By Sabine Love, CAP Service-Learning Intern Feature on credit, blog 1 of 2, precedes Building Credit blog.
For one, I feel that the knowledge of the world of credit truly is a terrifying separator between thinking you’re an adult and being an adult. But is the “world of credit” truly that scary? In my experience, I have come to understand that credit can be helpful for young adults, particularly people who are supporting themselves, starting out on their own.
Let’s start with credit and credit score and credit report. Although they sound similar and both play significant roles in your financial health, they are quite different and play equally different roles.
Credit is an arrangement to borrow money now with a promise to repay it later, often with interest.
Your credit score, however, is determined by your credit history and determines your credit risk, an indication as to how likely you are to repay your loans. Potential lenders use the credit score to determine whether they want to issue you credit, such as a mortgage, credit card, auto loan, etc.
Your credit report is issued by credit bureaus (Equifax, Experian, TransUnion, Innovis) that shows your credit history (lines of credit you have open). Remember to check your reports at least once a year to make sure there are no errors.
Now that we have the basics with definitions down, let’s answer some common questions:
How to establish Credit when you don’t have a history of credit?
Many may not know that credit can be established without having to ask another person with credit to co-sign for you or make you an authorized user on their credit card. You can apply for a credit account that is tailored to people that are new to credit. You can ask your bank about limited credit lines, or pre-paid credit cards that build credit.
Even if you have never opened a line of credit, you can generate a credit report and check your credit history now. Things like utility payments and rent can be used to help build your credit if regular on time payment records are reported to the credit bureau.
Complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281
Or, contact the three nationwide credit reporting companies individually to request your report (see below).
This piece is one in a series of Helpful Hints brought to you by the Consumer Assistance Program’s (CAP) service-learning interns. UVM undergraduate students make significant contributions to our program and Vermont through their participation in our service-learning lab, where they learn about consumer protection while honing their professional skills.
Please note, the information herein is provided for educational purposes and does not constitute legal advice. Consumers with general consumer questions should contact CAP for more information, or seek private counsel from an attorney for legal advice.
Small Business Flood Relief Resources and Action Steps graphic.
On behalf of the entire Vermont Attorney General’s Office, our thoughts are with those affected by this summer’s flooding.
As businesses rebuild what was lost and purchase new items after the floods, we urge businesses with concerns to reach out to the Attorney General’s Consumer Assistance Program (CAP) for help. Vermont businesses are covered by our state’s consumer protection law and CAP is a helpful resource available to businesses. CAP’s Small Business Advocate can assist businesses with any questions relating to consumer purchases and consumer complaint mediation.
Our office has created a list of resources and action steps for businesses that have been impacted by the flood.
First and foremost, businesses must document everything. Take pictures and write down all actions you are taking. This step will be integral in applying for relief and insurance claims down the road. If you have not already, report your damage and unmet needs to the designated Vermont 2-1-1 Flood Damage-Business Form. 2-1-1 is currently cataloging damage and identifying areas and locations that need assistance.
Making Repairs to your Business:
Below are a few tips to follow before making changes to your business as you repair and rebuild what was damaged in the flood.
Contact your insurance company as soon as possible and do not make any permanent changes to your business until you get approval from your insurance company.
Beware of dubious contractors that may appear with promises to restore damages immediately in exchange for immediate payment. Never pay in full upfront for a commercial project. Make sure you have a contract. Before working with a contractor, always check the Attorney General’s Home Improvement Fraud Registry and residential contractor registration status with the Office of Professional Regulation in the Vermont Secretary of State’s office.
Contact the Consumer Assistance Program by phone at (800) 649-2424 or by email at ago.smallbusiness@vermont.gov for questions relating to hiring a commercial contractor.
Legal Assistance:
Small businesses may also need the advice or services of an attorney. Below are legal resources available to small businesses during this time.
Vermont Bar Association (VBA) is offering low-cost consultations. A lawyer will provide a 30-minute consultation for $25 to help answer questions. You can reach the Lawyer Referral Service at (800) 639-7036 Monday-Friday 8am – 4pm or businesses can directly request services here: tinyurl.com/23floodvtbizlegal. VBA is coordinating landlord/tenant lawyers to draft a short guide on the responsibilities of landlords and tenants during this time. Please visit vtbar.org for updates.
