Loans and mortgages – Lay off the unemployment insurance

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Involuntary unemployment insurance is similar to credit disability insurance. It covers the minimum amount of your credit account payments for six to 12 months after you lose your job.

Coverage usually costs 70 cents for every $100 on the credit balance. But the policy only covers the minimum payment due, so interest adds up. You will probably wind up owing more money than you did when you had a job.

If you want peace of mind, your best bet is to put enough money for three to six months of living expenses into an emergency savings account.



All the best,



Timben

Loans and mortgages – Pass on expensive loan insurance

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Insurance is for people, not for loans. Just say “no” to anyone who offers you Credit Disability Insurance.

An individual Credit Disability Insurance policy covers your monthly loan payment if you ever become disable and can’t make the payment yourself. Typically, the policy pays the minimum amount due up to 36 months.

With costs near $21 for every $1,000 of coverage, these policies are not worth the expense. If you already have some type of disability insurance, make sure it covers loan payment along with the rest of your expenses.



All the best,



Timben

Loans and mortgages – Smart way to slash your car payment

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Refinancing isn’t just for homeowners anymore. You might never have thought about it, but refinancing your auto loan could slash your monthly payment.

You should consider refinancing if interest rates have gone down since you bought the car. It’s also a smart option if your credit rating has gone up because you’ll be eligible for a lower rate.

Applying online can get you through the process in just 10 minutes. Visit a site like www.eloan.com that offers auto refinancing options. Also try www.capitaloneautofinance.com, where your can look at available rates and calculate what your new monthly payment might be.

To compare the rates of lenders in your area, visit www.bankrate.com. They will give you contact information and tell you whether each lender charges a fee.

Usually lenders do not charge fees to refinance your car loan, but you will have to pay to have your title transferred at the local Department of Motor Vehicles. The state charges anywhere from $5 to $65 transfer the lien. That’s little to pay, though, to save thousands of dollars over the life of your loan.



All the best,



Timben

Loans and mortgages – Stay ahead of the market

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Once out of every three people buying a house today will borrow money with an adjustable-rate mortgage (ARM). Interest rates for an ARM are usually lower than fixed-rate mortgages – at first. But there is no guarantee market rates won’t rise suddenly, and your mortgage payment will rise with them.

If the economy shows signs of inflation, go ahead and convert that ARM to a fixed rate before your monthly mortgage payments jump. It could save you money and save your house.



All the best,



Timben

Loans and mortgages – Save steps and money

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Refinancing your mortgage can cut your interest charges, but what about cutting the cost of refinancing? If you’ve refinanced once or twice before, you can knock at least $400 off the closing costs using what is called, “streamlined refinancing.”

Streamlined refinancing means you skip some of the steps you had to take last time you refinanced. If it’s been two years or less since you refinanced, look into saving in these areas:

* Use the same attorney and lender. You will pay less in fees because they have already done the background work, and you will avoid state mortgage taxes.

* Ask you lender to use the appraisal plan from the last closing, and cut $200 off your closing costs.

* Use the plot plan from last time, and save another $150.

* Update your title insurance policy instead of writing a new one, and save from $400 to $1,000.

If you have a loan from the Federal Housing Administration (FHA) and you’re kept up with payments, you can take advantage of its streamlined refinancing package.

No face-to-face meeting is required, you pay no underwriting fees, and you don’t need an appraisal. You don’t even have to undergo credit check or income verification. This refinancing is available strictly to lower your monthly payments. It is ideal if your credit situation has improved since you first took out the loan.



All the best,



Timben

Loans and mortgages – Pick the right time to refinance

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Refinancing your home can save you thousands, but only if the time is right. Before you decide to refinance, ask yourself a few questions:

* How much will I save each month?

* How much will it cost to refinance, and will I live here long enough to make it worthwhile?

* Will the new term be the same or shorter than the term is now?

Experts say if you can drop your interest rate by at least one percentage point – preferably two – and plan to stay in the house at least 18 months, refinancing may be a good idea.

The refinancing will cost roughly $2,000, so figure out how long it will take before you break even and start saving. If you move out of the house before that time, it will actually cost you more to refinance.

Try using the Mortgage Refinance Breakeven Calculator at www.myfico.com. It’s a handy tool when you’re dealing with a lot of numbers. Click on Credit Education, and look in the Calculators section to find the Mortgage Refinance Calculator. Run your figures through the calculator to find out when you would start saving if you refinanced.



All the best,



Timben

Loans and mortgages – Split payment for huge savings

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Another way to pay less interest is to split your monthly mortgage payment in half, and pay that amount every two weeks. By making biweekly payments instead of monthly payments, you’ll make an extra mortgage payment by the end of the year.

For example, if your monthly payment is $2,000, and you pay that amount 12 times a year, that’s $24,000. On the hand, if you pay $1,000 every two weeks, or 26 times a year, you’ve paid $26,000 at the end of the year. That’s a difference of $2,000 – an entire mortgage payment.

Check first to see of your lender charges a pre-payment fee. And don’t get involved in a “biweekly prepayment program,” where the lender charges you an annual management fee or an even bigger set-up fee with monthly service charges. It’s not worth it.



All the best,



Timben

Loans and mortgages – A little prepayment goes a long way

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Make an extra monthly payment on your mortgage every year, and you’ll save thousands of dollars in interest. Just add a little to you check each month. Over the course of the year, it will add up to an entire extra payment.

For example, suppose you have 25 years left on a fixed-rate 30-year mortgage of $200,000 at 7-percent interest. If you add just $150 to your $1,300 monthly payment, you’ll finish paying your mortgage more than five years early. Plus, you’ll save almost $55,000 in interest over the course of the loan.

To find out how much you can save, visit www.myfico.com, and click on Credit Education. In the Calculators section, the Mortgage Payoff Calculator will figure exactly how much time and money you’ll save by prepaying.



All the best,



Timben

Loans and mortgages – Get a free discount

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You can get an easy discount by having your loan payments automatically deducted from your checking or savings account. Most lenders will lower your APR by 0.25 percent or 0.50 percent just for making automatic payments.

Lenders like automatic deductions because it gives them less paperwork to do. At the same time, it’s good for borrowers in a couple of ways. Not only do you get the lower APR, you don’t have to worry about whether your check will arrive on time. And it’s one less check you have to write.



All the best,



Timben

Loans and mortgages – Pay off loan in half the time

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Save tens of thousands of dollars by choosing a 15-year mortgage instead of a 30-year term. Your monthly payment will be higher, but cutting the time of the loan in half cuts off years of interest charges. Plus, interest rates are lower most of the time for loans with shorter terms.

Say your annual percentage rate is 7 percent, and you choose a 15-year fixed-rate mortgage over a 30-year mortgage. For every $100,000 you borrow from the bank, you’ll save $75,000 in interest.

It may be tempting to stretch your loan out over 30 years. After all, who doesn’t want to keep their monthly mortgage payment to a minimum? Sometimes, though, you have to spend money to save money.



All the best,



Timben

Loans and mortgages – Buy your home with a HELOC

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You can use a home equity line of credit (HELOC) to actually buy a home. A HELOC is an adjustable-rate loan that works as a credit line rather than a mortgage. Usually, you get a HELOC with the equity you build up on a home. Now you can make a down payment on your home and use a HELOC to pay for the rest.

The interest rates for HELOCs are around 4 percent, which can save you a lot of money in interest charges. Since the rate is variable, it can go up or down. But it’s still better than the traditional 30-year fixed-rate mortgage with rates closer to 6, 7, or 8 percent. With a HELOC you can borrow extra cash without having to take out another loan, and all the interest you pay is tax deductible.

HELOCs usually have much shorter terms than traditional loans. Rather than being stretched out over 30 years, a HELOC will have a term of 10 or 20 years. You may want to consider a HELOC if you plan to pay off your home in a short time.

If you like having stable monthly payments, though, you should try something different. The rates for HELOCs change with the market, so the payments will, too.



All the best,



Timben

Loans and mortgages – Compare online for best price

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You already know you can save money by shopping around for the best mortgage rates. Now you just have to make sense of all the numbers you found. Put those figures into an online calculator to organize your information. You can find calculator programs at Web sites especially designed to help you compare loans.

LendingTree.com is a great place to start. You can submit an application and get rates from four competing lenders. Then compare the rates by plugging them into one of its financial calculators. For example, one will tell you if a 15-year loan or a 30-year loan would save you more money based on the mortgage amount and interest rates.

Interest.com has calculators that tell you what your monthly payments will be from the interest rate, the term, and the loan amount. You can also find out how much you can afford to borrow, how much you’d save by making additional mortgage payments, and how much you can deduct on your taxes.

FindLowerMortgageRates.com also has useful programs like a calculator that tells you how much money you should put down on your new home.

Other good Web sites to try are:

* www.compareinterestrates.com
* www.bankrate.com
* www.loanweb.com



All the best,



Timben

Loans and mortgages – Negotiate for lower points

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Nothing is written in stone when it comes to the cost of a mortgage. With some research in hand, you can use your negotiating skills to bring down lender’s rates, points, or even fees.

The key is to arm yourself with information. Check the newspaper for current mortgage rates and points. Look online at Web sites like HSH Associates at www.hsh.com and LendingTree.com to compare rates from different lenders.

Be careful of lenders who advertise rock-bottom rates and points. They may compensate by charging outrageous fees. Let lenders know you’re shopping around so they will compete for your business by lowering their points. One point equals 1 percent of the amount of the loan. So if you convince them to take off even half a point, you can save hundreds or thousands of dollars.

