FICO Discloses How Mistakes Affect Your Score

You know that paying your credit card late or going over the credit limit can affect your credit score. But now FICO reveals just how damaging mistakes can be.

FICO assigns consumers a three-digit number between 300 to 850. The higher your score the better, and the more sensitive you’ll be to mistakes. Those with good or excellent credit -- so-called prime borrowers -- put more points at risk with each mistake.

CreditCards.com put the cost of damage into dollar perspective by running some scenarios:

For a consumer who started with a FICO score of 780:

• Following a 30-day late payment, the consumer's car loan rate would jump nearly 3 percent, costing the borrower $26 more each month.
• Following a debt settlement, the consumer would pay as much as $109 more each month on a home mortgage.

For a consumer who started with a FICO score of 680:

• Following a 30-day late payment, the consumer would pay $41 more each month for a car loan.
• Following a 30-day late payment, the consumer would pay as much as $95 more each month on a home mortgage.
• Following a debt settlement, the consumer would no longer qualify for a credit card.

Previously FICO has been secretive about their formulas and how they affect consumer credit by revealing this information FICO hopes that consumers will understand how their actions contribute to credit standing.

How to Safely Bargain Shop Online

This is the way that I shop online. I see something I really want, like a new pair of Keen shoes. I might go to the store and try them on, but usually I don't have time for that. So first I visit one of the online shoe stores, but maybe there's still more than I'm willing to pay. So I spend some time searching until I find a price that I like. Oh, but wait I've never heard of this retailer. Are they trustworthy?

Now it's time for investigation. Look for the obvious:

1. Do they have a security/hacker prevention or testing certificate?


2. Does the LOGIN process use an encrypted HTTPS page? Notice I've capitalized LOGIN, that's because you want the pages where you enter all your personal information to be secure.


3. Does the checkout process use an encrypted HTTPS page? Naturally you want the payment pages to be secure.


4. Read the privacy policies. It's so easy to just blindly click "Accept" here. But you should 1) ensure that there isn't a big blank after the small amount previewed in the acceptance screen and 2) read it to see if you agree with it.


5. Find out how to contact the company if there is a problem. Keep the site bookmarked or better yet, write down (or keep an electronic file) of the company name, web address, customer service contact info.

Beyond this you can do some research to check out the company.

• Search Google for the store name and words like "scam" and "customer service."


• Check the Whois to see what the website registration looks like. It is not a good sign if it was just registered last week.


• Check if the company has a yellow pages listing and street address. If you have a phone number, a company with a street address is a lot more reassuring. Check the address on Google Maps to see if it is a vacant lot.


• See if the site has a warning listed on McAfee SiteAdvisor.

It can take a lot more time to go through this investigation. But it's worth it. You goal should be to get a good product at a great price from a company you can trust.

This post originally ran on November 10, 2008.

Three Credit Union Services for which to be Thankful

3 Credit Union Services for which to be thankful

1. Online banking--Even when the credit union is closed you can pay bills, check your account, and transfer funds.
2. CO-OP ATM Network--Surcharge free ATMs let you get money whenever you want.
3. Honest Debit and Credit cards that don't sneak fees at you just because they can.

Don't Pay for Your Money!

All physical branches of financial institutions will be closed tomorrow for Thanksgiving Day, but of course that doesn't bother most of us because we know we can get cash at ATMs if needed. But please, don't let a little thing like a holiday cause you to lose your senses and pay to get your own money.

ATM surcharge fees are the charged by the bank owning the ATM. Let me explain more to be perfectly clear--this is the fee that is shown on the screen that says something like "Hey, did you know that if you had a BankXYZ card you wouldn't have to pay $2.75 just to get your own money? Would you like to continue giving your money away?"

There is no need to give in to this robbery. I don't care if you are 500 miles from your credit union. You have choices.

Easy choice #1: Go buy a pack of gum and use the cash back option. It costs you nothing! Except the price of gum, which by the way is a bit crazy.

