What You Need to Know?

Statewide Federal Credit Union - What You Need to Know About Statewide Credit Union

What is statewide federal credit union, and should you deal with them when it comes to your finances? Here is a quick review to help you determine if they are the best organization to manage your money.
Unlike many credit unions, statewide only allows access to members of certain companies. For a full list of them, visit their website. This actually can benefit you by providing you with better customer service.
Whereas many credit unions, as I just stated, allow anybody and everybody aboard, statewide only enables members of particular companies, which reduces the total number of members, and helps them provide you with better service because they aren't spread so thin.
So what do you get when you join statewide federal credit union? You get virtually any financial service you need, such as Visa credit cards with rewards points (ery important), online (or offline) banking, loans, IRA's, etc. also, since the credit union is managed by it's members, you can expect to receive the best interest rates possible, assuming you qualify with your credit.
Usually, these rates are between 10 and 18 percent, depending on your credit score, and you won't find lower rates elsewhere.
Before signing up, of course, I'd highly recommend you check with co-workers already members of statewide federal credit union, and see how satisfied they are overall with the service they've received from them.
Just because they offer a lot of nice perks doesn't mean you should invest your money with them; first take this important step, because there's nothing like hearing straight from the current members.
The bottom line is, whether you join or not depends on whether you are a member of the companies accepted. If so, then you'd be hard pressed to find a company that manages your finances better than statewide federal credit union, or that provides you with better customer service.

There are more payday loan stores in the United States than there are McDonalds restaurants so if you are in desperate need of an emergency infusion of cash you may be one step away from your goal. But if your car is sitting in the driveway leaking vital fluids, you may not even have to leave home to get a payday loan as many purveyors of the service are now online.
How a payday loan works
Before you rush to do a search for "payday loan online" there are a few things you should know about how these types of loans work and what alternatives are available. A payday loan is a short term small-balance loan that is intended to tide you over till your next payday arrives. They can be conveniently obtained as payday loans do not require a credit check. If all you have are a checking account and two recent paychecks, you may be a customer. But there's a price.
Payday or payroll advance loans are offered by companies that usually fly under the radar of state and local government consumer protection laws. In some sates such as Georgia, which has the stiffest regulations in the country, payday lenders have been accused of predatory practice and have sometimes been run out of town on rails. In their defense, payday lenders say they provide a much-needed solution to consumers with less than perfect credit and who must have a quick infusion of cash to tide them over till their next pay day.
In exchange for these high risk loans, payday lenders charge a fixed fee for a fixed period, usually fourteen days and if you happen to miss the fourteen day deadline, there's a penalty fee that is added to your charges along with another set of fees to roll over the loan through another period.
Rapid escalation
In short order, if you borrowed $500 for an emergency situation, you could end up owing as much as $700 if you miscalculated your cash flow and were forced to take a payday loan for a month. That equates to 480% or so per year and on the face of it, looks like a dreadfully large price to pay for a small amount of money. So payday loans are usually a good idea only when you have run out of options entirely.
Whether you are applying online or in person, you must at least have a checking account. Payday lenders will require you to write them a postdated check for the loan amount plus the finance charges. They will be more than happy to extend the life of the loan if your needs are pressing. And the sheer convenience of payday loans online is difficult to resist. These sophisticated sites require your routing and account numbers from your check book and will routinely deposit money in your checking account almost instantly.
What can go wrong?
You run the risk of miscalculating your budget and getting into a cycle of using one payday loan to pay the other. The Center for Responsible Lending, a Durham, North Carolina non-profit, reports that the vast majority of payday loan borrowers do five transactions a year, while more than half of all borrowers take twelve or more loans per year. If you get into a cycle of dependency on payday loans, it may be hard to wean yourself from the habit.
Several states led by Georgia recognize this and have banned payday loans at one time or another, including Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont and West Virginia. But you should take heart if you live in those states, or if you have had all you can take of onerous interest rates.
The alternatives
You may be surprised to learn there are alternatives to payday lending and certainly to the beguiling online payday lending sites. If your credit rating is in the cellar you may find the following suggestions just short of annoying but I'll make them anyway:
Use your credit card for which you'll pay a much lower rate than a payday loan.
Ask your payroll department for a salary advance.
Ask a friend or family member for a loan.
Offer your supplier or service person a post-dated check.
Ask for an extension on your car loan that defers one month's payment and frees up some cash.
The other alternatives
Realistically speaking, if you had good credit or a reasonably well-off family member, you would probably not be in the market for a payday loan. So your only reasonable alternative may be to minimize the damage. Searching for a payday loan online may be your best option for finding a reasonably low interest rate. But you must brace yourself for prompt repayment in order to avoid getting on the lender's treadmill. Once you have lined up a reasonable rate and obtained your cash, you should start planning how to avoid becoming repeat business.
Breaking the cycle
A great place to start would be to learn how to make a simple personal budget so you can put aside small amounts of cash each payday for an emergency fund. If budgeting does not work for you, consider joining a credit union before your next crisis occurs. Credit unions now offer a nifty device called a Salary Advance Loan Program. State Employees Credit union in North Carolina has one of those. They will lend you up to $500.00 at 18% and with no fees attached and they allow borrowers to set up a loan by phone. They require that you have a direct deposit account with the credit union, into which your paycheck goes.
But what if you don't work for the state of North Carolina? Or what if you don't belong to a credit union or have a family member who does? All is not lost. The National Credit Union Administration has a nifty web page accessible from their "Resources" page where you can search for credit unions by type and state. This is pretty useful because some credit unions will allow you membership just because you live in a particular city or county. Take ACCESS Federal Credit Union in New York state for instance. According to their web site, "if you live, work, worship, or go to school anywhere in Oneida County or the City of Oneida, you are now eligible to join."
Otherwise
If you absolutely, positively cannot find a credit union near you that offers salary advance loan programs, try to minimize the damage by shopping around for the best possible rate, before you run into an emergency. With a little luck, payday lenders online and off may realize a little restraint can go a long way. Any day now congress may decide to take up legislation to cap payday loan rates at lower levels, much as they have done for military personnel, whose rates have been capped at 36%.

