Golden Opportunities

Being a conscientious consumer can seem very time consuming. There are so many “opportunities” to part with our hard-earned money. So how do we resolve to become more knowledgeable to save our cash? Lucky for us, Sheryl Harris has resolved to share her “consumer resolutions” list with us today. Sheryl is the Consumer Columnist for The Plain Dealer.

Question:First on your list - pay off your credit cards. Always a good idea, but why so important now?

Answer: If you don’t read those notices that arrived in your mail, you might miss that credit card companies have been jacking up rates and doubling or even tripling minimum payments in advance of credit card regulations that go into effect in February.
Even though these new regulations should keep rates in effect for existing balances, companies still have a little wriggle room to increase rates for new purchases.
Paying down -- or better yet -- paying off your balance will allow you to shop for credit with better terms.

Question:From credit cards to credit reports. Your second resolution is "get your annual free credit report".

Answer: Here’s why – first of all, you’re entitled to it – it’s one of your rights.
And here’s where you can request your free annual credit report:

• You can call 1-877-322-8228
• There's a link to the correct site from the Federal Trade Commission web site, www.ftc.gov -- you just click on the link that says annual credit report. Just FYI – you do have to key in your social security number. And I would only use this resource – others sound free, but actually charge you.

By getting your report, you can check to see if anyone is opening accounts in your name as well as find and eliminate errors that could drag down your score.
On the other hand, you don’t really need to get your credit score - which is different from your report. It costs to get your score. And you only really need it if you’re planning to buy a big purchase where you’ll need your credit approved.
So if you take care of making sure your credit report is accurate, you’ll have a better chance at a higher score.

Question:Number three on your resolution list is "avoid free trials". Why? Isn't "free" good?

Answer: You’ve heard the expression “there’s no such thing as a free lunch?” Well, there’s also no such thing as a “free trial!”
There usually is a deadline by which you have to cancel in order to keep from being billed or automatically sent new shipments. Companies don't always make that deadline clear, and many consumers only discover the deadline AFTER they are billed. Then you get stuck with paying them monthly charges.
If you really want to accept a free trial, make sure you have read every possible thing about canceling the service, or you may end up with a long term commitment you weren’t counting on.

Question:And your final resolution has to do with committing to services as well - "check out businesses before you use them". But how do you do that?

Answer: The best thing to do is to check with the Better Business Bureau. The Better Business Bureau now has a letter grading system. This way it’s easier to figure out if a business has had a few – or a lot – of complaints. And to reach them, you can go on line to www.bbb.org/us or you can call them at 216-241-7678
And once you’ve decided to use a business, be sure to read the contract before you sign it. So many of us have the tendency to just sign a contract without reading it. But, by reading it, you may find terms that alarm you – and even stop you from using that business.
You also want to understand how to cancel the contract – and all contracts should have a way to be cancelled. You’ll want to know what steps there are to take, deadlines that are involved, etc.

As you reflect on which resolutions you will make for the New Year, remember that consumer resolutions can protect your revenue! My thanks to Sheryl Harris for giving us the gift that will keep on giving all year long! And what is that gift? It’s her excellent advice!