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From The Desk of Your Name
Practical Tips to Enhance Your Financial Freedom
Top 10 Credit Don’ts During the Loan Process
Many are taking advantage of interest rates at historic lows, either by re-structuring debt with a
refinance or purchasing a new home. However, the recent economic crisis has created even
tougher guidelines and credit requirements and there are some things that consumers must be
aware of when applying for a loan.
Leading nationwide credit expert and President of Credit Resource Corporation, Linda Ferrari,
developed the top 10 credit don’ts during the loan process, to help you get your arms around
those things that can unknowingly wreak havoc on your loan transaction.
1. Don’t do anything that will cause a red flag to be raised by the scoring system
2. Don’t apply for new credit of any kind
3. Don’t pay off collections or charge offs
4. Don’t max out or over charge on your credit card accounts
5. Don’t consolidate your debt onto 1 or 2 credit cards
6. Don’t close credit card accounts
7. Don’t pay late
8. Don’t allow any accounts to run past due-even one day!
9. Don’t dispute anything on your credit report
10. Don’t lose contact with your mortgage and real estate professionals
What Does the Federal Reserve Do Anyway?
With the economy in the news every day, more attention is being focused on the Federal Reserve
than ever before.
The Federal Reserve System was created on December 23, 1913 by President Woodrow Wilson
to act as the central bank of the United States. It was created to provide the nation with a safer,
more flexible, and more stable monetary, banking and financial system.
The Federal Reserve System is made up of twelve Federal Reserve Banks, overseen by the
Board of Governors. The Board of Governors is located in Washington DC and is comprised of
just seven members, who are appointed by the President and confirmed by the Senate.
The main responsibilities of the Fed include:
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Researching US national and regional economies
Providing financial services to depository institutions, the US government, and foreign
official institutions
Supervising and regulating banking institutions to ensure the safety of the nation's
financial system and protect the credit rights of consumers
Conducting the nation's monetary policy by influencing the monetary and credit
conditions in the economy in pursuit of maximum employment, stable prices, and
moderate long-term interest rates
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Communicating information about the economy via publications, speeches, seminars and
websites; including the statement given by Federal Chairman Ben Bernanke, following
the eight formal meetings that take place about every six weeks throughout the year. At
these meetings, the Fed has the opportunity to make changes to the Federal Funds Rate,
and make their decision by reviewing economic and financial conditions. They can also
make adjustments to the Fed Funds Rate outside of these meetings.
Overall, the Fed's main responsibility is to keep the economy growing at a steady pace by
keeping inflation stable and rates moderate. When inflation is low and stable, businesses and
households can spend, knowing that their purchasing power can remain strong. Upcoming Fed
meetings for this quarter are scheduled to take place on August 10 and 11 and September 21 and
22.
Are Safe Deposit Boxes Actually Safe?
We all have important documents and valuables in our homes that we want to protect from theft
and disaster. For many people, safe deposit boxes at banks provide a safe place to store those
valuables outside of the home. After all, file cabinets and even fire-resistant cases in your house
are still susceptible to intense fires, water damage, and even theft.
But, did you know that safe deposit boxes may be susceptible as well? In fact, during the attack
on the World Trade Center and Hurricane Katrina hundreds of bank vaults were damaged or
destroyed. Worse yet, valuables stored in a safe deposit box aren't insured by the bank if damage
or theft occurs.
And if you use a safe deposit box to sock away cash for an emergency, you may be surprised to
know that a safe deposit box isn't completely protected. Law enforcement officers can get a court
order to raid your safe deposit box, and if the IRS ever freezes your assets, that freeze includes
your cash and valuables in a safe deposit box.
All this doesn't mean that you should hide valuables and cash in your closet or drawer...but it
does mean you should take precautions and specific steps to make sure your valuables are
protected if you put them in a safe deposit box.
If you have a safe deposit box or are considering getting one, the following steps can help you
make sure your documents and valuables are protected:
Call your homeowner’s insurance company to make sure the contents are covered, especially
when placing jewelry or collectibles of value in the safe deposit box.
Put important documents such as marriage licenses, car titles, insurance policies and family
records in airtight plastic bags or sealed containers to help protect them from water damage.
Make copies of your important documents and store them at home or with your attorney, so you
can access your information if something does happen to the originals. Remember, important
legal documents such as wills and power of attorney documents should always stay with your
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Practical Tips to Enhance Your Financial Freedom
attorney. You can place copies in your safe deposit box or keep them at home, if you want to
have access to the information. But leave the originals at the attorney's office.
Make an inventory list of everything in your safe deposit box and keep the list in a safe place at
home or in another location. You may even want to take pictures or a videotape of the contents
just in case you need to show more proof if something happens.
Finally, make sure you inform your family members and your attorney about your safe deposit
box! Otherwise, the contents may revert to the state when you pass away.
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