Banks Vs Credit Unions - How Much Influence Does the Customer Have?

With your bank, do you actually have input in the decision making processes that affect your money? Credit Unions have members, not customers, and each of them has a stake in the organization. When hard choices have to be made, they're not decided by a small group of bank executives. They're voted on by members. If you're doing business with a bank, you won't have that option.
Banks charge more fees for their services. If you're unemployed and stuck in the middle of a recession, those fees can add up and cause significant unmanageability. For many Michigan residents, times are tough and finances close to the line. It's not unheard of some bank customers losing several hundred dollars in overdraft fees and service charges. With union, the fees tend to be lower.

How much influence do you have when you're a customer of a credit union? If you don't like the way things are being run, you can present it to the board and have it put to a vote. In addition, you have a say in the opening of new branches, mergers, acquisitions, and the selection of officers. Banks don't offer you those choices.

Times are tough, and financial decisions need to be made after carefully considering all options. If you're struggling with the decision between a bank and a lending institutions, set up a list of pros and cons. On your list write down the amount of influence you have in the decision making process, and include the issues of convenience and longevity. With unions, members must approve all mergers and acquisitions. Credit institutions rarely move or change their name, and they rarely get absorbed by larger entities as many banks do. If you open an account at a credit union today, there's a good chance they'll still be there tomorrow... same name, same democratic process.

