Reasons Why You Need To Check Your Credit Report

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

We all know that it's important to have good credit - after all, your credit score directly effects your ability to buy/lease a car, get a mortgage, take out a loan and so much more. But what many of us fail to remember is that it is just as important to check up on your credit report regularly, or at the very least, once a year. In fact, according to USA Today, even though we have the opportunity to check our credit report for free every 12 months, a study conducted in 2015 by the National Foundation of Credit Counseling suggests that approximately 2 in 3 adults haven't.

Now that you know that you should check your credit report, let's move onto the why; here are three reasons:

1. Errors: Errors are natural and are something we may experience in almost everything we do, but there isn't much room for them when it comes to your credit score. If your report has inaccurate information - whether it just be out right wrong or someone else's information - you may not be the right candidate for a loan or the like in a lender's eyes. And since correcting a credit report error can take quite a bit of time, you want to make sure it's taken care of well before you need to apply for something that requires your score.
2. Identity Theft: In the unfortunate event that someone has been using your information, you may not notice it until it's too late - unless you check your credit report, that is. By double checking the accounts and inquiries that appear on your credit report, you can more easily detect if someone has been using your identity for things such as applying for credit or making purchases. Although your credit card company may be able to alert you of unusual activity, checking your credit report for yourself can help you rest assured knowing that you are aware of everything that's happening under your name.
3. Savings: Your credit score determines how much interest you pay back on certain loans, and if yours isn't accurate, then you may be spending money you shouldn't be - to save on interest, double check that your credit score is where it needs to be. But, if it's not, knowing your credit at any given moment can help you determine what you need to do to get it there - for example, if you see that you're guilty of making late payments, now you know what you need to change to raise your credit score back up.

Considering that your credit score has such a large impact on many of the things we do, we hope you take this to heart and make a mental note to check your score at least once each year - you'll be glad when you do!

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.

Cash or Credit?

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

When you head to the register, which method of payment do you usually reach for - cash or credit? While some people prefer to hand over a physical bill, others choose to pull out the trusted piece of plastic that can so easily be swiped time and time again. But when it all comes down to it, which of the two is preferred? Is one more valuable than the other? Safer to use? Truth be told, both have their own set of pros and cons, so it truly comes down to which one you, the buyer, feels is most appropriate for your current financial situation. Still not sure though? Below are a few of the benefits of each to help you decide:

Cash

• By paying with cash, you can be a bit more mindful of your spending and prevent yourself from purchasing more than you can actually afford.
• Retailers are less likely to ask you for personal information (such as your zip code or email address) when handing over cold hard cash - that means less time at the register and fewer unwanted emails!
• In a way, you may find that cash leaves you with less responsibility since you don't have to worry about paying any bills at the end of the month - once you hand it over, your purchase is taken care of!

Credit

• Most importantly, using a credit card requires you to make payments by a certain date, and by doing so, you begin to build your credit (which you absolutely need for future financial endeavors such as buying a home).
• Depending on the lender, you may be eligible to receive cash back for some of your purchases. Essentially, that means you can begin to acquire money that you didn't have!
• Rewards points are often offered for every dollar spent. Every time you swipe, you can be one step closer to that dream vacation you've always wanted or find yourself one step ahead when it comes to covering the cost of holiday shopping at the end of the year.

The next time you struggle with deciding if you should pay with cash or credit, be sure to keep the above benefits of each in mind - knowing the impact they can have is the first step to deciding which method is right for you!

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.

Tips To Improve Your Credit Score

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

If you've ever gone through the process of applying for a mortgage, buying a car, or even something as simple as signing up for a new credit card, then you are likely well aware of how important a good credit score is. And even if you haven't had these experiences yet, you are probably at least familiar with the idea of a credit score and what it means for you in various aspects of your life.

Since your credit score plays a major role in your ability to achieve success in several financial situations, we wanted to take this opportunity to offer a few tips that can help you improve yours; check them out below:

1. Always check your credit report for errors. Mistakes are a natural part of life (we all know that) but when they wind up on a credit report, they could be extremely damaging to your financial future. If any are evident, take the next steps by meeting with a financial expert to learn how to dispute them.
2. Make paying your bills on time a priority. Although many would think that this is a given, you would be surprised at how often people fall behind or miss their due dates. According to an article by U.S News & World Report MONEY, 35% of your credit score comes from your payment history - that's why it is so important to keep a close watch on your bills and stick to a rigid payment schedule.
3. Avoid cancelling old credit cards even when you aren't using them regularly anymore. Did you know that approximately 15% of your credit score is determined by the length of your credit history? Even though you might not be reaching for them in your wallet as often as you used to (but you should still be using them to some extent!), it's a good idea to keep accounts open to show that your history is still there.
4. Keep a close watch on how often hard inquiries are placed on your account. Hard inquires typically occur when financial institutions check your report to determine whether or not they will lend you a sum of money (for example, a mortgage). Since businesses that do so are required to tell you that they will be checking your report beforehand, you can keep a record of all of the potential hard inquiries that will affect your credit score. Hint: the less you have, the better!
5. Reduce your credit utilization rate by applying for higher credit limits. The amount of credit that you use directly influences your credit score, so by having a higher rate, it will seem like you are using less even if you are charging the same amount as you were in previous months. However, be weary of spending more if a credit increase is issued - just because you have more available doesn't mean you should use it all at once!

For additional tips on how to improve your credit score, please click here.

American Investment Planners LLC offers tax planning, estate planning, retirement planning and more to generations of families throughout the United States. More information about the services offered is available at www.americaninvestmentplanners.com.