What are Student Checking Accounts?

As the name implies, student checking accounts are special accounts that were created to meet the specific needs of high school and college students. They are very similar to free checking accounts in some aspects, but offer some added benefits for students. There are usually certain qualifications that must be met in order to obtain a student/college checking account. Some banks require you to be enrolled in a 4 year accredited university, some allow community college students, and the requirements vary from bank to bank. These student checking accounts are also available to High School students at some banks. They usually require a parent/guardian to be linked to the account and they generally have the same benefits as other student checking accounts.

If you’re looking for a student checking account, here are some great options that can all be applied for online.

Citibank Student Account

The Citibank Student account is an ideal account for students who want the benefits of a student account with the added bonus of earning reward points for your purchases. Another great thing about the Citibank Student Account is that Citibank does not charge you any fees for using non-Citibank ATMs. There are no minimum balances or monthly fees associated with this account.  You can open your account with an initial deposit of $100.

US Bank Student Checking

The US Bank Student Checking account offers the basic benefits of a Student Checking account such as no monthly fees and a low initial deposit of $25 to open your account. You can access your money from over 5,000 US Bank ATMs and you also get 4 free transactions at non-US Bank ATM’s per statement cycle. And of course, you get all the other benefits that come along with using US Bank such as online banking, mobile banking, account alerts and more.

Wells Fargo College Combo

Whether you were a Wachovia account holder or Wells Fargo customer, you have the ability to take advantage of the Wells Fargo College Combo. With this deal, not only do you get College Student Checking Account, but you also get the added benefit of a Way2Save savings account. Many college students have a tendency to “live in the now” and not worry about the future. So the College Combo keeps you covered by conjoining the checking and savings account. Also, since Wells Fargo took over Wachovia, you now have access to over 12,000 ATMs and over 6,000 banking locations. The cost of starting you Wells Fargo College Combo is just $125 ($100 for the Student Checking Account+$25 for the Way2Save Savings Account).  The Wells Fargo College Student account does have a $3 monthly service charge. However, you can avoid this fee by getting the Wells Fargo College Combo and:

●     Maintaining a monthly balance of $500 or,

●     Enrolling in Direct Deposit

●     Linking Your Account to a Wells Fargo PMA Package

●     Utilizing a Wells Fargo Campus ATM or Campus Debit Card

Chase Student Checking

The Chase Student Checking account is great because it focuses on both High School and College Students. Chase gives you the option of opening up either a High School Checking account or College Checking Account. Both accounts give you benefits of the Chase Total Checking account such as a free debit card, mobile banking, online banking, and account alerts.

●     High School Checking Account (Ages 13-17): This is great for parents who want to start teaching their kids about money management especially as they get after school jobs. The minimum deposit to open an account is $25. And you can avoid the $6 monthly service fee by linking your account with a qualifying parent/guardian checking account or using monthly direct deposits.

●     College Checking Account (Ages 17-24): Just like the High School Checking Account, the College Account only requires a $25 deposit to open the account. If you started out with a High School Checking Account and want to stick with Chase through College, you can change to a College Checking Account to keep all of the benefits. Also, to avoid the $6 monthly service fee, you have to be enrolled in college for up to five years or sign up for direct deposit.

Key Bank Student Checking Account

Lastly, you can check out the Key Student Checking Account from Key Bank for another option. These accounts are available for students ages 16 and older. You also don’t have to worry about any fees for using your debit card for purchases. Key Bank will also reimburse you up to $6/month for surcharges from other banks for using their ATMs. This is great for students going to school out of state and might not have access to a Key Bank near them.  You can avoid monthly service charges by depositing at least $200 or initiating at least two transactions. You can open your account with as little $50. However, be aware that if you close your account within 180 days you’ll be charged a $25 account early closure fee.

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With the state of the housing market today, many home owners have found themselves going upside down on their mortgages which have caused even further damage to housing prices across the entire nation. This drastic drop in the housing market has led many home owners to be foreclosed on, do a deed in lieu of contract, or settle for a short sale. Unfortunately all three of those options can cause a lot of damage to your credit score and many have even had to file bankruptcy after being foreclosed on. Fortunately, there is another option out there if you find yourself owing more on your home than it’s worth (negative equity), and that option is the Making Home Affordable Program.

What is the Making Home Affordable Program?

Simply put, the Making Home Affordable Program (MHA) is a plan administered by the Obama Administration that is aimed at helping eligible home owners be able to comfortably afford their mortgage payments through restructuring their loans. The basic idea of the MHA program is to make it so that home owner’s monthly mortgage payments don’t exceed 31% of their income by lowering their interest rates. This program is a part of a variety of programs set forth by the current administration to help home owners have affordable payments.  Unfortunately, not every home owner is eligible for the Making Home Affordable Program. Keep in mind that this program is to help those who are currently struggling to make their payments, not those who are already in foreclosure. You can find the eligibility requirements below.

