Changing your name with less hassle

The Problem

Dealing with name changes due to a major life event can be a bit of a headache.  For starters, there is the Social Security office, Department of Motor Vehicles, and IRS.   Since a lot of these changes must be done in person, the time involved is considerable.

Kiplinger's recently had an article about a few services that can help relieve some of the burden.  But, what you might not bargain for is the pain those other accounts in your life can be, such as banks and frequent flyer and loyalty programs.  Even worse than what you might imagine.  

The Experience

While one might think it is straightforward, airlines in particular, given the burden they have in maintaining passenger security, are stringent with identity changes.  The process typically involves writing a letter and enclosing proof of the name change, such as a marriage certificate copy.  But, that's not everything.  One needs to make sure that their new name matches exactly how they want their program information to appear.  Again, not as straightforward as one might think.

My wife had a huge headache with changing her last name and making it her middle one and adding my last name.  The computer thought it was a hyphenated name, but she only intended to have her new middle initial displayed. As a result, her boarding passes and account information were never in sync.  Because of that nuance, frequent flyer flight credit and other ticketing issues were an absolute nightmare to manage. To make matters worse, this airline was going through IT changes and therefore she had to re-submit the same information, spend hours on the phone, and follow up to make sure the change was processed correctly in both systems.  One can also run into trouble if their address has changed, too.  Not only is a marriage certificate necessary, but driver's license, or some other proof such as a utility bill, might be needed.

The Solution

First, order a bunch of certified marriage certificates.  You will likely need several. For garden variety government form changes, you may not need to pay for a service to help you out, but since it's only $30, it might save a bit of time.  For your loyalty programs, use a site such as Yodlee to track every account you have, print a list out, and systemically check off when you have changed your name on each.  If you have zero balances in any of them, and no elite status, you might be better just cancelling the account and starting over.  Ironically, one doesn't need to prove their identity with a driver's license or other identification until a change to the account is necessary. 

Juice More Returns With Your Extra Cash

The Problem

As far as interest bearing savings and checking accounts go, returns are paltry.  According to Bankrate.com, the national average is still only about .57%, which is pretty pathetic.  One could take more risk and invest in a bond or stock, of course, but that involves other complications such as research, investment strategy, etc.  Or, one could try something else.

The Solution

Another option is peer-to-peer lending, essentially lending without banking institutions involved.  Enter  Prosper.com which allows one to lend money for as little as $25 for a "Note" and reap rates of 10% or more.  Prosper and other similar platforms, provide a platform for both lenders and borrowers who are seeking to fill a gap: lenders want better returns than a bank or even stock or bond consistently provide, and borrowers need cash that might not otherwise be available.  Such examples include: starting a business, paying off loans such as credit cards, or making home improvements.

The Experience

I have been lending money for over a year now on Prosper and am doing quite well.  Well is relative, of course, but I will take the 16% annual returns with moderate risk any day of the week .  That's just my experience, of course, but it is not atypical.  Not only are Notes available with varying levels of risk (debt quality essentially), terms, and expected rates of return, diversification is not difficult to achieve.  According to Prosper.com, "For Notes purchased since July 2009, every Prosper investor with 100 or more Notes has experienced positive returns."  Since the minimum investment is $25, achieving optimal diversification is possible with $2500.

The Action

When you get a chance, take a look at Prosper and see if it is right for you.  And remember, the greatest risk is not taking any.  Your idle cash is at risk if is not being aggressively utilized. 

Don't pay fees to banks you can avoid

Recent banking reform law implementation means that banks are scrambling for new sources of revenue--don't let it be yours.  With the enactment of the Credit Card Act banks and credit card companies must limit interest rates that they can charge you (without work arounds) for credit cards.  Moreover, new regulations were placed on overdraft fees, too.  With reductions in revenue sources, as a result, fee-free checking/savings accounts are becoming extinct like T-Rex.

But, they don't have to be.  Especially with old-school banks, such as Bank of America (full disclosure: my bank), there are account options, such as implementing automatic transfer, and maintaining minimum balances, that if followed, will prevent you from being charged regular monthly fees.  If that is too much of a hassle, consider bank shopping at sites like Bank Rate.  Their interactive listing allows you to drill down to the specifications you require, such as high[er] interest rates on savings, ATM fee-free transactions at any bank, check writing ability, and a host of other features.  Look for a bank that has no fees period, even without a minimum balance.

You already pay enough in bills every month, don't let one be to your bank.  They should be paying you.  After all, you are lending them your money.

How To Take Advantage of Credit Card Savings Programs & Rewards

While there are several other websites and blogs that track various credit card deals, I am reminded myself, especially the other day in the mail, that credit cards can often come with discounts that people either don't know about or forget. Case in point, a signature Visa card saved my hundreds of dollars this past summer for two trips I took which involved staying at Hilton properties. Clear as day, Hilton's website mentioned special savings of up to 25% if one used a signature Visa. In this case, Hilton had a handy tool for checking if your card was eligible.

Consider also Discover and Mastercard savings. While performing your due diligence in shopping for items online (a future post which will go into detail) check the discovercard.com or mastercard.com websites to see what special promos they may have. The savings may surprise you. It could be x % off of a rental car, or discounted movie tickets, just for using your card that would have otherwise. However, don't use your card if you are going to carry a balance. It's not worth the interest. Regarding the offer in the mail, Bank of America has something called "Add it up," a program whereby consumers can receive up to 20% cash back and discounts from 270 retailers, the literature reads. A link to the program is here:

Other cards may have similar offers, too. Check your card's website, or call their customer service directly and ask.