MONEY & PERSONAL FINANCE

Moneywise

Credit bureaus to allowfinancial history freeze

Credit bureaus Experian, Equifax, and TransUnion and say they now let people in all 50 states freeze their credit histories. Freezing helps consumers protect themselves from identity theft.

A credit freeze keeps the bureaus from revealing a summary of your loans and payments. Because few lenders will issue credit without seeing a credit score, identity thieves can't use stolen Social Security numbers to open accounts.

More than a million stolen Social Security numbers are on computer servers controlled by criminals, says Cyveillance, a security firm that uses the Internet to search for tainted Web sites.

Experian says the service is free to identity theft victims, but all three bureaus say they charge $10 to freeze or unfreeze a report unless a lower fee is mandated by a state law. A freeze can be requested by a letter. An account can be unfrozen by telephone or email.

Save a buck on groceries

Don't be in such a hurry when going to the supermarket. Check this advice:

• Before heading out, check advertising circulars carefully. Just because it's advertised doesn't mean it's a good buy.
  
  
• Shop without kids so you can think.
  
  
• Don't shop when you are hungry. Eat first to avoid impulse buying.
  
  
• Take a list and don't buy anything else unless it's a food basic or a true bargain.
  
  
• If you see an aisle-end display of a product you want, check the price against prices on the shelf. Shelf prices may be lower, say the editors of ShopSmart.
  
  
• Buy the whole melon, vegetable, or cheese block. Prepackaged, cut-up selections cost much more.
  
  
• Try the store brands. You'll probably save money without sacrificing quality.
  
  
• Shop with cash if you tend to overspend. Stay within your budget by taking just a few dollars more than what you estimate your purchases will cost.

Skip the payday loan

Borrow from a credit union or a personal loan company

Want an instant loan from a company that won't even bother with a credit check? A payday loan could help for now, but it will be very expensive, especially if you renew it several times.

Payday lenders have you write a check for the loan plus their fee. The loan usually lasts up to 14 days. Then you either repay it with cash or let the lender cash your check. The fee is usually $15 or $20 per $100 borrowed. The fee is $30 if you borrow online. Annual interest rates can be to up to 500 percent.

If you are short on payday and you renew the loan, you multiply the interest. Letting a $300 loan ride for a year can cost $2,340 in interest, and you would still owe the $300. Lender personnel often encourage people to borrow more than they need because they want to earn bonuses.

There are other ways to get cash, such as borrowing from relatives. If that isn't an option, many credit unions have short-term loans with lower interest rates and convenient payment plans.

In the 12 states that don't allow payday loans, consumer finance companies offer short-term loans, as do many finance companies in other states.

A credit union is the best choice according to the Center For Responsible Lending. The interest rate is more favorable, and arrangements can be made to deduct payments over time from your savings or checking account.

A recent federal law caps interest on payday loans to military families at 36 percent.

'RevolutionCard' doesn't show your name or your card number

If your purse is snatched or your wallet is lost, at least you won't have to worry about a run-up of charges with a RevolutionCard.

This new credit card doesn't show either your name or account number. All transactions are done using the PIN number you have selected.

The card features a line of credit, the ability to store up to $15,000 from the account holder's bank account, free online payments to companies or individuals, identity theft protection, and interest rates pegged to the card holder's credit rating.

Steve Case, former chairman of AOL, is the current chairman of Revolution. He says the new card aims to be what a credit card should be in an Internetdriven world.

The card will have lower fees for both consumers and merchants. It plans to charge merchants just 0.5 percent of the sale price per transaction, much lower than the average transaction price of 1.9 percent that credit card companies impose. Ultimately that 1.9 percent charge is passed on to consumers.

The RevolutionCard will charge interest on unpaid balances each month, but the rate will vary based on the user's current credit rating.

The card is now accepted by about 100,000 merchants and can be used at ATMs. Revolution says it will take a year to set up a million merchants and three years to reach 7 million, which will put it on a competitive footing with MasterCard and Visa.

The company is growing fast, but it will take time for it to be seen as a general-purpose credit card.

For information, call 1-800-956- 9540 or visit revolutionmoney.com.

© 2015 TLC Magazine Online, Inc.