Money Management

You’re entitled to a free credit report every 12 months from each of the three credit bureaus. Find out how to get your reports and what to look out for. 

Many banks and apps offer free credit score monitoring. But a credit score alone is just a three-digit number that doesn’t give you much information. If you want to find out why your score is up or down, it’s essential to look up your credit reports. Your credit reports contain the information that your credit scores are based on.

How to get your free credit reports

You’re entitled to a free credit report every year from each of the three major credit bureaus: Equifax, Experian, and Transunion. However, since the beginning of the COVID-19 pandemic, all three credit bureaus have offered consumers free weekly access to credit reports, a service they’ll continue through the end of 2023.

The only website that’s authorized to provide you with the credit reports you’re entitled to is AnnualCreditReport.com. You can request your annual credit reports by doing one of the following:

Visit AnnualCreditReport.comCall 1-877-322-8228Complete the Annual Credit Report Request Form and mail it to:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

Even once free weekly credit reports are no longer available, you’re entitled to a free credit report, regardless of how long it’s been since you received one, in the following scenarios:

You’ve been denied credit, employment, insurance, or another benefit or had unfavorable action taken against you based on information in your credit reports. If this occurs, you’ll receive what’s known as an adverse action notice. You’ll have 60 days to request a free credit report from the bureau that provided the report.You’re out of work and plan to begin searching for a job within 60 days.You receive public assistance.Your report contains inaccurate information due to identity theft or fraud, or your report includes a fraud alert.

What to look for on your credit report

Once you’ve obtained your credit report, it’s essential to verify that all the information is accurate. Here’s what to look for in each section:

Personal information: Make sure your name is spelled correctly and that your address, phone number, Social Security number, and date of birth are accurate. Also check that your employment history and marital status are accurate and up to date.Public records: This section will include records obtained from courts, such as lawsuits, tax liens, bankruptcy, criminal records, and judgments, as well as any accounts that have been sent to collections. Make sure any records listed here actually belong to you and that the statute of limitations hasn’t passed, in which case the bureau must delete the information.Credit accounts: This section should include any credit accounts or loans where you’re the primary or joint owner, as well as accounts that list you as an authorized user. Look out for any accounts you don’t recognize, payments that were incorrectly reported as late or missed, and inaccurate balances. Any adverse information in this section should be removed after seven years.Inquiries section: The inquiries section contains a list of everyone who accessed your report in the past two years as part of a credit application. Creditors can’t pull your reports without your consent, so look for any hard inquiries you didn’t authorize.

How to dispute inaccurate information

If you find inaccurate information in any section, dispute it directly with the credit bureaus. Some mistakes may be due to a simple error, but if you see accounts or activity you don’t recognize, it may be a sign of identity theft or credit card fraud.

If you contact the bureaus in writing, provide a statement detailing the errors as well as any supporting documentation. Here’s how to contact each bureau.

Equifax

Online: equifax.com/personal/credit-report-services/credit-dispute/

By mail: Download the dispute form and mail it with your letter to:

Equifax Information Services LLC
P.O. Box 740256
Atlanta, GA 30348

By phone: 866-349-5191

Experian

Online: experian.com/disputes/main.html

By mail: Use the address provided on your credit report or mail your letter to:

Experian
P.O. Box 4500
Allen, TX 75013

By phone: 888-397-3742

TransUnion

Online: dispute.transunion.com

By mail: Download the dispute form and mail it with your letter to:

TransUnion LLCConsumer Dispute Center
P.O. Box 2000
Chester, PA 19016

By phone: 800-916-8800

Other types of credit reports

The main credit reports you should monitor are your reports from the three major bureaus. But these aren’t the only records of your financial history that may affect you. Here are a few examples:

Checking account reports: Checking account reports contain information about your bank account and transaction history. Banks and credit unions may use them to decide whether to offer you an account. Companies that provide checking account reports include ChexSystems, Early Warning Services, Certegy, and Telecheck. You’re entitled to a free report from each checking account report company every 12 months, but you’ll have to contact each company individually.Tenant screening reports: Many landlords use tenant screening services to decide whether to rent to you. If you’re denied housing because of a tenant screening service, the landlord must provide you with the name of the screening company and information about how to get a copy of the report.Insurance records: Insurance companies maintain records about consumer claims. If you’re denied coverage due to information in a third-party report, you’re entitled to a free copy of that report.

