Under the Fair and Accurate Credit Transactions Act (FACTA), you have have the right to obtain one free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, TransUnion) every 12 months through AnnualCreditReport.com.

According to the FTC, AnnualCreditReport.com is the ONLY authorized source for the free annual credit report that’s yours by law.

This can be done online, by phone, or by mail.

You can request (and print) your Credit Report online by going to www.AnnualCreditReport.com.

You can request your Annual Credit Report by phone by calling
1-877-322-8228 (toll free).

After you complete a simple verification process over the phone, your credit report will be mailed to you.

To request your Credit Report by mail:

1. Download the request form (You will need the free Adobe viewer for this.)
2. Print and complete the form
3. Mail the completed form to:

Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281

NOTE:
Your credit score will not be included in your credit report.

Charles J. Givens in his best-selling book More Wealth Without Risk advocated what he termed “The 10% Solution” in order to go from paycheck to prosperity.

It’s a pretty straightforward system.

Givens said we should pay ourselves first by taking 10% out of our of our very next paycheck and sending that amount to a no-load mutual fund family (a topic which we’ll address in a later Curtis Money post).

Not ready for mutual fund investing? A savings account works just as well.

If you’re literally living paycheck to paycheck, write down each and every one of your expenditures and figure out which ones you can eliminate all together (such as a cable TV bill) and which ones you can spend less money on (such as feasting on frozen pizzas instead of pizza parlor pizzas).

The Federal Trade Commission’s official identity theft website (www.ftc.gov/idtheft) is "a one-stop national resource to learn about the crime of identity theft."

This crime can have disastrous financial and legal consequences for its victims if not detected and dealt with in a timely manner.

It’s well-worth nothing here that in addition to being the de facto definitive source on this subject, the FTC is a non-profit government agency.

(They’re not trying to sell you anything.)

Not only will you learn how to recognize and prevent identity theft (straight from the horse’s mouth so to speak) but the FTC also tells you what you can do to respond to and recover from identity theft (such as instigating a credit freeze).

Victims (or possible victims) of identity theft can also file an official complaint here:
http://www.ftc.gov/bcp/edu/microsites/idtheft/consumers/filing-a-report.html

The Federal Trade Commission (FTC) has investigated and identified the various methods that no-goodniks can use to steal your identity.

These methods include:

1. Dumpster Diving – They rummage through trash looking for bills or other paper with your personal information on it.
2. Skimming – They steal credit/debit card numbers by using a special storage device when processing your card.
3. Phishing – They pretend to be financial institutions, companies or government agencies, and send email or pop-up messages to get you to reveal your personal information.
4. Hacking – They hack into your email or other online accounts to access your personal information, or into a company’s database to access its records.
5. "Old-Fashioned" Stealing – They steal wallets and purses; mail, including bank and credit card statements; pre-approved credit offers; and new checks or tax information. They steal personnel records from their employers, or bribe employees who have access.

The FTC estimates that as many as 9 million Americans have their identities stolen each year.

Here are five identity theft warning signs:

1. Rejection from lenders – your credit card applications or loan applications are denied despite your good credit.
2. Strange charges appear on your credit card or bank debit card statement (you receive bills from unknown accounts).
3. Missing mail or monthly bills (could mean that someone has changed your address).
4. Your passwords and/or personal identification numbers (PINs) no longer work.
5. phone calls or bills from collection agencies demanding payment for accounts you are unaware of.

In a nutshell, a credit score is a number representing the creditworthiness of a person, the likelihood that person will pay his or her debts.

It is based on information within an individual’s credit report.

Like a test score, the higher your credit score, the better your credit.

A good credit score shows that you have a high probability of repaying loans on time. Therefore, a good credit score will help you take out loans more easily and even get better interest rates.

A credit score is a three-digit number between 300 and 850. It’s basically a snapshot of a person’s financial standing at a particular point in time.

The mathematical formula behind an individual’s credit score can get pretty complicated (and seems to vary a bit depending on who you talk to) but we can safely say here that a credit score includes:

• Your payment track record.
• How long you’ve used credit.
• How often you’ve applied for new credit and whether you’ve taken on new debt.
• The types of credit you currently use, such as credit cards, retail accounts, installment loans, finance company accounts and mortgages.

The three nationwide consumer credit reporting companies are Equifax, Experian and TransUnion.

As we’ll see in the very next Curtis Money post, you can get a free annual credit card report but a free credit score is a little more difficult to come by.

David Ramsey, financial author, radio host, television personality, and motivational speaker, advocates having a $1,000 “baby emergency fund.”