Am I eligible for the Making Home Affordable Program?

Before you get too excited about the great benefits of the MHA program, you’ll want to make sure that your mortgage is eligible for refinancing under the MHA guidelines. First and foremost, your mortgage has to be insured by Fannie Mae or Freddie Mac. If you have a mortgage guaranteed by the VA, USDA, or FHA, there are refinancing options available for them as well. Contact the agency that owns your loan to find out more information. If you’re unsure if your loan is insured Fannie Mae or Freddie Mac loan, you can call their toll free numbers:

-Fannie Mae-1-800-7FANNIE (8am to 8pm EST)

-Freddie Mac-1-800-FREDDIE (8am to 8pm EST)

Once you’ve determined whether or not you have a Freddie Mac or Fannie Mae loan, there are also a few other basic criteria you must meet for eligibility.

• The home you’re seeking refinancing for must be your primary residence
• Your first mortgage can’t be more than 105% of the value of the home (ex. If you owe $210,000 on your home and it’s worth $200,000, you would be eligible)
• The amount you owe on your first mortgage must be less than
  • $729,750 for 1 unit
  • $934,200 for 2 units
  • $1,129,250 for 3 units
  • $1,403,400 for 4 units
  • Must be experiencing financial hardship (divorce, health issues, job loss)
  • Your first mortgage originated before January 1, 2009
  • Your monthly mortgage payments must be more than 31% of your gross income
  • You cannot be delinquent on your mortgage
  • Risk of default must be imminent

I meet those requirements, what now?

If you find that you meet those requirements, your next step will be to find a lender that participates in the program. The government has teamed up with a wide range of lenders who offer these loan modifications such as Bank of America, Wells Fargo, and many others, so finding a participating lender shouldn’t be too difficult. Typically you’ll have to provide the lender documentation such as proof of income, bank statements, information on your original mortgage, and any other necessary information. Once accepted for the program you’ll enter a 90 day trial period for the program. After that initial trial period, your lender will determine if they will make the modification permanent or not.

Benefits of the Making Home Affordable Program

The most obvious benefit of this program is that it helps struggling home owners avoid foreclosure which leads to decreased property values throughout entire communities. However, the government offers incentives for borrowers and lenders as well, which really sweetens the deal. For borrowers who make their monthly payments on time for the refinanced mortgages, the government will reduce the principal amount of the loan each month for a total of up to $5,000 in five years. Lenders who participate in the program are given compensation as well for each loan they successfully modify.

For the millions of home owners struggling to make their monthly payments, the MHA program is a gift from above. Buying a home is supposed to be an investment, don’t let yours go bad because of high interest rates. Check to see if you’re eligible for refinancing under the MHA program and avoid headaches later on.

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Joining a 401k Plan
Today, a lot of employers offer a 401k program for employees as a part of their benefits package. This makes signing up for a 401k plan extremely convenient and hassle free. Typically you have to be with your company for a certain amount of time before you’re eligible to join the 401k program they offer. The amount of time you have to be with a company can range from 3 months to a year (you can check with your Human Resources Department to see their eligibility requirements). You simply fill out the required paperwork which will ask you to identify how much of your paycheck you would like invested into the 401k plan. Employers usually will put a limit on how much you can contribute to your 401k. The maximum contribution amount allowed according to the IRS is $16,500 for 2011 and $17,000 for 2012 (this amount is subject to change) http://www.irs.gov/retirement/participant/article/0,,id=151786,00.html.

Advantages of a 401k
A 401k account has plenty of benefits. Perhaps one of the main reasons people start a 401k is that many employers will match employee contributions up to a certain percent of your salary or some do it by contribution. The average match is someone between the range of 3-8% and this number will vary on a number of factors. If the company is small or doesn’t have a lot of employees contributing, the match might not be as much. Also, the job sector you’re in may affect the 401k match. Financial industries and protection services tend to have higher matches while the healthcare industry generally has lower matches. Having any percentage match is a great benefit however, since other retirement accounts don’t offer this feature at all.

Another great benefit of a 401k is that your contribution will be deducted from your gross pay instead of your net income. In other words, the money you contribute to your 401k will be from pretax money from your paycheck so you will barely even notice the difference when you receive your paycheck. Since the money is contributed before you get to see it, you’re less likely to spend it on something else which will really help you in your saving effort.

The money that you invest in your 401k will be invested in whatever avenue the employer offers (stocks, bonds, mutual funds, etc.) so you will be seeing higher interest than a traditional savings account where you’re lucky if you get more than 1% interest. You will get to pick which type of investment venture your money gets used for depending on what your employer offers so this gives you some control over your retirement savings.

