Current Events in April 2016

For years, no matter how expensive gasoline got, you could be sure diesel fuel cost more. Usually a lot more.

While drivers of diesel powered vehicles got great fuel economy, they paid a lot more per gallon. Lately, these drivers have enjoyed the same savings as their gasoline-driving counterparts.

The national average price of self-serve regular gasoline is $2.05 a gallon, according to the AAA Fuel Gauge Survey. The national average price of diesel fuel is $2.09 a gallon.

Just a year ago, gasoline averaged $2.39 while a gallon of diesel fuel went for $2.79.

Refinery issues

One reasons for the narrowing gap between the gas and diesel pumps is gasoline prices have been rising in recent weeks, due to seasonal refinery maintenance and the switch over to summer blend gasoline.

Gas prices are up 16 cents a gallon nationwide in the last month. The average diesel price has risen just six cents a gallon. While diesel production is affected by refinery maintenance, just as gasoline is, there is no summer blend to raise the cost.

In some good news for motorists, the national average price of gasoline leveled off in the last week and is about the same price it was seven days ago. However, there remains some price volatility in local areas.

Down in Missouri, up in Ohio

For example, the AAA survey shows the average gasoline price dropped six cents a gallon in Missouri over the past week. The price is up four cents a gallon in Ohio during the same period.

According to AAA's calculations, the national average gasoline price has been above $2 a gallon for 20 straight days, with prices at the pump expected to continue to show some volatility as the supply of summer-grade gas is distributed.

On the plus side, refineries have stepped up their capacity, resulting in an increase in gasoline inventories. If not exported, that excess supply may continue to dampen gasoline prices.

The ExxonMobil Torrance, Calif. refinery has restarted, alleviating chronic supply shortages on the West Coast. Barring any major disruptions or shortages in supply, AAA said it expects pump prices to be fairly steady in the coming weeks.  

The results are in for the new round of crash tests conducted by the Insurance Institute for Highway Safety (IIHS), and three out of seven large pickup trucks evaluated earned an acceptable or higher rating for occupant protection in a small overlap front crash.

Two body styles of each 2016 model-year pickup (crew cab and extended cab) were included in the tests. Crew cabs have four full doors and two full rows of seating. Extended cabs have two full front doors, two smaller rear doors and compact second-row seats.

Top marks for Ford

By improving the 2016 model F-150 SuperCab, Ford clinched a good rating in the small overlap crash test -- up from the 2015 model’s marginal rating. The F-150 is the only large pickup in the latest test group to earn the test's top rating. It joins the F-150 SuperCrew in earning a 2016 TOP SAFETY PICK award when equipped with Ford’s optional basic-rated forward collision warning system.

“Ford is leading the way among large pickup manufacturers when it comes to protecting people in a range of crashes and offering technology to warn drivers of imminent frontal crashes,” said Raul Arbelaez, vice president of the IIHS Vehicle Research Center. “We commend Ford for taking last year’s test results to heart and upgrading protection for SuperCab occupants in small overlap crashes.”

Vehicles that earn a basic rating for front crash prevention in addition to good ratings in the small overlap front, moderate overlap front, side, roof strength, and head restraint evaluations qualify for TOP SAFETY PICK. To qualify for 2016 TOP SAFETY PICK+, a vehicle must earn good ratings in the five crashworthiness tests and an advanced or superior rating for front crash prevention.

The also-rans

Differences were observed in performance between the extended-cab and crew-cab versions of two other pickups. The Chevrolet Silverado 1500 Double Cab and the Toyota Tundra Double Cab both earned an acceptable rating for occupant protection in a small overlap crash. Survival space for the driver in these extended-cab pickups was maintained reasonably well overall, contributing to their acceptable ratings for structure.

The story was different for the larger crew cabs. The Silverado 1500 Crew Cab and the Tundra CrewMax earned a marginal rating in the small overlap front test. Both models had considerable intrusion into the occupant compartment that compromised survival space for the driver.

Ratings for both of the Silverado pickups extend to their GMC Sierra 1500 twins.