Article Source: http://EzineArticles.com/5397040

Small Business Lending - Credit Unions Vs Banks

One of the who-knows-how-many battles currently going on in Washington is the battle between credit unions and banks. Current law limits credit unions' business lending to 12.5% of total assets. The credit unions want that raised to 25%, and banks are fighting hard to defeat that request. The reason that this is worth watching is that credit unions that are willing to make small business loans (and many are not) often lend to smaller businesses than banks like to deal with, or lend smaller amounts than banks are willing to lend and which have all but dried up in the recession. According to government lending reports, loans to small business increased at credit unions but declined at community banks in 2009.
Looking at it from the banks' perspective, they have a couple of good arguments on their side. The best, and one that I would find hard to disagree with, is that credit unions are non-profit lending organizations that enjoy tax-free status. It was because of that that Congress imposed the cap in 1998. The banks argue, correctly, that they have to pay taxes, so the playing field is not level, and it should be. The other argument on the banks' side, although nowhere near as compelling as the tax issue, is that over the last two years, bank regulators have been beating up on banks to set aside more loan-loss reserves and strengthen their balance sheets. While this is something that should be done, it has hit community banks much harder than larger banks because their capital base is usually smaller, and it is the amount of capital on a bank's balance sheet that determines the amount of money it can lend. When a loan is classified by a bank regulator, and thus a loan loss reserve set up, that loan loss reserve is against the bank's capital even though the loan is not in default.
No matter how the battle turns out, I would argue that there is more than enough room for both to operate in the small business lending arena as long as the playing field is level. There is seldom too much money available for small business owners, and because the recovery from this recession is going to be very slow, small businesses need all the help they can get now, and there is not enough coming from banks. It is also a fact that there are not a lot of large, strong credit unions across the country competing head-to-head with banks for small business loans. Plenty of credit unions don't, and don't want to, do business lending, and it would probably take only a few defaults on small business loans at a credit union to make them swear off small business lending permanently. There are plenty of opportunities for both banks and credit unions.

What are the benefits of a credit union?

Benefits of a Credit Union

A credit union is a cooperative financial institution which is controlled and owned by its members, operating solely for the provision of credit, promotion of thrift, as well as different financial services to its members. It is a democratic institution with member owned financial cooperatives, allowing members, regardless of the sizes of their accounts, to also run as a volunteer on the board and able to cast their vote during union elections.
Operating as financial intermediaries, credit unions finance its loan portfolios with the mobilization of member savings and shares within the union, instead of using outside capital resources. This ensures opportunities for members for many generations.
Compared to a bank which are owned by various shareholders, that does not necessary belong to the specific bank in question. They are paid board members and boards of directors and will make decisions that are good for the small group of shareholders as oppose to the average members of the financial institution. A credit union allows all its members to have a voice in the financial institution, regardless of the size of their portfolio.
Operating as a non-profit organization, a credit union uses excess earnings of the financial institution to offer its members better and more affordable loans, lower fees as well as higher return on their savings. Members from all walks of life are welcome to join and in order to find out if you qualify, it is simply done by contacting the desired credit union interested in as there is literally hundreds available for the individual.
In order to apply for membership of a particular credit union there is some important information for the individual to know about the procedures for opening an account. It is specific identification procedures and requirements which was mandated by the Patriotic Act of the USA. This Act was established to fight funding of possible terrorism as well as money laundering activities within the unions in the USA.
The federal law requires from all financial institutions the obtaining of all the information which identifies every individual opening an account. The acquired information needs to be verified and recorded within the financial institution. However as with all financial institutions, the provided information is guaranteed to be protected by federal law as well as the union's privacy policy.
Everything done within is all for the safety and protection of its existing and potential members as is the case with all financial organizations.

A bank and credit union serve people in finance in two different ways offering the same essential products and services. A credit union is there to serve it's members who are actually the owners of the credit union and is a not profit entity unlike a bank which is there to generate a profit.