Borrowing From Your 401k
So you have contributing to your 401k plan and everything is great, but what happens when you run into an emergency and need some funds. You actually have the ability to borrow from your 401k! Like all loans you will have to pay interest when you pay back the borrowed amount, but with a 401k you’re paying that interest back to yourself. There are limits to the amount of money you can borrow from your 401k though. You can borrow up to half of your contributions but no more than $50,000. So if you have $120,000 in your 401k the maximum amount you can borrow would be $50,000. Due to the low interest rates of borrowing from your 401k, some people use them as a way to pay for a down payment to buy a home, as the repayment terms are pretty generous when borrowing for real estate. Also, borrowing from your 401k doesn’t require a credit check since technically you’re borrowing from yourself.

Withdrawing from your 401k
As long as you don’t withdraw your money from your 401k before the age of 59 1/2, you won’t have to face any penalties. However, some employers allow employees to take out a hardship withdrawal if they are in desperate need and are having financial issues. This does come with a price however. Early withdrawals can cost you a penalty fee of up to 10% in most cases so it’s in your best interest to think hard before withdrawing from you 401k. Taking money out of your 401k should be seen as an absolute last resort, because it is an investment that is supposed to grow.

Changing Jobs with a 401k

If you end up changing jobs, you don’t have to worry about any penalty fees or tax issues. You have a couple of options you can look into.

Keep your 401k at with your old employer: Although rare, some employers actually allow you to keep contributing to their 401k plan even if you’re no longer employed with the company. You will have to check with your HR department to see the company’s guidelines.

Rolling over your 401k: This is the most common way of dealing with your 401k if you have a new job. It’s essentially just transferring over the funds from your previous employer to your new employer. When rolling over a 401k you can do so by transferring to another 401k plan or an IRA. Just make sure the funds from your previous employer are going directly to the new retirement plan and not your personal account or it will be considered a withdrawal. Contact your HR department for you new employer to find out their process for rolling over a 401k.

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Today in America, having good credit is no longer an option, but rather it is a must-have necessity. How many of us can actually buy a new car or house with just cash? Not very many. Having good credit will help you get an auto loan, home loan, student loan, and simply any types of loans that are out there. Getting approved for a loan is one thing, but getting it at a high or low interest rate is the difference between having so-so credit and having excellent credit. The most obvious benefit of having excellent credit would be qualifying for a lower interest rate, and ultimately saving big money on interest. Having good credit will also enable you to get into an apartment or condominium that you’ve been eyeing with a smaller deposit requirement, getting a discount on your auto insurance premium, adding everyone in your family to your phone’s family plan, increasing your chances of getting a job, etc.

If we were all educated about credit, knowing what to do and what not to do, then our credit can really work to our own benefit.

Beginning stage – building the foundation:
A credit card is the most common credit product which someone would most likely get approved for before having any credit establishment. If you’re a student, apply for a student credit card. If you’re an adult apply for a secured credit card or a young adult credit card. In some cases you will need to have a co-signer to help you get approved. You can also establish some credit by having someone with established credit add you onto his/her credit products.

Once you finally get your first credit card, some good practices are: avoid making late payments and maintaining a high balance. A smart way to build credit without having to get into debt would be using your credit card to pay for things that you normally pay with cash such as gas, grocery, bills, and etc.  Then turn around and pay off the balance in full right away. This is the best practice because it doesn’t get you into debt, and it also helps you avoid paying interest. Most cards will have a grace period, where if your balance is paid off within that time, the lender would not collect interest from your balance. Be really good with your credit card for a year or two, and then you can either request the lender to have your credit limit raised or simply applying for a new credit card. Your new card will most likely have a higher credit limit and a lower interest rates. Requesting for a credit limit increase or applying for a new credit card basically affects your credit score the same way; they both count as a hard credit pull. Having higher credit limits means that you are more trustworthy. It’s better to have 3 to 5 credit cards, or revolving lines of credit, versus having just one credit card. Just like everything in life, keep it in moderation. Having too many (10 or more) credit cards, or lines of credit, may have an adverse effect on your credit.

Mature Stage – building up the loan history:
Credit cards are like the foundation of any good credit profile. Once you get the foundation down, next thing you would want to do is to add loans to that building structure. A common loan to add to one’s loan history would be an auto loan. Of course, the first auto loan you can get approved for will not be at a lower amount (less than $20k). After paying that off, you may then qualified for an auto loan at a higher amount ($30k or more). An average person would have at least 2 to 3 auto loans paid in their credit history. These loans are pretty much the references that lenders use when trying to approve you for a larger loan. Some other common loans would be student loans and personal loans. After having a handful of loans paid off, you will then be ready for the mother of all loans: a mortgage loan.

