Posts Tagged ‘ debit ’

How Can You Help Your Credit Score?


Stressed man with bills

Think of your credit report as your financial resume. It says a lot about you and how you manage your money. It’s a summary of all of your debts – those you’re currently paying on, those you’ve paid off and it shows payment history, debt amounts and more. It’s your ticket to being approved for a loan or being denied. It determines how much interest you pay when it comes to the amount of money you want to borrow.  Maybe you’ve had some financial issues due to job loss, illness, or maybe you simply developed some bad financial habits like having too much money going out for bills and not enough money coming in.

Whatever your situation is, there’s always a way to help improve your credit score. May we suggest:

Pay your bills on time. This is pretty much a no-brainer. If a situation comes up and you know you’re going to be late with a payment or can’t make it in full, pay something and/or call the creditor to work out an alternative payment arrangement and make sure it’s noted in your account. Consider using an online bill pay system to help you schedule payments.

Credit card usage. Use them lightly. Just because you have a $5,000 limit, doesn’t mean you need to go on a charging spree. Use less than 30 percent of your total available credit.

Pay off your installment loans  (mortgage, auto, student, etc.).  This can help your scores but typically not as dramatically as paying down — or paying off — revolving accounts (think about all of those store credit cards you signed up for to take advantage of that point-of-sale discount) and other credit cards.

Lenders like to see a big gap between the amount of credit you’re using and your available credit limits. Getting your balances below 30% of the credit limit on each card can really help; getting balances below 10% is even better. Pay off  your highest-rate card(s)/loans first and then put those payments towards other debts such as credit cards that  are really close to their limits.

Pay more. Anytime you can pay more than the minimum payment, do it. You’ll end up paying less interest in the long run. Remember, every little bit helps.

Lines of credit. Too many open lines of credit, whether or not you’re using them, may send a red flag up the pole to potential lenders.

Balance. Maintain a good balance of credit between your installment loans (car loans) and credit cards.

Old credit is good.  If you have charge cards you haven’t used in a while or have paid off, but still have open lines of credit, use them once in a while and pay them off in full each month.

Check your credit report. You are entitled to a free annual credit report from www.annualcreditreport.com. Go there, order up your credit report, grab a cup of coffee and take a good, long hard look at it. Make sure you get it from all three credit reporting agencies – TransUnion, Experian, and Equifax. Dispute any discrepancies you may find. You don’t necessarily need to correct accounts you closed listed as being open or accounts you closed that don’t say “closed by consumer.” Closing an account may hurt your scores. If your goal is improving your scores, leave these alone.

Pay attention to significant errors. Sometimes life deals us a bad hand – you have financial issues due to job loss, medical issues, divorce, gambling problems, and so on. If you have any of the following on your credit report, it is worth your effort to correct these issues sooner rather than later:

  • Late payments, charge-offs, collections or other negative items that aren’t yours.
  • Credit limits reported as lower than they actually are.
  • Accounts listed as “settled,” “paid derogatory,” “paid charge-off” or anything other than “current” or “paid as agreed” if you paid on time and in full.
  • Accounts that are still listed as unpaid that were included in a bankruptcy.
  • Negative items older than seven years (10 in the case of bankruptcy) that should have automatically fallen off your reports.

Additional resources:

Members 1st FCU offers free access to money management and financial education services through GreenPath, a financial management program. Through comprehensive education and exceptional service, GreenPath has been assisting individuals for more than 50 years. As a member, you can receive assistance with:

  • Personal and family budgeting
  • Understanding your personal credit report and how to improve your score
  • Personal money management
  • Debt repayment
  • Avoiding bankruptcy, foreclosure, and repossession

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Board of Governors Federal Reserve System

5 Financial Resolutions for 2014


financial goalsAccording to a Marist poll, a whopping 44% of Americans make some sort of New Year’s resolution. If you’re one of the 12% that are setting new financial goals for 2014, the tips below offer practical, sustainable changes that can substantially transform the weight of your wallet. Since these activities are effective even as short-term goals, they should help you maintain your resolutions long after January 1. Read on to get started.

Set aside at least 10% per paycheck
It’s easy to get swept up in spending spree fantasies when you receive your paycheck, but don’t forget to set apart a percentage of your income for your savings account. The key word is percentage. If you save in proportion to your income, your savings can adjust to any sudden changes in pay—for better or worse. This takes the pressure off of having to save a set amount each month.

Try to make your savings contribution as seamless as possible. Some direct deposit options allow you to send a certain percentage of your income straight to your savings, before you have a chance to see it. If you don’t have that option, set aside money manually. To do this with discipline, it helps to think of your real income as your paycheck minus savings. If it helps, start at a modest 10%—which is the minimum generally recommended—and over time steadily increase the percentage of your paycheck you contribute to savings.

