Even though your wedding set you back a few dollars, there’s some good news (other than your mother-in-law can stop asking you questions about the wedding)–marriage brings about many opportunities for couples to save money on their insurance.

The purpose of this post is for you to have a checklist to go through, to identify any opportunities for savings.

Let’s start with home and auto insurance…

Marriage and Insurance | Home & Auto Insurance

1. Merge Policies – There is substantial savings by insuring your home and cars through one company. You’ll not only get a discount for having more than one policy (multi-policy), carriers also give discounts for insuring more than one car with them (multi-car).
2.  Adjust Contents Coverage – If you’re moving in together for the first time, you now have twice the amount of possessions. Even if you’ve been living together, expensive presents may bring your total possessions over your current contents coverage. Double check your current policy (especially if it’s a renters) and adjust the contents coverage if necessary.
3. Schedule Jewelry – If you haven’t already, contact your agent or insurance company to add each of your rings on to your policy.
4. Look for Additional Discounts - Ask your agent about any additional discounts you may be eligible for or visit the company’s website, which usually has a list of discounts. For example, if you now carpool to work or your new location allows you to take public transportation to work, you may be eligible to receive a low-mileage discount.

Marriage and Insurance | Health & Benefits Insurance

Your marriage is a qualifying event, which means you’re eligible to change health plans even if it’s not open enrollment.

Compare the two plans benefits, as well as the costs. See the costs of adding one another to each plan. And don’t forget that if you’re looking to have kids very soon, review how each plan provides coverage for pregnancies.

Marriage and Insurance | Life & Disability Insurance

Marriage is a perfect time to review your current life and disability coverage, especially if you expect to have kids soon or just bought a house.

Start off reviewing each person’s benefits package. Many companies provide life insurance at no cost to their employees. Others, will pay a portion of your disability insurance.

If you find you need a qualified agent to talk to who can help you save money or plan for your future, call Weiss Insurance at (630)584-1717.

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Photo by: Citranow

Office ergonomics is the science of designing work stations to fit the needs of humans. The goal of ergonomics is to increase your productivity, as well as your overall health. Ergonomics accomplishes this through the design of objects such as furniture, computer monitors and keyboards, etc…

Most of us spend hours a day, in positions that were naturally not meant to be in. Although the act of typing on a keyboard seems natural to us now, it’s not what the human body was designed to do.

By implementing basic ergonomic principles, companies have been able to reduce workers compensation claims. This is why OSHA, sees it important to educate businesses regarding office ergonomics (Training tools are available on their website).

Ergonomics not only apply to businesses but individual households. Most of us spend hours in the same position doing the same things (watching TV, surfing the web, reading). Doing these habitual tasks in a non ergonomic fashion, can cause serious injury.

The Principles of Ergonomics

On your right, (click on image to enlarge) you’ll see what a proper workstation looks like. The most important things to notice are her:

• Viewing distance is 18-24 inches away
• Viewing angle is below eye level
• Wrists our straight
• Elbows are on a 90 degree angle
• Feet are flat on the floor

There’s no need to spend thousands on new equipment, the positions above put your body in proper alignment.

Office Ergonomics Checklist

One of the most helpful resources I found, was an office ergonomic checklist evaluation produced by OSHA. Total, there are 33 factors that impact your body’s alignment. If you adjust your workstation to match OSHAs requirement, you’ll reduce your risk of serious injury, save money on insurance, and find yourself more productive.

Understanding how credit scores work, and therefore, having a good score can save you lot of money. In insurance, a good credit score and history can mean paying less for home and auto insurance each year.

This is the 5th post in a 5 part series on your credit scores. Read:

• Part # 1: How Does Your Credit Score Work?
• Part # 2: What Effects Your Credit Score?
• Part # 3: Where Should I Get My Credit Score?
• Part # 4: How To Get My Annual Free Credit Report

What’s the Fastest Way to Raise my Score?

