
can look it up if you forget it. Don't
tell it to anyone, and NEVER write it down.
Memorize it. Even if you try to
put the PIN in a safe place, it could be found.
Finally,
if your card is lost or stolen, alert your financial
institution immediately! They can
deactivate the card so that it can no longer be used to access your
account. Many banks and credit unions
have insurance that will cover part or all of the withdrawals made on a
stolen
card if it is reported within a certain amount of time.
Ask yours if they have such a policy.
Debit Cards
Debit cards work at ATM's, but they
can also be used in other places, like stores, catalogues, or gas
stations, to
pay directly from your account. Where
your card is accepted depends on the networks it accesses.
Many debit cards have a Visa or MasterCard
logo on them, and are accepted everywhere that these credit cards are. Others operate on other networks, like Honor
or Cirrus, and have a more limited range.
To be safe, ask if a store will accept your card before you try
to pay
with it, and carry another form of payment if you're not sure. It's embarrassing and inconvenient to have a
card rejected and not have an alternate method of paying.
Record debit card transactions carefully, and
follow the same safety procedures as you would with your ATM card.
Credit Cards
Many
college students decide that they want to have a credit card. This is often a good idea if you are willing
to take responsibility for it, because it can help you get a good
credit
rating. This in turn will make it possible
for you to get loans, better credit cards, and other perks. On the other hand, if you don't really think
that you'd take good care of it right now, you'd be better off to wait. It is not hard to live without one,
especially if you have a debit card.
Which one should you
pick?
If you
decide that you are ready, it's a good idea to get a flexible
credit card with a good rate. Master
Card and Visa are good companies to go with, since both are accepted
almost
anywhere. Discover and American Express
are also excellent cards, but are not as widely accepted.
Some cards allow you to access your account
on-line, which can be very useful if you need quick information about
your
card. But be VERY CAREFUL where you sign
up for a credit card. Many people offer
cards
on college campuses, but these cards often have very high interest
rates or
other unpleasant surprises written into the contract.
(Some of these people even turn out to be
frauds, although this is a very small percentage. Most
are legitimate representatives of the
card companies.) Don't just fill out an
application to get a candy bar; think about it first, and whatever you
do, read
the fine print!!! Many students fill out
any application that they see, and they wind up with six or seven
cards, huge
interest payments, and debt that follows them out of college and into
their
first job.
Your APR
APR stands for Annual Percentage
Rate. This is the amount of interest
that you pay on your charged purchases, and how the credit card company
makes
money. Credit cards often have rather
high interest rates, such as 19%. This
means that if you have a $100 charge on your card for a year, they will
charge
you $19 of interest. This may not sound
like much, but it adds up! Interest can
take a big bite out of your budget if you're not careful.
You also need to make sure that you
know what your interest rate will be when you sign up for a card. Some cards offer an introductory APR that is
very low, such as 3%. Unfortunately,
after a few months, this rate jumps, sometimes as high as 23%! Some cards will also increase your APR if you
pay your bill late even once, or charge a higher percentage on cash
advances. This is why you need to read
the fine print before you sign an application.
The good news is that these high
rates are generally reserved for people without much of a credit
history. Most students fall into this
category. If you are careful with your
card, though,
and get a good credit rating, you can get cards with better rates –
sometimes
as low as 6%. Also, some cards will give
you an interest-free “grace period” in which to pay your balance off. If you pay within this period – usually 25-30
days – they will not charge you interest on your balance.
These cards are often available to first-time
cardholders, so why not take advantage of the opportunity?!
Your credit limit
When you are accepted for a card,
you will be sent information on the card including your payment
schedule,
interest rate, and credit limit. Your
limit is the amount of charges and interest that you can have on your
account
at once. Many of the cards that are
offered to first-time card holders are quite low, such as $500. Like with interest rates, though, you can get
a better credit limit if you take care of your credit rating. There are cards that have extremely high
limits, such as $25,000, and even some that have no limits at all!