Banks hate credit unions with good reason. Banks are in business to make money for their investors and owners. Bank customers are viewed as a source of income. Credit unions on the other hand are not-for-profit entities brought together to share resources and benefit members. In short, if you're banking with a commercial bank, you're a source of income. If you're banking with these cooperative financial institutions, you're among friends.
A credit union is a collection of individuals with a commonality. Perhaps they are all employees of certain company or live in a certain area. There financial organizations have grown to well over 72 million members in the United States, so it stands to reason there are plenty of unions out there to potentially join.
A credit union is a cooperative entity owned and managed by the people who actually use its service. A group of people have come together to share money. If you belong to one of these organizations, you're a member, and as a member you get a voice in how the union is run. And because these financial institutions are owned by those people using it, there is terrific incentive for the organization to offer high rates of return on savings, low rates on loans and provide terrific customer service. The not for profit charter that governs these businesses means they are also not trying to profit from loans or accounts, which adds to better than average rates. You can see why banks aren't big fans.
Credit unions offer the same basic services as traditional banks. They may not have the full range of investments and more obscure options for investment and savings, but they do have checking and savings options. But unlike traditional banks, the not-for-profit cooperative institutions don't actually call their services "checking" and "savings."
At a credit union, a checking account is called a share draft account and a savings account is a share account. Considering that these cooperative organizations are simply a collection of people sharing money with each other at reasonable rates, the names make a bit of sense. With a share draft (checking) account, your checks will not come back to you, however. This is just one of the quirks of the system. It's a problem that is easily solved, however, by keeping careful records of your transactions.
Credit unions typically offer the basic loans, accounts, and savings instruments of traditional banks but often with better rates. Before joining a the nearest organization, however, be sure to check that your needs will be covered. As growing entities trying to serve their members, they are constantly adding new services, so stay aware of what your credit union is offering to be sure your money is working for you most effectively.
With the variety of financial choices available at credit unions, shop and compare rates and services carefully. By reviewing the products and services online, consumer can quickly compare the product mix and rates offered. With online financial sites that can do the job for you, consumers can evaluate the best mortgage rates from short term 10 year mortgage rates to 30 year mortgage rates as well as the best CD rates and savings rates in one fell swoop.

If you belong to a labor union or are affiliated with a large employer, organization or residential community you might be interested in joining a credit union. A credit union is a not for profit cooperative financial institution. They offer financial services to members that are extremely similar to banks. If you are interested in joining one, but aren't sure just what the advantages are, here are few reasons why you might want to join.
Membership is Easy
Credit unions are cooperative financial institutions and are governed by its members. It should be noted that these institutions are not opened to everyone, but just those that are affiliated with the group that it serves. For instance, if you are part of a labor union, chances are the union has a credit union that allows all union members and their families to join.
They Offer Plenty of Financial Services
Just like a bank offers savings accounts, checking accounts and ATM cards, so does a credit union. In fact, most are extremely competitive with the list of services that a bank offers. While they obviously offer accounts to save and check with, one of the biggest reasons to join are low cost loans.
Loans at a Credit Union
Since the credit union is not for profit and owned and operated by its members, they are usually able to give extremely attractive rates on most loans, such as car loans and even mortgages. They are usually at the low end when it comes to interest rates and many of these institutions don't charge large fees like most banks do. In many situations, the ability for a family to afford a car loan or mortgage is based upon a lower interest rates and a reduced amount of fees.
Credit Unions are Safe
Finally, you can receive all the perks of a good bank including lower interest rates and lower fees and still save and grow your money safely. Credit unions are just as safe as banks to save money and have plenty of oversight to ensure that they are solvent. If you are affiliated with a group that has a this type of financial facility, definitely look into the many products and services that a credit union can offer you

How to choose best credit union?