If you need to choose between paying lower points or a lower interest rate, keep these things in mind.

* Choose the lower interest rate if you plan to keep the mortgage for a long time.

* Go with lower points if you plan to sell the house in a few years, since you won’t get the long-term benefit of a lower rate.

The same goes for fees. The longer you plan to keep your loan, the more fees you may want to pay upfront.

Remember to deduct any points you pay on your tax return. If you bought a house and split the points with the sellers, or even if the sellers paid for the all the points, you still get to deduct the full amount.



All the best,



Timben

Loans and mortgages – Experts can save time and money

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A mortgage broker can be a big help when you need a loan but don’t know where to start. These experts can look through loan offers and find the one that’s best for you.

According to the National Association of Mortgage Brokers, more than two thirds of homebuyers choose to get a mortgage through a broker. They save you time, and depending on their fees, can save you money. Broker fees usually range from 1 to 1.5 percent of the mortgage.

Some dishonest brokers may overcharge you with fees of eight to 10 points. Follow these tips to be sure you’re working with someone who has your best interests at heart.

* Get referrals from friends and co-workers to help in making the right choice.

* Request a good-faith estimate of the broker’s fees at the start.

* Get a written description of the loan program the broker offers so you can check out the rates, fees, and points.

* Ask the broker if he is affiliated with the lender to make sure he has no conflict of interest.



All the best,



Timben

Loans and mortgages – Be smart about home equity

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Need money for home improvements? Got a kid in college who needs tuition? Maybe you need start-up cash for a new business. You may want to consider a home equity line of credit (HELOC).

Although you borrow money against the equity in your house, it works like a credit account. Rather than take out one lump sum, you have access to the money as you need it. You don’t pay interest until you actually withdraw money, and even then, the interest is tax deductible.

HELOCs have interest rates averaging about 4.5 percent, which is low when compared to 10-year fixed loans with rates around 7.25 percent. But you may have starter fees, annual fees, and other costs like minimum-withdrawal fees, inactivity fees, and early-termination fees. So check the loan terms carefully. You don’t want to take all the money you saved with a low interest rate and spend it on other costs.

Although it’s best to save for any large purchase, a HELOC may be a good move if you don’t know exactly how much money you’ll need or when you’re going to need it. It also makes a good safety net in case there’s an emergency or a period of unemployment when you need cash right away.

But don’t forget it’s a loan against your house, and you could jeopardize your home if you can’t pay it back. Stay away from a HELOC if you have a spending problem or want to use the money to pay off an enormous credit card bill. You would just replace one large debt with another.

If you take out a line of credit, plan on paying it off within a few years. The interest rate on a HELOC is adjustable, so the sooner you pay it off, the less chance your rate will go up.

A HELOC can save you money if you use it wisely. But if you think having cash at your fingertips would temp you to over-spend, then be smart and find another source of cash.



All the best,



Timben

Loans and mortgages – Save through loan consolidation

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Simplify your life by simplifying your loans. If you have several loans, you may be able to consolidate them at a low rate, saving thousands of dollars in interest.

Student loans in particular are easy to lump into one consolidation loan. If you have a child or grandchild who is graduating, he probably has more than one loan, each with its own interest rate. By combining all the loans, he can lock in one good interest rate and make one reduced monthly payment.

And because the lump sum is stretched out over a term of 10 to 30 years, the monthly payment is smaller and more manageable. The downside is you can only consolidate once, and a longer term means more interest charges on the long run.

If you choose to consolidate your loans, see if you qualify for any discounts. Some lenders offer incentives for good customers. Ask each of your lenders what kinds of discounts are available before you decide which one should consolidate your loans.



All the best,



Timben

Credit – Negotiate for a better rate

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You may get a lower interest rate on your credit card just by asking. If you’re a long-standing customer with good credit score, try bargaining with you current credit card company. You might be successful at getting a better rate.

You’ll have even more bargaining power if you get another credit card offer with lower rate. If it’s a genuinely good deal, use it to persuade your current card issuer to reconsider. Say you’ll switch unless they match the new card’s rate. If the answer is no, switch cards and enjoy your savings.



All the best,



Timben

Credit – Watch out for new credit scams

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The latest credit card scams may seem so genuine that you may not know you’ve been shammed until too late. Learn what you need to know to stop a scammer cold.

You may get a call from a con artist claiming to be the credit card issuer, your bank, or the police. The scammer may say your card has suspicious activity. He may even ask you specific questions about a purchase you never made and promise to remedy the problem.

But the scam comes when he asks for your PIN number, card expiration date, billing address, or part of the account number. The swindler already has most of the credit card information needed to steal your identity. He tries to get the rest from you.

The second new scam is the “gold and platinum card” racket. Some card offers may promise to improve your credit rating or help you get unsecured major credit or retailer cards. Not only do these cards limit you to purchase from a few select catalogs, they also do nothing to boost your rating or qualify you for unsecured cards. Watch out for these additional signs of gold and platinum card fraud.

* You only hear about one free. But once you’ve committed to pay it, you’re told you must pay even more fees to use the card.

* You must call a 900 or 976 number for more information – and pay the steep charges.

* You’re required to make a cash deposit for each item before you can put the balance on your charge card.

Protect yourself from any credit scams with these tips:

* Investigate credit card offers before you apply. Check with your local Better Business Bureau, consumer protection agency, or state Attorney General’s office for complaints against the credit card marketer.

* If a merchant promises to improve your credit rating, call the credit bureaus to see if the merchant is a member. Only members can send information about you to the bureaus.

* Keep an eye on your card during any transaction. Also, hold your card so no one can see and memorize your card number.

* Void incorrect receipts, and never sign a blank one.

* Save receipts to compare with billing statements. Open the statements immediately and check for questionable charges or wrong amounts. Report dubious charges to the card issuer right away.



All the best,



Timben

Credit – Save on unnecessary insurance

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For most of us, credit life insurance is just plain bad policy. Credit life insurance may claim to pay off your credit card debt if you die, or cover your payments if you become disabled of unemployed. But this insurance is notorious for overpricing, so consider buying term life insurance or expanding your life insurance coverage instead.

However, if you can’t qualify for regular life insurance coverage – term or otherwise – this coverage could be appropriate. If that’s the case, be sure to read the fine print before you buy.



All the best,



Timben

Credit – Ax useless card protection

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Even if you’re offered credit card loss insurance for just $7 a month, don’t take the bait. This insurance promises to pay the charges if someone steals your card and runs up a bill. But federal law would prevent you from paying more that $50 of the stolen charges anyway. If you buy credit card loss protection, you’ll spend $84 per year. Don’t waste your money.



All the best,



Timben

Credit – ID theft insurance not a bargain

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Identity theft insurance doesn’t necessarily cover the charges a thief runs up on your credit card or money stripped from your accounts. Instead, you may pay up to $180 per year just for the cost of repairing your credit after the theft. You’re better off skipping this insurance and checking your credit report regularly instead.



All the best,



Timben

Credit – Beware of fee-heavy card upgrades

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That credit card upgrade from your mailbox may sound like a new and different card – and it could be one you don’t want. According to The Wall Street Journal, changes in your credit contract terms can be legally be called upgrades, even if they mean higher costs for you. For example, upgrades to rewards cards may carry a higher annual fee.

If you get a card upgrade, read the fine print carefully to determine whether you come out ahead. While you may discover advantages, watch for features you don’t want and for new or changed penalties and fees. If you’d rather keep your old card, contact the card issuer to ask how to refuse the upgrade and keep your old card in service.



All the best,



Timben

Credit – Watch for costly card tricks

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Credit card companies try all sorts of legal tricks to get your money. Fight back each month by scouring your credit card statement for surprise like these:

* Check the due date for your next payment. Card-holders have been blindsided by late fees and other charges because they didn’t notice the changed – and earlier – date.

* Monitor the interest rate. Even a fixed-rate card can change its rate as long as you’re given notice.

* Watch out for low introductory interest rates that sky-rocket a few months later.

* A practice called universal default allows credit card companies to change terms without notice – leaving penalty rates and fees free to rise. Creditors can also monitor your credit report and raise your interest rate if they see late payments on your other accounts. If your account is subject to universal default, switching to another card may be worthwhile.

Also, monitor how your finance rates are calculated. Some methods can be costly. The adjusted balance method subtracts this month’s payments from your previous balance – only charging interest on what is carried over. If no extra twists sneak in, this can be cheap.

The average daily balance method may either exclude or include new purchases. If it excludes them, it will add up all your balances from each day of the billing cycle and divide that total by the number of days in the cycle. “Including new purchases” works the same way but raises your balance every time you use the card – costing you more.

The previous balance method charges the finance rate only on the balance you had at the start of the billing cycle.

Two-cycle average daily balance methods are the most expensive. Where other methods might use the balance from one month, two-cycle methods impose charges for balances from the last two billing cycles.



All the best,



Timben

Credit – Uncover the right rewards card

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A credit card that delivers rewards can be a good deal. Just make sure you study the fine print in the offer or card agreement, and decide if the benefit is worth it. Web sites like these can help:

* www.creditcards.com
* www.e-wizdom.com
* www.creditcardscenter.com

According to the Wall Street Journal, cash reward cards give back around 1 percent. That means you have to charge a lot to earn any substantial savings. And you also have to spend quite a bit to earn enough frequent flier miles to take that Caribbean vacation you’ve been dreaming about.

