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Why Your Credit Score
Is Secretly Costing
You Thousands of
Dollars and What to
Do About It
By: R.J. Weiss CFP®, Personal Lines Customer Specialist
1
Introduction
It’s safe to say, understanding how credit scoring
works can save you over a hundred thousand
dollars over your lifetime.
Other benefits include:
Don’t believe me?
Let’s say you obtain a $250,000 home loan on
a 30 year mortgage. With a 4% fixed mortgage,
you will make total payments over 30 years of
$429,674 or $1,193.54 a month for 360 months.
If your interest rate was instead 6% due to your
credit history, your total payments over 30 years
will be $539,596 or $1,499 per month for 360
months. A difference of $109,922!
•
Other loans, such as auto, will have a
lower interest rate. You’ll also have more
negotiating power as banks love to deal with
clients with a high credit score.
•
If you rent, even long-term vacation rentals,
it’s easier to do so with good credit history.
•
You’ll get better credit card offers and interest
rates
•
And much more...
At Weiss Insurance Agencies, our mission is to
properly insure homeowners in Illinois and the
Midwest, for the best possible price.
Do I have your attention now?
The savings doesn’t stop. Your credit score is
factored into how much you pay for home and
auto insurance also...
Based on our mission, I feel there’s an obligation
to provide current and future clients with
information to help them improve their credit
score, so they can pay less in insurance...
...And it’s not a few dollars a year difference. You
can save hundreds of dollars a year on home and
auto insurance by optimizing your credit score.
2
About R.J. Weiss
CFP®, PLCS
I’m a CERTIFIED FINANCIAL PLANNER™ who
specializes in personal and business insurance.
My work as a financial author has been featured
in MSN Money, Mint, Time, and Bloomberg’s
websites.
The former (being a CFP®), one of the highest
certifications financial professionals can obtain,
provided me the background to help others
improve their credit score. The CFP® exam
encompasses all aspects of personal financial
planning, such as insurance, investments,
taxation, retirement planning, estate planning,
and credit management.
Passing the exam, as I did in 2010, means I
have completed extensive training on all the
above topics. More importantly, I’m held to very
rigorous ethical standards. Essentially, when
I work with a client, I’ve agreed to put their
interests first.
As someone who knows what today’s world
thinks about insurance agents, (around 50% of
citizens in the U.S. don’t trust this industry) this
isn’t something I take lightly.
Furthermore, my experience with homeowners
has lead to my awareness of just how big of a
knowledge gap there is when it comes to credit
scoring.
In what shocks a lot of people, improving your
credit score is within your control and not that
hard to do. (Furthermore, monitoring your credit
score doesn’t mean signing up for any service
with annoying commercials).
My goal with this guide is to give you the
essentials of what you need to know about
optimizing your credit score.
Let’s get started...
3
4
Understanding Your
Credit History
To optimize your credit score, there are two
things you need to understand:
1. Your Credit Score
2. Your Credit Report
First, let’s look at your credit score also known
as your FICO (named so after the Fair Isaac
Corporation) score. Your credit score is a simple
number between 300 and 850. The higher the
number, the better your credit history.
The number was originally created to make it
easier for lenders to determine if you’re worthy of
a loan or not. Just by looking at your credit score,
a bank can decide if they will lend you money and
at what rate.
However, your credit score now impacts many
areas of your finances beyond bank loans, as
mentioned above.
Note: There are other services now maintaining your
credit score. I used FICO because it’s the most well
known. All the scoring services (TransUnion, Vantage,
Experian, and Equifax) have a different formula;
however, all are very similar.
What Makes Up Your Credit Score?
FICO hasn’t released the exact formula for
calculating your credit score, but it has released
what your credit score is based on. Here is the
formula from their website (followed by what you
need to know about each factor)
5
Payment History - 35%
Your payment history takes in account the timing
of your past payments on accounts such as your
credit card, retail accounts, and your mortgage. It
also takes into account any bills that have gone
to collection.
A quick story, back in college I was in a car accident.
Wasn’t my fault but the other driver didn’t have
insurance. He was going to pay me out of pocket.