Easy choice #2: Find a Co-Op ATM. This is the credit union ATM network and these machines will not charge you a surcharge fee. Find them easy online if you're a plan ahead type or have a web enabled phone. Or Text your location – address, intersection or zip code – to 692667 (MYCOOP) from any mobile phone or download the database of more than 28,000 surcharge-free ATMs directly to your Garmin, Tom Tom or other GPS device here.

Be safe, have fun and don't pay to get your own money!

Why College Students Should Join a Credit Union

Some years back I was working a good job in marketing, but having a frustrating day. So I picked up the paper (yes, it was that long ago--you could actually find jobs in the paper). I found an ad for a marketing job at a financial institution, applied and got the job. I was a bit anxious about going to the stuffy world of money, but figured I could stand to learn something about finances. I had no idea what I was in for.

The job was for a credit unit that was founded at a university and had grown to serve a wider community. My life completely changed. I know that sounds dramatic, but I had never paid any attention to credit unions before and I was surprised to learn that a financial institution could care so much about the people it served. Plus, on the job I learned a lot about money management and got my own finances on track as a result. My only wish is that I had learned all of this earlier.

During my time at that credit union I talked with quite a few students who asked "Why should I open an account at your local credit union when I can have an account at Wells Fargo, they are everywhere?"

Here's my abbreviated answer to this question in bullet points:

• Everybody learns the hard way: Most students don't live away from home for the first time and perfectly manage their money. Most students bounce checks, pay bills late and forget to balance their checkbook. Most students sign up for online banking and forget to login for months. Wells Fargo isn't likely to sit down with you and show you how to straighten out your mess. Most credit unions will. I've seen this at many credit unions, not just the one where I was working. Credit union staff will actually go through your account transaction by transaction, show you how to use online banking, ATMs, overdraft protection and other services to keep track. They also tell you exactly how to reduce your fees.
• Lower Fees: We say this so much in the credit union industry that it seems like a cliche, but it's not. Overdraft fees at credit unions are typically 1/3 lower than banks. And credit unions realize that you're human. You can talk with a credit union. If you are having a rough time or just can't do math they will help you out (see the previous bullet).
• Resource: This again piggybacks off of the first bullet, but credit unions are bursting with information and eager to share.
• Credit Unions Care: For the most part everyone I've ever met that works at a credit union has that not-for-profit spirit of wanting to help others. Credit unions do want you succeed at managing your money. I'm sure banking personnel are terrific people as well, but their business model isn't about you, it's about their shareholders, which leads me to...
• Membership: A handful of people (the shareholders) stand to profit big, big money if the bank does well. Credit unions are not-for-profit cooperatives. Members pool their money together in order to help each other. When the credit union does well all the members benefit by keeping fees and lending rates low, which keeps more money in your pocket instead of fattening some shareholders wallet.
• Volunteer Directors: So, as I've said there isn't a small group of shareholder, however, there is a Board of Directors. This group isn't paid. They are member volunteers who are elected by the membership. They bring guidance to the administration and assist with organizational health and growth. And it's worth repeating that they are volunteers, they do not receive any compensation.

I've talked to countless numbers of parents who were concerned about their son or daughter being on their own. I always tell them, with confidence, that when a student joins a credit union (university based or not) they are not alone. Credit unions are the best place to learn money management.

Fees Still Lower at Credit Unions

The Federal investigations of fees will not exempt credit unions, but we members can sleep more peacefully knowing that we are less gorged by fees than our banking friends.

The latest research comparing the fees on deposit products between credit union and bank customers by Researchers Victor Stango, a professor of economics at the University of California, Davis, and Jonathan Zinman, a professor of economics at Dartmouth College, report the following key findings:

- Average annual costs on bank checking accounts are more than twice as high as those on credit union share draft accounts.

- Some of the bank/credit union difference can be explained by a greater number of fee-incurring transactions on bank checking accounts.

