Credit Sesame Review

Credit Sesame is a website that can give you a free credit score and find you lower interest rates on your home loan and consumer debt. I first heard about Credit Sesame because of the free credit score they offer but after trying it out discovered that’s only part of their approach to reducing debt.

Lower Interest Debt

Credit Sesame actually uses your credit score and your debt profile to search for loans you could qualify for that would save you money compared to your current loan.  For example, here’s the summary page it gave me after I created my profile and it searched for loans.

I had a chat with someone from Credit Sesame and learned that the loan analysis software the site uses was actually originally built for banks, to help them qualify consumers for loans.  Then the Credit Sesame founders decided to instead open the software up to help consumers find the best loans.  Here’s how they explain it on their site:

“Our founders spent years developing the analytics banks use to make their lending decisions. Drawing on this banking industry expertise, they partnered with Berkeley and Stanford scientists to give you access to bank-level analytics — and help you choose loan options that are right for you.

In just minutes, our patent pending technology builds over 5,000 scenarios and instantly evaluates thousands of loans from all major banks against your personal credit situation.”

There are other services out there that let you search through available loans but the difference with Credit Sesame is that they screen them using your debt profile, so they only find loans that you qualify for and that are at a lower interest rate than what you’re currently paying.

Of course, the whole idea is that with lower interest and lower payments you can pay your debt off faster.

Credit Score & Debts 

In order to use your credit score and your current debt levels in it’s search, you have to create a profile of your financial situation. 

You enter your SSN so Credit Sesame can pull your Experian credit score and validate your credit data. 

Once it’s setup, the software monitors for changes in your credit score and for any new loans that may be available as a result that could save you money. When you signup for the free service you can go the simple route, like I did, and let Credit Sesame pull in all your debt information from your credit report.  You can also manually enter in the principal balance, interest rate, and loan term for your debts.

The software uses the loan information to determine your debt ratio – which they use when screening for other loans. For example, mine found our current mortgage and all our credit cards. 

It also pulls in real estate information from Eppraisal.com if you own a home – the estimated property values do seem a little high.

Free Credit Monitoring?

Most anywhere else you look online you have to pay for your credit score and pay for credit monitoring so of course I aked how Credit Sesame can offer it for free. 

Basically, Credit Sesame’s goal is to find you a loan with a lower interest rate that you qualify for that will save you money on your monthly payments.  If you apply for the loan and are approved, then Credit Sesame gets a refferal fee from the bank – which is why they can offer the credit score and software for free to consumers.

Overall, it seems like a pretty useful tool and gives you a lot of information in a snapshot view about your credit rating and debt.  Even if you don’t end up getting a new loan, it’s a good overview and a free credit score, so check it out – Credit Sesame.

Best Credit Cards for Rental Car Rewards

The best credit cards for car rentals combine some or all the travel perks of car rental deals, rental rewards, and rental car coverage.  The infamous rental car insurance episode on Seinfeld wouldn’t be so funny in real life – so here are some things to consider when searching for the best rental car credit card for your trip.

Car Rental Deals

Saving money is always important when you’re traveling so one thing to look for in a credit card is whether it can score you any car rental discounts.  For example, the Blue Savings Program from American Express offers deals when you use your Blue Cash, Blue Sky, or AmEx Blue card to rent a car:

• 5% off on an Enterprise rental
• $20 credit after $200 in Enterprise rentals
• Up to 25% off Alamo rental

Other credit cards may send you periodic car rental coupons for certain companies like Alamo and Avis – my Bank of America Visa offers a regular discount at Hertz.

If you’ll be hauling around a bunch of people or stuff and need a bigger car you can also save money on upgrades.  Another example in the Blue Savings program, you get a rental car coupon code for a free upgrade at Hertz or with Alamo.

Car Rental Rewards

In addition to discounts, you might also be able to earn rewards points or use them to help pay for your rental car.