The worst-performing pickups in the small overlap test are the Ram 1500 Crew Cab and the Ram 1500 Quad Cab. Both earned a marginal rating overall and a poor rating for structure. The force of the crash pushed the door-hinge pillar, instrument panel, and steering column back toward the driver dummy. In the Ram Crew Cab test, the dummy’s head contacted the front airbag but rolled around the left side as the steering column moved to the right, allowing the head to approach the intruding windshield pillar.

IIHS plans to test the redesigned 2016 Nissan Titan and Honda Ridgeline later this year. The 2015 Titan Crew Cab is rated as good in the moderate overlap front test, acceptable for roof strength, and good for head restraints. The Ridgeline was last sold as a 2014 model. It earns good ratings in the moderate overlap front, side, roof strength, and head restraint evaluations.

At the beginning of March, we reported that postal rates for the United States Postal Service (USPS) were poised to go down, something that hadn’t happened since 1919, according to CNN.

The potential decline in price would be due to the last rate hike being established through a surcharge; if it wasn’t renewed, then its authorization would run out and rates would have to decline.

This prospect was met with a lot of trepidation by the USPS, which has been steadily losing revenue for some time. The surcharge was meant to help bolster its earnings, but with it running out, things were looking grim.

“The exigent surcharge granted to the Postal Service last year only partially alleviated our extreme multi-year revenue declines resulting from the Great Recession, which exceeded $7 billion in 2009 alone. . . Removing the surcharge and reducing our prices is an irrational outcome considering the Postal Service’s precarious financial condition,” said Postmaster General Megan J. Brennan, in a statement.

Cheaper stamps

Nevertheless, the rate cut took effect as of yesterday. While consumers can expect to pay slightly less for stamps going forward, the rate cut will invariably take a large financial toll on the USPS. Brennan estimates that the agency stands to lose $2 billion annually now that the surcharge is no longer in place.

The adjustments for stamp prices are as follows:

• Rates on First Class Mail Letters weighing one ounce have gone down two cents, from $0.49 to $0.47. A cost of $0.21 will be added for each additional ounce.
• Rates on First Class Mail Flats weighing one ounce will have gone down four cents, from $0.98 to $0.94. A cost of $0.21 will be added for each additional ounce.
• Rates on First Class Mail Letters weighing once ounce that fall under the “Metered Mail” category have gone down by two cents, from $0.485 to $0.465. A cost of $0.21 will be added for each additional ounce.
• Rates on postcards have gone down by one cent, from $0.35 to $0.34.

Netflix is raising its standard subscription rate by $2 next month. Starting in May, the "standard option," which includes streaming and HD quality, will cost you $9.99 -- a 25% increase, in other words. 

Strictly speaking, the increase was announced last October, when Netflix started charging new subscribers $9.99 but extended an olive branch to current subscribers, saying it would "grandfather" them at $7.99 for awhile. 

Well, awhile is over and now the full sticker price applies to everyone who stays on the "standard" plan. 

If $2 really means a lot to you, you can opt out of the rate hike and keep the $7.99 plan, but there will be no HD and only one person at a time will be able to use the service.

Netflix says subscribers will be notified by email prior to the change. 

Stealthy tactics

There has been some confusion about the rate increase and the company's stealthy tactics have not helped clarify the situation. Recent press releases on the company's media center page are mostly hype and blather about new films and series.

This has led to sites like Jezebel saying the rate hike is being "sneakily implemented." Motley Fool notes that 41% of respondents to one survey said they would cancel if their rate increased and The Observer called it "simultaneously savvy and sneaky."

Millennial women don’t understand the stock market. That’s the key takeaway from a new Harris Poll survey commissioned by investment app Stash. The survey revealed that 76% of millennial women find investing downright confusing.

Young women also seem to be believe the stock market isn’t a place for them; sixty percent of participants said they equate a typical investor to an old, white man. Experts say there’s one big reason women aren’t investing: a lack of education on the subject.