I had the bill sent to my dorm room. However, I
switched dorm rooms over semesters and didn’t
receive the bill. Being a dumb 19 year old, I kind of
put the situation aside and thought it was taken care
of somehow. Turns out the bill ended up going to
collections. This one mistake six years ago cost me
when I went to apply for a mortgage.
It’s not rocket science, if you want to improve your
credit score, pay your bills on time. It’s the #1
thing you can do.
Length of Credit History - 15%
15% of your credit score is based upon how
long you have had credit. The longer your
credit history, the better.
This is why it’s a good idea to apply for a card
when you’re young and keep that card for life.
It’s also why it’s a bad idea to cancel your
oldest card.
Although it’s not my primary card, I still have
my first card for this reason. I use it to pay my
cable bill, which is automatically billed each
month.
I keep this card active because you want to
always have some activity on your credit. Like
I mentioned before, applying for a credit card
and then never using it, can actually hurt your
credit card.
New Credit - 10%
The amount owed is the next biggest weight on
your credit score. It’s also commonly referred to
as, your credit utilization rate.
Would you lend $100 to a friend who just
borrowed $100 from three other friends? Of
course not. Which is why lenders, don’t like
to see a lot of new activity, including credit
inquiries, on your credit history.
This is a ratio of the amount you owe and the
amount available. It also takes into account the
number of accounts you have with balances.
Types of Credit Used - 10%
Amounts Owed - 30%
The perfect credit utilization rate isn’t known.
However, we do know some basic facts:
•
Don’t max or come close to maxing out your
available. A good rule of thumb is to not go
beyond 33% of your available credit.
•
You want to use at least some credit.
Therefore, a utilization rate of 0% could
actually hurt your credit score.
Shoot for the lowest percentage you can, with
a reasonable credit limit. A good rule of thumb
is that your credit limit shouldn’t exceed your
emergency fund.
If you’re responsible with paying your bills on
time, I repeat if you’re responsible for paying
your bills on time, a good tactic to increase
your utilization rate is to call up your credit card
company and ask for a limit increase.
Please only do this if you have always managed
to pay your bills on time (yes I know, I said that
3 times but it’s really important) and have an
adequate emergency fund. Otherwise, it could
end up hurting you in the long run.
Lenders prefer to see a variety of credit on
your credit score. For example, it’s better to
have a student loan, one credit card, and a car
loan then three credit cards.
This is only 10% of your score, so don’t go out
and buy or car or a house just to get variety.
The most common mistake made here is
carrying too many credit cards.
What It All Comes Down To
Many people try to crack the FICO equation,
to determine their exact credit score. FICO
has never and will never release the exact
equation.
It all comes down to common sense though.
Pay your bills on time (even if you’re making
minimum payments), don’t use all of your
credit available, and don’t close your oldest
account.
How to Get Your Credit Score
So now that you know 99% of what there is to
know about credit scores, you probably want to
see what your score is.
There’s two ways to get your credit score, one is
more accurate but does require your credit card
information because after 10 days you’re signed
up for a monthly subscription (which you can
cancel). The other is more of an estimate but
requires no credit card.
Option # 1 - MyFico.com
says, “Simulate Best Action” which will let you
see what one thing will help your credit score
the most.
To get your exact credit score, which I
recommend you do once a year, go to MyFico.
com. This is the site maintained by The Fair
Isaac Corporation.
This is a great way to boost your credit score
immediately.
They’ll ask you to sign up for a “free trial”.
However, you can cancel before the 10 days is
up. (Make sure to cancel though, as a 3 month
minimum applies).
Don’t forget, that if you’re getting married or
planning on applying for a loan, like a mortgage,
with someone, your two credit scores combined
will determine your credit score. Therefore, make
sure to check every one’s credit score who will
be on the loan.
Print out the report and save it. Keep it with your
other important financial documents, so you can
compare from year to year. (Use the Print button
located at the “Next Steps” tabs. This will give
you a nice clean printout of your score. )
One last note about MyFico.com, on the third
tab you can see how different credit scores
affect different loans. For example, the difference
between a credit score of 750 and 550 on
$25,000 48 month car loan, is $162 a month.