Things that can hurt your credit:

1) Making late payments – avoid making late payments that are over 30 days because they will be reported to the credit bureaus. Even though you don’t get reported if you are late less than 30 days, but it’s best to avoid because most lenders charge late payment fees. Over 60 days late will be considered a “major” and over 90 days is considered “severe”.

2) Carrying high balance for a long period of time – avoid using more than 60% of any of your cards’ credit limit. Lenders also look at your debt to credit limit ratio, which is your combined debt balance divided by your combined credit limit. The higher the ratio the riskier you are considered.

3) Avoid too many credit applications within a short period of time – every time you apply for credit product, the lender would do a hard pull on your credit. And each time there will be a deduction in your credit score. The more they run your credit, the deduction will be at a higher increment. Try to keep it within 1 to 2 applications every 6 months.

4) Co-signing a loan for someone – when you’re co-signing a loan for someone, you are fully (100%) responsible for the loan in case it defaults. When you are co-signing, in most cases you’re not the one making payments. If the other person misses a payment or makes a late payment, it will be reported to your credit bureau report as well. There are a lot of possible risks, so make sure the person that you’re co-signing for is an absolute trustworthy person.

5) Collection – when you have unpaid bills (phone bill, medical bill, and etc.) or overdrawn deposit accounts, the creditors/billers can sell the amount you owe to a collection agency. Having a collection item is the second worst thing that can happen to your credit, after bankruptcy.

6) Identity Theft/Frauds – this is why it is very important to monitor your credit regularly, best and free will be your Free Annual Credit Report. If there’s anything you are not aware of, then research and follow up with a necessary disputes with the 3 main credit bureaus: Experian, Equifax, and TransUnion. There are also many online credit monitoring services that you can sign-up at a reasonable monthly charge (less than $20/month). Below is couple source you can pay for their services:

Bank of America Privacy Assist
CreditKarma.com
TrueCredit.com

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Credit cards are one of the best ways for people to build their credit and they have grown to be a necessity in some regards. Typically when people think of credit cards, they think of unsecured credit cards that simply require the user to apply, get approved, and start using the card. However, a great alternative for people who may not have the greatest credit history or have no credit at all is a secured credit card.  We’ll take a look into what a secured credit card is, what the best secured credit cards available are, and the advantages that come along with secured credit cards.

What is a Secured Credit Card?
Secured credit cards are credit cards that banks and credit unions offer in exchange for collateral, usually a cash security deposit. This lessens the risk for banks and credit card companies when they grant credit cards to people without established credit or people with bad credit. The security deposit can be deposited into an account and gain interest (usually the interest rate is the same as a regular savings account).The spending limit for the secured credit card is usually the deposit the user puts down. For example, if the user puts down a $1,000 deposit and the bank offers a credit line with a credit limit of $1000.

If the user misses payments, the credit card lender may start to chip away from the deposit in order to bring the user’s account current. Also, secured credit cards usually come with fees. One fee that they all include is an annual fee, which is normally billed on your first month on your credit statement. Since you do not have the ability to apply for the many unsecured credit cards out there without an annual fee, just think of this as the fee you would pay to build or rebuild your credit.

Advantages of Secured Credit Cards
Now that you know what a secured credit card is, you can start to get a better understanding of how they can benefit you and explore the advantages they offer. The biggest selling point for secured credit cards is that they are a great way to reestablish your credit if you have a less than desirable credit history. They are also great for people who are new to the country. Since foreigners don’t have established credit when they arrive, secured credit cards give them a chance to get approved for a credit card as long as they have the ability to repay, and last the bank will report your credit history to the 3 major bureaus.

Best Secured Credit Cards
One of the most important things to do when considering getting a secured credit card is to shop around for the best deal. Different banks offer different terms and features for their secured credit card. Here are a few of the best secured credit cards available from some of the top banks.

Bank Americard Fully Secured Visa Card: This secured credit card offered by Bank of America is an excellent way to help establish or rebuild your credit. Some of the key advantages of this card include a possible credit line of up to $4,900 depending on your income, deposit, and your ability to pay off the amount you charge. Be careful not to over extend yourself or over estimate your ability to pay off your balance each month. Currently, the card is offering a 20.24% variable APR on both purchases and balance transfers. Another great benefit is that this card reports to the three major credit bureaus. This is important because if an issuer isn’t reporting to the credit bureaus, having the secured card will not improve your credit. Also, your account will be reviewed after 12 months to determine if you are eligible to upgrade to an unsecured credit card.