Earning Points

The Marriott Rewards card gives you 2 points for each dollar you spend on rental car purchases – and with Hilton HHonors cards you earn 250 Hilton Honors points with each car rental at one of their partners (Alamo, Avis, Budget, National, Sixt, & Thrifty).

If you use an American Express card that participates in the Membership Rewards program, such as the American Express Gold Card or ZYNC from American Express you can earn double Membership Rewards Points when you book through the AmEx travel site.

You can also earn rewards points (or Starpoints) on the Starwood Preferred Guest card when you get your rental car from Avis.  If you’re a preferred guest member and you use the Avis Worldwide Discount (AWD) code of K817200, you’ll also get a $50 discount on the car rental.

Redeeming Points

Some rewards credit cards let you use your points when you’re renting a car to help you get a discounted or free car rental.  If you don’t want to go through your credit card company to book your travel, another alternative is to turn in your rewards for gift cards.

If you use any of the Citibank cards in the ThankYou Rewards program, like Citi ThankYou Premier or Citi Forward, you can redeem ThankYou points for gift cards at car rental companies.

Discover also lets you turn in your rewards for gift cards at Alamo, Enterprise, and National.  If you use the Discover card and redeem your cashback earnings for a gift card, Discover will give you double the value of your rewards on the gift card.

Rental Car Insurance

The terms and conditions of credit card rental insurance vary based on the card you use so make sure you understand exactly what’s covered.

The Collision Damage Waiver offered by rental car companies can be pretty pricey – if you have primary coverage through your auto insurance company and secondary coverage through your credit card then you can probably avoid that charge.

When you’re renting a car, make sure you ask about any “loss-of-use” fees or “administrative processing” fees the rental company might charge if you have an accident. Be clear on what is covered by your credit card plan and your primary insurance before declining rental car insurance from the company.

Cash Back Rewards

We’ve looked so far at how you can save with car rental deals and earn/redeem rewards points.  Another possibility is to take advantage of cash back rewards when you make certain purchases at rental car companies.

There are some cards that feature rotating cash back categories where you can earn 5% on those categories of purchases.  If you can earn 5% cashback on car rentals when you’re traveling then it would be a good time to use a card with that feature.

Of course, if you’re not traveling during those months then the 5% cash back won’t do you much good. If that’s the case then you might want to look at cards like TrueEarnings from American Express, where you always earn a fixed cash back amount on travel expenses.

As I said at the start, choosing the best car rental credit card means looking at a combination of the deals you can get, rewards you can earn, and coverage you’ll have on your rental car.  Hopefully this review of different credit card options will help you choose the best one for you.

Online Credit Card Protection

Credit card fraud is one of the most common forms of identity theft reported in the United States each year. Here are five strategies you can use to help protect and monitor your credit card number online.

1) Virtual Credit Card Numbers
Some of the best credit cards for shopping online offer virtual account numbers that help you keep your credit card information hidden. These account numbers are usually only good for one purchase, and stop working once you use them.  Typically you login to your credit card website, like Discover or Citibank, and request a virtual account number, which you then use to complete your purchase.

Another online payment alternative that can keep your credit card number hidden from the merchant is to use a third-party payment provider, such as Google Checkout or PayPal.  Not every merchant accepts these methods of payment, in which case a virtual number may be your only choice.

2) Online Billpay
Some people are still wary of online billpay because you’re accessing your bank account online but it’s much more difficult for someone to hack into your bank account than it is to steal your mail out of your mailbox. If you receive and pay your credit card bill electronically you don’t have to worry about people swiping your paper statement and stealing your credit card information.

Although it’s not an online threat, one thing worth mentioning are the credit card offers you get in the mail. Often times they will have information pre-populated to make it easier for you to fill them out. It’s helpful if you decide to apply but if you just toss it in the trash then someone has access to a credit card application with your name and address already filled in. Be sure to shred these.

3) Beware Phishing
Even though having your credit card bill delivered electronically can be useful, you have to be vigilant about the emails that arrive in your inbox. Identity thieves have discovered a technique known as phishing to be very effective at stealing your account numbers, passwords and other personal information.