But if you do use one credit card for your purchases, a rewards card might be a smart move. Just remember, if you don’t pay off your balance every month, you may get stuck paying more in interest than you earn in rewards.



All the best,



Timben

Credit – Find a money – saving card

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Get help finding a credit card that will save you money by using a free tool on the Web. Visit www.cardweb.com for a credit glossary, news about the credit card industry, useful articles, and a page that helps you find better credit card rates.

On the Web site, click on the Find a Card link. Either chooses the type of card you want – such as low rate, rewards, or no annual fee – or fill out a quick questionnaire for a list of only the cards that match what you want.

Just remember to use your credit card with care, and avoid running up debts that could take years to pay off.



All the best,



Timben

Credit – Build your credit history wisely

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Budgeting your money so you don’t depend on credit cards is the responsible way to live. But when you do use credit cards, a wise strategy can help you build or restore a good credit score. Keep a good credit rating with these tips:

* Avoid frequently opening new credit card accounts.

* Open a new account only when essential, and be sure to read all the fine print before you do – especially information about fees, penalties, interest rates, billing periods, and grace periods.

* Pay on time.

* If you have been denied cards due to a poor credit score or no credit history, consider a secured card. It may help build a good enough credit history to qualify for an unsecured card after a year or two. Try for a low interest rate if you expect to carry a balance. Otherwise, seek a card with no annual fee.

* Thirty percent of your credit score depends on how much of your total credit limit you use. Charge no more than 20 percent of your total available credit so your score won’t sink.

If you’ve made the mistake of opening too many accounts, order your credit report from all three credit bureaus. Find out which credit cards you have, check for mistakes, and get errors corrected.

Next, pick which cards to keep. Favor older cards because lenders prefer a long history of faithful bill paying. Keep at least, one low-rate card. Also, determine how much balance you’ll have each month. Then, select cards so that your total credit limit is five times that number, if possible.

When you choose which cards to pitch, pay off the balances and then call to close them.



All the best,



Timben

Credit – Calculate which credit card to cancel

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Belinda has five credit cards. Two are idle, so she decides to cancel one. But before she does, she checks whether cutting a card might cut her credit score as well.

Belinda’s current total balance is $1,500, and her total credit limit is $12,000. She is currently using a 12.5 percent (1500/12000) of her available credit, which is well below the 12-percent recommended limit. But that number could change drastically if she cancels the wrong card.

Belinda’s appliance store credit card has a zero balance and a $5,000 limit. If she cancels that card, her limit totals will shrink from $12,000 to $7,000. But a $1,500 balance divided by $7,000 would be around 21 percent. Because that’s more than the credit scorers’ 20-percent safety limit, Belinda’s credit score could drop.

On the other hand, Belinda’s department store card has a zero balance and $1,000 limit. If she cancels that card, her total limit will slide from $12,000 to $11,000. Credit scores will divide $1,500 by the 20 percent that triggers a credit score drop. Belinda will play it smart and cancel this card instead.



All the best,



Timben

Credit – Close credit cards with caution

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Closing several credit card accounts won’t improve your credit score and could bring it down. Here’s why.

One factor credit scoring considers is how much of your total credit you use. To calculate that, credit scorers divide the total balance on your credit cards by the total credit limit available on those accounts. The results is a fraction – the lower, the better, Canceling cards can raise that number, which is bad for your credit score.

If you still want to cancel your unused cards, only cancel those with zero balance. And if you plan to buy a house or car soon, don’t close them until after you qualify for a loan.



All the best,



Timben

Credit – Protect your score from card-hopping

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Opening a new zero-interest card account every few months may seem like a money-saving idea, but it could sink your credit score. A number of factors go into calculating your credit score. How often you’ve applied for credit recently is one of them, and so is the percentage of available credit you’ve used.

Each new card may knock your credit score down a little more. However, if you have a long credit history, the drops may be less steep. The dip in your score may last just six months – unless the new card brings new trouble with it.

* Watch out for high balance transfer fees, low introductory rates that skyrocket after a few months, and any other fees that will make a switch more expensive than keeping the old card. These could boost your debt instead of slashing it.

* Be careful about transferring a hefty balance to a zero-interest or lower-interest-rate card. If the transferred balance is more than half your new card’s credit limit, that transfer may trigger a credit score drop. Pay that debt down below 50 percent of the limit, and your credit score should recover.

* Avoid card-switching or opening new cards if you plan to apply for a car or home loan in the next 12 months.

While switching to a zero-rate cards has helped some consumers pay down their balances, card-hopping can still be a risky strategy, and it’s not right for everyone.

Instead of card-switching, look into other solutions, such as Bankrate’s Pay-down Advisor. Visit www.bankrate.com and click Credit Cards. Scroll down and click the link, Pay off balances quickly under Pay off your debt. Answer the questions to find various solutions you can try.



All the best,



Timben

Credit – Ban pre-approved credit junk mail

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“You’re pre-approved for thousands with our platinum card,” proclaims that tantalizing offer from you mailbox. But that offer can pile up interest charges, build debt, and raise your risk of identity theft. Don’t be tempted, especially if you’re debt prone. Instead, help yourself save money by opting out.

Opting out means you ask the credit card bureaus to strip your name from their marketing mailing lists – the source of most pre-approved credit offers. Tell the bureaus to block those enticing envelopes for just two years or for life.

To opt out by phone, call toll-free 888-567-8688. You’ll be asked for personal information, including your name, telephone number, and social security number. Don’t worry – these details remain confidential and are only used to process your request. Just remember, you may have to fill out and return a consent form if you want the offers to stop permanently.

The offers won’t stop coming right away, so what can you do while you wait? Don’t risk a rip-off that could ruin your good credit rating. Before you throw that “junk” mail away, shred all pre-approved credit offers right down to confetti size. A whole offer in your trash can help thieves steal your identity, but confetti just leaves them frustrated.



All the best,



Timben

Credit – 9 ways to erase credit card debt

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You might save thousands of dollars in interest just by controlling credit card debt. Get started with these nine ways to erase your credit card debt fast.

* Find out how much total credit card debt you owe. Then figure out how long it will take to pay it all off – with the interest charges included.

* Transfer your high-interest-rate balances to one card with a low interest rate. Or pay off your higher-interest-rate credit cards first.

* Track your spending. You may be surprised at where your money is going. Prepare a budget that slashes unnecessary spending, and stick to it. Use the savings to pay off debt.

* Don’t just pay minimum every month. If you owe $1,000 on a card with a 17 percent interest rate, it may take 12 years and cost over $900 in interest by the time you pay it off.

* Never use credit card cash advances to make payments on other accounts.

* Stop using credit cards, and don’t open any new charge accounts.

* Always make payments on time.

* Get a second job to help pay off your debts.

* Try a credit counselor if you want outside help. Contact the National Foundation for Credit Counseling (NFCC) at 800-388-2227, or visit www.nfcc.org. The NFCC can provide credit education and counseling and help you get better terms with your lenders.



All the best,



Timben

Credit – Pay zero for your credit report

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Checking your credit report at least once a year can pay off – especially if you catch mistakes that affect your credit rating. And now you won’t have to pay for the report itself, thanks to a change in the Fair Credit Reporting Act. After Sept. 1, 2005, you can get a free credit report every year from each of the three major credit bureaus.

Even if the program is not yet available in your area, you can get a free credit report if you’re denied credit, insurance, or a job because of information in your credit report. But you must request the report within 60 days of receiving notice of the denial.

To get your free credit report, visit www.annualcreditreport.com, or call toll-free 877-322-8228. You can also write to the following address.

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

Be ready to provide your name, address, and social security number. You may also be asked for other information. Then you can choose to get just one credit report or all three – one from each bureau. If you like, you can get one now and return to check one or two of the other reports later in the year.

Perhaps the only bad news about this program is that your credit score does not come with your free credit report. However, you can choose to purchase your score when you request a free report.

If you find a mistake in your report, contact the credit bureau responsible for the report, and ask how to get the report corrected. Here’s how you can reach these organizations.

* Equifax at www.equifax.com or the phone number at the bottom of your Equifax credit report.

* Experian at www.experian.com or the number at the bottom of your Experian credit report.

* Trans Union at www.transunion.com or 800-916-8800

And here is a bonus tip. To help prevent identity theft, ignore those ads, e-mails, and telemarketing calls that promise a free credit report. After all, they could just be scammers hunting for a way to steal your identity. Don’t take the chance.



All the best,



Timben

Credit – Reap benefits of a high credit score

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A credit score is a number between 300 and 850 that serves as a snapshot of your credit report at any given time. A low credit score could cost you up to $240 extra per month on a $100,000 mortgage, according to one estimate. That’s more than $2,800 per year – even with rock-bottom interest rates.

Improving a low score can benefit you because a variety of people use it to help make decisions.

* Insurers may charge you a lower premium on car or homeowner’s insurance. People with poor scores may pay extra and may be denied coverage or renewal.

* Lenders may charge you lower interest rates, fewer fees, or smaller fees – and grant you higher credit limits.

* Private mortgage insurance (PMI) may cost less.

* Landlords may request your credit score to help judge whether you’ll pay rent regularly and on time. A high score could mean your rent application is less likely to get turned down. Deposits and fees might be lower, too.

* Your credit score may play a role in whether you’re chosen for a job – particularly if the job requires you to be responsible for money.