1. Delete any errors from your credit report
2. Automate your finances to never miss a bill
3. Pay down revolving debt. Start with the debt that is closest to its credit limit. (Note: This might not make financial sense because there is no guarantee that the debt that is closest to its limit is the debt with the highest interest rate.)
4. Ask a parent or a friend with great credit, to be added as an authorized user
5. Ask for an increase in your credit limit

If I Close All My Accounts, Will That Hurt My Credit Score?

Yes. Creditors like to see a history of credit. If you close your accounts, you will have no history.

Why Does my Credit History Affect my Insurance Premiums?

Insurance companies have found that people with low credit scores tend to file more claims.

Do I have More Than 1 Credit Score?

You only have one FICO score. However, there are many other ways companies choose to classify you.

Have you ever heard of your VantageScore? It was once thought, that this was going to replace your FICO score. Most lenders today evaluate your risk potential with a FICO score. So I think it’s important to concentrate on that.

The formulas are not exactly the same but they’re similar.

I was denied a Loan Even Though I Have Perfect Credit, Why?

Ask the person who denied you the loan. By law, they have to provide a response as to why you were denied inside 30 days.

What is Revolving Credit?

Revolving credit is a term used for credit that has no expiration.

Car payment, student loans, or mortgages are not considered revolving because you eventually pay these types of loans off. Loans that are paid off are called installment credit.

A credit card is a revolving because the credit is always available. As long as you pay it off each month, it’s always there.

Your FICO score looks at the amount of revolving credit you have compared to installment credit. The less revolving credit the better, in the eyes of FICO.

Does Applying for a Credit Card Hurt Your Credit Score?

Yes, applying for a credit card is a hard inquiry, which can negatively affect your credit score in the short-term. You can expect your credit score to go down around 5 to 10 points for six months any times a hard pull is done.

Keep this in mind, if you’re applying for a loan in the near future.

That’s it for the series on your credit score. I hope you not only enjoyed reading but learned what to do in the future to optimize your score. 

If you have any questions, please write in the comments. 

Understanding how credit scores work, and therefore, having a good score can save you  lot of money. In insurance, a good credit score and history can mean paying less for home and auto insurance each year.

This is the 4th post in a 5 part series on credit scores. Read:

• Part # 1: How Does Your Credit Score Work?
• Part # 2: What Effects Your Credit Score?
• Part # 3: Where Should I Get My Credit Score?

The purpose of today’s post is to answer the common question, “How to get my annual free credit report?“

Your credit report, which is different from your credit score, is a detailed report of your past credit history. It provides a future lender with just about every major financial transaction from your past. The information on your credit report is what makes up your credit score.

Getting your credit report is free and easy. To do so, go to annualcreditreport.com. You’re entitled to a free copy of your credit report from each of the reporting agencies once a year (Equifax, TransUnion, and Experian).

(Tip: AnnualCreditReport.com may not be the first site that comes to mind when you think free credit report. It is however, the one set up by law through the Fair Credit Reporting Act.)

You can get these all at once or over a period of a year. I prefer to spread it out just in case someone requests a copy of my credit report, I don’t have to pay to get one.

Once you get your credit report, it’s important to review it carefully. You want to double check everything. Even basic information such as your name, social security number, address, etc…  Start from the first page and work your way toward the end.

To show you what you should be looking for, I’m going to take you through a past copy of my credit report from Experian over. The exact order may differ for you depending on what credit reporting agency you receive your report from.

Potentially Negative Items or Items for Further Review

The first item showing on my credit report is a collection agency. I had a bill go to collections when I was in college. My credit report gives me the information of the collection agency along with the original creditor. It also lists the amount, which was just $57, and the fact that I paid it off.

Most importantly, it mentions that this collection will be removed after seven years.

If I was a smart college kid, I would have recorded the dates and kept a paper trail. This would allow me to record the exact date that the company went to collections. A lot of times, dates are a few months behind, which I think it is in my case. If I had the proper documentation showing that this bill was sent to collections earlier, I could have it deleted from my credit report earlier.

Another footnote worth mentioning is that Chapter 7, 11, and 12 bankruptcies as well as unpaid tax liens will remain up to ten years.

