Year End: Check Your Credit Report

How many of you have checked your credit score (also known as FICO score) in the last year?  This is something that is easily overlooked by many.  Ever wonder if you could get a lower interest rate on that credit card?  Not sure why your insurance has went up?  It could have something to do with your score/report.  There are so many things that depend on your credit score as to what we are charged for.  On a home purchase, the better your credit score, the better the interest rate you will typically receive.  I have put the range of scores below:

• Between 700 and 850 – Very good or excellent
• Between 680 and 699 – Good
• Between 620 and 679 – Average
• Between 580 and 619 – Low
• Between 500 and 579 – Poor
• Between 300 and 499 – Bad

So, as you can see, the higher your credit score, the better.  Late payments, missed payments, and excessive balances are something that could potentially lower your credit score.  You may not have known this, but if you apply for a loan, you are required to receive a copy of your credit report at that time.  Also, you can receive one free copy of your credit report annually.  So, go ahead and check your credit report this year if you haven't already.  If you have, congratulations, you're on top of things!  If you haven't, get to it, and challenge yourself to begin raising it!  You'll feel much better when you receive more favorable terms when applying for a loan.  I have put the link to the website where you can obtain this free report up on my blog.  This website is completely legit.

Have a great week!

Year End: What's Left In Your Flexible Spending?

Many employers offer a flexible spending account, which allows you to receive some tax advantages for medical related costs in most cases.  Some offer what is called a Health Savings Account (HSA), and others offer a Flexible Spending Account (FSA).  One negative about the FSA is that if you do not use the money you contributed each year, you lose the money for that year.  In most cases, the deadline to receive services or incur medical related costs is December 31st.  However, some employers also offer you a grace period, allowing you to spend your FSA money up thru March of the following year.  For example, if you contributed during 2011, in some cases, you would have until March 2012 to spend your 2011 contributions.  Again, check with your employer to see if they do this.  So, if you've got some extra money left in the account, it may not be a bad idea to go ahead and get any issues you have dealt with this year instead of losing the money.  There are also several things you can purchase that do not require a prescription (i.e. a thermometer) and also get reimbursed.

Be sure and check your account as soon as possible, so you can prepare yourself for next year.  If you know you are going to have some major medical costs coming up, hopefully you also planned for that during your Open Enrollment period.  There's no way to tell exactly how much you'll need, but do your best to anticipate anything coming up.  This includes your normal prescriptions, co-pays related to regular visits, etc.  I hope this helps you in your planning for health costs in the upcoming year and in the future.