This sounds reasonable to me but the question is how do you corral that much cash into one place if you’re (barely) living from paycheck to paycheck?

Here are two suggestions for you:

1) Cut your expenses to the bone as what Old Ben Franklin said about a penny saved being a penny earned is absolutely true (in theory if not so much in the current value of $.01).

We outlined how you can save money with the library’s help in a previous Curtis Money post and we will post additional tips and resources for cutting expenses in the days and weeks ahead.

2) Turn your unwanted (or better yet unnecessary possessions) into cash by selling them.

You could very well be sitting on your emergency cash fund even as we speak!

Off the top of my head, I can think of three (3) sales outlets for you:

a) Place an ad in the local shopper.

Here in Brunswick that would be along the lines of Uncle Henry’s Weekly Swap it or Sell it Guide.

b) Hold a neighborhood sale (don’t worry about such a thing being gauche).

c) Turn your clutter into cash by selling it on eBay.

The good news is, if you’re “eBay Shy,” the Curtis Memorial Library has books in its collection which carefully explain how to put your stuff up for Internet auction (or for sale).

And the still better news is, if you don’t have a computer and/or internet at home, you can use the Curtis Library’s public computers (or wi-fi if you have a notebook) to create your eBay auction listings (and how to get paid if/when your item sells).

There is no dignity quite so impressive, and no independence quote so important, as living within your means.
— Calvin Coolidge

Having a “shoestring budget” often refers to having a very limited or small amount of money to spend on day to day living expenditures.

The origin of the terms “shoestring budget” and “living on shoestring” are in dispute but nobody is arguing the fact that shoestrings are inexpensive.

Therefore the idea of only having enough money to buy shoelaces may have inspired these terms.

Of course if a person wears old shoes with new shoelaces, it could mean they are being frugal with their financial resources.

The works The Millionaire Next Door and The Millionaire Mind explore the theory that a lifelong practice of frugality will lead to accumulated wealth and a comfortable retirement.

1. Is your home Internet bill too high? (Mine too!)

Instead of ponying up that much cash every month, you can use the library’s wi-fi network and/or one of our public computers.

2. Want to watch a movie this weekend? (for free?)

Then you’ll want to browse the library’s DVD collection.

We have hundreds of feature films, documentaries, international films and classic TV shows anxiously awaiting your viewing pleasure.

Want to see something that we don’t have? Ask a staff member!

3. Don’t want to throw away money by buying an inferior product?

We’ve all been there. Please research that big-ticket item with the library’s collection of Consumer Reports magazines and books. A friendly and oh so knowledgeable librarian will be there to assist you.

4. Want to relax to some good music?

Peruse the library’s collection of music CDs (Cool Jazz, Rock, Gospel, Bluegrass, Choral, Soundtracks, Classical, you name it, it’s all there.)

5. Want to listen to a book?

Most everyone enjoys a good story that’s well-told — which is why the library system has thousands (yes, thousands!) of fiction and non-fiction audiobooks on CDs, audio cassettes and Internet downloads.

6. Want some culture and community?

The Curtis Memorial Library hosts numerous concerts, performing arts events, talks and presentations on a wide variety of topics. Many of which are open to the public and won’t cost you a dime.

And that’s not all. On any given day, you will quite likely find an art or photography exhibit in the library’s Morrell Meeting Room and throughout the library.

7. Looking for quality, educational and yes, no-cost activities for your children and teens?

The library’s stalwart and intrepid Youth Services librarians work non-stop to bring them to you. (You’ll have a good time too!)

See the library’s calendar of events for the skinny on current and upcoming programs.

8. Need some more computer skills? (Gosh, don’t we all )

How about this… In addition to books on a variety of computer help subjects, you can reap the advantages of the Learning Express Library™ either from within the cozy confines of the Curtis Memorial library or from your home computer. Please ask a librarian for details.

Please also know that the library’s exciting new “Tech meetup” program starts Monday, April 9th.

9. Want some fellowship, good cheer and interesting conversation?

Here are just a few library-hosted ideas for you: Crafters meetup, Just Desserts Mystery discussion, Current Events forum, Monday book group.

10. Museum Admission

Did you know that free museum passes are available to all library cardholders?

(Well, if you didn’t know this before, you do now!)

There is no single definition for “financial literacy.”

The term has multiple meanings and varies depending on context.

But I like these two:

1. The National Financial Educators Council defines financial literacy as: “possessing the skills and knowledge on financial matters to confidently take effective action that best fulfills an individual’s personal, family and global community goals.”
2. The President’s Advisory Council on Financial Literacy defines personal financial literacy as “the ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being.” (2008 Annual Report to the President).