* Utility companies – including cell phone service providers – may consider your credit score when they decide whether to offer you their services.

To help improve your credit score, find out what it is, and make sure mistakes on your credit report aren’t keeping it artificially low. You score will cost you, but you can purchase it while getting your credit report for free. If you find mistakes in your credit report, correct them.

Use these tips to help work toward a score of 720 or higher. Every little increase can help.

* Collections and late payments sink your score, yet that score improves as you build a history of paying bills on time. If you’ve missed payments, get current and keep current.

* Pay off large balances on credit cards. Keep those balances low.

* Don’t open unnecessary new credit cards just to boost available credit.

* Handle your cards with extreme care. Keep the balances as low as possible, and meet every monthly payment deadline.



All the best,



Timben

Banking Services – Spend zero on financial software

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Imagine having the money-managing power of Intuit’s Quicken or Microsoft Money without paying for the software. You might – if you ask about free online services available from your bank or broker.

Compare the features of financial software with online services to see if online tools offer everything you need. For example, if you plan to spend hours tracking every penny for budgeting, Quicken or Money may still suit you.

But if you want to pay bills online or review all your bank, investing, and credit accounts in one place, free online services work just as well – without costing you anything extra.



All the best,



Timben

Banking Services – Online bill pays off

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Online bill paying could be a clever way to save – especially if you can do it for free. While the cost of mailing bills may not seem like much, it adds up quickly. And if you’ve ever had bills buried under paperwork or get delayed in the mail, you know how expensive late fees can be.

But online bill paying allows you to pre-arrange payments each month – perhaps up to a year in advance for fixed-rate bills. What’s more, some bill-paying services even offer to send you reminders so deadlines won’t slip by.

Before you commit to a bill-paying service, ask questions like these to check whether the service is a good deal for you.

* Does the bank provide a way for you to authorize an amount and date for a bill’s payment?
* Can the bill be paid and delivered even if the company is not available online?
* What features are included in online bill paying?
* What is the cost of online bill paying, and are there any requirements you must meet to use the service?
* How does the bank protect the privacy and security of personal and financial information?
* How long does a payment take to reach the biller?

Learn more good questions to ask, and read sound advice on both online banking and bill paying from the Federal Deposit Insurance Corporation. Visit www.fdic.gov and click the Consumers link. Under Consumer Resources, click Safe Internet Banking.

You can also write or call the FDIC for information at the address below.

Federal Deposit Insurance Corp.
550 17th Street, N.W.
Washington, D.C. 20429
877-275-3342



All the best,



Timben

Banking Services – Cut yourself a check deal

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You may get a much better price on checks if you buy from a third-party check seller. Order a catalog or visit Web sites of vendors like these.

* www.walmartchecks.com
* www.checksunlimited.com or 800-204-2244 for a catalog.
* www.checkworks.com
* www.4checks.com
* www.checksinthemail.com or 866-639-2432 for a catalog.
* www.deluxe-check-order.com

Compare the prices these sellers charge with what you pay now. If you’d like to buy from these or any other third-party check sellers, you should take a few precautions.

* Ask about the security measures included on the checks, or look it up on the Web site.
* Find out how your personal information and privacy are protected.
* Check with you local or state Better Business Bureau, consumer protection agency, and State Attorney General’s office to learn whether complaints have ever been filed against this seller.



All the best,



Timben

Banking Services - Fend off bounced-check fees

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A bounced check can trigger multiple penalty fees from your bank as well as additional fees from the business receiving the rubber check.

The best way to avoid such fees is to manage your account so you don’t overdraw any checks. But if you think you need overdraft protection, your bank may allow you to cushion checks with money from your savings account, credit card, or a line of credit. Even if you must pay fees or interest, they may still cost less than one bounced check.

One warning – some banks automatically enroll customers in their own overdraft protection plans, which have unreasonably high interest rates. You should check with your bank, and opt-out in writing if you find that’s the case.



All the best,



Timben

Banking Services – Discover direct deposit discounts

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Banks may surprise you with discounted or free checking if you agree to “direct deposit” service. Under direct deposit, your employer deposits your paycheck directly into your bank account instead of giving it to you first. That means, you won’t have to visit the bank to deposit a check – and your paycheck can’t get lost or stolen.

Ask your employer if direct deposit is available. Then ask your bank what benefits you can expect if you agree to direct deposit. You may be pleasantly surprised.



All the best,



Timben

Banking Services – Escape the ATM surcharge trap

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Don’t get nickel and dimed to death by automated teller machine (ATM) fees. Use these tips to help avoid them.

* Use your own bank’s ATMs whenever possible.

* Find out if your bank belongs to a selective surcharge network. If so, you can use an ATM from any bank in the network without being charged for a fee.

* Ask for cash back when you use your debit card for a purchase.

* If you’re shopping for a bank, consider major banks with far-flung ATM networks or online banks.

* Plan ahead so you never have to make an “emergency trip” to fee-charging ATM.



All the best,



Timben

Shop smart at membership clubs

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You could save 26 percent on groceries and get rock-bottom deals on many other items at warehouse clubs, such as Costco, Sam’s Club, and BJ’s. These stores keep their costs low by selling in bulk, running a no-frills store, hiring less staff, and not advertising as heavily as their competitors. They pass the savings along to you. Often, they sell appliances, office supplies, even electronics in addition to groceries.

Unfortunately, they have disadvantages, too.

* Most membership clubs do not accept coupons, offer weekly specials, or sell generic brands. You may do better doubling coupons, checking grocery ads, or buying generic from your local grocer.

* They sell in bulk, which can yield great buys, but 5 lbs, of butter at 30 percent off is no bargain if it goes bad before you use it.

* They may not tell you the unit price, such as the cost of shampoo per ounce, like grocery stores do. That makes it hard to comparison shop. Check unit prices at other stores before you go to a warehouse club, then bring a calculator and do your own math.

* Their low prices can tempt you to buy things you don’t need. Shop with a list and stick to it, and only carry cash to limit your spending.

* They offer lots of different products, but little brand variety. For instance, you might find 10 brands of spaghetti sauce at grocery store and only two at a warehouse club. Decide if you want better prices or more choices.

* They rotate their stock, so the brand you like may not be there next time you go.

* Some only accept one kind of credit card but offer their own as an alternative – at exorbitant interest rates. Sign up for one, and they may also sell your personal information.

* They charge an annual membership fee, usually between $25 and $40 dollars. Some give guests one-day passes, as often as you want, to shop there, but tack on a 5-percent surcharge at the register. Still, if you spend less than $500 to $800 dollars a year there, you are better off getting a guest pass than buying a membership.

Some clubs offer free trial memberships, up to 60 days. Call and ask about this policy then test the place out before you join.



All the best,



Timben

Superstores not so super

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Giant specialty retailers, like Babies “R” Us, Toys “R” Us, even PetSmart and others, are neither discount stores not outlets. They are large, specialized department stores. In general, they don’t offer cut-rate merchandise. Instead, they offer a better variety than you’ll find at most other stores, but with bare-bones service. It’s a trade-off – more choices, less service, and few discounts.



All the best,



Timben

Safety checklist for used items

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Classified ads, thrift stores, and yard sales can be the best places to pick up inexpensive baby gear and furniture. But for safety’s sake, make sure the items passes these tests before you take it home:

* Is the construction still sound? Check for broken pieces, loose joints, and splinters.

* Do all the parts work properly? You don’t want a stroller to collapse with your child in it, or the car seat to come loose in an auto accident.

* Is it clean? In other words, would you let your child chew on it? Some items can be easily cleaned, others not. If not, don’t buy it.

* Could a child hurt herself with it? The U.S. Consumer Product Safety Commission (CPSC) warns some seemingly innocent items could kill children. A crib should have a firm, tight-fitting mattress and slats no more than 2 3/8 inches apart so a baby’s head cannot squeeze through item.

Has it been recalled? Find out by calling the CPSC toll-free at 800-638-2772 or visiting their web site at www.CPSC.gov.



All the best,



Timben

10 clever ways to save at yard sales

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* Make a list of things you need to buy over the next several months, then stick to it. Items you don’t really need will just clutter your house.

* Start early or go late. You’ll find the best variety first thing in the morning, especially in furniture and appliances, but you’ll snag the best deals at the end of the day when weary sellers are ready to bargain.

* Look for lifetime guarantees. No garage seller will guarantee their goods, but some companies will. Tupperware, Farberware, Chicago Cutlery, and Craftsman tools all carry lifetime guarantees backed by their manufacturers. So go ahead and buy the cracked Tupperware or rusted Craftsman wrench and call a dealer to exchange it.

* Ask for items you don’t see. Need a baby stroller? Ask the seller if they have one. They may have forgotten to put it out, or another customer might tell you where you can find one.

* Think creatively. Buy items for their parts – cut rate clothes for their nice buttons, lamps for their shades, and so forth.

* Don’t waste time at high-priced sales. You only want bargains. Some people are out to make money, not get rid of stuff, and they’ll refuse to negotiate.

* Make sure it works. Ask the seller if you can plug in an item, or if they have batteries to test it. If they say no, don’t buy it. It might be broken.

* Check all clothes for stains, buttons snaps, and working zippers. If you can’t tell whether a stain will wash out or not, it’s best not to buy.

