Avoid Holiday Stress By Planning Ahead
The holidays are upon us.
Here are some tips from your local community bank regarding your safety, financial soundness and sanity during this joyous – but frequently stressful – time of the year.
Before hitting the malls or shopping online, prepare a list of the people on your gift list, how much money you are willing to spend, list of the gifts you want to purchase and stick with it.
While you are more likely to stay within your budget if you pay with cash, it may be safer to pay by check, credit or debit card instead of carrying a large sum of cash with you. In any event, keep track of your expenditures to avoid “the gift that keeps on giving” – large credit card balances.
Shopping online allows you to save gas and avoid the mad rush of crowds at the mall. Be sure you purchase from a trusted web site and print out a copy of your receipt with the contact information should you have any questions or if the item needs to be returned or exchanged.
If a store offers “no interest, no payments for x months,” be sure you can pay for the purchase prior to that date. These “offers” generally require that you pay finance charges from the date of the initial purchase unless you pay in full before the end of the “no payments” period.
If you’re making a large item purchase and the seller encourages you to buy the extended warranty, be very cautious. In most cases, extended warranties are a significant source of profit for the seller, and are rarely utilized.
Take time to research the product and buy products with proven records of reliability. When shopping for the “hard-to-buy-for” teen or family member, gift cards have become quite popular. While these cards are easily available, make sure you understand the terms. Some cards have an expiration date or deduct a percentage from the value of the card if it is not used within a certain time period. Keep the card’s account number and a customer service number in a safe place in case the card is lost or is stolen. It might be safer to purchase gift cards from stores who keep them behind the counter rather than purchasing them at a kiosk. Scammers sometimes hang around the kiosk, memorize the gift card numbers, wait until the card is purchased and call to confirm the amount on the card. Then they go online and spend the funds from the gift card.
In addition to shopping wisely, be sure you take personal safety precautions during the holiday season. Sadly, criminals find ample opportunities to “ply their trade”, and some simple steps can help you avoid being a victim.
• Be sure to put your purchases in the trunk and out-of-sight of would-be thieves.
• When shopping, be sure to park your car in a well-lit and well-trafficked area.
• For safety, try to shop with a family member or friend. If you shop alone and have lots of merchandise or cash, ask to be escorted to your car.
• Lock your doors as soon as you get in the car and be sure your windows are rolled up.
• When walking to your car, have your keys in hand. Crooks look for those who appear distracted or talking on their cell phone. Keep your finger on the alarm button of your electronic door opener in case there is an emergency.
• Keep your drapes drawn at your home if gifts are visible from the outside to discourage potential burglars.
• Make sure any financial contributions are to legitimate charities or organizations.
• Never drink and drive.
Most importantly, enjoy the season. After all, it
is family and friends who make the holidays special.
This information is provided with the understanding that the association is not engaged in rendering specific legal, accounting, or other professional services. If specific expert assistance is required, the services of a competent, professional person should be sought.
Provided as a public service by the Pennsylvania Association of Community Bankers.
Contact: 717.231.7447