Accounts in Good Standing

The next section of my credit report gives accounts that are paid up to date along with their balance history. Mine include three credit cards and one mortgage. All accounts statuses currently list “Open/Never late”, a great sign.

On one of my credit card accounts I’m listed as an authorized user, meaning it’s not my responsibility to pay the bill. Even though this isn’t my credit card, being an authorized user still affects my credit rating.

Here is a bit of history on the authorized user because it has been a back and forth issue. One of the ways you use to be able to increase your credit score was to add yourself as an authorized user to an account in good standing. For example, if your parents had good credit, you can ask for them to add you as an authorized user and their credit history would go on your credit history. Your credit score would then immediately go up. The FICO figured out this trick quickly and decided to eliminate authorized user status from the credit score equation for a short time. However, about two months after they reversed their decision, stating:

“After consulting with the Federal Reserve Board and the Federal Trade Commission earlier this year, Fair Isaac has decided to include consideration of authorized user trade lines present on the credit report in the FICO 08 model.” – Tom Quinn, Vice President of Global Scoring Solutions for Fair Isaac Corporation

My guess is that FICO adjusted their formula in the two months, to minimize any credit score increase from being added as an authorized user on an account in good standing. However, if the account is in bad standing, it will negatively affect your score.

Therefore, if you’re an authorized user on an account with a bad credit history, it might be best to have yourself removed.

Record of Requests for Your Credit History (Hard Inquiries)

The next section of my credit report lists recent hard inquires. Hard inquiries are performed by current and potential lenders when you’re taking on an additional financial obligation.

The most common hard inquiries you will find on your credit report include:

• Banks & Credit Unions
• Credit Card Companies
• Car Dealers
• Insurance Companies
• Property Management Companies & Landlords
• Phone & Cable Companies
• Utility Companies

Here’s the statement from Experian on my credit report:

“We make your credit history available to your current and prospective creditors and employers as allowed by law. Experian may list these inquiries for two years so that you will have a record of the companies that accessed your credit information.

The section below lists all of the companies that reviews your credit history as a result of action you took, such as applying for credit or financing or as a result of a collection. The inquires in this section are shared with companies that view your credit history.”

You want to avoid hard inquiries as best as you can. It’s estimated that a hard inquiry will lower your credit score anywhere between 5 and 10 points.

Since hard inquires do negatively affect your credit score, here’s how to limit them.

1. Ask – Anytime you’re opening a new account, ask if they are pulling your credit, when they are pulling your credit, how many times they pull your credit, and are there any ways for them not to pull your credit.
2. Don’t Rate Chase – A common but damaging trend is to chase low introductory rates on credit cards or high introductory rates in the case of savings or checking accounts. The more accounts you apply for, the more hard inquiries you will see on your credit.
3. Avoid Applying for Store Cards & Cards That Give You a Free Gift – Popular retail stores will ask you if you want to save 10% today by applying for a store credit card at checkout. A similar marketing trick is done by issuing free T-Shirts at sporting events or pizzas on college campus to those that apply for a credit card. Keep in mind that every time you apply for one of those cards, they pull a hard inquiry.
4. Avoid Nothing Down and 0% Interest Loans – Say you went into Best Buy and want to buy a new big screen. They have a promotion going on that says, “0% financing to 2013″. Even though it’s a 0% deal, if you want to limit hard inquiries, avoid it. Even if you know you will have the money in the future, it’s not worth it. Pay in cash or a credit card today and avoid them ever having to pull your credit.

Getting Rid of Hard Inquiries

There used to be a common technique to get rid of hard inquires;  if you did a soft inquiry on yourself once a day, hard inquires would eventually get bumped. Credit reporting agencies are bright people and quickly caught on.

As of now, there is no way to eliminate a hard inquiry that you gave permission for. That doesn’t mean that there is no way to get rid of a hard inquiry from a company that you didn’t give permission to.

If you don’t recognize or don’t remember giving authority for a hard inquiry on your credit, you have the right to get it removed by mailing or faxing a request to the creditor. You want to do this immediately, before they make another unauthorized inquiry.