No single number or report will give you a complete picture of your financial health. But if you’re ever denied credit or other financial services due to information in a credit report, investigate further by requesting a copy.

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Although I love shopping at my local Dollar Tree, there are certain items I will not buy there including batteries, aluminum foil, and pet food. Here’s why. 

Shopping at the Dollar Tree can be a great way to keep more money in your bank account. In fact, I regularly buy items there even though I could afford to shop elsewhere. Not only does buying items for just $1 allow me to keep my credit card bills low, but it’s also fun to see all the great deals the store has available.

But, while there is a lot that is worth buying at this dollar store, there are five products I’d absolutely never purchase (or never purchase again) and that I would recommend others steer clear of as well. Here’s what they are.

1. Aluminum foil

Dollar Tree’s aluminum foil is one of the worst products that I have ever purchased. Not only are the rolls really small and the box poorly designed so the foil doesn’t cut well, but the foil is also incredibly thin. It tears if you look at it wrong, making it virtually useless if you ever want to actually wrap anything in it.

Rather than buying this item at Dollar Tree, you’re much better off getting a generic — or even name-brand — roll at your local grocery store or warehouse club. While you’ll pay a little more, you’ll save a lot of aggravation and your food will be stored more safely.

2. Batteries

Dollar Tree batteries have an extremely short life span. Whenever we’ve purchased them, whether for remote controls or for children’s toys, we end up having to replace the batteries again way faster than we imagined would be possible.

Changing out batteries is a big hassle — especially when you can’t get your TV to turn on or your kid’s favorite toy car will no longer drive. Spend a little extra upfront for a better version that is going to last longer. That will likely save you in the end anyway, as buying batteries that don’t last is just a waste.

3. Windshield washer fluid

Buying windshield washer fluid at the Dollar Tree may seem like a great idea — especially as it is less than half the price of a jug of fluid at other big-box stores like Walmart. Unfortunately, the fluid is only effective during the summer months, so if you live in a cold climate, you’ll be stuck with washer fluid that can’t be used when it’s cold outside. Since you often need washer fluid more often in winter, this is a really bad purchase to make.

4. Kitchen knives

If you are actually hoping to cut any of your food with kitchen knives, Dollar Tree’s offerings are probably going to disappoint you. The knives (including both the blades and handles) are very flimsy and it’s almost impossible to actually cut through anything harder than a slice of bread.

5. Pet food

Dollar Tree’s pet food leaves a lot to be desired in terms of quality ingredients. There was also a recall a short time ago as a result of a rodent infestation. I am simply unwilling to trust my pet’s health to potentially low-quality food products that may not always be stored safely, so I won’t purchase any pet food from the Dollar Tree under any circumstances.

While these items are not great, the good news is there are plenty of better things you can find at Dollar Tree. So, leave these on the shelves and check out the other aisles to find great bargains in kids toys, party favors, and holiday decor.

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A single late payment could have serious consequences. Read on to see what those might entail. 

As a consumer, it’s important to know how your actions might impact your credit score. That’s because the higher that number is, the more likely you are to get approved for a loan or credit card when you want one. Also, if you’re approved for a personal loan, you’re likely to snag a lower interest rate with a higher credit score than a lower score.

Of the various factors that go into calculating your credit score, your payment history carries the most weight. And your payment history speaks to how timely you are with your bills.

If you’re late even once paying a credit card bill or making a payment on a loan, it could have serious consequences. And it’s important that you understand the repercussions that might ensue.