* Always come prepared with coins and plenty of cash in small bills. Carry it in a pouch around your waste rather then purse you might set down and forget

* Ask for lower price if you don’t want to pay what a seller wants. The worst they can say is “no”.



All the best,



Timben

5 secrets of the best bargain hunters

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From clothes to a playpen, you can get virtually everything you need for free or darn close to it.

* Stop by garage sales. You could snag fantastic deals, especially if you offer to take an entire bag or box of baby things off their hands.

* Create a network of people who know your needs. A quick phone call or e-mail is a great opportunity to let friends, neighbors, and family members know you’re looking for baby bargains. Tell them specifically what you need, and ask them to keep an eye out for hand-me-downs and other good deals.

* Plan a swap meet. Churches, preschools, and community clubs are great places to meet and organize swaps with people who have baby items. Make it a swap party. You could even decide in advance what each person will bring, and link them up with someone who needs the same thing.

* Look for public bulletin boards in your grocery stores, pediatrician’s office, church, and school. Here you may find parents trying to sell or give away their baby items. You can also post an ad of your own, asking specifically for the things you need. Be sure to ask the organization or company about their policy for posting “want” ads.

* Offer a trade with the people you know. Barter for their goods with something you know they need – a service like babysitting, cooking a meal, or even an item you own but no longer need. It’s a great, cheap way to help each other out.



All the best,



Timben

9 Discounts

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Pocket an extra $100 a month or more with money-saving auto insurance discounts, available from most insurance companies that could save you a bundle:

* Good driving record
* Mature Driver
* Longtime Customer
* Defensive driving course
* Carpooler or low-mileage driver
* Anti-theft device or car satellite recovery system
* Safety measures, like air bags and anti-lock brakes
* Nonsmoker
* Good student



All the best,



Timben

More ways to save

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There are even more ways to save money on auto insurance for the determined car owner. Driving less frequently or car-pooling could earn you a discount, especially if you drive fewer then 5,000 or 6,000 miles a year. Parking your car in an enclosed garage instead of parking on the street could also get you a discount. Some companies even give discounts for being a police officer, a teacher, or a retiree. The discounts are there. You just have to ask.

So far these tips have been helpful if you already have a car. If you’re in the process of buying a car, keep this in mind – the type of car you drive affects how much you’ll pay in insurance premiums. Choosing a car with a higher safety rating lowers your premiums.

To find out the insurance ratings of different cars, check out Consumer Reports annual car buying guides. The Insurance Institute for Highway Safety is another good place to look for statistics that could affect your premiums. Call 703-247-1500 or visit www.carsafety.org to contact them and find out the rating for your future car.





All the best,



Timben

Head off debt with GAP insurance

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GAP insurance keeps you from paying for a car you no longer have. This Guaranteed Auto Protection insurance pays the amount you’ll owe if your car gets totaled and you’re left with a loan that is more than the total worth of your car.

So if you owe $20,000 for a car the insurance company says was only worth $16,000 when it was totaled, GAP insurance will cover the remaining $4,000. At prices from $15 to $45 a year, it’s good value. Consider buying it if you’re making down payment of less than 20 percent.



All the best,



Timben

Combine insurance for a discount

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Many great things come in pairs – peanut butter and jelly, Astaire and Rogers, auto and home insurance. Getting your auto insurance and your home insurance from the same carrier could earn you a big discount. You’ll typically save 10 to 15 percent off your premiums.



All the best,



Timben

Fewer payments mean lower rates

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Rather than finance your insurance payment into six monthly installments, pay your 6-month premium all at once. When you choose the extended plan and divide up your payments, the insurance company adds what they call an “installment payment service fee.” It’s a small fee they add to your payment each month for their processing expenses, but you don’t get more coverage. Pay in full twice a year and those little monthly fees could add up to almost $100 in annual savings.



All the best,



Timben

Don’t pay twice for roadside help

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The American Automobile Association (AAA) is an organization well-known for offering dependable roadside assistance, but why pay for an extra service when your own auto insurance offers it?

Most insurance companies offer roadside assistance programs for as little as $12 a year. That small fee usually entitles you to jump starts, lockouts, tire changes, towing, gas, and a toll-free phone number. AAA costs more because of additional benefits outside of roadside service, like travel discounts at hotels and restaurants, but if you don’t travel a lot, it’s a better idea to stick with your own insurer.



All the best,



Timben

Buy only what you need

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You can save money by buying just the insurance coverage you need. Try raising your deductible for comprehensive and collision coverage. You can cut 15 to 20 percent off your insurance rate by increasing your deductible from $250 to $500 or $1,000.

You may be able to stop paying for comprehensive coverage altogether. If your car is paid off, switch to just liability insurance, and you could save hundreds of dollars a year. As a rule of thumb, comprehensive and collision coverage aren’t worth the cost if the value of your car doesn’t add up to 10 times the annual premium. If that’s the case, all you need is liability coverage.



All the best,



Timben

Do your homework to find a deal

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The best way to find the lowest price on car insurance is to do your homework. Shop around before you sign up with any auto insurance carrier, and you’ll be sure to save money. Rates vary from one carrier to another, so call each company to find out what they charge and give them the same details. Tell them how much coverage you’re looking for, the amount of deductible you want, how frequently the car is driven, your age or the age of the driver, and the year, make and model of the car.

If you’re not sure exactly where to start, talk with the experts. Call your state insurance department and ask them for a list of auto insurance companies and the rates they charge. You can find contact information for the state insurance department by looking in the front of your phonebook or by doing an online search for their Web site.

Once your have the list, contact at least four of the companies with the lowest prices. Give them the same details mentioned before to find out what rates each of them charge for the same coverage. With that information in your hands, you can make an educated decision, and you’ll feel good knowing you got the best deal in town.

Check out the following price quotes for a 2002 Ford Focus ZTQ with 40,000 miles. The two drivers are married, currently have auto insurance, and don’t have any traffic violations. The car, which is driven 10 miles to work, has an alarm system and is still being paid for.


Web Site Lowest quote for 6 months
www.insWeb.com $456.00
www.geico.com $469.10
www.progressive.com $589.00
www.esurance.com $737.00
www.electricinsurance.com $951.00



All the best,



Timben

Handling an imperfect driving record

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The easiest way to keep your auto insurance down is to have a perfect driving record, but for drivers with less-than-perfect histories, there are still ways to make the best of the situation.

If there is a flaw or two on your record, contact your local Department of Motor Vehicles to find out exactly how many points you have and when they expire. It may not be long before some of those points disappear, and your record improves. Wait until then to get insurance quotes.

Make sure there are no errors on your record, like a ticket you never got or a typo in your birth date. It costs a little to get a copy of your driving record, but it doesn’t cost anything to correct it. You’ll save a lot more in the long run by fixing any mistakes.



All the best,



Timben

Repair your credit for better rates

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Checking your credit report for errors at least once a year can do wonders for your insurance premiums. If your credit report has mistake – and mistakes do happen – dispute the error.

You credit score affects your insurance score, which then affects your insurance rates. Correcting mistakes in your credit report could bring down your insurance rates. Generally, an insurance score above 760 is considered good, and anything below 600 is bad.

If your credit score is over 700, look into companies like Allstate and Progressive who give better rates for good credit. If your score is lower, look into companies like State Farm and American Family Insurance who put more emphasis on other factors, like your driving record.



All the best,



Timben

Rental Cars – New slant on renting a car

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Owning a car is expensive. Once you do the math, your total cost of gas, insurance, and maintenance, plus your monthly car payment, could be $600 to $700 a month. That’s okay if you use your car a lot, but what if you use it less than an hour a day, and two or three hours on the weekend? Then you may be spending more than you need.

Instead, check into joining a car-sharing program, like Flexcar at www.flexcar.com or ZipCar at www.zipcar.com. In some cases, the cost can be as low as $30 a month for part-time use of a car, including gas, premium insurance, maintenance, and 24-hour assistance.

Be aware that car-sharing programs often require an application fee. Also, you must reserve a car in advance, and they may be scarce at peak times. What’s more, if you exceed the mileage or time limit, you can be charged hefty fees.

If you only need a car for the weekend, try Enterprise Rent-A-Car. They frequently offer special weekend rates starting at $9.99 a day.



All the best,



Timben

Rental Cars – Look for credit cards for insurance

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Don’t pay for insurance twice. Check with your credit card company first to see what kind of insurance coverage they offer when you’re renting a car.

Dinner’s Club is the only card that offers primary coverage in the United States, but American Express, Visa, and MasterCard – at gold level or higher – typically provide secondary collision damage coverage.

Pass on the collision damage waiver, too. The $10 to $20 a day pays for a contract that is full of loopholes for the rental company to slip through and keep from honoring your policy in case of an accident.



All the best,



Timben

Rental Cars – Get more mileage from free upgrade

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You may want to think twice when the car rental company offers you a free upgrade. When you upgrade from a four-cylinder compact to a six-cylinder intermediate, you spend more money on gas. Four-cylinder cars give you more miles per gallon than six-cylinder cars.

Your extra cost will depend on how many miles you rack up, whether you’re driving in the city or on the highway, and the price of gas, which varies around the country. These three variables can cause your gas expense to add up quickly.

If you want the comfort of an intermediate car but want to spend less on gas, ask the agent for a four-cylinder intermediate. They may be a little slower, but they’re roughly equal in gas mileage to a compact.



All the best,



Timben

Rental Cars – Group members receive discounts

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You can receive a discount at most car rental companies if you’re a member of an organization, like AARP. In fact, some car rental companies give discounts for having a specific type of credit card.