- The greatest component of annual costs of both bank and credit union accounts is the overdraft fee, which is roughly one-third lower at credit unions.

Nobody likes to pay fees at a financial institution (FI) or anywhere else. Fees have always been around and were originally intended to discourage certain behaviors like paying bills late, spending more than is in your account or using another financial institutions ATM. But most FIs learned early on that fees were also a great way to make money. So they literally cashed in on consumer behavior. Over the years FIs found even that increasing the amounts of the fees didn’t change our behavior much, we still did all those things that trigger fees. So the FIs kept raising fees for easy profit. Now with profits shrinking in other areas of their business, fees have come to be looked on as even more valuable.

What Hiring Managers Want

Going to a job interview has to rank rather high on the scariest things you'll ever do list. It doesn't matter how much you read about etiquette, your sure to come away wondering if you did and said the right thing.

A report from the Society for Human Resource Management offers the following advice to job seekers.

• Don't say things like "this is my dream job". According to the report, hiring managers hate that. Maybe they're afraid they won't live up to your dreams, more likely they'll think you're just a suck up.
• Don't skip the thank you follow up. Be sure to get a business card from everyone involved in the interview, then send a simple thank-you email--that's the preferred (and faster) method.
• Don't bug them with phone calls, but it's acceptable to call once. If you're the anxious type, try not to call more than once a week.
• Be sure to clean up your Facebook and Twitter posts. It's becoming normal procedure to lookup candidates, even before granting an interview.

When asked about expected hiring 26% of small companies (100 employers or less) and 24% of medium sized companies (100-449 employees) said their organization is likely to increase staff during the fourth quarter. Only 11% (500+ employees) said their employers are more likely to maintain staff levels. So your odds are better at finding a job with a smaller organization.

Scam Alert: Lower Your Property Taxes

Don’t fall for this offer to lower your property taxes.

What it looks like:

An official looking letter promises to cut thousands off your current property taxes.

All you need to do is to complete an authentic-appearing form and return it with payment—usually around $150 or more. Then, the letter says, the sender will file the paperwork on your behalf. Some letters warn that homeowners who fail to respond could face additional fees or become “ineligible for future tax reassessments.”

What actually happens:

No paperwork to lower taxes is ever filed. The scammer cashes our check and is unreachable.

The truth:

You can appeal the property tax assessment by contacting your local county clerk’s office. No middleman or fee is required. You'll never be ineligible for future tax reassessments.

Debit Card Overdraft Fees Getting Federal Attention

The Federal Reserve has had it with fees on debit card ATM and retail transactions. Banks have been allowing consumers to withdrawal more than their account balance and/or make purchases that cause their account to overdraft. These banks then charge the consumer significant overdraft fees.

I’ve always been a big fan of debit cards, since I never carry cash. I like that the money comes directly from my account and isn’t loaned to me on credit. But, lately there’s been a bit of stretching of the debit card function. Some banks allow consumers to draw more than the balance of their card and let purchases overdraft all with the intention of collecting fees. If you ask them, they’ll say they are just being nice, but if you ask the Feds they’ll call it something quite different.

Fortunately, your credit union debit card has not been a part of this. Your credit union debit card is a true debit card. Your spending power is confined to the amount of money in your account. There aren’t any sneaky practices to drain you of your hard earned money.

But the practice isn’t going away. Now consumers will be notified that they must opt-in to allowing overdraft transaction (which would then cause a fee to be issued). So for those of you who like to add $32 fee to your $4 overdrafted specialty coffee purchase, just say “yes” to fees. For me I’ll stick with the credit union honest debit card.

Debt—it’s Not My Fault. It’s In My Genes

Isn’t it nice when we don’t have to take responsibility for our behavior? It’s especially comforting when some scientific study proves what we’ve thought all along—that we have no control over our actions.

