Credit (Re) Building Tip--Secured Credit Card

Sometimes I think the "American Dream" in today's world is having a good Credit Score.  A Credit Score, which is based on information on our credit reports, determines if we get a loan, what interest we pay, our car insurance rate in some states and perhaps unfairly-whether or not we are offered employment.

One tip to either build good credit or rebuild credit is to get a secured credit card. Most banks and credit unions offer them. Basically, you take the minimum amount required, often $250-$300 to the financial institution and pay a fee for the card. The money is deposited into an account--you don't touch it and the financial institution doesn't touch it. That's what makes it different from a debit card that is connected to your checking account. Then you get a credit card with a spending limit of the amount in the account, without the option of going over the limit. That is what makes it secured--the financial institution has no risk--if you violate the terms of the agreement such as running up purchases on the card and not paying, then the financial institution can take the money out of your account and cancel the card.

The way a secured credit card helps to build your credit is that all the activity on the card is reported to the credit reporting bureaus on your credit report. If you manage the card well--pay on time and keep your balance under 30% of the available credit, it will help you positively build your credit. For a comparison of secured credit cards and more information, check out Consumer Action's Secured Credit Card Survey.

Joining A Health Club?

It's that time again--New Year's resolution time--if you're like thousands of other Americans, you might be thinking of fitness resolutions and contemplating joining a Health Club. I admire your goal of working out and encourage all of us to be active and healthy.  However, it's staggering how many consumers buy a gym membership with the good intention of using it but end up dropping out months later and spending hundreds of dollars for something they don't use. So before you sign that contract, take a few minutes to complete this Checklist:

1. I've checked my Spending Plan and I can afford the monthly fee
2. I've checked to make sure the Health Club/Gym is properly licensed
3. I've checked with my local consumer protection agency and the Better Business Bureau to see if there are any complaints 
4. I talked with current members to see if they're satisfied
5. I walked through the gym to see if the equipment is all working and the environment is clean
6. I have reviewed my calendar and scheduled work out time to make sure I will use the membership
7. I have read the contract and all the services mentioned by the sales staff are included
8. I have checked the cancellation policy

If you've completed the Checklist and you're totally satisfied that you will use the Health Club to help meet your fitness goals, then get going! One more note--try to avoid signing up for automatic payment for your membership fee. Those automatic payments may be challenging to stop if for some reason, you have a dispute with the company.  For more info, check the FTC's Health Spas: Exercise Your Rights