Paying your credit card
bills
Credit cards may feel like free
money, but you have to pay up sooner or later.
Your card should send you a statement once a month that lists
your
charges, payments, and interest accrued.
It will also give you a due date and a minimum amount due that
you have
to pay off this month. This is the least
amount that you have to pay in order to be current on your account, but
beware! The minimum amount is quite
often very low, generally a much smaller amount than your balance, such
as $10
on a card with a $500 limit. If you only
make the minimum payment, it you will quickly accrue more debt than you
can
easily pay off. What's more, you will
still accrue interest on your balance, which
includes interest from past months!
In other words, you will not only owe for your charges, you will
also
owe interest, and interest on the interest!
Pay off a reasonable amount of your card every month.
You also need to be careful to pay
your bills on time. Credit card
companies have all kinds of nasty surprises in store for people who
don't: bad
credit reports, collection agencies, higher percentage rates, and more. If you are absolutely broke, send in the
minimum payment at least. Then don't use
the card again until you have your finances back under control.
The Tigers Credit
Union Credit Card
One of Tigers Credit Union’s missions is to improve the
financial well being of our membership by providing them with
affordable credit
for productive purposes. We believe that credit cards (if used wisely)
can help
compliment other forms of credit and help us achieve our goal. In
offering our
members with access to our credit card we would like to educate them
and make
them aware of some of the dangers of credit cards and some of the
pitfalls
users can face.
Tigers Credit Union would like to thank the Office for Financial Success (OFS) for providing us with most of the following educational material. OFS is a service of the Mizzou Department of Personal Financial Planning and College of Human Environmental Sciences and is dedicated to improving the financial well being of individuals and families. You can get more info about OFS from their link on our website at www.tigerscu.org or by going to http://financialtip.blogspot.com/.
Some advice:
1. FEES. Avoid fees! The most common fees include: over-the-limit, late payment, convenience check and balance transfer fees.
2. PENALTY RATES. Avoid being late! More and more companies are becoming less forgiving of late payments.
3. INTRO OFFERS. When signing up for an intro offer (the lure) make sure to know what the card’s terms are once the intro period expires.
4. USING A CARD WHERE YOU’VE TRANSFERRED A BALANCE. If taking advantage of a intro rate or balance transfer “special” be certain not to use the card for other purchases – your payments don’t go to your higher rate purchases, the payment will go to the ‘special rate’ portion of the balance.
5. CONVENIENCE CHECKS. These are awfully enticing – the checks often come made out to you and advertise that you can use them for anything. The catch? Most charge cash advance rates and an average transaction fee of 3% of your check amount. You normally will lose your grace period (even if you pay in full at the end of the month). Not a great deal in most instances.
6. UNIVERSAL DEFAULT CLAUSE. In recent years, some credit card companies charge penalty rates not only in the instance where you miss a payment with that particular card. In this agreement, the card is entitled to raise your rates even if you miss a payment elsewhere!
7. “YOU’RE PRE-APPROVED”. This ‘announcement’ makes many feel warm and fuzzy. The reality? All this means is that the company has reviewed your credit report and won’t reject your application based on that information. If you apply for the card, you can still be turned down because of insufficient income or other reasons that won’t be reflected within your credit report.
8. BAIT AND SWITCH. I’ve got a credit card that I use to obtain benefits – cash back on gas and other purchases, etc. If someone else were to apply for that card (or any other credit card requiring someone to have excellent or well established credit), instead of being turned down, on the application, there will be a statement where you are essentially giving permission to the CC company to give you their ‘base’ card if you are turned down for the card in which you are applying.
9. DECREASING MINIMUM PAYMENTS. One of the most financially rewarding tactics (for the CC company) is to decrease your required minimum payment as your balance decreases, essentially keeping you in debt longer. This is a smart tactic on their part because many people that can’t afford to pay the balance in full will simply pay the minimum payment. This required payment will decrease over time, extending the repayment period and interest paid over time.