Jan-Emmanuel De Neve, of the London School of Economics, and James Fowler, of the University of California, San Diego conducted a study on the correlation between genes and human behavior. During this time they have connected the gene known as MAOA with financial decision making. Okay to be fair we can’t put all the blame on this gene. Human behavior is much more complex than that. However, the MAOA gene encodes an enzyme that degrades neurotransmitters in parts of the brain that regulate impulsiveness and cognitive ability. Some people have versions of the gene that are less efficient than others. That low-efficiency have been linked to impulsivity, and addictive behavior—things that aren't so good for your finances.

To further connect the MAOA gene to debt the researchers looked at a genetic database of more than 2,500 U.S. 18- to 26-year-olds who have been tracked since high school in the National Longitudinal Study of Adolescent Health, which looks at the health-related behavior of young people and follows them into adulthood. They found that the group with low-efficiency MAOA reported a higher incidence of credit card debt.

So there you have it, blame it on the genes. Not so fast. The results of the study have yet to be replicated and nearly half of the 2,500 people had the low-efficiency MAOA. And if we assume that this is representative sample of the entire U.S. population than about 1 of every 2 of us have the same low-efficiency. It’s true that a lot of us carry debt, but there is still much to learn about nature vs. nuture. So I’d say it’s a rather big dose of denial to claim that debt is out of our control.

Can You Use the Home Buyer Tax Credit for Down Payment.

Yes. If you expect your home purchase to qualify for the tax credit you can reduce your income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable you to accumulate cash by raising your take home pay. This money can then be applied to the down-payment.

The IRS Publication 919 contains rules and guidelines for income tax withholding. Note that if your income tax withholding is reduced, but you end up not qualifying for the tax credit, then you’ll be liable to repay the tax amount plus possible interest charges and penalties.

Also HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund, provided the FHA lender offers the option of purchasing the tax credit in advance.

There are a more options on how you can apply your tax credit. Read through the FAQs on the National Association of Home Builders (NAHB) site and consult your tax advisor to determine the best plan of action for you.

Cashing in on Rising Gold

Gold rose again today to around $1,100 per ounce. However, rising gold means a weakening dollar. This reminds me of the gold party I attended this summer.

If you want to make some extra cash and strike while gold is hot, do be cautious. The TV version of Cash 4 Gold has been noted as a scam by many people.

You bring your old gold. No matter what the condition you'll get cash. As long as it really gold. Like the Tupperware parties the host gets a cut of the booty. Usually they'll invite some gold expert to analyze the pieces and write checks. The gold expert then takes your gold home, melts it into a brick and cashes it in. Add some food and drink to the mix and everybody goes home happy.

Many jewelry stores will also exchange your gold for cash. Again, this is a much safer, faster and more convenient way to go.

Coors Credit Union Hires Senior Mortgage Experts

Colorado home sales rose 9.4% in September, overall sales increased 24% since hitting bottom last year. Meanwhile the government not only extended the First Time Homebuyer's Tax Credit, but added in a chance for current home owners to get credit for a home purchase. Combine these actions with crackdowns on lending then if all goes as hoped we'll moving toward a stronger economy.

Coors Credit Union is on top of the game. They've just hired two well-seasoned Senior Mortgage Consultants. These additions will not only help with an increased demand in mortgage loans, but their experience brings a nice depth of knowledge to the Credit Union.

Leslie Larson is working out of the Coors Credit Union Golden office.
Leslie has been working in the mortgage business for the last 24 years where she has been an originator, processor, and closer. Leslie is great because she really works closely with clients and develop relationships with all parties involved to ensure that your mortgage experience goes smoothly. She also knows a lot about FHA, VA and Conventional financing. She is good at helping you choose the program that works best for your situation.

Ron LoSasso works out of the Arvada branch. His real estate career began at Chicago Title & Trust where he worked in both commercial and residential real estate. Eventually Ron opened his own real estate lending firm in Wisconsin. Then later when he moved to Colorado he started First Western Mortgage Company in Louisville. Ron is extremely active in local business and is the current president of the Louisville Chamber of Commerce.

