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Coronavirus Scams Increasing

The Coronavirus and Federal Student Loan Payments

Many people with student loans now wonder what their repayment options are in the wake of the Coronavirus pandemic. The president stated interest would be waived on all federal student loans. Read the specifics in this government link https://bit.ly/2wy1T15. 

Employees Are Financially Stressed

U.S. workers claim they want quicker access to their pay, according to a study by the Workforce Institute at Kronos, which found that 72% of the 1,180 U.S.-based employees surveyed want access to their wages before their payday.

More than half of employees (53%) agree financial stress distracts them from their work. Two-thirds of employees (66%) wish they had early access to earned wages to simply cover bills, especially emergency expenses such as a car repair (32%) or unplanned medical care (19%).

Seven Tips for Improving Your Credit Score

By Karen Gray, Arvest Bank SVP Marketing

Credit scores say a lot about our financial health and habits. They indicate to prospective lenders how much of a financial risk a person is when requesting a loan for a big ticket item.

Let’s take mortgage loans for example. An important step in the home buying process is ensuring that the buyer has a good credit history. Establishing a good credit score can mean the difference between being denied or approved for a loan to buy a house. It can also help the buyer get a lower interest rate on a mortgage.

According to a recent survey by Credit Sesame, low credit scores put homeownership out of reach for 1 in 5 consumers. Credit scoring systems are complex and vary among creditors. If one factor changes, the score may change — but improvement generally depends on how that factor relates to others the system considers. If someone is denied a loan, or is getting unfavorable rates for financing, they might need to improve their credit score.

Building credit isn’t a particularly quick or simple process, but it’s possible to improve your credit score. Here are some steps to take now to begin that process:

1. Request a credit report – and make sure it is correct. It's designed to help banks and other institutions make lending decisions. A credit report illustrates a person’s credit performance, and it needs to be accurate in order to apply for loans – such as a mortgage loan. The Fair Credit Reporting Act gave consumers access to free annual credit reports from the three major credit reporting agencies, but they must go through the Federal Trade Commission’s website at annualcreditreport.com ​to receive it.

If a credit report isn’t taken seriously, it can cost consumers hundreds or thousands of dollars over the course of their lifetime. For consumers who want to get smart about their credit, getting a credit report could be worthwhile.

2. Pay bills on time. Payment history tends to be a significant factor in determining a credit score. If a credit report indicates that a consumer paid bills late, had an account referred to collections or declared bankruptcy, those actions could negatively affect the credit score. There are many credit-scoring providers, but the predominant one in the United States is the FICO credit score. Payment history makes up 35 percent of a FICO credit score. The longer bills are paid on time, the better the credit score. Avoid missing payments by setting as many bills as possible to automatic bill pay.

3. Keep balances low on credit cards. Many scoring systems evaluate the amount of debt a person carries, compared to their credit limits. If the amount owed is close to the credit limit, it's likely to have a negative effect on the score.

Maintaining high balances can hurt credit scores, regardless of whether bills are paid in full each month.

4. Open new credit accounts only as needed. Keep this in mind the next time a retailer offers 10 percent off by opening a new account. Applying for too many new accounts could have a negative effect on a credit score. Although it’s generally considered a plus to have established credit accounts, too many credit card accounts may have negative effects.

When needing a new line of credit, don’t jump at the first appealing offer; compare rates and fees offered through mail solicitation, on the Internet or at a local bank.

5. Don’t close old, paid off accounts. According to FICO, your credit scores consider the age of your accounts – the longer your credit history, the better. Maintaining debt can be good for credit health — if it’s managed responsibly. And some of the biggest factors in credit scores, like credit card utilization rates and the average age of credit accounts, could take a hit with closing old accounts.

6. Build a strong credit age. Generally, scoring systems track the length of credit a person has developed during the years. A good average age of credit history would be five years and up. An insufficient credit history may affect credit scores, but factors like timely payments and low balances can help offset this issue.

7. Talk to a credit counselor. Using legitimate credit counseling can help manage debt and won’t hurt a credit score. For more information on debt management, contact CCOA.

Achieve Your Financial Goals in 2020!

Christmas Shopping and Deferred Interest

Know Your Holiday Spending Budget

Don’t Fall for the Suspended Social Security Number Scam

Received a Social Security scam robocall lately? There have been 200,000 complaints of government imposter calls this year. Most people just hang up and never report the scam. But those who fall for it lose an average of $1,000.

The suspended Social Security number scam usually begins with a phone call or robocall. Criminals will often spoof the Social Security Administration number. This makes the caller ID show a call that looks like it is from the government. When you answer, a scammer will say your Social Security number has been suspended.

The person may sound professional and will usually explain the number has been suspended because you committed a crime. The thief may also say the government has filed a lawsuit against you. "To rectify this terrifying scenario, victims are told to call a specific number, where they will be required to provide their personal information," says Paige Schaffer, CEO of global identity and digital protection services at Generali Global Assistance in Bethesda, Maryland. Scammers may also say you need to pay a fine to end the lawsuit and recover your Social Security number.

The scam may take on several variations. "In a slightly less frightening version of the scam, victims are told their Social Security number has been suspended due to 'suspicious activity,'" Schaffer says. To un-suspend the number, the scammer will say you need to be connected to a Social Security representative. You'll be asked to share personal information, such as stating the last four digits of your Social Security number to make sure it matches. You may be told to send money too.

Ultimately, the scammer's goal is to get your personal information. In addition to your Social Security number, this could include your birthday, bank account number or home address. The thief will typically want a payment from you to reactivate your Social Security number. "Victims have reported being told they can make payments via wire transfers or gift cards," Schaffer says.

If you receive a call informing you that your Social Security number has been suspended, you can rest assured it is not true. Social Security numbers do not get suspended. "Any call that states your Social Security number is under suspension is a scam," says Robert Siciliano, a cybersecurity expert for ETF Managers Group in Summit, New Jersey. Thieves are hoping you'll be scared and turn to them when they offer help. "In reality these scammers are trying to steal your information," Siciliano says.