That’s a 28% increase in monthly payment!
Also, in the “Next Steps” tab, there is a credit
score simulator. This will let you see how certain
actions can help or hurt your credit score.
For example, if I max out my credit cards this
month my credit score would go down around
50 points. There is a handy button on top that
(Note: Hopefully the website design has stayed
the same by the time this eBook is published. If
not, let me know and I will update the guide).
8
Option # 2 - Credit Karma
The free option is to use CreditKarma.com.
I love the service but there are a few things you
should know to get the most out of it.
•
Your score at Credit Karma will be different
from your FICO score. As mentioned, there
are many different credit score reporting
services and Credit Karma doesn’t use FICO.
For more, read their FAQ.
•
Sign up the alerts. This will let you know of
any new activities.
•
Use the Report Card to identify strengths
and weaknesses
Personally, I login to Credit Karma a few
times a year just to make sure there’s nothing
unexpected. It’s a convenient way to monitor if
you are on the right path.
9
The Credit Report
Your credit report is a more detailed report of
your past credit history. It provides a future
lender with just about financial transaction from
your past. A little scary, but true.
Getting your credit report is simple and free. Go
to annualcreditreport.com.
You’re entitled to a free copy of your credit
report from each of the report agencies once
a year. You can get these all at once or over a
period of a year.
I prefer to spread it out, just in case someone
requests a copy of my credit report, I don’t have
to pay to get one.
Once you get your credit report, review it!
You want to double check everything. Even
basic information such as your name, social
security number, address, etc... You won’t
believe how many stories I have heard of this
information being incorrect, and consequently,
negatively affecting someone’s credit without
them knowing it.
Besides your basic information, you need to
review everything on your credit history. Start
from the first page and work your way toward
the end.
To show you what you should be looking for, I’m
going to take you through a recent copy of my
credit report. (The report varies depending on
what credit bureau you obtain it from, so don’t
worry if yours isn’t the same).
10
Potentially Negative Items or
Items for Further Review
If you have any unpaid bills that were sent to
collections, this is where they’re listed.
It’s worth mentioning is that, Chapter 7, 11,
and 12 bankruptcies and unpaid tax liens will
remain up to ten years.
Accounts in Good Standing
The next section gives my accounts that are
paid up to date, along with a balance history.
Mine include three credit cards and one
mortgage. All accounts status currently list
“Open/Never late”, a great sign.
On one of my credit card accounts, I’m listed
as an authorized user. Meaning it’s not
responsibility to pay the bill. Even though this
isn’t my credit card, being an authorized user
still affects my credit rating.
A bit of history on the authorized user
because this has been a back and forth
issue. One of the ways you used to be able
to increase your credit score was to add
yourself as an authorized user to an account
in good standing. For example, if your parents
had good credit, you can ask for them to add you
as an authorized user and their credit history
would go on your credit history.
FICO figured out this trick quickly and decided
to eliminate authorized user status from the
credit score equation for a short time. About two
months after, the reversed their decision after the
changed reversed their decision stating:
“After consulting with the Federal Reserve Board
and the Federal Trade Commission earlier
this year, Fair Isaac has decided to include
consideration of authorized user trade lines
present on the credit report in the FICO 08
model.” - Tom Quinn, Vice President of Global
Scoring Solutions for Fair Isaac Corporation
I don’t know this for a fact, but from reading in
between the lines I’m guessing that there is no
way being an authorized user helps your credit.
If the account holder is in good standing and has
a good history of paying its bills, it will have no
effect at all.
If the account is in bad standing, it will negatively
affect your score. Therefore, if you’re an authorized
user on an account with a bad credit history, ask to
be removed immediately. (You might want to send
them this book, while you’re at it)
11
Accounts in Good Standing
Record of Requests for Your Credit History
(Hard Inquiries)
Hard inquiries are done when you’re taking on
additional financial obligation. Unfortunately,
many businesses don’t come right out and tell
you that they are performing a hard inquiry on
your credit. However, it does make its way into
the fine print.