The contact information for the creditor should be on your credit report. If it’s not, visit the company’s website and search for a contact number. Then call the creditor, and ask for either a fax line or mailing address to submit your formal letter. (Note: Don’t ask for the hard inquiry to be removed over the phone because there is no paper trail.)

Below is a copy sample letter you send via fax or certified mail to each creditor.

Your Name
Your Address
Your Phone Number

RE: Unauthorized Credit Inquiry

I was recently going over my credit report from (Insert Reporting Agency’s Name), and I happened to see a hard inquiry listed from your company.

The details of the inquiry are below.

Date of Request: (Insert Date of Request)
Creditor Name: (Insert Creditor Name)

In which I am aware of, I have never approved your company for this inquiry. Under the Fair Credit Reporting Act, it is stated that you must have my authorization to perform a hard inquiry on my credit.

Unless you can provide me a written proof of authorization signed by me, I’m asking you to contact each credit reporting agency to have your illegal inquiries removed immediately. I also ask that you remove any personal information of mine from your records.

Thank you for your attention to this matter,

Your Name
Your Signature

Removing a hard inquiry on your credit report can give your credit rating a slight boost.

Inquiries Share Only With You (Soft Inquiries)

Soft inquiries are inquires that you’re not even aware of. For example, companies who send preapproved credit card applications  through the mail, perform a soft inquiry before sending you that application.

Soft inquiries have no bearing on your credit score.

On my credit report from Experian it states in bold letters:

“We offer credit information about you to those with a permissible purpose, for example to:

• Other creditors who want to offer you preapproved credit
• An employer who wished to extend an offer of employment
• A potential investor is assessing the risk of a current obligation
• Experian Consumer assistance to process a report for you
• Your current creditors to monitor your accounts
• A static copy of your credit report provided to a subsequent user        necessary to complete your mortgage loan application

These inquires do not affect your credit score.”

The important thing to remember when reviewing your credit report is to eliminate any errors. It is a pain to do so but one error can mean the difference between a great  or poor credit score.

This is the 2^nd post, in a five part series on raising your credit score. The goal today is to answer the question, “Where should I get my credit score?”

What does viewing your credit score have to do with insurance? Insurance carriers take into account your credit score, to determine the cost of your policy. The better your score, the more you can save on home and auto insurance.

Not only does your score impact how much you pay in premiums each year, but good credit can save you thousands over your lifetime on your mortgage, car loans, and apartment rentals as well. 

I recommend reading parts 1 & 2 , How Does Your Credit Score Work & What Effects Your Credit Score , before today’s post. 

There are dozens of different ways you can view your credit score. Unfortunately, it’s hard to sort through exactly what companies you can trust and the companies you can not.

The purpose of today is to review two safe and simple ways you can view your credit score today.

The first option to see your credit score is through a service like CreditKarma. CreditKarma allows you to see your credit score for free.  

A reason I enjoy CreditKarma is the tools it has once you view your report. My favorite is the “Credit Report Card” and “Credit Simulator” tables.

The credit report card reviews the strengths and weaknesses of your credit. The credit simulator simulates the impact of your credit score, by taking a certain actions.

You can simulate both good and bad actions. For example, you can see what would happen if you increased the credit line on your current credit card. As well as seeing the impact of a missed payment or bill going to collections.

Spend some time in this simulator. It’s one of the best tools around for finding out exactly what you need to do to increase your credit score.

There is a downside to using CreditKarma.com as it doesn’t reveal your real FICO score. To get your actual FICO score, you can go to MyFICO.com. Although, MyFico.com does charge a small fee, I find it helpful to go directly to the source at least once a year.

MyFico has similar simulation tools to see what effects certain actions have against your credit. Again, these simulator tools are a great way to see how to improve your score.

After you’re done checking your credit score, file it with your other important documents, and put a note on your calendar to do so again in a few months. It’s important that you keep a close eye on your credit score.

Tomorrow, I’ll review how to get your Credit Report. If you have any questions on where to get your credit score, let me know in the comments.