Be wary of emails that ask you to click through to a page.  Although it may appear to be a page on your credit card company’s website that you end up on, it could be a fake site website that’s trying to trick you into giving up your login information.

A good rule of thumb is to never click on links inside of an email. Instead you can open a new browser window, type in the official home page, and login from there.

4) Online Alerts
Many credit card companies now offer alerts via email or text message to help you monitor your spending patterns.  They offer a variety of criteria, for example, you can get an email if there’s ever a charge over a certain amount on your credit card. These alerts can tip you off to credit card fraud early enough to help you put a stop to the spending before it gets worse.

5) Credit Card Statement Review
This one is simple but effective. Check out your activity on your credit card statements every month and look for purchases you haven’t made.  Companies like American Express have made your online credit card statement pretty interactive so you can easily search and sort your purchases and keep an eye out for ones that aren’t yours.

Most credit card companies offer purchase protection that shield you from liability in the event your credit card number is stolen and misused.  However, these companies do ask that you monitor your card activity and report anything suspicious right away so be sure to check your statements.

New Credit Accounts

The five strategies above can help you protect your current credit cards, but something else you want to watch out for are identity thieves opening lines of credit in your name.  If someone has enough information about you, it can be difficult to prevent them from posing as you and opening credit cards under your social security number. However, there are two ways you can keep an eye out for new cards that pop up in your name.

Credit Report Checks
The first way that you can catch credit card identity theft early on is to regularly check your credit report. Look for any credit accounts that you didn’t open. You are entitled to three free credit reports yearly (one from each of the major bureaus), you can access your free reports via Annual Credit Report website.

After you have used up your free reports, you can usually get reports from the major bureaus for between $15 and $50 (depending on whether you get a three-credit report, and include a credit score).

Credit Monitoring Services
The benefit of a credit monitoring service is that it will regularly check your credit reports on your behalf and notify you if something comes up. Credit monitoring services usually cost between $9.99 and $29.99 a month, and provide a range of services. Credit monitoring services alert you when suspicious activity occurs, and will let you know when accounts are opened in your name.

Bottom line: It is impossible to completely prevent identity theft. However, with some vigilance, it is possible to reduce the possibility of it happening to you and limit the amount of damage if it does.

College Graduate Insurance & Credit Tips

As a recent college graduate, things like health insurance and your credit score are topics you’ll have to start figuring out now that you’re venturing out on your own.

Health Insurance for College Graduates

The good news is that finding temporary health insurance for college graduates may not be as urgent as it once was.  One part of the health care reform bill was an extension of dependent coverage that allows child dependents to remain on their parents insurance plan until they are 26 years old.

However, once you are earning your own income and no longer a dependent you’ll want to make sure that you get your health insurance taken care of right away.  If you’re uninsured and have a major medical expense it could put you into major debt, not a good way to start off your adult life.

When you start a new job, make sure you check the insurance policy of your new employer.  Many companies start offering insurance coverage right away but that’s not always the case so you may have to look for temporary insurance to fill the gaps.

Auto Insurance for College Graduates

The bad news is that insurance companies see college grads as a larger than normal risk so it won’t be easy to get cheap car insurance.  There are a few things you can do to try and lower your insurance rates while still getting you enough coverage. This post on auto insurance for college grads looks at finding the right agent, doing your research, and steps you can take to to lower your rates.

College Graduate Credit Scores

Hopefully you didn’t ruin your credit score while in college, but even if you didn’t go crazy with the credit cards you could still face problems with your credit.  If you haven’t established any credit history at all this could also make it tough for you any time you apply for a loan.  Companies lending you money want to know how likely you are to pay back what you borrow.  If you have no past track record then often times they assume you’re a higher risk to protect themselves.

If that applies to you, here are some tips for building your credit history.  If you do have a decent credit history and are looking for some credit card options here are some of the best credit cards for college graduates.