“While technology has transformed the way people can invest in the stock market, it’s crystal clear millennials still desperately need, and want, education around how to start investing,” said David Ronick, CEO of Stash. Ronick believes, however, that the problem is a solvable one.

Breaking down barriers

Investment apps like Stash seek to educate young people on the subject of investing with the hope of increasing their presence in the stock market. As it stands now, nearly 4 in 5 millennials (79%) are not currently investing in the stock market.

So why aren't millennial women investing? As it turns out, they may not think they can. According to the survey, 43% of millennial women think they don’t have enough money to start investing. Seventy percent of millennials think they need at least $100 to start investing in the stock market.

These are just a few of the misconceptions surrounding investing that Stash hopes to clear up. A stock market sherpa of sorts, Stash focuses on providing guidance to those who might be new to investing. Millennials, especially, might benefit from the investment app’s “start small and learn as you go” approach.

Stash users can kick off their investment journey with as little as $5. For more information, visit their website or check out the Stash app (available on iOS and newly available for Android).

Wells Fargo Bank has agreed to pay $1.2 billion to settle federal charges that it wrongfully certified home loans as being eligible for FHA mortgage insurance when it knew that they were not.

The incidents occurred during the period from May 2001 through December 2008 and, in many cases, resulted in the government having to pay FHA claims when the loans defaulted, according to court documents.

“Today, Wells Fargo, one of the biggest mortgage lenders in the world, has been held responsible for years of reckless underwriting, while relying on government insurance to deal with the damage,” said Preet Bharara, U.S. Attorney for the Southern District of New York. “Wells Fargo has long taken advantage of the FHA mortgage insurance program, designed to help millions of Americans realize the dream of home ownership, to write thousands and thousands of faulty loans." 

Shoddy practices

Bharara said Wells Fargo used "shoddy underwriting practices to drive up loan volume, at the expense of loan quality."

The settlement was approved today by U.S. District Judge Jesse M. Furman for the Southern District of New York.

The Porsche Macan is one of those supercars that, with the slightest touch of the accelerator, will leave a smokin' spot where it stood. But many of the juiced-up SUVs bound for the U.S. are stuck in port thanks to their parent company's misdeeds.

Ever since Volkswagen admitted to using a "defeat device" on its TDI diesel models to fool emissions testers, state and federal officials have been taking a closer look at how they certify new models, particularly in the case of the California Air Resources Board (CARB).

The CARB certifies vehicles for California, home to more cars than any other state, and its ratings are used by 12 other states that have the stricter air quality regulations pioneered by California.

Gridlock

Trapped in the middle of this regulatory traffic jam is the Macan, Porsche's hottest selling model. All 2017 Macans shipped to states that observe the CARB standards are stuck in port awaiting CARB certification, Automotive News reports.   

Porsche executives insist the delay is no cause for concern. "It takes longer, but we're following procedure," Klaus Zellmer, CEO of Porsche Cars North America said. "The formal procedure is setting the pace for us, and we understand that."

Fine, but tell that to the dealers and customers who are waiting for the Macans being held hostage at ports of entry.

A Washington State dealer quoted by the auto trade journal said he has seven pre-sold Macans stuck in port and none in stock. 

You don't often hear anyone sing the praises of a federal agency, but consumer advocates are sticking up for the Consumer Financial Protection Bureau (CFPB). The agency finds itself under attack by some who say it has overstepped its bounds in the five years since it was created.

The CFPB was established by the landmark Dodd-Frank financial regulation law. The agency, headed by former Ohio Attorney General Richard Cordrey, has been a staunch consumer advocate since its creation, especially in the areas of student loans, payday lending, and other areas affecting consumers financially.

Republicans have criticized the agency, with some calling it “unaccountable.” Sen. Ted Cruz (R-Tex.), a GOP presidential contender, has introduced legislation to abolish it.

Last week a Congressional hearing questioned the CFPB's independence, prompting officials of the Consumer Federation of America (CFA) to speak up for the agency. In their rebuttal, they said CFPB is both independent and accountable and has protected consumers from abusive practices.

