Here are the 5 financial tips for the fourth week of May 2012.

Tip no 1 - All offshore payday lenders are illegal and cannot sue you.

Offshore payday loan lenders are illegal. This means they are not recognized as legal lenders by your state government. If you have taken out a payday loan from an offshore payday loan lender, then you're not legally obligated to pay back the borrowed amount along with high interest rates and fees. Rather, you're only supposed to pay back the original amount. The offshore payday loan lender might threaten you with fatal consequences for not paying the interest rates and fees, but they can hardly do anything. You can close your checking account to stop these illegal payday loan lenders from debiting money.

Tip no 2 - Your credit score does not appear on your credit report.

Several consumers think that they can know about their credit score from the credit reports. They don't have to pay any fee. The truth is, they will have to pay $19.95 to know about the FICO score at myFICO.com. If a credit card

There are various types of credit scores in the nation. FICO score is the most popular one. There are websites which offers free credit score to the consumers. You can view it but keep it in mind that most lenders will not look at this credit score.

Tip no 3 - Checking your own credit report does not hurt your credit score.

Many a times, consumers shy away from checking their credit report. A lot of consumers think that their credit score will drop after having a glimpse of their credit report. However, this notion is completely wrong. A person can check his credit report as many times as he wants. He can view his credit report to check the status of the credit accounts from time to time. There won't be any adverse effect on his credit report. The credit score actually drops when the creditors check a person's credit report several times and within a short span of time.

Tip no 4 - Teach your kids the importance of using credit cards from an early age.

If you have been in credit card debt and you do not wish your child to repeat the mistake, then it is important to teach him about the right way to use a plastic card. Explain the role played by credit cards in your life. Tell him how to use a credit card. Notify him that credit card companies charge high interest rate on the cards. If you miss payments, then the credit card companies will increase the rate. Moreover, they'll impose penalty upon you. Get him acquainted with the credit card terms and terminologies. Teach one credit card term everyday.

Tip no 5 - Sit with your spouse and talk about every minute details related to personal finance.

Love is not enough for a successful marriage. You need to have financial and emotional compatibility with your spouse. You can have that only when you discuss your financial matters with your spouse. When you reveal the details of your income, expenses, savings, deficits, etc. to your spouse, he/she gets an insight to your character. Your spouse understands your financial condition and goals. He/she realizes everything is not picture perfect. He/she has to make an effort to maintain your financial house in the proper condition.