The important thing is to be assertive and ask. Most companies won’t automatically tell you about their discounts, so rattle of all the organizations you belong to and see if you qualify. Being a member of one of the following groups may also help you get a car rental discount. You will need to show proof of membership.

* motor clubs
* teacher’s organizations
* government employees
* military
* vacation clubs



All the best,



Timben

Rental Cars – Avoid airport terminals and save

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You can save at least 25 percent by making your reservation at an off-airport location, even if you rent from one of the major providers. Rental companies at airports usually charge “airport location fees” and security taxes, so it pays to take a cab or a shuttle to another location. Most of the time, you can return the car to an airport location without being charged extra.



All the best,



Timben

Rental Cars – Smart way to compare prices

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Booking a rental car online can save you money. In 2004, over 44 million Americans made some or all their travel reservations online. Of those people, 40 percent made rental car reservations over the Internet.

If they can go online to save money, so can you. Compare prices and find the best deals by looking at the different rates available on these travel sites:

* www.travelocity.com
* www.orbitz.com
* www.bnm.com
* www.expedia.com
* www.qixo.com

You can also check out Web Sites for rental car companies like Avis and Hertz for promotional offers and last-minute deals. Often, they will advertise sales, coupons, or free upgrades on their site, but make sure you read the fine print in case there are any hidden fees.

While you’re looking at the sites for all the major companies, you might take a look at the smaller ones, too. Their cars may be older or secondhand, but their prices will be much lower. Check out Rent-A-Wreck at www.rentawreck.com, DiscountCars.net at www.discountcars.net, and Car Rental Express at www.carrentalexpress.com.

When you go shopping online for rental car rates, be wary of a few things. Some travel sites have a lot of banners and pop-ups, so make sure not to confuse all those advertisements with actual rate listings. Another trick to look out for is really great rates that aren’t actually available. If you’ve been chosen a rate that seems too good to be true, double-check to see if it’s still available when you check out.

Also, find out if the rate includes all taxes, fees, surcharges, and any bookings fees that might not have been mentioned. When you have finally chosen a rate and decide to make your reservation, pay for the booking with your credit card. Charge cards usually have the most federal protection in cases of error or security breach, so you can make your reservation without worry.



All the best,



Timben

Rental Cars – Drive away with the best deal

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Renting a car should be cheaper than buying one. Remember these tips the next time you rent, and you’ll be able to spend all that extra money on vacation souvenirs.

* Book early. If you make the reservation for a rental car at least 7 to 14 days in advance, you are more likely to get a lower rate. Since rental car companies don’t charge cancellation fees, book a car as soon as you can. If you have to make a booking at the last minute, opt for smaller rental companies. Their rates are usually lower, and most of their business comes from the last-minute bookings.

* Avoid the prepaid gas option – the one that lets you return the car without filling up the tank. Rental companies don’t refund you for the gas you didn’t use. Also, most of the time the prepaid rates for gas are higher than what you could find at the gas station. Just don’t forget to refill your tank before you return the car. The charge for gas you didn’t replace can be twice or three times the usual price.

* Compare the daily rate with the weekly rate. Often, the weekly rate is so low it’s actually cheaper to keep the car a few more days. In some cases, the charge for a week will be less than a three-day rental.

* Join a frequent renter club if there’s one company you use again and again. The membership is free, and you generally get 5 to 15 percent off each rental. Some clubs let you earn points toward a free rental. Other incentives include, express lines, free upgrades, and frequent-flyer miles.

* Choose a smaller car if you’re headed overseas. Small cars get better gas mileage. In foreign countries, gas prices are close to $4 a gallon.



All the best,



Timben

Maintenance – Save more than $200

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You can save more than $200 a year on fuel costs by following some simple rules:

* Keep engine tuned.
* Replace air filter regularly.
* Use recommended grade of motor oil and gasoline.
* Keep tires inflated to the recommended pressure.
* Avoid jackrabbit starts or sudden stops.
* Keep it under 60 on the highway.
* Avoid buying gas at highway stations.
* Shut the car off instead of idling.



All the best,



Timben

Maintenance – Beat auto repair rip-offs

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Develop a relationship with a good repair shop – one that knows your car – and you will be ahead of the game when it comes to maintenance. Learn which shops in your area have the best reputation. Good credentials are important for both shop and mechanic.

A shop that’s affiliated with a reputable parts distribution and repair network (like NAPA) has an edge when it comes to getting quality replacement parts when you need them. Mechanic certification (like ASE) tells you that those working on your car are the best available.

Heed these four ways to keep any mechanic honest when he works on your car.

* Let him figure out the problem. Explain what you hear or see, and make sure your description is included in the work order. Keep it simple. Say, “It won’t crank,” not “I think it needs a new battery.” This keeps spendthrift mechanics from automatically installing a new battery, even if the battery is not the problem.

* Know what you’re entitled to. The U.S. Attorney General’s Office says you should expect written estimates on repairs over $100 if you deal with the repair shop face-to-face. And the repair shop must have your permission for repairs more than 10 percent over the authorized estimate.

* Get all guarantees and warranties in writing, both for parts and labor. Take notes on your conversations with the mechanic. A good place to record the details of your agreement is on the work order itself. Make sure you understand what is written there. This will help you avoid expensive misunderstandings.

* Tell the mechanic you want all parts that have been replaced. If a part, like an alternator, can be exchanged and rebuilt, ask to see the receipt for the swap. Don’t pay for a new part if all they did was clean and reinstall the old one.



All the best,



Timben

Maintenance – Keep you car in tip – top shape

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The best way to protect your car’s value is through regular maintenance. You can save a ton of money by replacing worn out parts before they break and require a major repair. Check out these figures for estimated auto repair costs in 2006 from the Sam’s Club Auto Service Plan:

* Alternator $442
* Engine $3317
* Starter $453
* Transmission $2245
* Water Pump $502

Obviously, you don’t want to neglect those important parts. But even simple things, like changing the oil or fan belt, are critical to the overall health of your car. Besides saving money, here are the benefits of regular preventive maintenance.

* Improved performance. This means more pep, better handling, and improved fuel economy.

* Dependability. A well-maintained vehicle is more likely to start right up and less likely to stall or leave you stranded.

* Better safety. A little neglect over a long period of time makes your car an accident waiting to happen.

* More pleasurable driving. When your car doesn’t make funny noises or do strange things, it makes for a better, more relaxing ride.

* Environmental protection. Poorly maintained automobiles are notorious polluters.

* Simpler schedule. Hit-and-miss servicing is easy to forget. Put your maintenance visits on the calendar. By planning ahead, you can budget accordingly.

* Higher resale value. A regularly serviced car holds its value better as the years go by.

* Owner pride. Your car is one of the accessories you “wear.” Keeping it up makes a positive statement about you.



All the best,



Timben

Used Cars – Get a free inspection

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If you’re a member of the Automobile Association of America (AAA), you don’t need to pay a mechanic to check out a used car. AAA offers a free maintenance inspection to all its members. Just take the care you’re interested in to one of their approved auto repairs facilities, and they’ll inspect the car for problems that usually lead to roadside breakdowns. Then they’ll tell you in writing about any maintenance or repairs the car needs. The service is valued at $24.95, and you get it for nothing. You can’t beat that price.



All the best,



Timben

Used Cars – Smart way to find a safe car

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Hire a mechanic to inspect a used car before you even consider handing over your money. He will check for problems and possibly even give the car a test drive. Make an appointment with your mechanic ahead of time so he can work it into his schedule. The whole process should take about an hour.

The service may cost $50 to $100, but any amount the mechanic charges is worth it. It could save you thousands of dollars if the car turns to be faulty. And if you hire a mechanic you work with frequently, he may even perform the service for free.

Some mechanics may go to the point of sale for the inspection, but most need you to bring the car to their garage. Take the car’s owner with you. He probably won’t want to let you disappear with his car for an hour while you have it checked.

If the seller refuses to let a mechanic look at the car, there’s probably something wrong with it. You’re better off moving on to the next option.



All the best,



Timben

Used Cars – Flash Some Cash and Save

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Show the seller you’re serious by letting them know you’ve got cash on hand. You may save money by making a cash offer even it’s less than what they’re asking. Don’t talk price too early in the negotiations. But if it comes down to getting a seller to agree on a lower price, flashing cash may clinch the deal. Whether you arrange your financing ahead of time or just withdraw from savings, having cash at hand is more than just a great negotiating tool. It will also keep you from going over budget since you’ll be safe from expensive loan offers.



All the best,



Timben

Used Cars – Sidestep common auto scam

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Be a proactive used-car shopper, and protect yourself from scamsters who peddled their flood-damaged goods. These scoundrels “freshen up” damaged cars and resell them at bargain prices to naïve and unsuspecting buyers. While flood damage to cars may not be easy to see, it can be every bit as harmful as that caused by wrecks.

Begin your investigation by asking for the title. If it’s stamped “salvage,” the car has already been totaled, perhaps by flooding. The title also tells where the car is from. If its most recent “home” is a state where flooding has been a problem, take note. Flood-damaged vehicles are routinely shipped to your area and sold as though nothing is wrong with them.

Next, scrutinize it for telltale signs of flooding. Watermarks will usually remain hidden from view. Open the hood and scan the engine compartment. Look at the radiator. Check the air filter for signs of water-borne debris. Does the engine oil look milky or discolored? It could be from water.