Choosing the Best Credit Union

If you have decided that you need a loan so as to finance the purchase of your new house, you need to start thinking how you can get the loan you need. There are numerous lenders around the world, each one offering different products and services. But if you are up to a beneficial loan, you should opt for the best credit union loans.
There are lenders who work only with the most creditworthy individuals; there are others who can lend you money even if you credit score and history are not the best standing ones. Opposite from banks, the Arkansas federal credit union will not lend you just a portion of the amount you need, but it can give you 100% of the value.
Normally, the first place to look for a loan is a bank. Some of them offer quite good deals and offers, especially if you are an old client and you have a good established relationship with them. If your financial status at the moment is questionable, you might fall outside the principles and terms of lending. In general, banks offer great deals to people who have a solid financial ability; in other cases, rates can be high, or terms might not be that beneficial.
Local banks are not the sole solution though. You can hire a broker to do this job with you if you don't feel like dealing with all this, however, it would be good if you could do this work on your own, so as to have a complete and accurate picture of the available options for loan.
You should also check online; there are numerous applications and sites that can inform you on rates and quotes in Arkansas. Web gives you the chance to compare the loan rates of the federal credit union and regular banks.
Always keep in mind that you should start looking for a credit union mortgage even before looking for a house. Knowing in advance the amount of money you can borrow, or your financial status can be very beneficiary to you

Personal Loans: Choosing the Best Source

For a variety of reasons we may find ourselves needing a personal loan to take care of medical bills, car repairs or to just take that vacation we have been putting off for years. There are a number of ways to obtain such a loan such as through your bank, through local cash advance services or even through jewelers who will offer you a cash loan in exchange for your jewelry. So how do you go about finding the best source that fits your needs?
As with any financial transaction you should look at all the fees and interest rates associated with taking out the loan. Many people prefer to deal with their bank or credit union for such matters, but they may not always have the best rates and often will require that you back up the loan by putting your house or car up for collateral. Another option that is gaining popularity is jewelers that will give you a cash payout for your jewelry. They will hold the jewelry in their vault and you will make small payments against it until paid off, at which time they will return the jewelry. The reason these are gaining popularity is that unlike pawn shops you will get close to the full value of the jewelry and it will not be put up for sale (unless you don't pay back the loan). It's considered by many a more professional way of doing business versus a pawn shop.
Finally, as a last resort, there are always payday advance establishments that give you money until your next check. However, they often have the highest interest rates in the business - some exceeding 100%!

How to Choose the Right Car Loan For You

If you are unfortunate enough to have a bad credit rating then you will probably know how hard it is to get any kind of credit. Lenders will turn you down for as long as you are seen as too big a risk even if the credit problem was long in the past and you are back on your feet again. When it comes to loans for those with a bad history of credit then they are available and your best option is to look for the best deal for bad credit loans online.
When shopping for a car loan, it is important to compare many aspects of the different car loans you might be offered. You will want to compare car loan rates, terms, and read all of the fine print. The best way to begin to compare auto loans is to familiarize yourself with the different types of auto loans out there. The first type of auto loan is a loan with a fixed interest rate. this means the interest rate does not change through the life of the loan. this is the most important typical type of car loan. It is important to compare auto loan rates carefully when looking at fixed auto loans, because there can be fine print relating to the loans that can change the price.
Another type of car loan is a variable rate loan. This is often that has an interest rate that changes over the course of the loan. There is usually a range that is acceptable according to the terms of this type of loan. This rate could require your approval, or it could be up to the loan for the entire duration.
But the best way for finding a car loan is to shop around. Check out what deals are offered in the marketplace before you decide to buy a specific car. Find out your credit score and, if necessary, correct errors at the credit bureaus. Compare interest rates at banks and credit unions, and ask about fees and early payoff calculations. When you've found the best outside loan, apply and get pre-approved. Then visit the car dealer with a check in hand to cover the purchase price of the car, plus any sales tax and registration fees.
Don't be afraid to investigate dealer financing and automakers' captive finance companies to see if they're offering lower interest rate incentives. But whatever you do, says Susan Tiffany of the Credit Union National Association, "don't buy a car just because somebody's offering a deal on it. Make sure you like the car."
Be careful in the financing and insurance, or F&I, office at the dealership. Don't be afraid to turn down last-minute add-ons like extended warranties. Understand all the details of the contract before you sign. Don't rush through the process.
If you realize after the fact that you've gotten a bad financing deal, remember that you can always refinance. But if you do, refinance only the remainder of your term, and not its full original length

How to Increasing Credit Union Revenue by Increasing Member Awareness?