One late payment could do a world of damage

We’re all human, and mistakes happen. So it may come to be that you’re late paying a credit card bill, whether because you forgot about its due date or you didn’t have the funds on hand to make your minimum payment.

You might think that a single late payment isn’t such a big deal. In fact, in a recent survey by the Consumer Bankers Association, 46% of respondents mistakenly believed the statement, “My credit score can go down a little, by 10 or fewer points,” when asked what happens following a single late payment. In reality, the damage could be a lot more severe.

You’d think that if you had a strong credit score, you’d be able to come away from a single late payment relatively unscathed. But believe it or not, people with higher credit scores stand to get hurt more from a single late payment than consumers with lower credit scores. And the reason is that a late payment from someone with a higher credit score is more of a surprise, so that’s reflected in the form of a larger credit score drop.

How much might your credit score drop after one late payment?

The impact a single late payment will have on your credit score will depend on a couple of factors, such as what your credit score was to begin with and how late you were with that payment. A payment that’s 30 days late is apt to cause less damage than one that’s 90 days late.

FICO says that for someone with an excellent credit score in the upper 700s, a 30-day late payment could result in a drop of up to 83 points. For a 90-day late payment, that same consumer could see their credit score drop by up to 133 points. Ouch.

For a consumer with a credit score in the low 600s, the damage won’t be as severe, according to FICO. In that case, a 30-day late payment might result in a drop of up to 37 points, while a 90-day late payment might result in a drop of up to 47 points.

Either way, it’s important to recognize that being late with a credit card or loan payment is just plain bad news. So it’s best to do what you can to avoid that. Keeping tabs on credit card balances and paying attention to due dates is a good way to steer clear of being late. And if you’re juggling multiple debts, consolidating them via a personal loan or balance transfer credit card could make them more manageable, thereby reducing your chances of missing a payment deadline.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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A bankruptcy filing can be bad news for shareholders. Read on to learn more. 

When companies run into financial difficulties, they can seek out protection via the bankruptcy process, the same way individuals can file for bankruptcy when their debts spiral out of control. Filing for bankruptcy does not automatically mean a company is winding down operations and ceasing to exist. In some situations, that is the case, but often, a bankruptcy filing involves reorganizing a company’s debts to allow business operations to continue.

But no matter what type of bankruptcy a given company files for, it can be bad news for investors who own shares of its stock. So if you have stocks in your brokerage account whose companies seem to be in trouble, you may want to unload them before those businesses file for bankruptcy.

Your stocks could become worthless

When a company files for bankruptcy, its stock gets delisted. At that point, it will only trade privately in what’s known as the over-the-counter market. And any dividends that would normally be paid out to shareholders will cease.

Generally, when you add shares of stock to your brokerage account or IRA, you’re buying common stock. But you should know that once a company files for bankruptcy, a trustee is appointed to make sure its assets are distributed as equitably as possible to creditors. And you should also know that as a holder of common stocks, you’re basically last in line to get paid. Bondholders and investors with preferred stock will get paid before you do.

Does this mean that if a company files for bankruptcy, you’ll get nothing from your shares? Not necessarily. But they may end up only being worth pennies on the dollar. And much will depend on how the bankruptcy itself shakes out.

If a company files for Chapter 7 bankruptcy, it means it’s liquidating its assets and shutting down operations. In a situation like this, your chances of getting paid anything for your shares of stock are pretty slim.

But if a company files for Chapter 11 bankruptcy, it means it’s reorganizing its debt with the intent to keep operating and move forward with a cleaner financial slate. In a Chapter 11, it’s possible for new shares of stock to be issued to stockholders, so in a situation like that, you may not end up losing much or even any money.

Keep tabs on your investments

Generally speaking, if you own shares of a company that you think may be on the verge of bankruptcy, you’re better off getting out and selling your stock before that filing becomes official. You might end up taking a loss on those shares, but it’ll be a smaller loss than what you’d be looking at after a bankruptcy filing.

