Lynda is one of the 2009-2010 Savings Challenge Contestants. Lynda is a sophomore at San Marcos High school. She enjoys fencing, and is saving for college and a car.
Catchy Commercials, But Not Free
Thursday, October 22, 2009
Over the past two weeks, A+ employees have attended four different college fairs at local high schools. I was fortunate enough to attend two of them. At the fairs, we decided to have a trivia contest to test the knowledge of the high school students in attendance. We asked students to enter by filling out a slip of paper asking for name, email, and an answer to one question with four options to choose from:
“What site allows you to download a free copy of your credit report from the three major bureaus yearly?”
a. Myfico.gov
b. Freecreditreport.com
c. Irs.gov
d. Annualcreditreport.com
We would like to say we were surprised with the response, but, with those catchy commercials, it was no surprise that 63% of students chose freecreditreport.com. In total, 83% of students got the answer wrong.
But is this just for high school students? Are they the only ones who don’t know where to get a free copy of their credit report? What about you? Do you know the answer?
The only government sponsored site where people can get a free copy of their credit report annually from each of the three major reporting bureaus is www.annualcreditreport.com.
Lenders use information from at least one, if not more, of the three when making their decisions. The three bureaus are TransUnion, Experian, and Equifax.
The first option, myfico.gov, is the site where you can PAY to receive your credit score, which is different from your credit report. Your credit report details your credit accounts with information such as outstanding balances, payment history, contact information, and more. Your credit score is calculated by each bureau using a formula developed by the Fair Isaac Corporation (FICO). Because each bureau reports different information on your credit report, scores from each bureau can vary. This FICO score is used by most lenders when they determine how much of a credit risk you are.
The second option, Freecreditreport.com is, in fact, not free and definitely not part of the government sponsored program. The site is owned by one of the bureaus, Experian. When you go to the front page, there is a disclaimer down on the left:
The third option, irs.gov, is the home page for the Internal Revenue Service, or the people that oversee taxes. Although taxes are important, irs.gov does not provide your free credit report.
You may be wondering, “Yeah, this is all great, but does it really matter? Why do I need to check my credit report each year?”
Well, what if I told you that the majority of credit reports have at least one error? And what if I told you that about a quarter of them have an error that is serious enough to prevent the person from getting credit at all?
These errors aren’t just misspellings or wrong addresses; they are credit accounts you never opened, missed payments you did in fact make on time, and more.
By checking your credit report on an annual basis, you can catch these errors and get them resolved. You can make sure no one has opened a credit account using your information illegally.
In short, it’s important to get and check your credit report once a year. This simple action can save you a lot of time and money later.
“What site allows you to download a free copy of your credit report from the three major bureaus yearly?”
a. Myfico.gov
b. Freecreditreport.com
c. Irs.gov
d. Annualcreditreport.com
We would like to say we were surprised with the response, but, with those catchy commercials, it was no surprise that 63% of students chose freecreditreport.com. In total, 83% of students got the answer wrong.
But is this just for high school students? Are they the only ones who don’t know where to get a free copy of their credit report? What about you? Do you know the answer?
The only government sponsored site where people can get a free copy of their credit report annually from each of the three major reporting bureaus is www.annualcreditreport.com.
Lenders use information from at least one, if not more, of the three when making their decisions. The three bureaus are TransUnion, Experian, and Equifax.
The first option, myfico.gov, is the site where you can PAY to receive your credit score, which is different from your credit report. Your credit report details your credit accounts with information such as outstanding balances, payment history, contact information, and more. Your credit score is calculated by each bureau using a formula developed by the Fair Isaac Corporation (FICO). Because each bureau reports different information on your credit report, scores from each bureau can vary. This FICO score is used by most lenders when they determine how much of a credit risk you are.
The second option, Freecreditreport.com is, in fact, not free and definitely not part of the government sponsored program. The site is owned by one of the bureaus, Experian. When you go to the front page, there is a disclaimer down on the left:
“Important information:
When you order your free report here, you will begin your free trial
membership in Triple Advantage. If you don’t cancel your membership within the
7-day trial period, you will be billed $14.95 for each month that you continue
your membership.
Consumerinfo.com, Inc. and Freecreditreport.com are not affiliated with the
annual free credit report program. Under a new Federal law, you have the right
to receive a free copy of your credit report once every 12 months from each of
the three nationwide consumer reporting companies. To request your free annual
report under that law, you must go to www.annualcreditreport.com.”
The third option, irs.gov, is the home page for the Internal Revenue Service, or the people that oversee taxes. Although taxes are important, irs.gov does not provide your free credit report.
You may be wondering, “Yeah, this is all great, but does it really matter? Why do I need to check my credit report each year?”
Well, what if I told you that the majority of credit reports have at least one error? And what if I told you that about a quarter of them have an error that is serious enough to prevent the person from getting credit at all?
These errors aren’t just misspellings or wrong addresses; they are credit accounts you never opened, missed payments you did in fact make on time, and more.