10. NO MISSED PAYMENT PENALTY RATE. The idea of an interest rate going up because of missed payments is rational. More and more “savvy” consumers in past years have taken advantage of 0% balance transfers, intro offers, and other “deals.” What many consumers saw as a loophole is now beginning to be closed by CC companies. Smart Money magazine wrote of an individual with what most would consider near perfect credit (790 credit score) – never missed a payment, never over the limit … He carried $8,000 on a credit card because he was taking advantage of the 0% rate for life offer. It was obviously quite a shock to open his statement and see a rate of 29.99%! Apparently, his card company viewed him as a higher credit risk because of his debt and thus, according to the card agreement, had the right to bump him to the ‘default rate’ … Normally, default rates are triggered by missed payments, but apparently, high balances can also trigger a default rate [due to higher risk on the part of the company]. A 2005 study by Consumer Action found that 90% of card issuers would use a universal default rate hike if a customer's credit score decreases, 86% would do so if they paid a mortgage or any other loan late. Nearly half (43%) would hit you with universal default if they decide you have too much debt, while 33% would do it for the exact opposite reason: too much credit available. You can see a rate hike even if all you do is get a new credit card (33%) or shop around for a car loan or mortgage (24%).
THE BOTTOM LINE IS: BE CAREFUL.
Other resources:
| Credit Bureaus and Reports |
Your Credit History
Your credit history is a combination
of all of your experience with credit for the past seven years. This includes credit cards, loans, rent, and
many others. If you have done well –
made payments on time, paid off the entire loan, etc. – you will have a
good
credit history. If you have defaulted on
a loan, or are usually late on your payments, you will have a bad one. Good credit means that you will be able to
get other loans, credit cards with good interest rates, and other perks. Bad credit means that you will probably be
turned down for loans, credit cards, and even some jobs – definitely a
problem! So take good care of your
credit history, because it will be with you for a long time.
Credit Bureaus
A credit bureau is an organization
that keeps records of people's credit histories. Employers,
credit card companies, and
financial institutions contact these bureaus to find out about a
person's
credit history when they apply for a job, card, or loan.
You can also get your credit history from a
credit bureau, and it's a good idea to do so.
The company could make a mistake, or worse, you could be the
victim of
identity theft. You should request a
credit report every year or so and go over it, making sure that it is
accurate. If not, contact the credit
bureau and have them change it. It will
cost you about $8 for a credit report, unless you have been turned down
recently for credit based on their report.
In that case, you are entitled to a free one.
There are three major credit bureaus: Equifax, Trans Union, and Experian. This is a
good place to start.
Your Free Annual Credit Report
The FACT Act allows consumers one free copy of their own credit report
per year. It is a good idea to periodically contact the major
credit bureaus and request a copy of your report. To obtain a FREE
credit report go to: www.annualcreditreport.com
Guarding your Assets
Modern banking has an
astounding number of ways to transfer money, many involving technology. While these are very convenient, they can
also open the door to thieves. You
already know to guard your PIN number on your account, but there are
many other
ways of keeping your cash safe.
Identity theft
What do you
do with your old statements? You should
keep them for at least a year. After
that, it's ok to throw them away. But
don't just pitch them in the nearest recycling bin!
There is a new type of thief, one who sorts
through trash and recycling to find personal information.
Using this information, he or she can cause
you all sorts of problems. They can get
your credit card information off of your card statements or receipts,
and use
it to order from catalogues or internet sites.
They can find your PIN number if you've written it down, steal
your
card, and then have free access to your account. They
can even find your social security
number and old identification, like passports or birth certificates,
and use
these to get a new driver's license, open accounts, get credit cards,
and apply
for loans – all using your name! When they
commit a crime, default on a loan, or rack up huge charge card bills,
you can
be left with the criminal record, bad credit, and bills.
This is called identity theft, and it is a
growing problem in the
Avoiding identity theft
There are
some simple ways of avoiding this problem.
