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Financial

Mark Kolarik

2013-06-25 10:02:43

Q-I am interested in online banking, what can you tell me about this service?

A-Making sure your money is where it’s supposed to be, when it’s supposed to be there, is getting simpler all the time with online banking (internet banking). Online banking allows you to safely monitor, move, and even keep more of your money. If you overlook online banking services, you’re missing opportunities to make your life easier and safer. You can handle personal finances when you choose to and can do so with efficiency, privacy, and accuracy. With online you can: *Monitor account balances and track transactions. *Get immediate access to account information. You can reconcile your account whenever you choose to. No need to wait a whole month to receive your statement. *Routinely pay bills on time. That’s the strongest contributor to a stellar credit record, and that’s your best way to earn the lowest borrowing rates. Plus, you never need to worry about incurring late-payment fees or interest rate penalty hikes for late payments. Paying bills online is one of the biggest time savers online banking creates. You enter account information such as merchant’s name, address, and so on. Then pay the bill with a mouse click. You can also set up automated payments to handle recurring bills, such as insurance premiums or utility bills. *Cut costs. You’ll purchase fewer paper checks, as well as eliminate the need for stamps and envelopes. *Automate other functions to save time and help you achieve financial goals. For example, you can move funds automatically from checking to savings to help reach the goal of, say, a down payment on a house. *See details of checks you’ve written, so you can verify the recipient, date, and amount. For instance, if you forget to record the amount of a debit card purchase, online banking allows you to retrieve a current statement listing the transaction. Online banking offers many benefits to conducting business in a fast, simple, and safe manner. Contact your financial institution and find out how you can sign up for this service.

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Financial

Mark Kolarik

2013-05-29 11:46:04

Q-I would like to purchase a home. Can you tell me how much house I can afford?

A-Congratulations, you’ve decided to buy a house. Becoming a homeowner is fun and rewarding, but it also can be stressful. The more prepared and educated you are about the home buying process, the less stress you’ll encounter. After you have determined your personal readiness to buy a house, such as narrowing down a location and if you will enjoy maintaining a house, the next thing you need to do is crunch some numbers to find out how much house you can afford. To estimate an affordable monthly payment, the majority of lenders use the classic 28/36 guideline. First , your monthly house payment (including mortgage principal and interest, property taxes, and home insurance) should amount to no more than 28% of your monthly gross income (what you earn before income taxes, Social Security, and other deductions come out of your paycheck). Second, total monthly debt obligations (mortgage, car payments, credit cards, and college loans) should not exceed 36% of your monthly gross income. In calculating your cost to own a house, keep in mind that most mortgage lenders typically require a down payment equal to at least 5% of a home’s purchase price and monthly payment are only part of the cost to buying. If you buy a home with less than a 20% down payment, your lender will require you to purchase private mortgage insurance (PMI), which will increase your monthly payments. You’ll need additional money to cover closing costs: lender fees, property appraisal, escrow payments, and more. Over the life of your loan, your mortgage amortizes. That’s the process by which you gradually pay down the loan. In the early years of your mortgage, most of your payment goes toward interest. As years go by, your payment gradually shifts between principal and interest until, by the last year, almost all your payment is toward principal. There is an assortment of types of mortgages to choose from such as fixed rate or adjustable rate, plus terms to choose from such as 15, 20, or 30 years. Just remember the longer the term the more interest you will pay. For more specific information, talk with a mortgage loan officer at your local financial institution.

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Financial

Mark Kolarik

2013-04-29 16:03:01

Q-How can I protect my credit cards from fraud?