Capital One Secured MasterCard: This card is also another great option for people looking for a secured credit card. Depending on your credit, you will either put down a security deposit of $49, $99, or $200. Your possible line of credit is $200-$3000 which will depend on the amount you deposit. Another great advantage of this secured credit card is that there are no transfer fees involved. Even some unsecured credit cards don’t have this feature so it’s a huge bonus. The card offers a 22.9% variable APR for both purchases and transfers which is competitive with most credit cards on the market. Just like the Americard Secured Visa, this card also reports to all three major credit bureaus.

Citi Secured MasterCard: The Citi Secured MasterCard comes packed with benefits that will not only help you establish your credit but provides a lot of security for users as well. It offers a low variable APR of 18.24% for purchases and an annual fee of just $29.00. Your security deposit for the card will be deposited into a Certificate of Deposit (CD), which will allow you build interest. Your credit limit will equal the amount of funds you have in your CD and after 18 months you may be eligible to upgrade to an unsecured Citi Platinum Select MasterCard. Just like the other two cards we’ve mentioned, Citi also reports to major credit bureaus. Some other features of this card include:

●     Protection against fire, theft, damage from accidents, for up $1000 on some retail purchases made with your Citi Secured MasterCard
●     $0 Liability for unauthorized charges on the card
●     Insurance Coverage for eligible Rental cars if you decline the rental companies insurance

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There are tons of great options out there if you’re considering a student credit card. Two of the best choices are the Bank of America Student Platinum Plus Visa, and the Wells Fargo College Visa Card. Both offer great benefits such as low introductory rates and no annual fees. So if you’re looking for a credit card to use while you’re away at school, look no further.

Bank of America Platinum Plus

Bank of America offers one of the best credit cards for students with their Platinum Plus Visa card. This credit card is available for both Full time and Part time students at accredited colleges. It’s packed full of benefits that accommodate the needs of college students and Bank of America makes it extremely easy to apply online to get accepted.

Upon being approved for the student platinum plus card, you will be enrolled in the Bank of America Student Identity Theft Program for 4 years at no additional charge. The program helps to maintain the integrity of your credit score through daily monitoring of your Equifax credit file in search of signs of fraud or security threats. The identity theft program sends you emails and text message alerts if any suspicious activities occur and there’s reason to believe you’ve been a victim of identity theft. This will really give you the ability to sleep at night and rest assured that if anyone gets access to your personal information without your knowledge, someone is looking out for you. Similar services can cost you hundreds of dollars every year, so the fact that this service comes free with the Student Platinum Plus credit card really sweetens the deal.

Some other features this card allows are cash back of up to 20% for online purchases with their add it up program, low balance transfer rates and the ability to track your account information online and via mobile banking. The cash back program is great for purchasing costly text books online through participating stores.  Another great benefit for this card is the $0 liability for unauthorized charges to your account. Simply contact Bank of America and report any charges that you would like to dispute and customer service will work with you to alleviate the issue.

Wells Fargo College Visa Card

Another credit card for college students is Wells Fargo’s college visa card. Wells Fargo is really attempting to make it possible for college students to help build their credit while in school. The card offers an introductory rate of 5.9% for the first 6 months. This is a huge benefit considering a regular card would probably offer over 20% interest for college students with low income and no credit history. Here are some of the additional features of the credit card.

• For Students: One of the best things about student credit cards is that they are available for students with low incomes. Since a lot of people work part time jobs while in school, they don’t always qualify for regular credit cards because they don’t meet the income qualifications. The Wells Fargo College Visa Card is available for students who are making a minimum of $3,000 a year.
• Security: Similar to the Bank of America Platinum Plus card, this credit card is also concerned with the security of your credit. If your card is stolen or you feel your information has been compromised, you won’t have any liability for unauthorized purchases as long as you report the issue in a timely manner.
• Customization: If you want to stand out from the crowd and customize the look of your card, you can use the Wells Fargo Card Design Studio. You can use your school’s mascot, your fraternity/sorority symbol, or just pictures of you and your friends to design your card.
• Convenience: In order to help you keep track of your finances and manage your spending, you can use the Wells Fargo online banking system. You can view a spending report that categorizes your purchases and organizes everything for you. You can also receive reminders for your payment due date or warnings if you’re getting close to your credit limit.

Both of these credit cards for college students are easy to use and come with plenty of benefits for students. They both also give students tips on how to use the cards responsibly as well as how to manage your finances. Start building your credit today and apply online for either one of these great student credit cards.

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When looking into choosing your retirement account, one of the most popular choices is some form of Individual Retirement Account (IRA). While there are over 10 types of IRA’s the two most popular are undoubtedly the Traditional IRA and Roth IRA. Each has their own advantage, and depending on your circumstance, you may opt for either one. In order to determine which will suit your needs, let’s take a look at some of the advantages and disadvantages of both.

