If you are like most Americans you probably use an automatic teller machine (ATM) or your debit card quite often. Credit Counselors warn that there are many ways that thieves can steal cash or your personal information from you and now they are doing it directly at the ATM machine.

You may know that if a thief gets a hold of your PIN number they may be able to empty your bank account. But did you know that they can get it by tampering with the ATM machine itself? They are doing it with a device called a skimmer, which reads all the private information about your account that is stored in your card’s magnetic strip. Not only can the thief obtain your account information, they may be able to obtain your pin with some devices. Once the thief has this information, they can either produce a “clone card” or shop online until your account is run completely dry.

The skimmer device is usually attached to a legitimate ATM and the thief usually records the PIN number at the time of the transaction by using a secret camera or a keypad overlay that is touch-sensitive and placed over the actual keyboard. In some cases, the ATM itself may be a fake device placed by the thief. These are usually placed in out-of-the way locations or by a real ATM that the thief has placed an out-of-order sign on.

Credit counselors advise that when using the ATM, keep the following in mind:
• Use a familiar ATM, or one that is attached to your bank. Avoid using it around suspicious people.
• Check the card slot for signs of tampering. Don’t use it if the slot jiggles or anything else looks suspicious.
• If you see suspicious looking cameras, don’t use the ATM.
• Don’t use an ATM that has a sign attached to it.
• Use a well lit and familiar ATM at night.

As you are likely aware, household costs have increased tremendously since last year. Gas is up 21%, food 5%, and home energy 9%. Credit counseling agencies have been giving their clients some tips for saving on those daily living expenses.

Make a shopping list. Researchers find that making a shopping list and sticking to it will help limit impulse buying. Also, never shop while hungry or tired or you may fall to temptation. Your grocery store should have a list of goods that will be going on sale in the upcoming week. You can also subscribe to thegrocerygame.com, which will reveal sales that aren’t advertised yet. Stock up on the best deals!

Check for air leaks in your home. Use caulk, weather stripping and spray foam to seal leaks in areas like around windows and doors. Adding insulation can also save on your heating and cooling bills. Increase your heating and air conditioning unit’s efficiency by changing air filters every three months. Credit Counselors advise to save on electricity by changing your light bulbs over to fluorescent compacts as they burn out. Some appliances use electricity when you aren’t using them. Devices with standby power like TVs, stereos and DVD players should be plugged into a power strip so you can turn them off all at once.

Make sure you aren’t spending on needless costs. If you have a credit card and have always paid on time but it has a high interest rate, try getting it lowered because you have been a good customer. You can try a similar approach with your insurance company but instead, shop around and see if you can get a lower premium. If you don’t use all of your cell phone minutes, change your cell plan.

If you need budget help, most non-profit Credit Counselors would be happy to assist you at no charge.

First of all, reverse mortgages are not meant for everyone and according to Housing Counselors, should not be used unless it’s a necessity.

Essentially, this loan is borrowed against your home’s equity and is paid out in a lump sum or in monthly installments to the homeowners. The amount of a reverse mortgage that a homeowner can qualify for depends on factors such as the age of the youngest homeowner (the older that person is, the more they will qualify for), and the home’s equity-value. A major problem that can arise while applying for a reverse mortgage is that both homeowners may not be over 62. Housing Counselors warn that there have been cases where the younger homeowner takes their name off the mortgage so that they can qualify for more money. This is not recommended because the younger homeowner may lose the home if the older owner dies.

Factors considered for a reverse mortgage include, you are 62 or older and have equity built up in your home. This type of loan is very costly and should only be used if you are home rich but cash poor or are struggling to meet your monthly expenses. It is not recommended that you take out a reverse mortgage for gifts or vacation. A reverse mortgage may be more necessary to help with the rising costs of food, drugs and other household expenses that according to a study taken by AARP, has contributed to a surge of bankruptcy filings by the elderly. This study found that from 1991 to 2007, there was an increase of filings equaling 125% for people aged 65-74 and 433% for people aged 75-84.

While reverse mortgages can help out certain people in certain situations, Housing Counselors advise to look into other options such as a home-equity loan before taking into account this very expensive type of loan.

Gas prices are high and consumers are feeling the pinch at the pump. With gas prices nearing $4.00 per gallon, credit counselors are urging you to save gas whenever possible.