Both Leslie and Ron have a strong knowledge of Jefferson County real estate.

How to Choose a Mortgage Lender

The 2008 crumbling of the economy taught us all a valuable lesson. I’m not surprised to hear a little skepticism out there regarding mortgages. The good news is that many lenders learned what happens when you lend too freely or get too creative. The bad news is that there will always be someone somewhere who tries to manipulate in order to earn a bit more money.

So, what do you do if you want to buy, but are feeling hesitant? Choose a reputable lender, right? Well, the last year showed us that it’s easier said than done. You can’t just stick with a big name lender and be sure you are getting responsible service. Of course this is a credit union blog, so naturally I’m going to recommend that you go to your credit union for a mortgage. But let me tell you really why you should go to your credit union.

#1 Trust: All the web articles always suggest that you go to someone you trust for a mortgage loan. Look beyond a mortgage loan. Credit unions are known for less fees. It’s not going to be any different with your mortgage loan.

#2 Rates: I’ve read several articles that warn not to choose a lender who “won’t quote you a rate over the phone”. That’s not reliable information. Mortgage rates can fluctuate greatly from one day to the next. A lender who commits to rate over the phone hasn’t given you or their financial institution good service. Instead, you’ll want to ask how their rates compare to other lender’s in the same market. And remember, you need to look at the overall loan, not just today’s rate.

#3 Accessibility: I probably should have rated this as #1. Prompt return of phone calls and commitments to answering questions is important. On the flip side, a lender who is always available could be a bad sign as well. Shouldn’t they be busy sometime? Large banks can get overbooked. They may ask you to call back next week or say they call you and then don’t. Credit Unions are smaller and more personal. This is important when you are trying to close on a home purchase by a specific date.

#4 Resources and Connections: Part of the lenders job is to ensure that your purchase moves smoothly forward and there are a lot of people in the way of making that happen. Contractors, inspectors, title offices can all need to be reminded of the importance of your sale—your lender acts like a director. The staff at Coors Credit Union is well connected with all of the key players.

#5 Knowledge & Credentials: It should go without saying but be sure that your lender is licensed and registered. You’ll also want to know that your lender stays on top of the industry changes and developments. Your lender should also be aware of all lending programs: not only those offered by the lending institution but of others. In this way they will be able to help you choose the best program for your situation.

Questions to ask a lender:

§ What are your loan programs? Do you offer VA loans (for example)?

§ Can I see a Good Faith Estimate right away?

§ Could you estimate closing costs for my loan?

§ Can you estimate and explain your fees?

§ Over the last year what percentage of loans did not close on time?

§ Will you get approval for my loan locally?

§ Do you sell your loans?

It’s important that you develop a comfortable two-way relationship with the lender. Buying a home is a big deal, be sure you trust your mortgage lender.

Who Qualifies as a First-Time Home Buyer

If you weren't in a position to buy a house by the original First-Time Home Buyers Tax Credit deadline of December 31, 2009 then you might be happy with the six-month extension announcement. Now if you close on a home purchase before June 30, 2010 you could be eligible for up to $8,000 tax-credit.

As a reminder these are the points you need to know about the "First-Time Buyer" aspect of the program. For information about the newly added "Trade-Up" portion for repeat buyers see yesterday's post. (BTW: you don't have to buy a more expensive home to qualify as a trade-up buyer.)

First Time Buyers (defined): The government’s definition of a first time buyer is anyone who hasn't owned a principal residence for three years before buying a house. So if this is your very first purchase, you qualify. If you previously owned a home, but for whatever reason haven’t owned a home in three years, you qualify. If you owned a home, but it was not your principal residence, you qualify.

up to $8,000: The tax credit is equal to 10% of the home purchase price or a maximum of $8,000. So if you purchase a home for $70,000 your credit is $7,000. If you purchase a home for $160,000 your credit is $8,000.