Traditional IRA

For a while, traditional IRA’s were the favored form of retirement accounts. Some of the features of the traditional IRA include:

• Tax Deductible Contributions: This is the primary advantage of traditional IRA’s over Roth IRA’s. Any amount you put towards your IRA is 100% tax deductible. So if you make $40,000 one year and put $3,000 of that into your IRA you only have to pay taxes on $37,000 for that year!
• Easy to Start: Traditional IRA’s don’t have any restrictions on income
• Withdrawals are Mandatory at age 70 1/2
• Any money withdrawn before age 59 1/2 is subject to a 10% penalty fee
• Money withdrawn after age 59 1/2 is considered taxable income

Roth IRA

When Roth IRA’s first came on the scene, a lot of people were looking to transfer over from their traditional IRA mainly due to the tax benefits it offers. Here are some of the features of the Roth IRA:

• Tax free when withdrawn after age 59 1/2: This is what has made many people choose a Roth IRA over a traditional IRA. As long as your account is over 5 years old, all of the money you withdraw after age 59 1/2 is not taxed.
• Contributions are not tax deductible: Unlike the traditional IRA, the money you contribute to your Roth will not be tax deductible. For example, if you make $40,000 and deposit $3,000 into your Roth IRA you will have to pay taxes on the $40,000.
• Withdraw any principal without a penalty: You can withdraw any of the principal you have deposited at anytime, but if you withdraw any of the earnings your money has made you will have to pay a penalty
• No forced withdrawal: Unlike traditional IRA’s, you can save your money in the Roth even after you turn 70 1/2 if you choose so. You are not forced to take the money out of the account until you’re ready.
• Available to single filers making less than $95,000 a year or couples making less than $150,000
• Use contributions towards College: If you choose to distribute your savings towards college for yourself, your spouse, kids, and even grandchildren, you may be eligible to withdraw funds (principal plus interest) without paying any fees for early withdrawal. You might have to pay income tax on it though. Some college expenses that your Roth account can be used for are:
  • Books
  • Tuition
  • Supplies

Which do I choose?

Since the biggest difference between the Roth and Traditional IRA’s is the tax break associate with each, it will be a big factor in deciding which one works for you. If you’re in a high tax bracket and anticipate being in a lower tax bracket towards your retirement age, a traditional IRA might benefit you more than a Roth. Since your contributions will be tax deductible it may be worth your while to save on the taxes now. Also, not everyone is eligible for a Roth IRA so you may not even have the option of choosing.

If you anticipate the possibility of withdrawing funds from your retirement account at some point or just want to have the option, a Roth IRA will be advantageous for you. Also, being able to withdraw all of your money once you hit 59 1/2, allows you to have more money available to you when you retire. Also, you’re not forced to withdraw your retirement money at age 70 1/2. With more and more Americans living longer and working past the retirement age, some may not want to take the money out of their retirement account at 70.

Both types of retirement accounts has their own pros and cons, it just a matter of determining which meets your needs. Both have a maximum contribution of $5,000 if you’re 49 or younger and $6,000 if you’re 50 or older. Due to this, neither of them will have an advantage as far as your contribution amount goes. We should also mention that if you already have a traditional IRA and would like to switch to a Roth in order to take advantage of the tax free withdrawal benefits, you have that option. Both are great options for your retirement, and you should start looking into them soon so you can start saving up right away!

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There’s nothing more annoying than looking through your bank statement and wondering, “what was that charge for?” Well unfortunately you may be the victim of an unauthorized charge, which can be difficult to deal with and leave you feeling violated or unsecure. The good thing is that there are ways to deal with unauthorized charges and depending on your bank/credit card company; you may be able to get back funds from any charges that are in dispute.

What are Unauthorized Charges?

Simply put, unauthorized charges are any purchases made with a credit or debit card without the cardholder’s consent. With advances in technology and an increase in cyber crime, these unauthorized charges are often done by thieves stealing credit card information online without ever touching the physical card. While people tend to associate unauthorized charges with criminals, theft isn’t necessarily the only cause of these charges. For instance, if you buy a soda from a gas station and the cashier accidently charges you for 2 when you only got one, that’s an unauthorized charge but it was simply just an accident by the cashier. By law, liability for unauthorized credit card charges is limited to $50, but most banks will credit your account 100% so you’re not liable for any damages as a result of a charge you didn’t authorize.

How to handle Unauthorized Charges

If you feel there’s an authorized charge on your account the first thing you should do is call your bank or credit union. The longer you wait the more difficult the process will become. If you lost your credit card or if it was stolen, put a hold on the card immediately or cancel the card if you know you won’t be able to recover the card. Notifying the bank right away will also help to limit your liability. If you wait months after an unauthorized charge has occurred it may be difficult to retrieve the funds because you didn’t act in a timely manner.