Effective Marketing For Credit Unions

 

When consumers are trying to decide which Credit Union or bank to do business with in Michigan, there are plenty of available options. In order to rise above the rest, some drastic measures need to be taken. Effective marketing for Credit Unions in Michigan is essential to ensure that membership remains high, and profit margins can be maintained. To accomplish successful marketing strategies, it is important to enlist the help of a professional marketing firm, which can help you develop a strong offline and online plan of action for your business.
Offline Marketing
Perhaps the most common type of effective marketing for Credit Unions in Michigan, many offline methods can effectively drive new member sign ups, and increase the profits for local Credit Unions. These methods are essential in order to reach the public within your local area. Without a constant stream of offline marketing techniques in place, you just can't compete with more established larger banking institutions.
No matter your budget, there is an offline method that can work for you. One of the most effective offline techniques is the use of direct mail. This method can be used for both potential and existing members. Whether your goal is to gain new investors, or simply offer a new and exciting perk to existing members, it can all be done through direct mail, letters, post cards, or inserts. Anything that you can do offline to bring in new business will only benefit your company in the long run.
Online Marketing
Effective marketing for Credit Unions in Michigan can also extend to the online world as well. Taking your marketing methods online is a great way to extend your client base, reach those who are commonly online, and provide digital services to your members. As the world becomes more and more technological in nature, it is important to stay up to date on all of the latest banking features and functions that should be made available to members. If your members are not receiving the same level of service that they can get elsewhere, then there is no longer a reason for them to stay with your Credit Union.
In order to reach a wider base of potential clients, online methods can be used. Through opt in forms on your website; you can capture the contact information for any visitor who signs up for your email list. This allows you to send marketing materials to that person for years to come, and is an incredibly valuable tool. Marketing online is a key component of any marketing strategy. By marketing online, you reach the clients who you may not have been able to contact through routine offline methods, and this will only contribute further to your success.
Both offline and online methods can be combined to create effective marketing for Credit Unions in Michigan. With such a competitive niche, it is important to provide your current and potential members with a reason to keep coming back to you. When you combine the power of online and offline marketing methods, you are sure to increase your profits while helping your Credit Union to thrive.

Are There Advantages to Keeping Your Money With a Credit Union Instead of a Bank?

In today's difficult economic environment, Americans are beginning to use credit less and to save more. Saving is a good thing - for too long many people have overspent and have been unprepared for life's emergencies. But when deciding where to keep their money, consumers have many choices. Both banks and credit unions (CU's) offer savings account and checking account services. How do you decide which one is right for you?

The first thing to do is to learn something about each one. Then you can decide which is the better choice.

Banks
Broadly speaking, a bank is a regulated financial institution that provides a wide range of money services to its customers. In the United States there are many different types of banks.

• Savings bank: Most consumers are familiar with savings banks, which can be local, regional, or national. They provide easily accessible services to a wide range of consumers. Most have a focus on retail banking, including personal savings accounts, checking accounts, and loans.

• Co-operative bank: A bank that is owned not by stockholders but by its members, who are also customers of the bank. Co-operative banks are often created by persons who have a common bond. Co-operative banks provide their members with the same banking services as savings and loan banks.

• Mutual bank: Like co-operative banks, mutual banks are owned not by shareholders but by their customers.

• Commercial bank: Refers to a bank or a division of a bank that mostly provides account services for large businesses and corporations. Owned by shareholders.

• Community banks: These are locally operated financial institutions whose employees can make local decisions to better serve their customers.

• Community development banks: These banks specialize in providing financial services and credit to under-served markets or populations.

• Private banks: These banks manage the assets of wealthy individuals. A private bank may have minimum deposit amount of $100,000.

• Offshore banks: Located in nations with low taxation and regulation, most offshore banks are similar to private banks.

Banks make money from fees they charge for their services and from interest they make on loans.