Improving Your Credit Score
Many Americans are feeling trapped in the current economic climate, facing foreclosure on their homes and living on credit cards to make it from month to month. Now, more than ever, it is important to maintain a high credit score and know what is in your personal credit report.
You first need to understand that, under federal law, you are entitled to a free credit report from each of the three national credit reporting companies each year.
To get started, select a date on the calendar. Let’s start today. Go to your computer and log on to www.annualcreditreport.com. Be sure to order your report from this website. Other sites will charge you a fee. Using the date you select, you will be able to receive another free report each year by logging on and requesting your credit report. You may also call 877.322.8228 to request the form.
While you’re checking on your credit report, you will also have an opportunity to check your credit score. This report will cost you a nominal fee, but it is important to know your score.
Each year on your selected date, you will be able to order your free credit report and purchase a copy of your credit score.
What is a credit score?
The three national credit reporting bureaus —Experian, Equifax and TransUnion — keep reports based on information they receive from companies who have extended credit to you. These reports include information such as your payment history, the length of your credit history, and the types of credit you have and the amounts you owe. From that information, they derive your credit score, which can range anywhere from 300 to a perfect 850. Keep in mind that the higher your score, the better interest rates you’ll receive. For example, consumers with a credit score above 700 generally receive lower interest rates and those with a credit score of 760 or higher will receive the lowest interest rates. The median credit score is 723. Consumers with the highest credit scores usually pose a lower risk as a potential borrower. If you’re thinking about buying a new car or purchasing a new home, your 3-digit credit score will in large part determine your interest rate.
How is your credit score calculated?
According to one financial planning expert, your credit score is calculated using this formula:
• 10% is based on the types of credit in use, including the number of accounts and the mix of those accounts.
• 35% is based on your payment history. Do you pay your bills on time? Do you have any bankruptcies, judgment liens or foreclosures on your record?
• 30% is based on the amounts owed on available credit cards and installment loans.
• 15% is based on the length of your credit history.
• 10% is based on the number of new credit accounts opened recently.
How can you improve your credit score?
• Pay your bills on time. If you find it difficult to make time to sit down and pay your bills on a regular basis, consider setting up an automatic payment system through your bank, so you’re never late. Of course, be sure you have enough money in your account to avoid overdrafts.
• Be sure you don’t have too much credit. Too many credit cards and installment accounts can negatively affect your credit score.
• Don’t max out your credit cards and keep balances on your credit cards low. Experts suggest you keep your debt ratio on your credit cards under 50%. If you have a $5000 limit, don’t carry a balance more than $2500.
• Don’t open a lot of credit cards you don’t need.
• Pay down those credit cards with the highest interest rates first.
• Carefully review your credit report and correct any errors immediately.
Credit is a good thing, but we all know what they
say about too much of a good thing. Use credit responsibly and you’ll find your lender will offer you the lowest interest rate when you go to purchase that new home or automobile.
This information is provided with the understanding that the association is not engaged in rendering specific legal, accounting, or other professional services. If specific expert assistance is required, the services of a competent, professional person should be sought.
Provided as a public service by the Pennsylvania Association of Community Bankers.
Contact: Pennsylvania Association of Community Bankers 717.231.7447

Online BillPay Will Keep You On Time

We’ve become a nation of time-savers. One of the simplest and most burgeoning time savers is online bill pay. By using online bill pay, we can save time, postage and ensure that our bill payments arrive on time.
Some people are hesitant to use this service because they don’t understand how it works, are distrustful of putting financial information on the web or prefer the traditional method of paying bills by writing a check so they can have a paper trail.
There are three ways to pay your bills online:
First, you may want to check with your community bank or other financial institution to determine whether they offer online bill pay to their customers. Many financial institutions offer online bill pay as a free service to their customers. You simply set up an online account on the bank’s secure server, register your bills and schedule payment dates.
Secondly, you may want to use a third-party bill pay service to set up accounts for all of your monthly bills. This system works in the same manner. Just be sure the service you select has a safe encrypted Internet site. To ensure that you are not being directed to a fraudulent site, look for an image of a “padlock” in the lower portion of your computer screen. When you double-click the “padlock”, you’ll be able to read the certification information on the pop-up screen. If there is no “padlock” image, you need to keep searching for another secure bill pay service.
As a third alternative, many companies accept online payments without charging you a fee.
Additionally, once you set up an online bill pay account with one of your creditors, the company will send you an e-mail reminder that your bill payment is due and then send you a follow-up e-mail after you confirm your payment.
With online bill pay, you can schedule your payment “due date” and won’t have to worry about finding time to sit down and write checks. Should you be on vacation or have an emergency situation, you don’t have to worry about paying your bills. With your established due date, the bank online bill pay service will automatically deduct your stated amount from your account. Just be sure that you have enough money in your bank account each month to cover your payments.
If you are really serious about getting all of that clutter off your desk, you can also request that your creditor e-mail your statement to you. At the click of a button, you can access all of your account information whenever it is convenient for you. You can review payment history, transactions and recent activity so you will know if someone is using your account without authorization without waiting for a statement in the mail. Once you see how easy an online bill pay service can be, you’ll wonder why it took you so long to get started. Just remember to always use caution any time you transact business via the Internet. Be sure
to use a reliable and trusted company with a secure server.
This information is provided with the understanding that the association is not engaged in rendering specific legal, accounting, or other professional services. If specific expert assistance is required, the services of a competent, professional person should be sought.
Provided as a public service by the Pennsylvania Association of Community Bankers.
Contact: Pennsylvania Association of Community Bankers (717) 231-7447

You're Entitled to a Free Credit Report!!
Thanks to a recent change in federal laws, Americans are now entitled to receive one free copy of their credit report every year from each of the nation's top three credit reporting agencies - Equifax, Experian and TransUnion.

And according to the Federal Trade Commission (FTC), the only website authorized to provide those free reports is www.annualcreditreport.com.

However, there are plenty of companies that charge consumers for access to their credit reports, so the FTC cautions you to type that web address carefully to avoid accidentally ending up on a site that charges a fee for a service you're entitled to receive for free.