Money Talk: Options for Building Credit Score
Question: I am selling my car to an old friend with no credit history. (The used car salesman wanted to charge her 6.5 percent interest.) Is there a way that I can report her timely payments to the credit reporting services to help her build her credit? Answer: It’s not really practical for individuals to report payments, since subscribing to credit bureaus is expensive. The rate your friend was quoted actually isn’t bad given her...
Money Talk: Gift to Son Not a Charitable Donation
Question: Our son bought a house and lost his job two months after the purchase. We have helped him stay afloat. Thankfully he has a new job. We don’t expect to get the money back — he is still trying to get out from under — but we have given him close to $10,000. Can we claim this as a “gift” to him on our income taxes? Answer: The IRS doesn’t view money given to family members as a charitable donation. In other words, there’s no tax...
Money Talk: Pay in Full on Time for Best Results
Question: I have little to no information — good or bad — in my credit reports. I am considering obtaining a secured loan from my credit union to establish better credit. Does it make any difference to my credit score if the credit union reports the loan as “secured”? Answer: Credit scores don’t treat installment loans differently based on whether they’re unsecured, with just your promise to repay, or secured, which means backed by an...
Money Talk: Most People’s W-4s Are ‘Wrong’
Question: After being an unmarried couple for 15 years, we were married in February 2014. Though I sent this information to my company’s benefits department, I neglected to change my W-4 status from “single” to “married.” I’m crossing my fingers that when all is said and done, we have paid the correct taxes when we filed for 2014 (we filed jointly as married) regardless of what was withheld pursuant to the W-4. Or do I need to inform...
Money Talk: ID Theft by Parents Not Uncommon
Question: I have been dating my boyfriend for about eight months and he recently told me that his dad took out a credit card in his name when he was a baby. He has about $150,000 in debt because of this! This is a very serious, life-changing crime but my boyfriend is reluctant to take his dad to court. I’m worried about our future together and don’t know where to go from here. Answer: Parental identity theft is unfortunately not...
