Frequently Asked Questions
Q: Mark at the Bangor Navy Base asked, How do I put a stop to non-stop credit card applications I get in the mail every day?
A: Its real simple - just dial 888-5-OPT-OUT (888-567-8688) or go online to www.optoutprescreen.com, a site run by the credit bureaus. For security reasons, you need to copy and paste this link into your browser.
In about a minute you can opt out of pre-approved credit card or insurance offers. You even get to choose whether you want the mailings to stop for 5 years or forever.
PLEASE NOTE: If you want to "opt out," you will have to provide your Social Security number, which is how the credit bureau identifies you. But in this case it's OK, because you made the call or went directly to the Web site.
Q: Jacqueline wrote to ask how long she should keep her credit card slips.
A: Unless the charge slip is related to a tax deductible transaction, such as a business expense or charitable contribution, I keep it for about a year. That way if I need to take something back to the store, I have my proof of purchase.
For big ticket items, where I might need to show a sales slip to get warranty service, I attach the sales slip and credit card slip to the warranty card. I keep them all in an old shoebox. If I need one, I know right where it is.
For information on how long to keep other financial records, www.bankrate.com.
Q: A lot of people are taking advantage of the new federal rule that gives them a free copy of their credit report (from each of the big 3 credit reporting agencies) each year. This probably explains why so many people have asked me the same question. They want to know if their credit score gets dinged when they requested a copy of their credit report.
A: No. Your credit score is not affected when you are the one asking to see your credit file. There is a slight negative effect when you apply for credit and potential lenders check your credit report. The logic is people who apply for a lot of credit often have problems paying their bills.
By the way, www.annualcreditreport.com is the only site you should use to get your free credit report. Don't be fooled by sites that say "free credit reports" in many cases they're trying to sell you a service after you get that free report. This site was set up by the Federal Trade Commission to make it easy for you to get that free report.
But be careful - once you choose which credit bureau you want to get your report from and you are transferred to their site, that credit bureau will probably try to sell you their services. So, look for the link - and you sometimes have to search for it - that says "free credit report."
If you're being asked to put in a credit card number, you are not at the right site or the right place on that site.
Read Herbs Tip on Free Credit Reports
Q: Another credit question. Will your credit score be hurt if you shot around for a loan?
A: NO. According to Consumer Reports Money Advisor, "you can shop for the best rate on an auto loan without getting hurt because the formula [used to determine your credit score] ignores all inquiries about similar loans (like a mortgage) that occur in the 30 days before your score is calculated.
Inquiries about similar loans in any number of separate 14-day periods over the past year are each counted as one inquiry." So, if you applied to a dozen banks for a car loan in a two-week period that counts as one credit inquiry.