The most common hard inquiries you will find
on your credit report include:
•
Banks & Credit Unions
•
Credit Card Companies
•
Car Dealers
•
Insurance Companies – They’re required by
law to ask.
•
Property Management Companies &
Landlords
•
Phone & Cable Companies
•
Utility Companies
Here’s the statement from Experian on my credit
report:
“We make your credit history available to
your current and prospective creditors and
employers as allowed by law. Experian may list
these inquiries for two years so that you will
have a record of the companies that accessed
your credit information.
The section below lists all of the companies
that have reviews your credit history as a
result of action you took, such as applying for
credit or financing or as a result of a collection.
The inquires in this section are shared with
companies that view your credit history.”
Each hard inquiry on your credit report will lower
your score anywhere between 5 and 10 points. If
you’re worried about your credit score, anytime
before you open a new account just ask if they
perform a hard pull on their credit.
12
Other Ways to Limit Hard Inquires include:
1. Ask - Anytime you’re opening a new
account, ask if they are pulling your credit,
when they are pulling your credit, how many
times they are going to pull your credit, and
how you can get that removed.
2. Don’t Rate Chase - A common, but
damaging trend is to chase low introductory
rates on credit cards. The more accounts
you open, the more hard inquiries you will
see on your credit.
3. Avoid Applying to Receive 10% Discount
- When you’re checking out at a popular
retail store they will ask you if you want
to save 10% today by applying for a store
card. The same trick is done by issuing free
T-Shirts at sporting events or pizzas on
college campus. Every time you fill out an
application, they pull a hard inquiry.
4. Don’t Do Business With Companies That
Routinely Check Your Credit - A lot of
businesses will make it a habit to pull your
credit on a regular basis. Unfortunately, this
is legal because they put it on the 22nd page
of their terms and conditions that you had
agreed to.
5. Avoid A Sharp Increase in Inquiries - This
isn’t exactly a tip to eliminate a hard inquiry,
but it’s still important. Many people, who
want to get a credit card, will go out and
apply for 4 or even ten credit cards at once.
Please avoid doing this. It shows you’re in
desperate need for credit, which isn’t what a
future lender wants to see.
13
Getting Rid of Hard Inquiries
The contact information for the creditor
should be on your credit report. If it’s not,
visit the company’s website and search for
a contact number. Then call the creditor, and
ask for either a fax line of mailing address to
submit your formal letter. (Note: I wouldn’t
ask for it to be removed over the phone
because there is no paper trail)
There used to be a common technique to
get rid of hard inquires, that if you did a soft
inquiry on yourself once a day, hard inquires
would eventually get bumped. Credit reporting
agencies are smart and quickly caught onto
this.
If you don’t recognize or don’t remember giving
authority for a hard inquiry on your credit, you
have the right to get it removed by mailing or
faxing a request to the creditor. You want to
do this immediately, before they make another
unauthorized inquiry.
Below is a copy sample letter you send via
fax or certified mail to each creditor.
Your Name
Your Address
Your Phone Number
RE: Unauthorized Credit Inquiry
I was recently going over my credit report from (Insert Creditor’s Name), and I
happened to see a hard inquiry listed from your company.
The details of the inquiry are below.
Date of Request: (Insert Date of Request)
Creditor Name: (Insert Creditor Name)
In which I am aware of, I have never approved your company for this inquiry. Under
the Fair Credit Reporting Act, it is stated that you must have my authorization to
perform a hard inquiry on my credit.
Unless you can provide me a written proof of authorization signed by me, I’m asking
you to contact each credit reporting agency to have your illegal inquiries removed,
immediately. I also ask that you remove any personal information of mine from your
records.
I’m sending this letter through certified mail, to ensure it’s delivery.