A-Plastic card fraud statistics are up, and much of the fraud comes from criminal activities we can’t control. But safe guarding your cards from the risk of exposure, starts with keeping constant control of your cards, card numbers, and any other personal information about your financial information. The following are some good habits to practice: * Sign your cards with permanent ink as soon as you receive them. * If your card has a PIN (personal identification number), memorize it. Skip easily recognizable PINs such as the last four digits of your Social Security Number or phone number. * Do not respond to emails or telephone calls requesting personal information. * Do not write your PIN on your card or anywhere else. * Do not lend your card to anyone or leave it unattended and unsecured. * Carry only cards you’re going to use. Leave all other cards in a safe place at home. * Watch the merchant perform your card authorization. * Make sure purchases are recorded properly before signing the receipt. * Review your card transaction carefully as soon as you receive the statement. * If you have online access to your statement, review it daily. *Do not throw receipts or statements in the trash. * Before traveling, notify your card issuer of the location and time frame to account for changes in your card use. * Make sure online shopping sites show a closed padlock in the bottom browser window frame, outside the vendor Web site window. * When using an ATM, shield the screen and keypad with your body to prevent others from seeing your PIN. * Inspect the ATM to identify any tampering of the machine. Crooks can install devices to capture your information. When it comes to card safety, if you don’t practice good habits, you will pay. The good news is practicing good habits goes a long way to keeping you and your cards safe. We all need to be responsible and aware of actions that will minimize risk and keep our cards safe.

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Financial

Mark Kolarik

2013-03-25 14:46:12

Q-Can you tell me what a prepaid debit is?

A-A prepaid debit card is like carrying cash in your wallet, but you don’t have to carry all those bills. Most financial institutions offer prepaid debit cards. When you purchase a prepaid card, the card is issued in your name. The difference between a prepaid card and a regular debit card is that you take money from your savings or checking account and place that money electronically on the prepaid card. Where a debit card takes funds directly from your checking account each time a transaction is done. Generally, you can load any amount on to the card. You can only spend the amount on your prepaid card, so you never overdraw a checking account. This eliminates overdraft fees and embarrassing mistakes. Most cards allow you to manage the prepaid card online. This means you can track your spending so you always know how much you’ve spent, how much money is left on your card, and if your card is running out of funds, just reload the card with funds from your bank account. The prepaid card can be used anywhere debit cards are accepted and used to access cash at an ATM. The prepaid debit card is also very safe. It’s not tied to your checking or saving account, so if it’s lost or stolen, you won’t have any risk. Most cards come with Zero Liability Protection for your security so it’s much safer than carrying cash. And best of all, you don’t have to qualify for the card, just contact a financial institution and purchase a card.

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Financial

Mark Kolarik

2013-03-01 14:38:21

Q-I tried to get approved for a credit card but was not approved because of negative information in my credit report. Can you tell me how I can get a copy of my credit report?

A-When you apply for loans or credit cards the lender will request a copy of your credit report. The lender may use your credit report, a credit score, and other information you provided (such as income or debt information) to determine whether to approve your application and what rate to offer. The credit reporting companies update your credit report as they receive new information from creditors or lenders. Your credit profile changes based on your financial activity. Your report is divided into six main sections: identifying information (name, address, birth date and Social Security Number), employment, consumer statement, account information, public records and inquiries. Your credit report is updated with new information from your creditors approximately every 30 days, to reflect your account balances and payments you make. Late payments create a negative record. Generally, negative records will stay on your report for up to 7 years (up to 10 years for certain bankruptcy information). Positive records can remain on your credit report longer. Not all creditors report to all three credit reporting companies; the companies obtain their data independently, so your credit reports from each company could substantially differ. That why it’s important to check your credit report every 12 months to ensure that the information is accurate and up-to-date. You can get a free report from each of the three nationwide consumer reporting companies every 12 months. The official web site is annualcreditreport.com. It is the only authorized online source for you to get a free credit report. Some other sites claim to offer “free” credit reports, but may charge you for another product if you accept a “free” report. Managing your credit and maintaining a good credit history can lead to better rates on major purchases. Routine check-ups, along with paying your bills on time, keeping your credit card balances below 35% of their limits, and correcting any inaccuracies will help ensure your credit reports are viewed in the most favorable light.