Accountable to Congress and the public

“The CFPB is accountable to both Congress and the public,” Rachel Weintraub, Legislative Director and General Counsel at CFA, said in a statement.

She points out the agency's rules can be reviewed and even vetoed by other federal regulators.

“No other regulator can be overridden in this manner,” she said.

The CFA notes that, in its five years of existence, the CFPB has collected and returned more than $10 billion in restitution to consumers. It has also logged more than 650,000 complaints from consumers who are dealing with financial issues, ranging from credit cards to debt collection.

Giving consumers a voice

Tom Feltner, CFA director of financial services, says the complaint system gives consumers a voice when they run into frustrating financial issues.

“These complaints, along with the thorough and objective research conducted by Bureau staff, should greatly inform when and how new financial protections should apply,” Feltner said.

Most recently, the CFPB has turned its attention to payday loans, a financial practice regulated almost exclusively at the state level. In some states, payday lenders have almost no restrictions. In others they face limits on the fees they can charge.

Weintraub says members of Congress should judge the CFPB by the help it is providing consumers and take a closer look at the economic damage inflicted by abusive financial products and practices.

Among the examples that the CFA could point to was last summer's CFPB $700 million fine against Citibank for illegal credit card practices. According to the CFPB, Citibank deceived consumers to sign them up into five debt protection add-on products that carried a monthly fee.  

If you are like most consumers, you are trying to pay off a balance on a credit card or two. Given the high interest rates on credit cards, that's often hard to do.

By transferring a balance from a high interest credit card to one that has no interest charges, the payoff can occur much faster. There are several credit cards that are specifically designed for balance transfers, giving the cardholder a few months of 0% interest.

Lately, these introductory periods have gotten longer, so if you are not taking advantage of them, you're leaving money on the table.

How much can you save? Let's do an experiment to find out.

Experiment

Let's suppose you have a $10,000 balance on a credit card that charges 15.9% interest. You have found $500 a month in your budget to apply to paying off the balance, so how many months will it take?

Using a credit card payment calculator at Bankrate.com, we discover that it will take two years – 24 months.

But suppose you were able to roll the entire $10,000 over to a credit card with 0% interest. Making the same $500 a month payment, you would pay off the balance in 20 months – four months sooner, saving $2,000 in interest payments.

But is any credit card going to give you 20 months of 0% interest? We know of two that will.

Citi Simplicity

The Citi Simplicity card offers a 0% rate on balance transfers for 21 months, meaning you would pay no interest during our hypothetical payoff period. Other perks of the Citi card include no late fees, no penalty rate, and no annual fee.

With just about any balance transfer card, there will be a fee involved in moving a balance from one card to another, which will cut into your interest savings. The Citi Simplicity card charges $5 or 3% of the transferred balance, whichever is greater.

In our experiment, that would amount to a fee of $300, meaning the total savings from the transfer would be $1,700.

Citi Diamond Preferred

The Citi Diamond Preferred card also has a 21-month 0% interest on balance transfers. Like the Simplicity card, it has no annual fee and charges the same balance transfer rate – $5 or 3% of the transferred balance.

Cardmembers also get 24/7 access to personalized concierge service, providing help in booking hotels and flights and finding entertainment.

Both cards are good options for saving on interest costs while paying off debt. However, you'll need a pretty good credit score to get either one.

If you want to avoid a balance transfer fee, the Chase Slate is the card for you. The 0% interest introductory period is a little shorter – 15 months instead of 21 – but there is no fee to move the balance. Credit score requirements are also a bit less than for the two Citi cards.

Automated Teller Machines (ATM) have become so common that there is an entire generation that can't remember going inside the bank to cash a check. Most of us trust these machines without giving them a second thought.

New research from FICO, an analytic software firm, suggests that this trust could be misplaced. It reports the number of ATMs compromised by criminals rose 546% in 2015. The total number of compromised ATMs was the highest ever recorded.

ATMs can become compromised when a criminal installs a “skimmer” over the machine's key pad. When a consumer keys in his or her PIN, the skimmer captures the number, giving the criminal access to the consumer's bank account.