Keep in mind that you have to keep paying your bills on time to keep your credit score up.  Here are some spending and budgeting tips for college grads to help you keep control of your money.  Any student loans that you owe will have an impact on your credit report, here are some tips on lowering your payments and paying off your student loans.

Hopefully those tips on insurance and managing your credit score will make it a little easier as you leave school start managing your own finances.

Free Credit Report from Experian

Experian is offering a free credit report for 30 days to American Express cardholders.  I logged into my credit card account and requested my credit score after I got an email about it this week.  I hadn’t checked my credit report in some time and was pleased to see it was still healthy.

American Express partnered with Experian to offer the credit reports so you don’t have access to your Equifax and Transunion reports but just getting the Experian one for free was nice.

Credit Report Access

As I mentioned above, you have to login to your American Express account first to get the offer and then you’re taken to the Experian Direct website where you enter in the standard information needed for a credit report: name, adddress, email, social security number, phone number, and your year of birth.

Once you’ve submitted that info you create a login so you can come back later and access your credit report.  Then you have to agree to the terms and conditions of the offer, I read through them to make sure there was no fee for the report and here’s a summary of what I read.

Credit Report Terms & Conditions

The free credit report is available for 30 days and you can’t enroll more than once in a 12 month period. Experian is the credit reporting agency providing the PLUS credit score and you’re giving them permission under the Federal Credit Reporting Act (FCRA) to obtain the information from your personal credit profile.  Then they include some (FCRA) disclosures and let you know you can dispute the information in your credit report if you don’t think it’s accurate.

Then the last step is answering two challenge questions to verify your identity, mine were about a street I used to live on and an auto loan from a few years back.  Then you’re taken to your credit report, you can see the different sections pictured below.

 

Student Credit Card Reader Question

A reader, Iris, wrote in with a question about the best student credit card for her son:

“Hi- Your website is very helpful. My son is in med school-no income, big loan. I’m helping him shop for a credit card to build a credit rating(he uses debit card usually). What’s best for him-Capital one no hassle cash rewards. Chase Rewards, american express(concerned it won’t be taken everywhere-but debit will i think) –do they all let you look at your account on line and pay automatically by bank account?  thanks much, iris”

Personally I really like our American Express Blue Cash card but you’re right AmEx cards aren’t accepted by all merchants since they charge them higher fees. We’ve accumulated a few backup cards, Bank of America, Chase, and Citi cards, but none of them are student cards.  American Express does have a Blue for Students card that’s decent if you have good enough credit to qualify.

I wrote about the best credit cards for college students a little over a year ago but it’s been a while since I’ve researched them since then.  Maybe the other readers can offer up their suggestions on the best student credit cards.  In terms of your question about access, pretty much any card you get these days lets you see your account and bills online and pay electronically with funds from you bank account. 

One last point on building credit, if your son has horrible or zero credit, he can use secured loans or secured credit cards to improve his credit score. Hope that helps!

Credit Report Disputes

One potential way to improve your credit score is to look through your credit reports for any misreported information, such as a late payment, and dispute your credit report. 

1) Start off by getting a copy of your free credit report and looking for any errors.

2) If you find anything, check to see if the mistake shows up on your reports from other credit bureaus. You will need to file separate disputes with each credit bureau that shows the mistake.

3) Go to each bureau’s Web site for instructions on how to file a dispute, what happens after the bureau receives a dispute, and what actions to take if you think your identity has been stolen:

• Equifax
• Experian
• TransUnion

4) Clearly identify each error in the report and explain why you think the information is wrong.
Keep detailed records of what corrections you requested, along with copies of supporting documentation.

5) Don’t send any original documents if you submit your dispute in the mail; make photocopies and send those instead. 

6) Keep a record of when and how you contacted each credit bureau, noting any follow-up phone calls and the names of the people with whom you spoke. In case the correction isn’t resolved smoothly, these records and notes will come in handy.

7) If you find any evidence of identity theft, such as an open account that you know you never opened, make sure to follow the credit bureau’s instructions for reporting identity theft.