Once you notify the bank, they will start an investigation into the purchase in question. In order to prevent scams the bank will look into things such as the signature on the receipt, the time of the purchase, and any other information that will help them come to a conclusion as to whether or not the funds will be credited back to your account. During this process it will help to provide them with any and all documentation and information you have that will help speed up everything.

Once the investigation has ended, your bank/credit card company will inform you of the result. Hopefully the bank decides in your favor and the charges are reversed. Generally if you have sufficient proof of the unauthorized charge, credit card companies and banks will credit your account to maintain a positive relationship. However, if they decide the charge was not unauthorized or refuse to reverse the charge you do have other options. You may contact the police or if you know the person who made the charge consider taking the matter to court.

Know Your Rights

Due to the frequency of disputed charges and mishaps with credit card companies and stores, the government provides certain protections to consumers under the Fair Credit Billing Act (FCBA). This law only covers disputes that are related to billing errors, not credit card or identity theft. The law requires creditors to look into any disputed charges promptly and fix any errors without damaging the cardholder’s credit. Common errors covered by the FCBA include:

• Unauthorized charges
• Improper calculation of totals/interest
• Purchases that the card holder didn’t accept, returned, or weren’t delivered

Knowing what the FCBA is and what it covers will help you fight unauthorized charges and make sure your credit isn’t harmed as a result of a mistake or theft.

The Electronic Fund Transfer Act covers unauthorized charges made with debit cards. Consumer liabilities under this law are:

• Up to $50 if you notify the bank within two business days after you realize the card is missing
• Up to $500, if you notify the bank within 60 days after your bank statement is mailed to you listing the unauthorized withdrawals
• Unlimited if you fail to notify the bank within 60 days after your bank statement is mailed to you listing the unauthorized withdrawals.

How to Prevent Unauthorized Charges

In order to avoid going through the process of disputing charges and to reduce the risk of having your credit card information stolen, make sure you’re taking all the necessary steps to keep your information secure.

• Keep your credit card/debit card number private: If you give your credit card information out, it may be hard to prove charges were unauthorized. The only person who should have your credit card information is authorized users.
• Look at your Receipts: While a lot of people have a tendency to just throw away receipts without looking at them, this can be a risky habit. Your receipt may show that you were charged for more than what you actually purchased, so you can get refunded for any unauthorized charges directly from the store without ever dealing with your credit card company.
• Dispose of Paperwork Properly: If you receive credit card offers every day in the mail, don’t just toss it into the trash for anyone to get. A thief can fill out the information and get a credit card in your name. The same thing applies to any information with your banking or credit card information. The best way to dispose of financial paperwork is to shred it with a paper shredder.

The key to disputing unauthorized charges to either your debit card or credit card is to react quickly. Notify your bank or credit union as soon as you’re aware of the charge to limit your liability. Also, know your rights under the Electronic Fund Transfer Act and the Fair Credit Billing Act to prevent unfair practices. Unauthorized charges aren’t going to stop, but you can do your part lessen the effects and hopefully prevent them from happening to you.

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Going to the bank and the ATM are a part of your normal everyday errands. If you use an ATM that’s not affiliated with your personal bank or credit union, it’s likely you’ll be charged a fee. Recently, the Durbin Amendment went into effect. This amendment restricts banks from charging stores max 24 cents per debit card swipe, allowing the merchants to profit more from card use and possibly encouraging reduced pricing for consumers. However, banks have introduced a debit card fee that may counteract the potential savings the amendment would have provided to merchants by charging consumers directly. Thankfully, there are ways to overcome these fees.

The new policy makes it so customers are charged $5 per month for using a debit card. This could equal more than what merchants were charged before the Durbin Amendment went into effect. Many other large banks like Wells Fargo and Bank of America have enacted debit card fees ranging from $3 to $5 a month.

The banks say they need to make up for the lost revenue somewhere, but that’s no consolation to families struggling to make ends meet each month. That $5 could make the difference between having enough to a pay a bill and not having enough.

Using your ATM card with Bank Tellers and ATM machines:

It’s important to note that most banks will only charge customers for debit card use when they make purchases or use an out-of-network ATM. These fees do not apply to using an ATM within the bank’s network or conducting a teller transaction.

If your use of your debit card places you in the category that would normally incur fees, thankfully, there are ways you can avoid them. It just may require some planning ahead.

Write a Check: Though it might seem like an inconvenience, it’s still perfectly acceptable to pay by check at most stores. Those that don’t will usually clearly have a sign that indicates as much. To save yourself some time at check out, write out the “Pay to the Order of” and “Date” sections of the check before you go to the store.