The scammer might also install a tiny camera that can record the debit card number and PIN.

Quick hits

While the number of compromises rose sharply last year, the research found that the compromises didn't last as long, either because they were discovered, or more likely, because criminals reduced the time spent harvesting card data in an effort to reduce risk. T.J. Horan, vice president of fraud solutions at FICO, said it appears criminals are taking a “quick-hit” approach to ATM theft.

“They are moving faster to make it harder for banks to react and shut down the compromises,” Horan said in a statement. “They are targeting non-bank ATMs, which are more vulnerable — in 2015, non-bank ATMs accounted for 60% of all compromises, up from 39% in 2014."

A non-bank ATM is one you might find at a convenience store or public place, like a sports stadium.

In the past, FICO says ATM compromises tended to be concentrated in urban areas. That changed last year, with the scam showing up in small towns and rural areas, spread across the U.S. Horan says ATM operators need to be more aware of tampering but so do consumers.

What to do

"To protect themselves from this kind of fraud, cardholders should be more vigilant," he said.

Consumers should inspect an ATM before using it. If it looks strange, or has a very different interface than experienced in the past, it is prudent to go to another location. If you complete a transaction and suspect it has been compromised, be sure to contact your card issuer.

Check bank transactions regularly to look for unauthorized withdrawals. If your bank offers text or email alerts for suspicious activity, make sure you sign up for it.

ATMs for the most part are reliable and secure ways to get cash, but that safety and security shouldn't be taken for granted.

Because of a low response rate, Rainbow Play Systems is reannouncing its earlier recall of 133,000 plastic yellow trapeze rings manufactured by Nylacarb Corporation and sold in the U.S., Canada and Mexico

The rings can unexpectedly crack or break during use, posing a fall hazard to children.

The company has received more than 100 reports of the rings cracking or breaking, including 15 with reports of injuries consisting of bumps, bruises, lacerations, concussion and one broken finger.

This recall involves only the yellow plastic trapeze rings. They are triangular in shape with rounded sides and have a loop at the top. They measure about 8½ inches high by 6½ inches wide. The yellow rings come as a pair and were connected to a trapeze bar.

They were sold either as a separate component or as an attachment on the following Rainbow-branded residential wooden playsets: All-American, Backyard Circus, Carnival, Fiesta, King Kong, Monster, Sunray, Sunshine and Rainbow.

All of these playsets have an aluminum plate located on the front of the wooden swing beam with the following name stamped on it, “Playgrounds America,” “Rainbow Play Systems Inc.,” or “Sunray Premium Playgrounds.”

The rings, manufactured in the U.S., were sold at Rainbow dealers nationwide from January 2007, through December 2011, and at several mass merchandisers including Sam’s Club, Toys R Us and Walmart from January 2009, through December 2009. The playsets retailed for between $900 and $10,000.

What to do

Consumers should immediately stop children from using the recalled rings, contact Rainbow for ring removal instructions, then remove the rings from the playset and receive a $10 gift card.

Consumers may contact Rainbow Play Systems toll-free at 888-201-1570 from 8 a.m. to 5 p.m. (CT) Monday through Friday or online at http://recall.rainbowplay.com/ for more information.  

American Honda Motor Co. is recalling 11,602 model year 2004-2007 Accords manufactured October 1, 2003, to August 17, 2007.

The vehicles may have been assembled with an incorrect passenger frontal air bag module that does not comply with the advanced air bag requirements. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 208, "Occupant Crash Protection."

An air bag module does not meet the advanced air bag requirements can increase the risk of injury or death in the event of a crash.

What to do

Honda will notify owners, and dealers will inspect and replace the air bag module as necessary, free of charge. The recall is expected to begin May 5, 2016.

Owners may contact Honda customer service at 1-800-999-1009. Honda's number for this recall is JZ3.

Nine months of reading the books and preparing the nursery is often no match for the experience of actually having a baby in the house. Parenting is a journey filled with surprises and challenges, and the infant stage can be even trickier to navigate.