By checking your credit report on an annual basis, you can catch these errors and get them resolved. You can make sure no one has opened a credit account using your information illegally.
In short, it’s important to get and check your credit report once a year. This simple action can save you a lot of time and money later.
Catching up with Rosie- 08-09 Savings Challenge Finalist
Wednesday, October 7, 2009
We recently caught up with Rosie, a 08-09 SMHS Savings Challenge finalist. She graduated at the end of this past school year and is currently working two jobs. She plans to start courses at Austin Community College (ACC) within the next two months.During the challenge, Rosie’s goal changed from saving money for her 18th birthday, to saving enough money to help her mom and her move into a place of their own. She was trying save at least $1000. Although she didn’t achieve her goal by the end of the challenge, she continued and was able to use the money she had saved for half of a down payment for an apartment and to start utilities in the new place.
Rosie has taken a lot from the challenge. She actually started taking care of how she spends her money, and now, she is saving for a car. If she ever has a little extra time, she will crack open her NEFE financial book and do a few lessons on her own.
“This was the turning point in my financial life. I would say I have my spending down to a science.” She pays herself first, as she learned from the financial classes and her A+ mentors, then she pays her bills, and finally, she saves the rest in a separate savings to purchase a car.
She says the best part of being a finalist was interacting in the meetings with her coach and learning about credit and other things she probably wouldn’t have learned elsewhere. She really enjoyed working with her coach and having help with the things she didn’t understand.
To the current finalists, she recommends paying attention in the meetings with their coaches and in the financial education classes.
“Don’t put off saving your money and cut down on the impulse buying. Listen to what your coach says and take the advice given to you.”
Congratulations to our Finalists!
Thursday, October 1, 2009
Check back for introductions to our 5 finalists!
From our press release:
A New “Challenge” for San Marcos High School Students
A+ Federal Credit Union’s High School Savings Challenge Enters Second Year
With all the attention to credit protections for students and young adults brought about by the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, it is especially important that students receive financial education at a young age before entering college or the workforce. After a very successful inaugural year, the San Marcos High School (SMHS) Savings Challenge, sponsored by A+ Federal Credit Union (A+FCU), once again seeks to educate young people about financial matters, encourage them to achieve their savings goals, and empower them to succeed in their financial futures.
In the Challenge, five SMHS students compete to achieve their savings goals over the course of the school year while A+ financial coaches guide them to learn life-long money management skills. The students’ diverse goals range from saving for college, saving for a fuel-efficient vehicle, to saving to support a four-year-old child. The competition begins October 1, 2009, and winners will be announced at the SMHS Senior Awards Assembly in May, 2010. The grand prize winner will receive a $1,000 A+ Visa gift card. Second place receives a $500 A+ Visa gift card. Third, fourth and fifth place winners receive a $250 A+ Visa gift card.
Of eleven worthy applicants, the following SMHS students have been selected to compete in the Challenge:
From our press release:
A New “Challenge” for San Marcos High School Students
A+ Federal Credit Union’s High School Savings Challenge Enters Second Year
With all the attention to credit protections for students and young adults brought about by the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, it is especially important that students receive financial education at a young age before entering college or the workforce. After a very successful inaugural year, the San Marcos High School (SMHS) Savings Challenge, sponsored by A+ Federal Credit Union (A+FCU), once again seeks to educate young people about financial matters, encourage them to achieve their savings goals, and empower them to succeed in their financial futures.
In the Challenge, five SMHS students compete to achieve their savings goals over the course of the school year while A+ financial coaches guide them to learn life-long money management skills. The students’ diverse goals range from saving for college, saving for a fuel-efficient vehicle, to saving to support a four-year-old child. The competition begins October 1, 2009, and winners will be announced at the SMHS Senior Awards Assembly in May, 2010. The grand prize winner will receive a $1,000 A+ Visa gift card. Second place receives a $500 A+ Visa gift card. Third, fourth and fifth place winners receive a $250 A+ Visa gift card.
Of eleven worthy applicants, the following SMHS students have been selected to compete in the Challenge:
- Katherine Wright, senior
- Solana Dever, junior
- John West, senior
- Lynda Brundin, sophomore
- Katelyn Sundquist, senior
These contestants will be judged based on various criteria including their percentage increase in savings, successful completion of financial education courses, and a presentation to their peers on personal finance.
A+ Federal Credit Union is dedicated to providing the communities we serve with free financial education resources to help everyone achieve financial independence whether in our student-run branch at SMHS, online in the Education Center of our website, or at one of our free seminars. A+FCU remains committed to the belief that learning smart money skills is important at EVERY life stage.
For more information: https://aplusfcu.org/education/students-only/smhs-savings-challenge AND http://smhssavingschallenge.blogspot.com/
A+ Federal Credit Union - With 11 Austin area locations, more than $700 million in assets, and over 86,000 members that include not only educators, students, and their families, but other members of the community as well, A+FCU has grown to become one of the largest credit unions in Austin. To find out more, visit the website at aplusfcu.org.
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