It is extremely important to regularly get a copy of your credit report from each credit bureau so that you can see if there are any mistakes on those reports.
Even a simple mistake like the wrong address or even the wrong house number on your address can lead you to being turned down for a loan, even if you have fantastic credit.
And with the amount of identity fraud growing, keeping careful oversight of your credit reports and fixing any errors becomes even more important.
Some of the most common errors come as the result of name confusion. The more common your name, the more likely it is that you will have problems of this variety.
People have found accounts listed on records that don’t belong to them, found themselves listed as deceased, found the before noted wrong addresses, and incorrect statistical information such as birth year, etc.
If any of these items disagree with the information on a credit application, it raises a red flag. Often these errors come as the result of a person with a similar name moving, passing away or opening a new account, and the information is mistakenly put on your account instead of theirs.
Even more dangerous are the problems arising from a person who steals your identifying information and uses it to open credit accounts.
To fix an error on your credit report, you must initiate the procedure. You should call or send a certified letter to each of the credit reporting bureaus that show the error. In the case of data entry mistakes, you may need only contact one of the bureaus, but in the case of fraud, you will need to contact each bureau.
In the letter or phone call, you should provide your complete name, current address, date of birth and social security number.
If you dispute your ownership of an account listed on the report, you need to provide the name of the company listed as owner of the disputed item, and the account number that you dispute.
If there is an error is a factual error or error in personal information, note the incorrect information and what the correct entry should be. Make a formal request that they correct the information on the credit report.
Before sending the letter to the bureau, gather any supporting evidence or documentation that might help. Credit bureaus are required to remove any items that cannot be verified and fix any factual errors.
You may have to persistently pursue the bureaus, but they often fix mistakes promptly. When there is a dispute over a record’s accuracy, there may be more difficulty.
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We looked at how to calculate your net worth in one of our previous article. The net worth calculation will help you knowing if you are going forward or backward from one year to another. However, when you present your net worth to a banker, there are some item that may not worth too much for them.
Cars
While I suggest including your car value in your balance sheet, it should definitely not represent an important asset while calculating your net worth. I usually set my personal car value according to the loan attached to it. I do not want to penalize my net worth because I have a car loan, but you should surely not increase your net worth with the help of your car! Most banker will give little to no value to cars, so don’t be surprised; it is a depreciating asset!
House
This is probably one of the biggest questions: should we include the main residence in the calculation of your net worth? I personally think you should. You could decide to live in an apartment and invest a part of your money instead of using it as cash down. Therefore, the equity in your property worth something. It can help to consolidate your debts, pay off credit cards, and finance your next car purchase or renovation. It is also important to mention that your banker will calculate your net worth considering your property value.
Pension Plan
Some people calculate their net worth including their pension plan. You can surely do it on a personal basis to know if your net worth is increasing overtime. After all, if your employer is giving an important contribution, this is still money that you will have a right on it at one point. However, since you cannot access this money by any means (you are not allowed to withdraw money from a pension plan unless you meat certain amount of criterions). Therefore, I would not suggest to include the pension plan in your net worth calculation when you are about to ask for a loan. Your banker won’t do it as well.
Other Registered and Non-Registered Investments
Since those are the most liquid of all your assets, they are definitely included in a net worth calculation. The only thing to be careful about is if you have a brokerage account with stocks. Since the value can fluctuate from one month to another (we have a great example with what is going on in the markets lately), your banker may give you less than what your stocks actually worth.
In the end, the key to get a good net worth is to have multiple kinds of assets in our balance sheet. With a property, a pension plan and other investment on the side, you will definitely in a great position to show your net worth to your banker 
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Every Saturday, The Credit Toolbox does a review of good read around the blogosphere. Here’s what caught my attention this week:
Reverse mortgage, is it the right solution for you? By Master your card.
Get Your Taxes Done for Free! posted at Out of Debt - Christian Finances and Debt Help.
What Are the Root Causes of Debt? posted at Debt Advice.
How to deal with debt collectors posted at i pick up pennies.
The recession is not a lifestyle choice posted at Monevator.
$8,000 First Time Home Buyer Tax Credit posted at My Dollar Plan.
Looking for a Job? Consider Joining the Military posted at Military Finance Network.