You can try the following methods to maximize a tank of gas:

• Consolidate your errands and do whatever possible to limit your daily driving.
• Avoid aggressive driving. Rapid acceleration, speeding and hard braking wastes gas. It can lower your gas mileage by 33 percent at highway speeds and by 5 percent around town.
• Don’t drive over the speed limit. According to experts, you can assume that each five miles per hour (mph) you drive over 60 mph is like paying an additional twenty cents a gallon for gas.
• In households where more than one vehicle is available, when possible make sure you choose the car that gets better gas mileage.
• Limit you car’s idle running time.
• Don’t use premium gas unless your car manufacturer requires it.
• You should also take a look in your trunk. Carting a lot of unneeded items around can cost you. An extra hundred pounds in your vehicle could reduce your mpg by two percent, depending on the size of your vehicle.
• Keep your vehicle maintained. Your car’s spark plugs, air filter, fuel injectors, tires and brakes can reduce gas mileage if they are not properly maintained.

Not only will some of these steps increase your gas mileage, but also they will help to make the roads a safer place.

Credit counselors warn not to charge your gas if you cannot pay off your card every month. This might seem like a temporary solution, but paying interest on already high gas prices is costly.

During hard times, you may find yourself in a position where you may have to face possibly foreclosing on your home. Foreclosure prevention counselors advise that this has become a very common situation for many Americans these days and unfortunately, it has caused a new trend among scam-artists.

Beware of foreclosure rescue scams! There are many fraudulent organizations posing as legitimate foreclosure prevention organizations. They claim they can save your home and further claim they have successfully been helping clients for many years. In many cases, the homeowners who respond to these con artists usually end up losing their home, resulting in the con artist walking away and pocketing the equity.

Always use caution when searching for companies which claim to provide foreclosure assistance. Do not work with an agency who:

• Asks for an up-front fee before providing you with any services.
• Tells you to send a mortgage payment to them (you should never send payments to anyone other than your lender).
• Asks you to sign your house deed over to them.
• Is pushy or rushes you into filling out and signing loads of paperwork.
• Guarantees they can save your home before reviewing your situation.
• Cannot clearly explain the steps to be taken to save your home.

On the other hand, there are many agencies that can truly help you save your home. If you decide to go with a foreclosure prevention agency, housing counselors advise you to carefully research the company. Look for a reputable agency which does the following:

• Offers a free initial consultation to go over your unique situation.
• Takes the time to fully explain the process.
• Shows an honest success rate and does not claim to be 100% successful.
• Is registered with the Better Business Bureau and has a good record with them (click here to visit the Better Business Bureau).
Although it may be difficult to make sound decisions due to stress while facing a foreclosure, it is important to use extreme caution! Housing counselors advise that picking the right agency can make the difference between saving and losing your home.

When it comes to budgeting, credit counselors often advise to plan ahead.

There are many costs that are not necessarily considered monthly expenses that you may be forgetting to include in your monthly budget such as car maintenance (including city and plate license), car insurance, school clothes, school supplies, insurance premiums and taxes. These costs might only come up one to four times yearly. These may be large one-time expenses that may not be included in your balanced budget, which is why it is important to start saving now. To budget for such accounts, take the total estimated cost per year, divide it by 12 and set aside that amount monthly so you are ready or in a better financial position to pay them when they are due.

Then there are unexpected costs that may come up immediately such as car repairs, medical bills, and home repairs. These are more difficult to estimate, but equally important. In the event these saved funds are not needed, you can apply this to a high interest credit card.

If your budget allows, it is a good idea that you prepare for unexpected costs and loss of income. Credit counselors advise that you have three to six months of income set aside in an emergency fund.

If you have had trouble saving up for an emergency fund, you may want to consider putting away this year’s tax return. In addition, don’t forget about that extra stimulus refund you may be receiving later this year. It might be tempting to spend that extra money right away, but you may want to consider saving it. Credit counselors advise that the absence of an emergency fund can be a critical financial error and you will be thankful it is there if it is needed.

It is still possible to obtain a credit card, even with bad credit. If your are in this situation, you will most likely have to pay more and your card’s terms may be more inflexible than those of the average credit card owner. If you still owe bad debts, call a credit counselor and he/she should be able to give you the advice you need to begin building a better credit history.

It is hard enough to obtain credit if you have a bad credit history, and can be just as hard to get credit if you don’t have any credit history at all! If you are trying to establish a credit history for the first time or you have made mistakes in the past and are trying to rebuild your credit history, there is still hope!

Credit counselors advise that you first try applying for a credit card through a credit union, they usually offer the best rates for people with damaged or no credit. The best rates are obviously offered to those with high credit ratings. You will find that the further away from perfect your credit rating is, the worse your finance charges, fees and credit limit will be.