Check the trunk. Does it smell musty? Is the jack or tire iron rusted? Look under carpeting for signs of moisture. Do you see evidence of new, poorly fitted, or mismatched carpet or upholstery? Use a mirror to peer under seats where the metal parts can rust.

Check for mud or rust in hard-to-clean parts of the car. Be sure to check every electrical switch – locks, windows, lights, lighter, radio, horn, heater fan – and try each of them several times.

If you’re still serious about the car, find the vehicle identification number (VIN), and use it to order a vehicle history report from www.carfax.com or www.autocheck.com. It will reveal the car’s hidden past, including flooding.



All the best,



Timben

Used Cars – Come out ahead in the classifieds

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You can find good deals on used cars by looking through the classified ads in your local newspaper. Auto Trader magazine is a helpful publication that features used car ads complete with pictures for you to browse.

You can also look online for classifieds at Kelley Blue Book’s site, www.kbb.com, and at Auto Trader Online, www.traderonline.com. But be careful as you look into these deals. Not everyone is completely honest when they write their ads. Do you best to verify as much as you can.

Look for vehicles that have been owned by only one person. Concentrate on the ones with low mileage. If the ad doesn’t mention mileage, it’s probably too high. Do all the research you would do with any used car, such as looking through maintenance records, checking the car’s history by its VIN, and having a mechanic check it before you make a decision.

One trick you may run into is the “dealer in disguise.” Sometimes dealers will pose as private owners and place a classified ad for a used car. They pull this stunt because buyers are usually nicer to private parties, and some will only buy from private owners. Plus, owner classified ads are cheaper than the ones for dealers.

You’ll get a better deal from a private owner, so make sure you’re speaking with one. Ask the seller if he or she is a private party or not. If they answer confidently, they probably are. But if they hesitate, you could be on the phone with a sneaky dealer.



All the best,



Timben

Used Cars – Save with a private seller

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Cars automatically cost less when you buy them from a private seller instead of a dealer. Here’s why.

* Private owners tend to ask 20 percent less for the same car than dealers do. Dealers price their cars higher because they’ve got overhead, and their livelihood depends on the profit they make.

* Buying from a private owner cuts out the middleman and allows you to negotiate with someone who is not a professional salesperson.

* Private owners usually enjoy talking about their cars, so you can find out more about the vehicle’s true history.

* Some states don’t require you to pay sales tax on a car if you buy it from a private owner rather than a dealer.

Make sure you’re considering a decent automobile by asking the owner these important questions.

* “Why are you selling your car?” The car may have mechanical problems, so ask if you can have a mechanic check the car. If they don’t let you, steer clear of this vehicle.

* “What is the car’s mileage?” The average is 12,000 to 15,000 miles per year. An older car with lower mileage is still a good catch.

* “What needs to be worked on?” It’s a good sign if the owners answers honestly and lets you know what minor repairs the car needs.

* “May I see the car’s service records?” If they don’t have the service records, move on to another car.

* “When were the brakes last done?” and “When were the oil and filter last changed?” These answer will tell you how well the owner has taken care of the car.



All the best,



Timben

Used Cars – Bid for online bargains

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You can find lots of good deals on used cars through online auctions. Just remember to relax. The key to online auctions is patience. If you give yourself plenty of time to shop around for the best bargain, you’ll save thousands of dollars on your next car.

First of all, do the same research you would for any used car. Request the service records, and have a vehicle history report done on the car’s Vehicle Identification Number (VIN) at www.carfax.com. Ask the seller to have a mechanic check the car out for any problems, and have the mechanic do a test drive as well. In the meantime, does a test drive of the exact same model yourself.

Find out what the car worth by looking in Edmunds, Kelley Blue Book, and NADA.com for the retail and wholesale value. Retail is what the car would normally sell for, and wholesale is the trade-in amount a dealer would give for the car if it were in top condition.

For an online auction, any number at or below the wholesale price is a good deal. Remember to include travel and delivery costs in the equation since you’ll have to either pick up the car or have it shipped after you buy it. Decide what you’re willing to pay for the car, subtract the costs of travel and delivery, and then only bid up to that number.

Do not, under any circumstances, get caught in a bidding war. You may pay too much without thinking. Bid up to your determined price, and then walk away. Play it cool, and you’ll get a great deal.



All the best,



Timben

It pays to buy a used car

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New cars usually lose a quarter to half their value over the first two years, and then depreciation slows down. Since the average car tends to last nine years, the smartest strategy is to buy a car that is one or two years old. That way you don’t suffer the depreciation, and you save 20 to 30 percent over the cost of a new car.

You can find out how much a car will depreciate by using the Depreciation Calculators in the Calculators sections at CarPrice.com. Most likely, you’ll find a used car is the better value.



All the best,



Timben

Used Cars – Enjoy “giveaway” prices at an auction

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Have you checked with the police department in your search for a used car? From time to time, law enforcement has to thin its inventory of surplus, seized, and impounded vehicles by holding auction. They’re announced in newspapers and posted at town halls and post offices, but you can also check with your local police department.

These auctions give you the opportunity to buy cars – even luxury models – at “giveaway” prices. At first glance, an auction may look like the world’s biggest car lot, but be careful. You need to pick and choose carefully, and here’s why:

* Some of these vehicles were abandoned and impounded. They may be good for parts and salvage.

* Some were seized from criminals. They may have an “exotic” allure. But, like their previous owners, they’re often loaded with problems of their own. These cars may have been damaged in the search for drugs or weapons. You may have to replace a gas tank or make other repairs to make them roadworthy. Auctioneers usually let you know in advance about these kinds of problems.

* Department vehicles being rotated out of service may have had a rough life. But you can be sure they’ve been well maintained.

Once you’ve found a vehicle that looks interesting, check the Kelley Blue Book for its trade-in-value. If you have a computer, go to the Web site at www.kbb.com for a free appraisal. That’s the amount you’ll use as a guide in your bidding.

Then go for a sneak preview. Ask to see the car’s title, start it up, and check the transmission. Find its Vehicle Identification Number (VIN), and do a vehicle history search at www.carfax.com or www.autocheck.com.

Do all this before the auction, and when the time comes for you to bid, you’ll be in the driver’s seat.



All the best,



Timben

Used Cars – Corporate “leftovers” a bargain

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Car dealers aren’t the only companies who sell used cars. You can get good deals on used vehicles from banks, rental car agencies, airport limousine services, and corporations getting rid of their company cars.

Rental cars can be a good purchase because rental companies perform regular maintenance. The cars are usually only a year or two old, which means the rental company has already taken most of the car’s depreciation. Most rental cars still have valid factory warranties, which you won’t find at some places.

Banks and lenders auction off cars they have repossessed because the previous owner could not pay their loan. Just like any used car, you should have it checked out before you bid. But you might get a bargain since the bank just wants to pay off what’s left of the loan.



All the best,



Timben

Used Cars – How to get a better deal

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Buying a used car is not much different than buying a new one. The main thing to remember is to prepare before you start negotiating. Knowing the value of the car you’re interested in gives you the upper hand and makes it possible to get a better deal.

You can easily research car values by looking through print guides such as Edmunds or the N.A.D.A Official Used Car Guide. They publish their statistics monthly. But if you want numbers that are even more recent, check out their Web sites. Sites like www.nadaguides.org, www.edmunds.com, and Kelley Blue Book’s site, www.kbb.com, feature prices that are sometimes updated every day.



All the best,



Timben

A hard – but important - lesson

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Rozie was enjoying the drive home from college in her new compact car. Suddenly, she saw a piece of tire tread ahead in her lane. Because of traffic, she couldn’t avoid running over it. She heard it glance off the floor board. A little farther down the road she pulled over to check for damage. There, beneath the engine, she saw a dangling wire.

The next morning she took it to the dealer where she’d bought the car and the extended warranty. It wasn’t long before the service manager approached her with news that the oxygen sensor had been damaged and the repair would cost a little over $500. “ Boy,” Rozie thought, “am I happy I bought that extra service plan.” Between college and the new car payment, she was in no position to pay for costly repairs.

Then came the words, “Sorry, ma’am. That part isn’t covered by this warranty. It says down here in the fine print…”

Rozie now says she’s learned her lesson – the hard way. “From now on, I’m reading the whole contract, fine print and all, before I sign anything. No more expensive surprise for me.”



All the best,



Timben

New Cars – Add value to your trade-in

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Don’t get ripped off when trading in your car. Doing it right can get you the discount you deserve on your new purchase.

For starters, know your car – mileage, optional equipment, repair history, the works. Show the dealer its service record. And top it off with a vehicle history report you can obtain from Web sites like www.autocheck.com or www.carfax.com. It’s only $19.99 and gives a third-party perspective on the history of your vehicle – accident and flood damage, emissions inspections, and more.

Next, visit the Edmunds Web site at www.edmunds.com , click on Used Cars, look for Trade-In, and find two important figures – the suggested “private party” selling price of your car and the industry standard trade-in price. It’s obvious you’ll get more by selling the car yourself. But if you still want to trade it in, these pointers will help you get the top dollar.

If you do not have access to a computer, Edmunds also has books available at most bookstores and libraries.

* Avoid talking about the trade-in until you’ve settled on the price of the new car.

* See if your trade-in will reduce the sales tax on your new car.

* Make sure your engine oil is clean and topped-off. Clean oil is a sure-fire sign that the motor has been cared for.