Income limits: The tax credit is limited to single buyers with a modified adjusted gross income of $75,000 or less and $150,000 for married couples. If you do not meet these limitations consult your tax advisor for possible reduced credit eligibility.

No Repayment: Previous First Time Buyer tax credits included a repayment clause. The credit was treated as a loan and had to be repaid to the government via 15 year installment payments—not so with the new tax credit.

Recapture: If you sell the home during the first three years of ownership you will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce. Consult your tax advisor.)

Lenders have been hesitant to sign new loans. President Obama is hoping that the First Time Home Buyers Tax Credit will change that. Meanwhile Coors Credit Union is ready and willing to help you purchase a home with an affordable mortgage. Contact us today to and get pre-approved in time to take advantage of this buyer’s market.

More Buyers Qualify for the Home Buyer's Tax Credit

On Friday President Obama signed the extension to the First Time Home Buyer's Tax Credit. The program was set to expire this December 1st, but was given a six-month reprieve and will now end June 30, 2010.

To receive the $8,000 contract buyers must sign a contract by April 30, 2010 and close on the home by June 30, 2010. All of the requirements from the bill's first round still apply, however, now even more homeowners will be eligible. The bill now includes buyers who want to trade up.

The tax-credit for current home owners who sell their home to buy a new one is up to $6,500. This portion of the tax-credit has been deceptively referred to as the "trade up" credit, but actually you don't have to purchase a bigger or more expensive home to qualify.

Who qualifies?
You must have owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. The bill states that the law tests home ownership for both home buyer and his/her spouse.

How much is the credit?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.

Is any home eligible?
Purchases of homes priced above $800,000 are not eligible for the tax credit.

As for first-time buyers there are income limit restrictions:
The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

New Construction counts too. If you are having a home built both the first-time or the repeat, can apply for the tax-credit as long as the closing date is by the June 30, 2010 deadline.

For more details regarding the Home Buyers' Tax Credit for both first-time buyers and repeat buyers go to Home Buyer's Tax Credits.

Denver Arts Week Kicks Off Tonight

The third annual Denver Arts Week kicks offers a smorgasbord of cultural treats for everyone. The week kicks off in full gear this weekend with First Friday, Saturday Night at the Museums and Sunday on Stage.

If you have yet to venture to Denver's artistic neighborhoods on First Friday, set aside your prior excuses and get out there for this extra special First Friday. You'll be impressed by the festive atmosphere and quality art.

Happily Saturday Night at the Museums doesn't involve suffering through any of those ridiculous movies. It is instead the Mile High City's version of the popular La Nuit des Musées event in Paris, Night at the Museums offers a chance to discover eleven of Denver's greatest cultural attractions, all in one night, all for FREE. Complimentary shuttles run from 5 p.m. to 10 p.m. and originate from Cherry Creek Shopping Center and Denver Art Museum.

Then on Sunday discover our fair city's theatre offerings with Sunday on Stage. Denver theatres open up to give behind the scenes views at how productions come together, and actors' and dancers' crafts workshops.

More events take place throughout the week and to sweeten the deal hotels and restaurants are offering deep discounts.

ING Direct For Sale

The first bank closures of this recession sent people flurrying scared that their money was gone. But by now we've become accustomed to bank closures and understand that our money is safe. Then last week a different bank closure announcement came from Internet-based ING.

Parent company ING Group located in the Netherlands received bailout money of 10 billion euros and was worried both about a crackdown by European Union regulators and pressure to pay back the tax-payer funds. In response ING agreed to sell off ING Direct in Wilmington, Delaware by 2013.

There has been a flurry of activity from customers wondering how the sale will affect them on Twitter. Naturally, ING's response has been "Have no fear, we're still Orange, still as safe as Fort Knox and still paying more interest than your mattress," the bank Tweeted back at 12:15 p.m.

Most likely customer's don't fear that they'll loose their savings, but that they lose out on future earnings and may get stuck with a lesser product. ING Direct was famed for great customer service for customers who basically didn't need service.