Thank you for your attention to this matter,
Your Name
Your Signature
Removing a hard inquiry on your credit report, can give your credit rating a slight boost. The
biggest benefit to doing so is less information in the hands of careless organization. The less
personal information about you is circulating around, the less chance you have of getting your
identity stolen. (More on this to come)
14
Inquiries Share Only With You (Soft Inquiries)
Soft inquiries are inquires that you’re not even
aware of. For example, the companies that
send you pre-approved credit card applications
through the mail perform a soft inquiry before
sending you that application. Soft inquiries have
no bearing on your credit score.
On my credit report from Experian it states in
bold letters:
“We offer credit information about you to those
with a permissible purpose, for example to:
•
Other creditors who want to offer you
preaproved credit
•
An employer who wished to extend an offer
of employment
•
A potential investor is assessing the risk of a
current obligation
•
Experian Consumer assistance to process a
report for you
•
Your current creditors to monitor your
accounts
•
A static copy of your credit report provided
to a subsequent user necessary to complete
your mortgage loan application
These inquiries do not affect your credit score.”
Although they don’t have any bearing on your
credit score, it’s still interesting to take a look
at what companies are looking up your credit
history each year.
15
Common Questions about Credit Reports
What do I do if there is an Error on my
Credit Report?
If something is wrong on your credit report,
you want to immediately contact the reporting
agency that issued the report.
The FTC has great instructions on what to
do if there are any errors. Follow their steps,
including using their template. Make sure to
copy anything you send, for your own records
and record dates of everything you send.
What is Revolving Credit?
Revolving credit is a term used for credit that
has no expiration. For example, a car payment,
student loans, or a mortgage isn’t considered
revolving because you eventually pay these
types of loans off. Otherwise known as
installment credit.
A credit card is a revolving payment because
the credit is always available. As long as you
pay it off each month, it’s always there for you.
Your FICO score looks at the amount of revolving
credit you have compared to installment credit.
The less revolving credit the better, in the eyes
of FICO. If you’re looking for a quick increase in
your credit score, a great way to achieve this is
by paying off your revolving credit.
Does Applying for a Credit Card Hurt Your
Credit Score?
Yes, applying for a credit card is a hard inquiry,
which can negatively affect your credit score in the
short-term. You can expect your credit score to go
down around 5 points for six months any times a
hard pull is done.
Keep this in mind, if you’re applying for a loan in the
near future. For example, don’t apply for a new credit
card right before applying for a car loan, to increase
your credit utilization rate. Last, this another great
reason not to get that department store credit card
or apply for a credit card for a free pizza.
Opting Out of Credit Card Offers
Once I moved into a home, the amount of credit
card offers I received was startling. Every day, I
would receive at least one and sometimes more
of the following applications in the mail; credit
card, home equity line of credit, and mortgage
insurance.
Luckily, I discovered OptOutPrescreen.com,
where I can stop this junk mail from filling up my
mailbox. The site was created as a result of Fair
Credit Reporting Act and a link to the site can
be found on the Federal Trade Commission’s
website.
There are many advantages to stopping junk mail:
•
No chance of someone stealing your credit
card applications through the mail.
•
Out of sight, out of mind. You willn’t be
tempted to sign up for any credit card offers
that you don’t need.
•
Save paper.
•
The fewer the amount of companies with your
social security number the better.
You can choose to either opt out electronically or
permanently by mail. If you choose electronically,
you will be opted out for only 5 years. If you
choose to opt out by mail, you will never receive a
credit card offer again.
I wasn’t tracking the days to the exact date,
but I would estimate that around four weeks
after opting out, I was no longer receiving any
prescreened offers through the mail.
Another tip, if you’re also tired of receiving
catalogs, there is a free service Catalog Choice
that can help you reduce your junk mail even
more. It’s pretty simple; you just enter in your
address and the catalog number of the catalog
you want to eliminate.
What’s a Credit Freeze?
information on your driver’s license, someone
could easily apply for a new line of credit in
your name.
A credit freeze, also known as a credit
lockdown or a security freeze, is a way
to prevent new lines of credit being open
underneath your name. When you apply a
credit freeze, you’re issued a PIN (Personal
Identification Number) by the credit reporting
agency, which only temporally allows access to
your credit by a third-party. Without this PIN, no
one can have access to your credit report.