But luckily, for new parents, the digital age has given birth to an ever-growing number of gadgets that can make life a little easier. First-time parents or even seasononed parenting pros might happily welcome some of these new products into their lives.

Gadgets for new parents

• Project Nursery Baby Monitor. If the numerous tales of hackers hijacking baby monitors has you concerned, check out this wi-fi free baby monitor. Created by the team at Project Nursery and unveiled at CES 2016, the monitor features secure wireless technology. It’s also the first monitor to include a portable Mini Monitor with a 1.5” LCD screen, so parents can keep an eye on the baby from wherever they are in the house. Coming in May.
• The Baby Shusher. This interesting new device helps calm and soothe an inconsolable baby by mimicking the sounds they heard in the womb. The rhythmic “shush” it uses has been shown to trigger their natural calming reflex. Buy it on Amazon for about $30.
• iiamo Go Self-Warming Bottle. Babies keep you on your toes, which means there’s often little time to wait by the stove or bottle warmer. This self-warming bottle works by using environmentally friendly heating cartridges (which are filled only with salt and water). Just put the heating cartridge into the bottle’s heating chamber, turn it on, and shake the bottle. The entire heating process takes only four minutes. It’s available now on Amazon for $30.
• The 4moms Self-Installing Car Seat. As we’ve reported, new parents often make mistakes installing car seats that could put their baby’s life at risk. This car seat seeks to eliminate installation mistakes, helping to keep your baby safe. The seat, which was also unveiled at CES 2016, comes with an app that walks parents through the installation process. Electric motors in the seat can even level the seat automatically and create just the right amount of tension in the straps. The app keeps constant tabs on the state of the car seat and can alert you if something isn’t quite right. It’s available for preorder (with June delivery) on the 4moms website for $500.

The great outdoors certainly lives up to its superlative. Research has shown that getting outside can lift our spirits and brighten our mood so much that it can actually be a form of therapy.

Nature breaks can be especially beneficial to people who are stressed. Looking to spend some quality time with mother nature? Studies show that she will gladly return the favor of your company with some impressive health benefits.

Dirt: an antidepressant?

Most avid gardeners will tell you there’s no place they would rather be than in their garden. As it turns out, there may be a scientific reason for the positive vibes we get when we’re digging in the dirt.

Studies show that the Mycobacterium vaccae (M. vaccae) found in soil actually has an effect on the brain that's similar to the drug Prozac. Cancer patients who were exposed to the inoffensive bacterium reported less stress and a better quality of life, most likely due to the bump in serotonin production.

“What we think happens is that the bacteria activate immune cells, which release chemicals called cytokines that then act on receptors on the sensory nerves to increase their activity,” Christopher Lowry, a neuroscientist at the University of Bristol in England, hypothesizes.

Self esteem

Spending just a few minutes outside doing “green exercise” has been scientifically proven to boost self esteem. For city-dwellers, in particular, getting back to nature can do wonders on the mood. One study finds that you don’t have to spend all day outside to get a self esteem boost from nature; just five minutes will do.

After analyzing data from ten different studies pertaining to outdoor activities (walking, cycling, gardening, etc), researchers found that the biggest dose of self esteem came as a result of just five minutes outside.

"For the first time in the scientific literature, we have been able to show dose-response relationships for the positive effects of nature on human mental health," University of Essex researcher Jules Pretty tells the BBC. 

Forest bathing

The Japanese have a custom called forest bathing (“Shinrin-yoku”). The idea is simple: go for a walk in the woods. But its positive effects on health are seemingly endless.

One study finds that forest environments contribute to our overall well-being by promoting lower concentrations of cortisol (the stress hormone), lower pulse rate, and lower blood pressure.

Scientists hypothesize that this could be partially because of an antimicrobial organic compound emitted from trees. Breathing phytoncides like a-pinene and limonene can actually make us happier.

The Federal Reserve has embarked on a policy of raising interest rates. It has determined the economy is strong enough that the Federal Funds Rate no longer has to be near zero.

After that announcement back in December, the stock market swooned and the conventional wisdom predicted that all kinds of interest rates would follow the Fed's lead.