How to Buy Gift Cards for Less

Last year a teacher that I know told me that she raked in $250 worth in gift cards from her students during the holidays. Yep, gift cards are the perfect gift: easy to buy, easy to wrap, and don't require much thought. But did you know that with just a little effort you can purchase them for less than face value—giving you a great savings and your recipient a nice gift?

Type in “gift card” on eBay and up come a wide variety of gift cards for auction. I spent less than a minute watching a Lowe’s $450 card go for $398 and a Macy’s $325 go for $285. As always though you’ve got to be careful with eBay only buy from top-rated sellers.

If you Google “discount gift cards” you’ll get a lot of sites that specialize in selling or helping you sell cards. On giftcards.com I found card $250 Borders selling for $217.50 and $25 Carraba’s for $22.50. At ABCGiftcards you’ll find offers 5-35% discounts on gift cards for popular stores and restaurants like Victoria Secret, Barnes & Noble and Olive Garden.

You can also pick up deals at warehouse stores like Costco. Costco members might find $90 in iTunes gift cards for $75 or $100 Wolfgang Puck gift cards for $80

Citydeals.com gives you discounts on everything from car rentals to movie tickets or restaurants narrowed down by location. You could make a purchase for a far away family member, a local friend or use it when you travel to find deals in the city that you are visiting.

Before you purchase any gift cards ask about any expiration date or non-usage fees that might apply. And be sure you're really getting a deal, not like these Target deals (credit The Consumerist)

Watch Out for FDIC Phishing Scam

The FDIC (Federal Deposit Insurance Corporation) which insures your savings at banks (NCUA is the credit union insuring body) wants you to know about a scam using the FDIC as bait.


The subject line of the e-mail states: "check your Bank Deposit Insurance Coverage." The e-mail goes on to say that, "You have received this message because you are a holder of a FDIC-insured bank account. Recently FDIC has officially named the bank you have opened your account with as a failed bank, thus, taking control of its assets."

The e-mail directs you to a fraudulent link and instructs you to "visit the official FDIC website and perform the following steps to check your Deposit Insurance Coverage". It then instructs you to "download and open your personal FDIC Insurance File to check your Deposit Insurance Coverage."

This is a phishing scam. Remember no financial institution would ask you to follow a link, provide information or download an attachment. Don't be fooled by official looking emails. For more about phishing scams read the Coors Credit Union informational flier.

Charity Begins at Home

Since it's November I consider the giving season to have officially begun. One thing I've been thinking about over the past year is how to start my own charity. People often begin their own charities because some tragedy touches their life and they want to ease the burden for others. In my own family we have had our lives touched by some dramatic events and health conditions that I'm sure I wouldn't have gotten through without the help of others.

Starting your own charity as you would probably guess can be complicated. According to

Start Your Own Charity - Kiplinger.com: "If you want to set up a family charitable fund, a donor-advised fund will likely meet your needs. But for some people, a family foundation may be a better way to go. One critical factor is how much and how often you give. For instance, you should expect to set aside at least $5,000 to start a donor-advised fund sponsored by a financial firm. Many community foundations can set up a fund for $1,000 or less if you give regularly. But it usually takes at least $250,000 in assets to make a private foundation worth the cost."

Though starting a charity is on my list of things I'd eventually like to do my family isn't at the point where we are ready to establish a foundation. To encourage my children to give to other we've started the Giving Jar. From now through December we'll all add found change and pocket change to the jar and then donate to one charitable organization. I'm giving the kids a list of organizations that help children and will let them decide which group gets all the money.

The hidden agenda behind the Giving Jar is to inspire my children to help others and to learn that saving even a little bit of money is worthwhile. The project should also help them to become aware of the needs of others and the organizations that try to meet these needs. Because I'm a strong believer that charity begins at home, we'll focus on local organizations that help local people.

I'm excited to see how much of the jar we can fill.