Small Business Legal Assistance Project offers support and outreach on legal topics impacting diverse and disadvantaged businesses and business owners in Vermont.
FEMA Disaster Legal Services (DLS) provides free legal help to low-income disaster survivors (individuals and small businesses). If you’re not able to get adequate legal services for your disaster-related needs, DLS may be able to help. Call (800) 621-3362 for service. If you use a video relay service, captioned phone, or other communication service, give FEMA the number for that service.
Financial Assistance- Grants and Community Funds:
There are grants and community funds available for businesses who have been impacted by flooding.
Restaurants impacted by the flood who: – Operate a brick-and-mortar location – Own a maximum of three locations, and employ fewer than 50 employees per location – Have been open for at least six months -Have revenues of $3M or less per location in the last 12 months
Eligible small businesses and nonprofit organizations can get help with working capital to help overcome the economic injury of a declared disaster.
Businesses who apply for the SBA loan and are approved are not obliged to take the loan.
The Vermont State Employee Credit Union (VSECU) is offering low-interest loans for small businesses affected by flood water damage. The loan provides near-term working capital to help with clean-up efforts, real estate repair, equipment replacement, inventory replacement, and other qualifying uses. To learn more about VSECU business loans, visit the VSECU Business Banking page. One does not need to be a state employee to bank at the Vermont State Employee Credit Union.
As a reminder, before applying for any loan, businesses should always consult with a professional and review their business credit situation carefully.
Assistance for Farmers:
If you are a Vermont farmer impacted by flooding, there are resources available to you.
Organic and NOFA-VT member farmers who have been adversely affected by natural and unnatural disasters, such as: – Crop failure – Extreme weather – Flooding – Fire – Barn collapse – Financial hardship as the price of organic milk continues to drop
Must be a Vermont farmer or food producer who has suffered a devastating loss due to an unexpected natural disaster that puts their farm or farming career in danger; covers buildings, animals, equipment, greenhouses, and hay fields.
Beware of Disaster Relief Scams:
The Consumer Assistance Program is warning Vermonters and small businesses to beware of disaster-relief scams and price gouging. Scammers may impersonate FEMA or the State of Vermont. To learn more about these scams, please review CAP’s Vermont Flood Recovery: Beware of Scams and Price Gouging blog post.
How to Contact the Small Business Advocate:
If you have any questions on the above related material, please contact Emily McDonnell, Small Business Advocate at ago.smallbusiness@vermont.gov or call CAP at (800) 649-2424.
Many Vermonters are going through a traumatic period. If you or someone you know is having a hard time with the emotional impact of this crisis, you can call or text the National Disaster Stress Hotline, (800) 985-5990, or 9-8-8. You are not alone.
Due to the extreme rainfall and flooding across the state, the White House issued a state of emergency for Vermont, which authorizes FEMA to support impacted Vermont counties in recovery efforts. Unfortunately, scammers take advantage of people’s heightened emotional state following disasters, and the Vermont Consumer Assistance Program wants you to be aware of targeted disaster relief scams to avoid while our communities recover from the flooding.
Government imposter relief scams may claim to be FEMA or the State of Vermont. FEMA scams manifest as fraudulent inspectors that request fees for service, or administrative personnel that call to “verify” your information but are phishingfor your personal information. Such relief help scams may even claim they can speed up your FEMA relief application for a fee.
Avoid this scam: Connect with FEMA directly online: https://www.fema.gov/disaster/3595 and continue to follow updates from the Vermont’s congressional delegation, the Governor and Vermont Emergency Management.
Phony charities that solicit funds claiming to support recovery efforts. The Vermont way is to help our neighbors. We all want to help, whether it is through volunteering or donating money. Sadly, scammers use the same contact methods as legitimate charities (phone, online, mail).
Dubious contractors may appear with promises to restore damages immediately in exchange for immediate payment. Such contractors urge you to act fast, may offer lower prices, and do not have credentials—though they might say they are “registered and insured,” these are unverified statements.
Avoid this scam: Vermonters must be extra critical about hiring home improvement contractors. Never pay in full upfront for a home improvement project. Make sure you have a contract. Check residential contractor registration status with the VT Office of Professional Regulation in the Secretary of State.