To begin with, you might want to invest in a shredder. Use it on all of your personal information
that you're throwing away – receipts, statements, letters, bills –
everything! You should also shred some
things that aren't important with these, like old school papers, and
then mix
up the strips before throwing them away.
This will prevent thieves from piecing your documents back
together. If you can't
afford a
shredder, at the very least tear up important documents.
You should also be
careful about
giving out your credit card numbers, account numbers, social security
numbers,
or any other personal information. If
you don't want to give too much personal information on a form, don't
fill out
all of the spaces on it. If you live in
a state where your default driver's license number
is your
social security number, then change it, and don't put it on your
checks. If someone in a store asks for
your social security number, give them the driver's license number
instead. It is illegal for them to
insist on having a social security number.
Never give out
information to
people who call you on the phone!
Convicts, criminals, and scam artists will often call a random
number
asking for a name, birthday, social security number, and other
information. They generally tell you
that you have won a prize, and that they have to verify this
information to
send it to you. If you give them what
they want, they will use it for their own benefit.
The internet is
another area where
you need to be careful. Only buy from
reputable companies, like amazon.com or discoverychannel.com. Make sure that the website uses a secured
link – that means that your
information will be encrypted so that hackers can't use it even if they
get
it. Also, make sure that you are on the
right website. Some people will get a
URL that is almost identical to another, legitimate site, and set up a
phony
site where they take bogus orders. For
instance, if you are looking for catalogue.com, a scam artist might set
up a
URL called catalogue.net that says it offers the same products. When you submit your order, they have your
information, and you will never see the product you think you ordered. Internet fraud is a serious problem these
days because we don't have many ways of preventing it, enforcing laws
against
it, or punishing offenders.
If you lose your
wallet,
immediately cancel all of your credit cards, debit cards, and any other
accounts or memberships that might be represented (even frequent-buyer
cards). You don't have to change
companies, but do get new accounts with new account numbers and PINs. Put a hold on
any checks that go missing. Be sure to
report your theft to the police, your bank, your insurance company, and
any
other involved parties. If someone does
try to use your cards, document all of the evidence that you can find. You may need it later.
You should also alert
the credit
bureaus if you lose your wallet. They
can help you find and remove any fraudulent action that went on your
record. You can also have them put a
fraud alert on your records – that means that they will inform you of
any new
accounts that are opened under your name.
In fact, this is a good step to take for precaution, before you
have a
problem. Even if you don't have many
financial assets right now, you might someday.
Don't make it easy for a thief!
If you are a victim of identity
theft
If your
precautions don't work, start with the same steps as above: close all
of your
accounts, report to the police and other involved parties, keep
documentation,
and work with the credit bureaus. It
will probably be several years before you get everything straightened
out, and
it takes a lot of work. Unfortunately,
police often aren't interested in solving these crimes because they
aren't
violent and they are very difficult to track.
Additional help can be found at the Privacy Rights Clearinghouse
website, www.privacyrights.org. Whatever you do, though, don't give up. You can work through it, and clear your name.
Counseling for Tigers Credit Union members at the Office of Financial Success |
We know that managing money is increasingly difficult. Planning for current and future expenditures in education, starting a family, retirement, health care, and the unexpected requires professionals. Tigers Credit Union is here to help you in these money-management decisions. We have partnered with the Office for Financial Success (OFS) - a service of the MU Dept. of Personal Financial Planning and College of Human Environmental Sciences. According to its website the OFS mission is accomplished by providing the following:
- Non biased financial information (no products sold/promoted)
- Educational approach to personal finance (providing options)
- Trained, skilled counselors
- Affordable services
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Conclusion
We hope
that you found this information useful. We
welcome any questions or comments that you
might have, and we're always willing to help you if you need
information on
your account or your finances. We wish
you the best of luck in college, and throughout your new, independent
life! Check out our FAQ
& Links page for more info and A Note From Christos for
more information!