The credit bureau should respond to your dispute in writing within four to six weeks. If the bureau agrees with you, the bureau will correct the mistake. If there is a dispute over the corrections you’ve requested, or if you think that someone has stolen your identity and is using your credit, be prepared for a long period of back-and-forth communication with the credit bureau and your creditors.

The burden of proof lies with the bureau, if it can’t prove that the information in question is correct then it has to delete it. However the process of resolving a dispute or unraveling a case of identity theft can be complex and lengthy. Good luck!

Your FICO Score

Your FICO score is the credit score used by 90 percent of the lenders in the United States to determine whether or not they want to lend you money. A FICO score is a three digit number that runs from 300 to 850. The higher your credit score, the better your chances are for loan approval—and the better terms and conditions are for the loan.

Calculating FICO Scores

Now that you know what a FICO score is you’re probably wondering how it’s calculated. The FICO score breakdown looks like this:

Payment history (35%): Making your payments and making your payments on time.

Balances (30%): The more manageable levels your outstanding balances are, the better off your credit score is.

Credit History (15%): The length of your credit relationships are important. The longer your relationships with credit card companies, mortgage lenders, auto loan providers and more, the better.

Credit Types (10%): Your credit score is also determined by the various types of credit you have. High credit scores come from having various types of credit such as mortgages, credit cards, student loans, car loans and more. It’s about your ability to manage different types of credit so if you only have a credit card then it doesn’t speak to your ability to manage various types of debt.

New Credit (10%): The final portion of the FICO score credit calculation is establishing new credit. You can tackle two portions of your credit score at once by applying for new credit that is a type of credit you don’t have.

Good FICO Scores vs. Bad Scores

With the current credit crunch in full swing, what used to be considered a good credit score (in the 700s) may now be considered low by lenders since they’re more risk averse.

• Good credit scores are those 750 and higher
• Mediocre credit scores range from 650-749
• Scores from 300-649 are considered bad credit

How can you find out your FICO score?  Experian, which is one of three three major credit agencies teamed up with FICO, so you can request your score at the Experian site or MyFICO. Be sure you check into the ways you can get a free credit report.

Improving Your FICO Score

If your FICO score is low, concentrate on improving your credit score by concentrating on the five areas that factor into the score. First, make sure you always make your payments and make them on time. Second, pay down or pay off debt so that it’s at a reasonable amount for your income level.

Do not close old accounts because you don’t use them anymore; keeping them open can help boost your credit. Also be sure to establish new credit once in awhile to keep your credit file fresh and mix it up a little by making sure that the credit you have is diversified.

Now that you know what your FICO score is and how important it is for obtaining credit approval be sure to take the necessary steps to maintain or improve your credit score. Especially in a credit crunch, your FICO score may make a difference between getting approved for a loan or getting denied.

Credit Card Tips for College Graduates

Applying for and using a credit card during college can help you to start building your credit history. Managing your use of the credit card and making the payments are two keys to building a good credit history that will benefit you in the future. Of course, a credit card is just the beginning when building your credit history but it is a good place to start if you can pay off your balance in full each month.

How to get approved for a card

One factor that goes into credit card approval is having a source of income. Having a job, even if it’s part-time, is one source of income. You may receive money from other sources that you can also include on the credit card application. The bottom line is that credit card companies want to extend credit to consumers who have the ability to repay what they use.

If you don’t have any income, Mom or Dad can also help you get started with you first credit card. See if they are willing to add you as a card user on one of their accounts. The benefits of getting a credit card this way is twofold. First, it provides you with a credit card to use, so it teaches you how to manage your money. Second, it helps you to build your credit so you’ll be able to qualify for other types of loans and credit in the future.

Good credit card options and things to watch out for

If you’ve even perused the credit card possibilities out there, you know that there a myriad of options available. So how do you know which are the best credit cards for a college grad?