Be careful that you don’t obtain a higher credit limit than you can handle. This could cause your credit-building attempt to fail. If you can afford more, apply that money towards getting out of other types of debt. This will improve your debt-to-credit ratio, which should improve your credit score.

Don’t lose focus of your non-credit-card bills. There is almost no point in paying off your new credit card if you fail to pay your mortgage, car payment or utility bills. If you think you need help in developing a budget, call a credit counselor!

It is also important that you do not apply for every credit card you see. Every time you apply for credit, it can be seen by other creditors on your credit report. Take your time and do your research to find out where you will most likely be approved.

Keep in mind that you may not be able to get a credit card anywhere on your own. If this is the case, you may need to find a relative or friend willing to co-sign for the card but be aware that if you do not pay on time every month, you will damage the co-signer’s credit as well as your own.

You may want to consider opening a secured credit card as another option. This is done by putting your own money into a savings account, which acts as the credit line for your credit card. For instance, you put $1,000.00 into your secured account and your credit line could be as much as $1,000.00 (some secured accounts can have fees). Credit counselors advise you to visit www.bankrate.com for a listing of the best secured credit cards. This is reported just like an unsecured credit card and shows creditors your ability to handle credit. Eventually, your bank may extend your line of credit beyond what you have put in, which may help you reach a status to where you no longer need a secured credit card.

Are you planning to apply for credit? Consider checking your credit report first.

Know that when applying for a credit card or a major purchase like a mortgage, the contents of your credit report will determine how much it will cost you if approved. When considering your application, your lender will be checking with one (or all) of the three major credit bureaus: Transunion, Experian and Equifax. Credit counselors advise that it is always a good idea to review your credit report and correct any errors before applying for any type of credit.

Mistakes made in the past can ruin your chances of obtaining credit.

If you’ve made financial mistakes in the past, your potential lenders will see them on your credit report. Knowing what is on your credit report is the first step in cleaning up bad marks from the past. Most experts say over 30% of all credit reports contain erroneous information.

Monitor your credit report for free.

You are entitled to one free credit report per year from each of the three major credit bureaus. To obtain your credit report free online, visit www.annualcreditreport.com. You may also request your free credit report by phone at 877-322-8228 or by writing your request to: Annual Credit Report Service, P.O. Box 105281, Atlanta, GA, 30348-5281. Credit counselors advise that there are many businesses claiming to be the free credit report provider that end up charging their clients fees. You do not need to provide a credit card number to obtain your free credit report.

Why is my credit score so important?

Credit scores are used for so many things like applying for credit cards, mortgages, loans, and can even be considered by certain employers while screening their applicants for employment. While there is no absolute answer to what a lender will consider a good score, it has been observed by credit counseling agencies that individuals with credit scores in the 700 plus range get the best interest rates and credit limits.

How is my credit score calculated?

Your credit score is figured using data from five categories, which include payment history, amounts owed, length of credit history, new credit and types of credit used. Your score changes on a daily basis and is calculated at the time the score is requested.

What does my credit score represent?

This gives lenders a good idea of your likelihood of repaying a debt. A good credit score may save you thousands on financed purchases like a home or car. For example, an individual paying a 30-year $300,000.00 mortgage with a credit score of 620 might qualify for an interest rate of 7.256%, while an individual with a credit score of 720 might qualify for an interest rate of 6.162%. At first glance, it would seem that the interest rates are not largely different however; the individual with the 620 credit score would be paying $2,047.00 per month, while the individual with the 720 credit score would be paying $1,830.00. That’s a difference of $217.00 per month!

What do I do if I have a low credit score?

Paying your bills on time each month will start rebuilding your credit right away. If you have accounts with missed payments, try to make them up and keep them current.

Keep the balance of your credit cards low. You can lose points off your score if you carry a balance in excess of 50% of your credit limit.

Don’t cancel your credit cards! A large part (around one third) of your score is based on how much credit is available to you. Closing accounts may instantly decrease the amount of credit you have available changing key credit available vs. credit owed ratios. Credit counselors advise instead, you put the credit cards away or destroy the card but keep the account open. Closing cards may also cause a loss of credit history, further lowering your score.

Even though your credit score is something that you may not fully understand, there are many things that you can do on a daily basis to maintain this very important number. It is your responsibility to make sure that the information on your credit report that determines your credit score is correct. Visit www.annualcreditreport.com for a free copy of your credit report from each of the free major credit bureaus.