Along these lines, it’s important to keep tabs on the companies you have money invested in. Once you start to see signs of financial decline, it should serve as a wake-up call to consider cashing out your shares before their value falls even more, or before a bankruptcy filing renders your shares worthless.

The good news is that losses you take in your investment portfolio can be used to offset gains. So if you have reason to believe a company you’re invested in is about to file for bankruptcy and you sell your shares while they’re worth a little bit of money, you might lose, say, $2,000 in the process. But if you have a $2,000 gain in your account, your loss will cancel it out. And if you don’t have any gains, you can use your loss to offset some of your ordinary income.

Taking losses in your portfolio may not be ideal. But at least there’s a silver lining from a tax perspective.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Buying the right auto insurance coverage is essential for motorists. Read on for the add-ons drivers should consider purchasing. 

Buying the right car insurance is crucial. Being fully protected against losses can help drivers protect the assets in their bank accounts.

While the state requires certain kinds of insurance coverage, many drivers actually need more than the minimum. In fact, here are six car insurance add-ons that could be well-worth paying for.

1. Comprehensive coverage

Many different things could happen to cars. They could be stolen, for example, or vandalized. None of those hazards would be covered with the minimum required auto insurance, though. If a driver wants to be sure they don’t have to pay to repair or replace a car that is destroyed, lost, or damaged by anything besides an accident, comprehensive coverage is a crucial add-on.

2. Collision coverage

A driver who buys the minimum required coverage would have insurance that pays to repair or replace someone else’s car if the policyholder caused a crash. But, that driver would have no coverage for their own car if they caused an accident.

Collision coverage is an essential add-on to make sure that when a driver gets into an accident they are at fault for, the insurer is there to help them get back on the road.

3. Uninsured or underinsured motorist coverage

Although drivers are typically required to have liability insurance coverage, there are some who break this rule. And, many others buy only the minimum amount of required coverage, which may not be much.

If a motorist gets into a crash with a driver who either has too little or no insurance, that’s a really bad situation to be in. If that uninsured or underinsured driver was at fault but had no coverage, the motorist would need to try to collect from that person personally. And, perhaps not surprisingly, many people who illegally drive without insurance don’t have a ton of assets to pay for losses they cause.

Uninsured or underinsured motorist coverage is a crucial form of add-on insurance protection that can cover crash victims in this type of situation. It will stand in and pay for the losses the driver without insurance caused the policyholder to endure.

4. Accident forgiveness

Insurance premiums can go up as much as 40% to 50% after an at-fault accident where the damage is substantial. Accident forgiveness can help ensure this does not happen. Accident forgiveness allows drivers to avoid a premium increase after a first accident. This could be a vital add-on that saves a motorist from high insurance premiums for years after something goes wrong behind the wheel.

5. Rental car reimbursement

Rental car reimbursement coverage is an important add-on as well. It doesn’t cost much — usually a few extra dollars in insurance premiums each month. But, if a covered loss happens and a policyholder is without a car, rental car reimbursement will pay for a rental vehicle until repairs are made or until the insurer cuts a check for a replacement.

It can sometimes take weeks to get things resolved after a crash, and rental car reimbursement coverage can ensure policyholders don’t have to spend a fortune or go without a vehicle for all that time.

6. GAP Insurance

Many people have auto loans on their cars. Unfortunately, when a vehicle is totaled and the insurer pays out the fair market value, the check the insurer provides isn’t always large enough to repay the remaining loan balance.

GAP insurance pays the difference, ensuring that motorists aren’t left paying for a car that’s no longer drivable. It’s actually a required add-on by many lenders and lease providers for that reason.

Each of these six add-ons could save drivers from financial disaster, so they are well worth looking into when deciding what kinds of additional insurance coverage to buy above and beyond the minimum.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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