* Clean your car inside and out. And fix everything that needs fixing. Each flaw eats away at a car’s value. That clean, well-maintained look enhances your car’s “curb appeal” and assures a higher trade-in value.



All the best,



Timben

New Cars – Beware the small print in service contracts

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You may be tempted to get a service contract on your new car after hearing it will cover all your repairs and provide towing and transportation while your car is in the shop.

But consider it carefully. The manufacturer’s warranty will cover almost everything on your car for several years. And your car insurance may already provide for towing and substitute transportation.

As far as taking care of “all” your vehicle repairs, that term takes on new meaning when you read the small print in the contract. You’ll find plenty of limitations.

Keep these two rules in mind when considering any optional service contract.

* You are not obligated to purchase it. And if you think you might, you don’t need to do it on the day you buy the car. Every car has its competitors. So do service contracts. Your automobile insurance company may provide an extended warranty, and it’s probably cheaper than the one offered by the dealership.

* You are obligated to know what the service contract says, fine print and all. If you expect it to cover a repair, you’d better understand what the limits, deductibles, and exclusions are. A simple technicality may negate the insurer’s responsibilities to make the repair. And what if you break down at the other end of the country? Will you have to be towed home to take advantage of the warranty?

A third point to consider is the source of this service contract. Who is backing it? The car manufacturer? The dealership? A third-party insurer? How is that third-party insurer rated? Will you be able to find it when your car is on the blink?

If you buy a service contract through the dealer, make sure you get written confirmation that the dealer paid the service contract company and that you’re “on file” with that company.

When it comes to service contracts, the last thing you want is a surprise.



All the best,



Timben

New Cars – Watch for rebate savings

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Cash rebates are a great way to save big on new cars – especially cars that haven’t been hot sellers. Even those rebates offered to dealers by manufacturers figure in to your negotiations. Those rebates lower the actual dealer cost.

Keep an eye out for rebates in newspaper and television ads. If you have computer access, you can quickly check those currently available in your area. Try these sites:

* Autosite’s New Cars at www.autosite.com

* CarPrice’s Rebates & Incentives at www.carprice.com

* Edmunds’ New Cars at www.edmunds.com

* Intellichoice’s Dollars & Sense a www.intellichoice.com



All the best,



Timben

New Cars – Master the art of haggling

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W. Somerset Maugham once wrote, “He preferred to be overcharged than to haggle.” Don’t let that statement describe you when you’re car shopping.

Haggling is the art of chipping away at high prices until you reach a bargain. Once you’ve haggled your way to a great new-car deal, you’ll drive away feeling pleased and refreshed – not drained and beaten.

Your goal is to keep your cool and remain objective. The remedy for getting emotional is to do your homework, know your stuff, and have the facts ready when the pressure is on during negotiations.

* Be prepared. Before you enter the showroom, know which car you want, its invoice price, the amount you’re willing to pay, and what your trade-in is worth. Armed with these non-negotiables, you’ll remain steady throughout the battle of wits at the dealership.

* Have a strategy. Dicker over one thing at a time – say, the purchase price. Stick with it until you have it in writing. Don’t allow anyone to sidetrack you with talk about your trade-in, the financing, extended warranties, or anything else. Talking about too many things at once gets confusing.

* Enlist support. If you need moral support, take someone along – someone you know is levelheaded and will come to your rescue when a sales clerk fluent in Dealerese starts to confuse you.

* Find a stand-in. If haggling isn’t your cup of tea, remove yourself from the fray. Free online services can arrange for dealers in your area to negotiate among themselves for your business. Check out InvoiceDealers.com, Cars.com, and Autoweb.com.

You have the key bargaining chip – one a dealer can’t use against you. As good at haggling as you may be, the time may come for you to simply walk away. That alone is a huge advantage. Don’t hesitate to use it if you have to.



All the best,



Timben

New Cars – Smart strategy for avoiding lemons

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A car under warranty that breaks down several times within a certain amount of time is, by law, a “lemon.” To avoid the frustration and expense of owning such a vehicle, get smart and learn as much as you can before you buy.

You can go online to find an official list of cars notorious for their defects. Get a heads up on these cars at:

* National Highway and Traffic Safety Administration at www-adi.nhtsa.dot.gov. Click on Defect Investigations.

* Center for Auto Safety at www.autosafety.org. Click on Lemon Laws and Auto Defects.

* Carfax at www.carfax.com. Click on Lemon Check.

According to a recent survey, Kia was the most likely lemon candidate with an average of more than five defects per vehicle. Volkswagen was next with close to four, and Mercedes-Benz had slightly more than three per vehicle. But any car can turn out to be a lemon.

Once you realize you’ve got one, find out what you’re entitled to – a refund, a cash settlement, or a replacement. Car companies usually offer to replace your lemon with a new car or give you the cash value of the car.

There are several federal lemon laws, and each state also has its own. State lemon laws vary, so check with the sites listed above to discover what your state’s law says. If you have a problem understanding the law, you can get some help at www.defect.com. Click on Lemon Links.



All the best,



Timben

New Cars – How to handle a long test drive

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Car makers have found that a day-long test drive is pretty effective at clouding customer’s good judgment. If you decide to take the dealer up on a 24-hour test drive, treat it like serious business. Don’t let the pleasure of driving a new car make you forget to seriously critique the car and negotiate for a bargain.

Here are some suggestions for how to spend the day.

* Dedicate some time to drive with no distractions. Concentrate on the car – not the kids, radio, or cell phone.

* Critique the car in light of how you’ll use it – carrying babies in car seats, hauling soccer teams and groceries, or simply commuting.

* Check the view. How is the rear and side vision? How is the view at night? Any blind spots?

* How does it handle – turning radius, driveway maneuverability, garage fit, highway-speed stability, acceleration for entering the highway?

* Are controls visible and within reach? Check instruments and accessories – day and night dash visibility, radio, A/C, mirror adjustment, seat and steering wheel adjustment.

* Do doors open and close effortlessly? How easy is it to access passenger and engine compartments, trunk, roof rack? Hear any rattles or squeaks?

When it’s over, and you return the car, simply say “thank you.” Then leave, go home, and think about it. The marketing ploy behind the 24-hour test drive is to get you to fall in love with the car and buy it without negotiating price. That would be an expensive mistake.



All the best,



Timben

New Cars – Get a deal on the lot

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You drive by the dealership every day on your way to work. One car has caught your eye. It’s on the lot for weeks. It’s not the color you’d hoped for – but if the price is right, it may be time to make an offer.

The longer that car sits on the lot, the more expensive it is for the dealer. It may have some options you don’t need or want. Ask if he’ll remove them and reduce the price. Or, better still, see if he’ll remove them in as a bonus for the favor you’ve done him by helping him get rid that slow-moving inventory.



All the best,



Timben

New Cars – Tips for timing it right

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Timing is everything when it comes to getting a great deal. Knowing when to buy can save you a bundle. It helps to make your move when salesmen are weary, distracted, and under pressure, say industry insiders. Here are the secrets to striking dealerships for great deals.

* Wait until the end of the month. Dealers face unmet quotas, so they’re willing to sell at a discount. Manufacturers get it on it, too, offering low rates and rebates.

* Shop late in the day. Salesman may be tired and ready to go home. Assure them that you want that car, but drag it out. Your salesman’s eagerness to leave may prompt him to make you a great deal.

* Keep an eye on the business section of your paper. When sales are sluggish, manufacturers and dealers alike are ripe for picking your car at a bargain.

* January, April, and May are slow months for auto sales. Showrooms are deserted. Sales are slow. It’s a great time to buy. Or, if you don’t need a model hot off the assembly line, wait until the end of the year. New models arrive in the fall. Dealers are eager to swing deals on last year’s models.

* The Christmas holidays are also a great time to shop if you can find the time. Dealers want to reduce inventory, so they’ll be willing to sell you this year’s stock at invoice – or less.

A rainy weekend, a holiday, an hour before closing – these put you in the driver’s seat when it comes to car shopping. Use them to your advantage, and you’ll come out ahead.



All the best,



Timben

New Cars – Opt for the options you need

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You probably know which accessories are important to you in a car. But when you get to the dealership, you may discover some you never knew existed. Such options can greatly inflate the price of your car. Don’t let dealers rip you off this way. By avoiding the options scam, you’ll save plenty the next time you buy a new car.

The list of available options may seem overwhelming. You can choose air bags, air-conditioning, antilock brakes, antitheft packages, colors and finishers, cruise control, power features (locks, windows, doors, mirrors, seats), roof racks, sound systems, wheels, and window tinting to name few.

The main thing to consider your needs and decide which options are most useful to you. If you plan to eventually resell the car, you also may want to consider those that help your resale value.

Some options come as standard equipment on certain vehicles, and others come bundled together in packages. Option packages are often used as sales promotions and can save you money. But watch out for things like window etching and extended warranties that may be slipped in by dealer as though they’re not options at all. These are often their money makers.

To check out vehicle options, browse through publications like Road & Track, Car and Driver, Motor Trend or their Web sites for reviews. Manufacturers’ Web sites also offer information on factory options and how much they cost. Try www.automobiles.honda.com, www.toyota.com, and www.daimlerchrysler.com to see what they offer.

Once you decide on your options, add them up to see how much they will add to the basic cost of the car. You will then be prepared when you approach the dealership, and you’ll have a better chance of driving away with the options you want.



All the best,



Timben