Another person who would be at high risk of
identity theft is someone who has recently lost
an important document through the mail. In
general, any time your social security number is
floating around, is a great time for you to apply
for a credit freeze.
So why would someone want to freeze their
credit?
What’s a Credit Freeze?
Anyone who is at a high risk of getting their
identity stolen, would benefit from applying a
credit freeze in their account. For example, if
you recently lost your wallet, which contained
your social security number on your driver’s
license, now would be a good time
to apply for a credit freeze.
With just the
18
•
No one can open any new lines of credit,
without the PIN.
•
Extra steps for you to open a new line of
credit, to prevent bad financial behavior.
•
Less personal information of yours
circulating around because companies
can’t inquire about your credit history.
Disadvantages of Freezing
How to Freeze Your Credit
•
Can’t immediately open any new lines of
credit. This could cause problems when
applying for a mortgage, car, etc...
Each state has different fees, laws, and
regulations, on how to freeze your credit.
•
Small fee to freeze and unfreeze credit. For
victims of identity theft, the fee is usually
waived.
•
Thieves can still use your existing accounts.
Which brings me to a really good point:
Never carry all of your credit or debit cards
in one place. Say you lost your wallet, while
you have placed a credit freeze on yourself.
A lot of the time, it takes a few days to
temporally unfreeze your credit because
you have to send the request in through
certified mail. So now you have no access
to cash and are stuck waiting a few days,
until your credit report unfreezes. Not a
situation, you want to find yourself in.
General rules are as follows:
•
You have to apply with each different credit
reporting agency. You can do this online.
(Equifax, Transunion, and Experian)
•
You must pay a small fee to freeze your
credit
For additional protection against identity theft,
review your homeowners or renters insurance
policy (or just call us). Many policies contain
coverage.
19
How to Prevent Identity Theft
An eBook on credit scores wouldn’t be complete without some information on how to protect your
identity. Having your identity stolen can be damaging. Not only does it take hours away from your
life, there are many long-term impacts to your credit.
Here’s 52 different ways to prevent it from happening.
1. Buy a Shredder - Shred anything you’re about to throw out with your personal information on it.
Especially, anything with your social security number and applications (insurance, credit cards,
phone, cable etc...)
2. Choose Hard Passwords and PIN’s and Store Them Offline - If your pin number is your
birthday or your password is something as simple as your middle name and birthday, change it
immediately. Also, there are a couple of Open Source options for password management, such
as KeePass for Windows and KeyChain for Mac. Last, don’t choose similar passwords for your
banking accounts. If a hacker has one, he has them all.
3. Have Emergency Cards and Copies - Never keep all of your information in one place, especially
your wallet. Just because you have a credit card, doesn’t mean you have to carry it with you at
all times.
4. Don’t Store SS # on Your License or Keep SS Card in Your Wallet
5. Never insert your credit card information, on a website you don’t trust.
6. Hold mail at the post office, when you’re out of town. Never let boxes and packages sit on a
doorstep overnight.
7. Use Anti-Spyware software for your computer
8. Learn how to erase your hard drive, if selling or donating your old computer.
9. If you need to mail an important document, such as your taxes, either hand it to the mail man
or drop it off in a collection box or at the post office.
10.Never give your personal information away over the phone from a solicitation.
11.Review your credit card bill every month. Make sure there is nothing on there that you don’t
recognize. A lot of the time, thieves will a small charge initially on your account, wait a month to
see if you notice it, then put a bigger charge later.
12.Don’t list your social security number on a resume, and then send it out to 20 companies
online.
13.If you can manage to pay your bill in full each month, use a credit card instead of a debit card.
Credit cards typically have better protection against identity theft.
14.Use ATM’s sparingly and never use an ATM late at night. There are plenty of people who like to
look over your shoulder to see your ATM #.
15.Keep all of your checkbooks in a very secure place at home. Never store your checkbook in
your purse, wallet, or car.
16.Use your shredder to get rid of old checkbooks.