Use a Credit Card: Paying with a credit card can help you avoid banking fees at most vendors. However, if you fail to pay off the total balance at the end of each month, you’ll accrue interest, which defeats the purpose of trying to avoid fees. Plus, not everyone is eligible for a credit card, but everyone who has a bank account can get a debit card.

Pay With Cash: If you really can’t deal with the adding debit card fee each month, consider taking cash out of the bank to spend. The added trip to the bank might be inconvenient, but it can save you that $5. Plus, you might be a bit thriftier when you’re paying in cash rather than just swiping a card. After all, you can see your money going away.

Switch Banks: Many people take pride in the notion of being with the same financial institution for several years, but if you’re dissatisfied with yours, there’s no reason you have to stay. Shop around for a bank that doesn’t charge a debit card fee. Large banks are usually out. However, you might have some luck with smaller, local banks or credit unions. Be certain you keep your old account open long enough to cover any open transactions, however. Otherwise, you might wind up with unpaid bills or fees on your account for failing to maintain a minimum balance.

There’s no way to completely avoid banking fees, but you can limit them by making smart decisions regarding your finances each month.

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What You Need to Apply:
● You will need you and your parent’s (if applicable) income tax returns, W2 forms, and other records of income from the previous year (i.e. you would need their 2010 tax returns to apply for the 2011-2012 school year). You may estimate the tax information if the papers have not yet been filed.

● A personal identification number (PIN) from www.pin.ed.gov. You may apply for this online at the www.pin.ed.gov website and it will serve as your electronic signature on your application. Your parent(s) may be required to provide their PIN also if you are considered their dependent.

To File a FAFSA:
You can find the electronic FAFSA form online at www.fafsa.ed.gov. You must file your FAFSA form between January 1^st and March 15^th before the school year of expected attendance in order to receive priority consideration for all types of financial aid. Applying after the priority deadline may result in not being considered for certain types of financial aid.

The form will require you to provide financial and personal information about you, your school, and your family. This includes your living situation (on or off campus), expected schools of attendance, income listed on your tax papers, family income, and much more. Be prepared to provide all this information in order to submit your application.

At the end of the application, the form will require you to submit your (and your parent’s if you’re their dependent) electronic signature (PIN) or your FAFSA will be rejected. Save and print out a copy for your records.

Afterwards:
After your FAFSA is filed and reviewed, you will receive a Student Aid Report (SAR) that outlines the information you provided on your FAFSA. Be sure to double check it for accuracy and follow up on any noted requests for additional information or clarification. 30% of all FAFSA’s are selected for verification. If selected, you will be required to complete and submit a verification worksheet and official tax documents (i.e. 1040 or W2) to your financial aid office.

From your FAFSA report, an Expected Family Contribution (EFC) will be calculated. This EFC is the amount the government expects your family to contribute to your education for the upcoming year.

Your school will notify you about your financial aid rewards. You will need to accept or decline the different options of financial aid available to you. These options may include (but are not limited to) federal work-study, student loans, parent loans, grants, and scholarships. Every school’s reward process and medium of communication may vary, so be sure to do your research and inquire about the financial aid acceptance process at your school.

Different Options for Loans:
There are a few options for loans offered to college students who qualify for financial aid, and they may vary in interest rate, payback terms, and restrictions.

Federal Perkins Loans - this is a low interest loan for undergraduate and graduate students in exceptional financial need, made through the financial aid office at your school of attendance. The money is loaned directly through school with government funds, and you must repay these funds to your school. You can borrow up to $5,500 a year as an undergrad for a total of $27,500, or $8,000 a year as a graduate student for a total of $60,000 including the amount you borrowed as an undergrad. You must begin repayment on your loan 9 months after you leave, graduate, or attend school less than half time.

Direct Stafford Loans – these are also low-interest loans for eligible students at a four year university or trade school, loaned directly from the U.S. Department of Education. There are two types of Direct Stafford Loans, subsidized and unsubsidized. If deemed eligible, the Direct Subsidized Loans will not begin accruing interest until the student graduates or leaves school. The Direct Unsubsidized Loans, while still low interest, begin accruing interest upon disbursement. Your school will determine the loan amount you are eligible for based on your FAFSA application. You will also be required to fill out a Master Promissory Note (MPN), a legal document ensuring that you will repay the debt.

Direct PLUS Loans - this option is offered to graduate students and parents of students who are their dependents. This loan has a flat interest rate of 7.9%, and requires the borrower to have a non-adverse credit history. There is also a fee of 4% of total amount loaned, and the repayment begins after the total amount of the loan is disbursed. 

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