Credit unions
Unlike commercial banks, which are business enterprises designed to earn a profit like any other business, credit unions are non-profit membership organizations, owned by their members, and are governed by volunteer boards. The first credit union was opened in 1844 by a group of weavers in Rochdale, England. It resembled a modern-day buyer's club. Shares were sold to members with the intention of raising funds to buy goods at wholesale prices. The goods were then sold to members at below retail prices.

Choosing a bank or credit union
Consumers may wonder what the differences are between having a savings or checking account at a CU and a bank. A key benchmark is interest rates: how much you will earn when you save, and how much you will pay when you borrow. According to the Credit Union National Association (CUNA), rates offered by credit unions are sometimes better than the rates offered by banks. This is because CU's are not trying to operate at a profit.

Are credit union deposits insured?
Most people know that the Federal Deposit Insurance Corp. (FDIC) insures bank deposits up to $250,000 per depositor per bank. Most CU belong to the National Credit Union Share Insurance Fund (NCUSIF), which protects CU deposits up to $250,000. If you join a credit union, make sure it is a member of NCUSIF.

Joining a credit union
Unlike banks, the law places limits on who can join a CU. A credit union's "field of membership" is defined by its charter. Eligible people could be employees of a company, members of a church, students at a school, or members of an ethnic group. Chances are good that if you are interested in joining a credit union, you'll be able to find one that will accept you as a member.

Credit Fraud Protection and Your Safe Retirement

Credit fraud and identity theft - these are two things that can wreak havoc with your life and your hard-earned retirement savings. In its 2010 Identity Fraud Survey Report, research firm Javelin Strategies states that from 2008 to 2009, this unfortunate experience has affected more than 11 million Americans, and during that same time period has increased 12%.

How Do They Get My Information?

The first thing is to understand how thieves can obtain your personal information and then take the steps to prevent unauthorized use of your identity and credit. Here's how: 

1. Don't share personal information. Unsolicited telephone calls and email scams can take unsuspecting people by surprise. Just because someone calls to ask for donations to the "Police Protective League" and wants your credit card number, it doesn't mean that the person on the other end of the line is legitimate. Instead, ask them to send you a donation request in the mail.
2. Shred all your papers. It's easy and inexpensive to purchase a paper shredder at the local office supply store. Criminals regularly sort through the trash for your bank and credit card statements, investment information, cancelled checks and other items that have personally identifying information. Shred anything that has an account number, home address, birth date, Social Security Number or signature on it.
3. Take advantage of a yearly free credit report. By law, you're allowed a free copy of your credit report from the three credit reporting companies at annualcreditreport.com. This can help you monitor whether any unauthorized accounts have been opened in your name.
4. Always check your financial statements. Each month, review your bank, credit card, and retirement savings and investment accounts for red-flag transactions.
5. Remove SSN or driver's license numbers from your checks. Less is more in this case. You don't need to have all your identifying information imprinted on your checks. Even better - take advantage of the convenience of online banking. You can conveniently and securely set up all your bill paying without ever having to physically write a check.

Steps to Take if You're a Victim of Credit Fraud

No matter how careful you are, credit fraud and identity theft can happen to anyone. First, call your bank or credit card company to dispute the charges and have them close your accounts. They will set up new ones that the criminals cannot access, as well as send you new credit cards.

Most financial institutions will refund your account if fraudulent charges exceed $50. However, fraudulent debit card use is much more difficult to dispute and to restore your balance than a credit card. This is why it's important to check with your bank, credit union or credit card issuer to find out their fraud refund policies.

Next, file a police report. Put a copy in a secure place because you will need to keep the report forever. Finally, notify the three credit reporting bureaus - Experian, TransUnion and Equifax - that your credit has been fraudulently used.

Unfortunately, identity and credit theft are facts of life. And if you're not careful, it's possible to watch a lifetime of retirement savings disappear - along with spending countless hours repairing damage to your good name and credit record.