17.Store copies of important documents and cards in a secure place in your house. Make sure to
get copies of the front and back. If your credit card gets stolen, the number you want to call is
on the back of your credit card.
18.Keep a list of everything in your wallet or purse. If you ever lose either, make sure that each
account in your wallet was cancelled.
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19.If you have an old credit card that you rarely use, make sure to check the balance monthly. You
can ever use a service like Mint, to do all the tracking for you.
20.If you lose your license, ask for a new driver’s license number.
21.Freeze your credit, if you’re at high risk of identity theft.
22.Don’t keep deposit slips in your wallet. Store in a safe place, until you see that money deposited
is correct, then shred.
23.When traveling in a place known for pick pocketing, don’t leave your wallet in your back pocket.
24.Don’t write your PIN on a little piece of paper and keep it inside your wallet.
25.If someone steals your purse with your keys inside, immediately contact your landlord or if you
own, have your locks rekeyed.
26.If someone has stolen your wallet or purse, mark on your calendar to check your credit report
one month after the incident.
27.Keep credit card receipts in a safe place. Never just toss, without looking to see if your full
credit card number is listed.
28.Don’t give away your old ID
29.Limit the amount of credit cards you carry.
30.Use electronically delivery for every bill.
31.Pay bills online.
32.Never check a bank account or other personal accounts on a public computer. If you have to,
delete the cookies.
33.Have new checks ordered to the bank. Never get them sent directly to your house. They come
in a very obvious small box.
34.Don’t store your information on multiple sites. When you’re checking out of a retail store online,
they will ask you to register as a user. Even if they don’t ask for your personal information,
always check out as a guest.
35.If your Social Security # is on your health insurance card or any other type of statement, ask
for it to be removed. Ask the company to create you a new ID # that isn’t your social security
number.
36.Shred old documents. You only need to keep tax records for the previous seven years.
37.If you’re good with a scanner, keep your financial records on an external hard drive and hide it in
a safe place.
38.Check your credit report at least once every six months. As I said previously, I alternate what
credit report I can check every six months. Mark the date you check your credit report on your
calendar.
39.Buy a secure safe for the house. Don’t just have a filing cabinet with a lock. Store your
important documents such as passports, social security cards, tax returns, etc... in a safe and
hide it away.
40.Use a gel pen with blank ink when you’re writing a check. Gel ink can’t be chemically altered.
41.If you start seeing credit card offers in the mail before your child turns 18, immediately ask for a
credit report for them. Unfortunately, your child isn’t protected against identify theft. Credit card
offers in the mail, are a sign that someone is attempting to steal your child’s identity.
42.Don’t leave your ATM receipt in the machine. Keep it in your pocket and shred it when you get
home.
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43.Anytime someone solicits you over the phone, ask to be deleted from their database effective
immediately.
44.Did you know that if you’re being held up at an ATM, there is usually a secret code that your
bank uses to alert authorities? For example, with some banks if you enter your password
backwards, it will automatically have the ATM machine eat your card and say you have a zero
balance. It varies per bank, so ask your bank if they have this feature if you find yourself using
your ATM card by yourself a lot.
45.Know when and how your credit card statements usually arrive. If your statement comes
by mail and is a few days late, go online and check your statement to make sure there are
no fraudulent charges. If your statement arrives by email, and is more than one day late,
immediately check your statement online. Missing statements could mean that someone
changed either your email or physical address.
46.Avoid logging on from financial accounts from an unsecured wireless network.
47.Learn how to properly secure your home wireless network.
48.When on vacation, use the safe in the hotel room. Store your computer, phone, copies of
passports and ID’s, in the safe at all times.
49.If you have a Smartphone, buy an app which deletes all the data on the phone the moment it’s
stolen.
50.Always use cash at a bar. I’m sure we all know someone who has left the bar and still has a
tab open. Therefore, the card stays in the bars possession overnight and is visible to every
employee coming in that morning starting with the cleaning crew.
51.If you have a Landline register for the Do Not Call List by calling 1-888-382-1222.