No annual fees. The first thing you want to look for in a credit card is one that doesn’t charge an annual fee. While cards with annual fees offer additional benefits, there are plenty of credit card companies that do not require an annual fee for you to have the card. This is an added expense that a recent grad doesn’t need.

Cashback options. Cashback rewards are not as generous as they once were but they can still add up over time with cards like True Earnings American Express or American Express Blue Cash.

Travel rewards. Whether it’s airline credits, hotel rewards, or cash back on gas purchases, look to see what travel rewards the card offers.

0% intro rate. Recent grads have needs such as getting their first apartment outside of college, which may also mean a need for furniture and other housewares. You’re also taking on your first career job so this may mean some new business clothes. If you find a credit card with zero percent interest or a low interest rate at the start of the card like Discover , you can make these purchases with your credit card without paying interest. The key is to not charge more than you can afford to pay off before the intro rate adjusts to its normal (and higher) interest rate.

Annual fees, rewards, and introductory rates are three things to consider when looking for a credit card; you should thoroughly read the terms and conditions before applying for any card.  Remember, introductory rates can be beneficial but they can also be a hindrance. If you don’t pay off the balance before the intro rate runs out the interest rate adjusts to what usually equals double digits—creating payments you can’t afford to make.

Using a credit card helps you to start building your credit history. Using the card responsibly and making your payments on time are two factors in building a good credit history that can benefit you in the future.

Free Credit Report & Credit Monitoring Trials

Free credit reports are available annually and you can get a free trial of credit monitoring services online from various companies so there’s really no reason you shouldn’t be able to check your credit report and keep tabs on your credit score.

Credit history and credit scores play the leading role for individuals and couples trying to qualify for a mortgage or finance the purchase of an automobile. So how do you know what your credit history looks like or if you have a high or low credit score? Below are a few resources you can use to check your credit report and find out your credit score.

There are three credit agencies: Experian, TransUnion and Equifax. Since each agency keeps its own records, it’s wise to order a copy of your credit report from each of the three agencies. The credit agencies and other services listed here also allow you to order all three reports at once. If you’re married you’ll have to order a credit report for you and your spouse to obtain each credit history and score.

Annual Credit Report

AnnualCreditReport.com is a central source where you can order your free credit report and scores from Equifax, TransUnion and Experian. In a few simple steps online, you can place your order and be on your way to reviewing your credit history and scores. This service allows you to order one free credit report from each of the credit agencies per year.

MyFICO

Your FICO score is one of the many credit scores computed from your credit history. It is the score used by 90 percent of the banks and lenders in the United States, when they are determining whether or not you qualify for the mortgage or loan you are applying for. Since it is one of the most important scores, you should monitor it closely.

MyFICO is an Equifax service that allows you to order a free trial of two Equifax credit reports and obtain your FICO score. It also provides a service to alert you when there are changes to your credit report or FICO score. This is a paid service, but they do offer a free trial period to test it out. – MyFICO Credit Report

Experian

Experian allows you to order your credit report and score from their website when you sign up for a free trial of their service. There is also an option to pay a small fee to receive your credit report and score from all three credit agencies at once.

Again, what shows up on your Experian report may differ from what is reported on your other two credit reports, so you can order a copy from each agency individually or use one service to order all three. – Experian Credit Report

TransUnion

You can order your individual report from the second of the three credit agencies, TransUnion. The TrueCredit program offered by TransUnion also provides a service where you can order all three of your credit reports and credit scores at once. Here is a TrueCredit review. – Transunion Credit Report

Equifax

The third of the credit agencies, Equifax, provides a similar service. You can order your Equifax credit report and credit score or purchase all three credit reports and scores at once. Unlike the other services, Equifax doesn’t offer a free trial. You can get started with ordering your individual or set of credit reports and scores with Equifax online. – Equifax Credit Report

Your credit history and credit scores play a major role in qualifying for a mortgage or financing any major purchases. It’s simple and easy to do and you have several options so it’s a good idea to check your credit report and scores at least once a year.

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