Welcome
Welcome to CreditSavingsNut.com,™ a site dedicated to providing money saving advice,
tips and ideas on all your personal finance and credit needs to live more cheaply.
Advice and tips on banking, credit & debit cards, home & car loans, credit reports
& identity theft, property & income taxes, car insurance, property insurance, health
insurance, and life & disability insurance. Start reducing your personal finance
and credit costs by reviewing the tips presented below. For hundreds more tips,
advice and savings, click on the navigation buttons on the left. Tell your friends
and family about CreditSavingsNut.com so they can start saving too, and feel free
to add a link on your web site.
Banking - When looking for home equity lines of credit or small business loans, banks
and credit unions can often be very competitive. But check around at many different
banks and credit unions. Loans at these institutions vary considerably with respect
to both annual percentage rates and loan origination fees. Qualification guidelines
for loan acceptance also differ considerably. Just because one bank turned you down,
or offered only a high interest rate and fees, does not mean other banks will not
offer you reasonable terms. And do not be afraid to tell a bank that you cannot
accept their offer due to its cost. Ask them to consider a better interest rate
and lower fees. Banks are in a competitive business, and many will improve their
first offer to get your business.
Credit & Debit Cards - Most credit cards offer coverage in case a rental car you
are driving (and was rented using your credit card) is damaged or stolen. This coverage
is effective if you do not purchase the collision damage waiver from the auto rental
company, and is secondary to any other coverage you may have. There is generally
no deductible, so even if your own insurance policy covers any damage sustained,
the credit card coverage will pay for your deductible. In addition to paying claims
for damage to the vehicle, the availability of this coverage saves the cost of buying
the collision damage waiver from the auto rental company.
Home & Car Loans - To find a home loan, look in the newspapers and get an idea of
the rates currently offered. Pick a few banks, mortgage companies, etc. and contact
them to see what they have available. Look in your yellow pages for mortgage brokers
and contact them by telephone to see what they are offering. You will find large
differences among the mortgage brokers, so it pays to contact several. And do not
forget the Internet. Many mortgage companies and mortgage brokers offer loans over
the web. Most are legitimate and sometimes offer the best deals. BankRate.com and
many other sites can assist you in comparing mortgage alternatives.
Credit Reports & Identity Theft - Generally speaking, companies that advertise that
they will, for a fee, help you repair your credit rating do not deliver on their
promises. No entity can remove accurate and timely negative information from a credit
report. These companies basically take your money and deliver nothing of value.
So beware of such schemes and look out for the following warning signs:
a. Companies that want you to pay for credit repair services before they provide
any service.
b. Companies that do not tell you your legal rights and what you can do for yourself
for free.
c. Companies that recommend that you do not contact a credit reporting company directly.
d. Companies that suggest you try to invent a “new” credit identity, usually by
applying for an Employer Identification Number to use instead of a Social Security
number.
e. Companies that advise you to dispute all information in your credit report or
take action that seems illegal. If you follow illegal advice and commit fraud you
could be subject to prosecution.
Property Taxes - Often, property taxes can be lowered by taking advantage of various
exemptions and credits offered by tax districts. Sometimes these savings can be
significant. Applying for these exemptions and credits is generally quite easy,
so make sure you check with your appraiser’s office or tax district and get any credits
or exemptions you deserve. Some of the exemptions and credits that may be available
include: Homestead Exemptions; Senior Citizen Credits; Disability Exemptions; Low-Income
Credits; Widows & Widowers Exemptions; Professional Exemptions (i.e., firefighter);
and Lower Appraisals for Land Use (i.e., agricultural land).
Income Taxes - When figuring interest paid deductions, if you bought or sold a house
in the tax year, make sure you determine if any interest costs included in the settlement
(such as points) are tax deductible. Also, if you paid off a mortgage during the
year, and the original mortgage had points that were not previously fully deducted,
you may be able to deduct these points. If you paid mortgage insurance premiums
(PMI) on a mortgage taken out in 2007 or later, you may be able to deduct the premium
as mortgage interest. And consider paying your mortgage payment due on January 1,
in December, so it can be deducted in the current year, if desirable. And remember,
if you have pending tax issues, securing the services of a tax lawyer can help to
minimize the amount you owe and settle any open legal issues related to the case.
Car Insurance - Buying higher liability coverage amounts has another benefit in addition
to insuring you for a higher liability claim. If you have a high level of liability
coverage, the insurance company has more to lose if you are found liable for a large
claim. Therefore, if you have a high coverage amount they are more likely to defend
you in any legal action at their cost, in order to protect their interests. If you
have a low coverage amount, they may quickly decide to settle the claim, leaving
you totally on your own with respect to any claims over and above the insurance company’s
settlement.
Property Insurance - Flooding is a catastrophic loss. If there is a possibility
for a flood where you live (including storm surge from hurricanes), consider this
insurance. To determine your flood risk you can inquire at your city’s or county’s
building department. You can also go to the web site FloodSmart.gov. Damage to the
structure of your home is available in limits up to $250,000. Contents of your home
can be insured up to $100,000.
Health Insurance - Deductibles and co-pays are an important consideration of any
healthcare policy. Generally, the higher the deductibles and co-pays, the less expensive
the insurance. Determine how annual premiums change depending on deductible and
co-pay levels, before you decide what is right for you. Remember, insurance generally
should be used to cover the risk of large financial loss. Consider getting a plan
with high deductibles and co-pays to save on premium payments, especially if your
are generally healthy . Make sure to keep track of deductibles during the year to
prevent mistakes. And consider participating in your employer’s Flexible Savings
Account Program (if available), or setting up a Health Savings Account or Health
Reimbursement Account so you can pay for medical expenses not covered by your insurance
plan with pre-tax dollars.
Life & Disability Insurance - The primary function of disability insurance is to
replace lost income when someone becomes either partially or totally disabled and
cannot work. Disability policies generally only provide coverage until you reach
Social Security retirement age (65 or older). Purchasing disability coverage is
often ignored, but in many ways it is more important than life insurance coverage.
If you are disabled and cannot work, your family has not only lost your income,
but they also have the expense of providing for your needs, which may include your
spouse staying at home, resulting in the loss of their income also. In addition,
unlike when you die at a younger age, if you are disabled, your spouse will not have
the opportunity to remarry and secure additional means of support. So, consider
your need for disability insurance carefully.