Please watch out for these scams and report businesses that set unconscionable price hikes on essential items, like bottled water. If you experience this practice, please report instances of price gouging to the Consumer Assistance Program by phone at 800-649-2424 or online at ago.vermont.gov/cap
Given this day in age where all things can be done online, what about purchasing your vehicle online? I know, right? I have condensed a few things to keep in mind if you find yourself shopping for a car online.
Let’s first discuss why one might choose to purchase online rather than the traditional in-person dealer route. Purchasing a vehicle online gives you a vast variety to choose from especially if there’s a specific car, make, and model you are interested in. Additionally, you can filter and browse cars with innovative features that suit your desires. In traditional car purchases, you often find yourself going from dealer to dealer to view their inventory, compare prices, and test drive different cars. Comparing options online can save you a significant amount of time. Using your smartphone alone, you can begin your search from anywhere and at any given time.
Here are a couple things to watch out for when buying a car online. Unlike buying a car at a dealer where you can stop by and test drive the car, purchasing online is a different experience. It’s advised to closely read the terms and conditions when deciding to close on a vehicle. Assess the return policy. This will typically state the period of time you have to test out the car and whether there is a restocking fee, if you decide not to keep the car. For example, some online retailers offer a 7-day/250 mile return policy. This week can serve as a useful time for consumers to check out the car by getting it inspected by a reputable mechanic, taking it on thorough test drives to make sure it is a good fit. If it is not, there are terms that outline how a consumer can return or trade in the vehicle.
Getting Started: Before even beginning you search, figure out your budget and how you will be purchasing the car (whether that’s paying cash of financing). Thoroughly do your research, just as you can do in-person, you can also shop around online. It is important to research as much as possible until you find your perfect match. Also, be wary that your credit may pulled during the process of finding financing, these will likely show up as hard inquiries on your credit report.
Nonetheless, buying a car online may not be the best fit for everyone. If you prefer a more hands-on approach and have time to engage an in-person search, the traditional route might be your preference. If you value buying experiences with more options and comparison shopping, online shopping may be something to consider.
Get more helpful hints on used car buying from the Consumer Assistance Program (CAP):
This piece is one in a series of Helpful Hints brought to you by the Consumer Assistance Program’s (CAP) service-learning interns. UVM undergraduate students make significant contributions to our program and Vermont through their participation in our service-learning lab, where they learn about consumer protection while honing their professional skills.
Please note, the information herein is provided for educational purposes and does not constitute legal advice. Consumers with general consumer questions should contact CAP for more information, or seek private counsel from an attorney for legal advice.
Having a reliable internet and cell connection is essential nowadays, especially if you work from home or regularly video conference. If you’re moving to Vermont or moving within the state, it’s a good idea to check if your new home will have good internet and cell service. Here are some tips that can help you:
Research the area: Before moving, look up the internet and cell service providers available in the state. Currently, Vermont has 24 internet providers to choose from and is covered by the four largest mobile carriers in the nation.
Check the coverage map: Coverage across the state can differ depending on location. Visit the websites of each service provider and check their coverage map to see if your new home will be covered. For cell service, the Federal Communications Commission has a Mobile LTE Coverage Map that shows the coverage of the four largest mobile carriers.
Consider the type of internet service: If you’re moving to a rural area, check if you can get high-speed internet via cable or fiber optic service. The state of Vermont has an Interactive Broadband Map that shows fiber and cable routes and the speeds offered at residences across the state. In some cases, satellite internet or internet through a mobile carrier may be the only option.
Ask your neighbors: Asking your neighbors is a great way to hear about local experience with internet and cell service providers. They can provide you with valuable information about the quality and reliability of service in the area.
Test the service: Once you’ve chosen a plan, use your smartphone to test the cell service in and around your new home. This will help you determine if the plan you’ve chosen works as advertised. For internet service, you can use an online speed test to check the speed and reliability of the connection. Ookla is a free online service that can help you determine if the speeds provided are adequate.
By following these tips, you can ensure that your new home has good internet and cell service, so that you stay connected and productive after moving.
This piece is one in a series of Helpful Hints brought to you by the Consumer Assistance Program’s (CAP) service-learning interns. UVM undergraduate students make significant contributions to our program and Vermont through their participation in our service-learning lab, where they learn about consumer protection while honing their professional skills.
Please note, the information herein is provided for educational purposes and does not constitute legal advice. Consumers with general consumer questions should contact CAP for more information, or seek private counsel from an attorney for legal advice.