52.If you see a mass forwarded email from one of your friends, marketing a product. It’s usually a
scam. What normally happens is someone hacks into your friends account and sends a blast
to everyone on their contact list. Be very suspicious if you receive an email from a friend that
seems uncharacteristic.
Conclusion
The reason, I dedicated hours and hours to this project is I feel it’s an obligation I have, as an
insurance agent who represents companies that base their pricing on credit scoring.
There’s so much to be gained by understanding credit scoring and knowing how to improve your
score.
All the best,
R.J. Weiss
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About Weiss
Insurance Agencies
quoting process gives us access to the
information we need to properly insure you.
Just as important, asking these questions
allows us to discover the discounts you’re
eligible for. This takes care of the second
half of our goal—to insure you for the best
possible price.
At Weiss Insurance Agencies, we believe
consumers should be educated on their
purchasing decisions. You’re not buying insurance
just because you need to. You’re buying it because
you want to be protected in case anything bad
happens.
When you fill out the form on our site for a free
home, auto, life, or any other type of quote, here’s
what you can expect:
3. For 90% of our quotes, we use advanced
software that lets us quote your insurance
out to multiple carriers at one time. We then
manually review your information and get
final pricing from each carrier. Other times,
due to premium size or loss history, we’re
only able to get prices from a select few our
carriers. It’s important you know all of the
carriers we represent are A rated insurance
carriers. More importantly, we have hand
selected these carriers because they offer
the best combination of price and coverage.
1. We start with a thorough review of your current
policy. While discussing your goals for the
future. If you have any other lines of insurance
such as jewelry, RV, boat, motorcycle, rental
property, etc…please let us know. You’ll save
a lot of money by insuring all your lines of
coverage through one carrier.
2. We then fill in the information gap, by asking
you a few questions. Going through a detailed
What Does An Independent Agent Do?
An independent agent is not just your outlet to
insurance carriers but your personal insurance
adviser. We work with you to determine the
optimal combination of price, coverage, and
service for your unique situation.
There are two types of insurance agents-independent and captive.
Captive agents work exclusively for one insurance
company. A captive agent’s profile is to bring in
business for their parent company as generally
they cannot use any other insurance company.
Independent agents, like us at Weiss Insurance
Agencies, represent multiple insurance companies
and work in the best interests of our clients to find
a policy that matches our clients’ needs.
What other benefits are there to having an
independent agent?
When you do suffer a loss, you have an
experienced team of insurance professionals,
representing your best interests--not the insurance
company’s.
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•
You have a small team of experienced
professionals who service your account.
When you call in with a question, you’re
working with a team who’s familiar with
your needs.
•
One-stop shopping--beyond personal
home and auto insurance, Weiss Insurance
offers business, life, and health insurance,
as well as wealth management services.
To get started working with Weiss Insurance
Agencies, click the following link, personal
insurance, and select the type of insurance
you’re interested in reviewing.
Here’s what our clients say:
“After suffering a major casualty loss insured by a
major insurance company with little compensation. A
close friend recommended I check out Weiss Insurance
Agencies. It was the best suggestion ever given me.
The agent spent countless hours finding the best fit for
my circumstances and in the end saved me more than
a thousand dollars bundling all my personal insurance
needs. Weiss has found a lifetime customer in me.” Walter J.
“My experience with Weiss insurance has been nothing
but great. Anything I have a question on, you guys
are able to answer right away. I always give Weiss
Insurance the first opportunity I have when it comes
to my insurance needs and you guys always are
competitive if not better than everyone else. Everyone is
very helpful and accommodating there.” - Brent P.
“I cannot thank Weiss Insurance enough for the
understanding, assistance and compassion everyone at
the agency has shown me. Patricia W.
Disclaimer: This report was written by R.J. Weiss of Weiss Insurance Agencies. All information provided in this
guide is for informational purposes only. Weiss Insurance Agencies makes no representations as to the accuracy,
completeness, suitability or validity of any information in this guide and will not be liable for any errors or omissions
in this information or any damages arising from its display or use.
If you have any questions about your situation, seek a qualified credit counselor or CERTIFIED FINANCIAL
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PLANNER®.