It hasn't worked out that way, particularly for mortgage rates. Bankrate.com reported this week that consumers applying for mortgages are finding the lowest rates in three years.

T-bills set the rate

The reason is simple. Mortgage rates follow the yield on the Treasury's long-term bonds. When those yields rise, so do mortgage rates.

In the wake of the Fed's announced policy change, the bond market has rallied – meaning more money is flowing into bonds. That has had the effect of pushing the yield down significantly. When more investors want to buy bonds, the government doesn't have to pay as much interest. That's just how it works.

According to Bankrate's April 6 survey, the benchmark 30-year fixed-rate mortgage dropped from 3.83% to 3.75%. That might not sound like a big drop, but over a 30 year term it can be thousands of dollars.

Offset rising prices

While the drop is good news for prospective home buyers, the savings may be offset by rising home prices. It may turn out that affordability remains the same, with lower monthly payments making a more expensive home more affordable.

Despite the near record low mortgage rates, there isn't an increase in available money to buy homes. In fact, the Mortgage Bankers Association (MBA) reported this week that credit standards tightened slightly.

Most of the tightening, however, occurred in conventional loan programs. The MBA says consumers seeking a government-backed mortgage loan, such as an FHA mortgage, should find a slight increase in available money.

To understand money, it helps to understand credit. Today, big ticket items, like homes and cars, usually require a loan in order to purchase them.

Every consumer who has opened a credit account somewhere has a credit report and a credit score. Understanding both can help you be a better money manager. The Federal Reserve has compiled this helpful consumer guide.

Your credit report tells your credit history. It lists all the credit accounts you have, or had in the past. It indicates what the balance is and whether they are in good standing.

It will also show any existing public record involving you and your finances. If there is a court judgment against you, tax liens against your property, or bankruptcy, they will show up in your credit report.

A credit report will also contain a list of people or companies that recently requested a copy of your credit report.

Why it's important

Here's why your credit report is important: banks, insurance companies, prospective employers, and a lot of other people you interact with may get a copy of your credit report. What they look for is evidence of how you manage money.

A lender looks at your credit report to decide whether or not to lend you money. Insurance companies may adjust your rate depending on what they see in your credit report.

Prospective employers, if you give permission for them to review your credit report, may base their decision on whether or not to hire you by what they see in your credit report.

Service providers and landlords will also take a look at your credit report before doing business with you, so having a clean report is important.

The information contained in your credit report is used to assign you a credit score. That way, someone reviewing your credit history knows at a glance whether you have excellent credit or just fair.

Adding up your credit score

There are a number of factors that go into a credit score, but perhaps the most important – and the one you can most easily control – is whether you pay your bills on time. Paying every bill on time, every month, will push up your credit score faster than anything you can do. Having one or more debt collection actions against it will drag it down faster than anything else.

Having too many accounts open – or too few – can bring down a score. Tapping out the credit limit on a credit card will do the same.

By law, every consumer is entitled to review copies of his or her credit report compiled by all three credit reporting agencies each year. It's free, and you can start the process at www.annualcreditreport.com.

Getting a copy of your FICO credit score is not free, but can usually be obtained for a small fee.

American Honda Motor Co. is recalling 1,533 accessory rear trunk bases, part numbers 08L71-K35-J00, 08L70-KZY-910, and 81200-KWN-780 used to mount accessory trunks on Honda PCX125 and PCX150 scooters.

The locking hook of the accessory removable trunk may not fully engage to the trunk mounting base, allowing the trunk to inadvertently detach.

If the trunk detaches during riding, it may become a road hazard and increase the risk of a crash.

What to do

Remedy parts are not currently available. Honda will send owners an interim notification to instruct them not to use the trunk or to visit a dealer for a temporary remedy. When parts are available, owners will receive a second notification and dealers will install a newly designed trunk base, free of charge. The manufacturer has not yet provided a notification schedule.

Owners may contact Honda customer service at 1-800-999-1009. Honda's number for this recall is JY8.