The key is to let the savings build—set up a special savings account if you need to remind yourself not to dip into them.

Pay high-interest debt first
Look over your loans and credit card bills and sort them out in order of interest rate. Paying more than the minimum on the debt with high interest will save you incredible amounts in uncharged interest. Even if your other balances continue charging you interest, so long as you make the minimum payments and maintain the low interest rates, you’ll be ridding yourself of the fastest-growing debt.

In addition, when you finally free yourself from the worst of your debts, you’ll not only have fewer payments to make, but you’ll feel fantastic knowing you avoided extra debt. Confidence from your previous success will make paying off small-interest debts that much easier and bring you one step closer to financial freedom.

Consolidate your credit
Another way of securing lower interest rates (and paying less in the long run) is by consolidating your credit card and loan bills. Consolidating means combining your outstanding debts, or transferring outstanding balances, onto a new loan or credit card with a lower interest rate. The main benefit of debt consolidation is that you can exchange the high interest rates of your previous loans or lines of credit for the lower rate of the new one.

However, keep a sharp eye out for any deals that seem too good to be true. Sometimes, lenders will initially give you fantastically low rates, and then jack up the interest as soon as the promotional period expires. Be careful to read the fine print, or consult a professional, before committing to a loan consolidation.

Learn more about the balance transfer options at Members 1st Federal Credit Union.

Automate and synchronize payments
Automating your loan and credit card payments can help you avoid those pesky late-payment fees or hiked up interest rates. Late payments reflect badly on your credit score, so anything you can do to avoid missing the due date helps. Automated payment services like online bill pay or direct debit are easy to set up and require little to no maintenance.

Keep in mind that we have the biggest tendency to overspend when we forget our debts and think of only the positive number in our accounts. Timely, regular and synchronized credit card payments will keep your brain (and your eager, spending heart) in check.

Get your free credit report
If you use credit, it’s always helpful to have a credit report on hand. A credit report tells lenders all the details about your past credit use, payment history and total credit available under your name. It’s best to know exactly how your credit is doing in what areas, so you can make specific changes in your faulty credit habits. Luckily, through the Fair Credit Reporting Act (FCRA), you are entitled to one free credit report each year from each of the credit bureaus: TransUnion, Equifax, and Experian.

To get a better sense of how your credit is doing throughout the year, order one of your free credit reports every 4 months.

Last word
The best thing about these resolutions is that they are each practical enough to start immediately—even today—yet, they also promise to significantly improve your finances in the long run. Half the battle of keeping resolutions is your ability to feel good about what you’ve accomplished in the short-term, and these changes allow you to hit rewarding milestones along the way to accomplishing your bigger, long-term goals. With a little prioritization, effort, and discipline you can proudly make 2014 your best financial year yet!

Note: Members 1st offers free access to money management and financial education services through GreenPath, a financial management program. Through comprehensive education and exceptional service, GreenPath has been assisting individuals for more than 50 years. As a member, you can receive assistance with:

  • Personal and family budgeting
  • Understanding your personal credit report and how to improve your score
  • Personal money management
  • Debt repayment
  • Avoiding bankruptcy, foreclosure, and repossession

Guest blogger: Nico Leyva of NerdWallet

 

 

 

 

Want your favorite photo on your debit card?


We are pleased to announce that you can NOW personalize your Members 1st VISA Debit Card!

2 options to choose from:

  • Photo ID – put your own photo on your card for added security
  • Full photo – place a photo that you’ve taken on the entire front of your card
How to personalize:
  • Sign In to Members 1st Online and click on the “Visa” tab and select “Debit Card Personalization”
  • Simply follow the prompts and complete the process
  • Your card will arrive within 5 to 7 business days (on average)
  • Your 1st card is FREE
Click Here for Frequently Asked Questions, Terms & Conditions and Photo Upload Guidelines and Image Guidelines.
Don’t have our Debit Card?
If you don’t have our Rewards Checking Account, you’ll need to open one and sign up for our VISA Debit Card.
Don’t have Online Banking?
It’s easy, convenient, environmentally friendly and FREE. Simply visit any branch location or call (800) 237-7288 and ask for an Electronic Service Application to get started.
Comment below and let us know what you think. Was the process simple? Did you run into any issues? What type of photo did you choose: yourself, pet, family, dream vacation spot, etc?
*All photos submitted for card personalization must meet our Personalized Debit Card Terms & Conditions. Ask for details.
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