Discover Escape Card 25,000 Bonus Miles Promotion posted at The Sun’s Financial Diary.
7 Reasons Why Banks Should Increase Interest Rates posted at PennyJobs.com.
The Digerati Life has “How to Make a Budget in 10 Easy Steps”
Trisha Wagner, writing as a guest poster on DebtKid, explains, “Why Budgets Don’t Work for Everyone”
On of the readers of The Happy Rock who refers to himself as the Debt Destroyer shares his monthly expenses for January.
Carnival:
Carnival of Personal Finance
Carnival of Debt Reduction
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Looking for a credit card can sometimes be daunting and choosing one of the best credit card applications can sometimes leave you scratching your head. Some of the top credit card providers, such as Visa, MasterCard, Discover, Capital One and of course American Express should be the ones you first start looking at. There are also many variants of these cards, such as Visa Gold, American Express Plum and others. Each offer different incentives to their holders. We should also mention that there are many other providers out there as well that are worth taking a look at.
Still though, finding the right credit card can be a challenge. You can find online tools necessary to help you make that sometimes tough decision on which credit card to choose. You can find information on a majority of credit card providers and you can arrange this information in a way that helps you compare them side-by-side.
Sounds easy and it is!
As you compare cards you will notice that some providers offer low interest credit cards. These are popular cards and are some of the top ones being offered. But what are some of the best credit cards?
These are cards that provide no annual fees, provide incentives like cash back on purchases, 0% interest on balance transfer offers, airline miles, hotel miles, car rental insurance and many, many more. The wise thing, when deciding on which of the best credit cards to choose from is to compare various cards here, see what they offer and then choose the best one that meets your needs.
Once you’ve looked over all the various credit cards from the best credit card providers and once you’ve chosen a card that meets your needs for today and tomorrow, you can apply right online, and if your credit is relatively in good shape you can be notified of your acceptance in a short period of time. If your credit is say…not so good, don’t feel lost. There are options that are geared directly towards you!
Credit cards come in a variety of choices and we’re not referring to the incentives they offer. Today you can customize your card, make it more personal to identify with who you are. Some you can add photos others you can choose a variety of pictures or themes. Customizing a credit card is like customizing your check book. You can make it a reflection of your favorite interests, like skydiving, auto racing, sports, movies…the possibilities are endless!
So it’s that easy, choosing one of the best credit cards, possibly even a no annual fee credit card can be a snap, all it takes is a little time – apply today and see how truly rewarding owning one of the best credit cards can be!
Calculating your net worth is a valuable exercise at any income or savings level. It allows you to paint an accurate picture for yourself and for anyone who needs to know (such as loan officers or life insurance agents) of your current financial position.
Calculating your net worth can also be a useful evaluation tool each year to examine where you are and where you need to be. This allows you to set goals and work toward specific financial milestones.
To calculate your net worth, you should take the following steps:
· List, with the value in dollars, your most valuable assets. For many people, this includes home(s) and some vehicles. Use the most accurate, current evaluations of value. Be conservative in listing the values, as inflating these numbers does no good to you, and gives you an inaccurate picture of your worth.
· List the current dollar value of all liquid assets. This includes savings and checking accounts, cds, mutual funds and stock funds. This does also include retirement savings such as Roth and regular IRAs, and a 401K or pension plan. You will need your most recent financial statements to accurately complete this section. Many brokerages and banks also have online access where you can find the balance of each account.
· Add to the list the current dollar value of any personal assets. When you value these items, list their value as the amount you could get if you sold the item today. Because you paid a great deal for an Italian leather couch 10 years ago does not make it worth thousands today. Some items that may make the list include jewelry, musical instruments, valuable collections, and art. List valuable (over $500) items individually, then have one aggregate sum for “the rest of the household items.”
· Add the three sections to find your total assets.
· Now work on the liabilities section. Begin with the largest debts, such as home and vehicle loans. List the outstanding balance on each loan.
· List all personal liabilities, such as credit card debt, student loans, short-term debt for furniture or electronics, and every other liability you may have – amounts you are obligated to pay.
· Add the two sections of liabilities.
· Subtract the total amount of the liabilities from the total assets. The resulting figure is your net worth.
· Examine the number and the factors that led to the number, and make plans for improving it before the next year. Then repeat the process the next year and compare.
