SafeAmerica Credit Union

credit history

• By Kevin Alvarez

Coping with Inflation

Inflation continues to put pressure on household budgets. From groceries to gas, record-breaking inflation means the purchasing power of your money is decreasing each month. Below you will find guidance on how to best navigate a time with high inflation.

1. Take Inventory of your full financial picture. Has your household income changed? have you adjusted your budget for rising groceries, transportation, or other expenses? Check your existing budget to see where you stand and where your money is going. If you don't have a budget, it can help to create a simple spending plan or roadmap of monthly expenses. A good place to start is to use resources like a budgeting worksheet track your monthly income against current expenses.

2. Continue to build an emergency fund to tap into when unexpected circumstances arise like a medical expense or costly home repair. An emergency fund helps reduce the chance of taking on debt to cover an unplanned expense. It might be tempting to pause monthly savings as rising prices take a bigger bite out of your monthly budget, but resist the urge. Put savings on auto pilot with each paycheck. Even a small amount will add up over time.

3. Prioritize monthly spending in a time of rising prices. Rethink certain monthly expenses such as subscription or streaming services. According to researchers, the average household has 4.5 streaming services and spends an average of $55 on them per month. This may not seem like much, yet $55 a month adds up to more than $600 per year. If you’re trying to cut expenses in the face of higher prices, ditching underused subscriptions can be a good place to start. As essentials get more expensive, figure out your new baseline. Limit credit card use and curb discretionary spending (dining out, entertainment). GreenPath’s Aligning Priorities workbook can help you make these decisions.

4. Monitor debt, especially as interest rates rise. Paying off high-interest credit card debt saves you money in interest, improves your credit score, and frees up room in your budget. Choose a debt payoff strategy that works for your situation. Consider GreenPath’s Debt Management Plan which helps you pay off unsecured debt in 3 to 5years. GreenPath can work with many creditors to bring your ac-counts current, lower interest rates, and eliminate fees.

5. Shop smart. Research the best sales, coupons, and specials, especially on products that are low in inventory. Check dollar stores for deals on household items and stock up on those items where possible. Bulk retailers or wholesale clubs might be a good way to stock up on items in large quantities for a lower per-use cost. Strategically plan your higher-cost purchases. Swap out brand-name items for generic as much as possible.

6. Keep tabs on your credit history. In times of rising prices, it pays to keep tabs on credit history, which is used to calculate your credit scores. The three digit number of your credit score helps determine whether lenders approve you for new credit and what interest rates they offer. Annualcreditreport.com is a trusted “one-stop-shop” to check your reports from Experian, Equifax, and TransUnion – the three industry-standard credit bureaus. You can also work with GreenPath to review your credit history.

7. Get independent guidance from a nonprofit financial counseling agency like GreenPath. Counselors look at your entire financial picture to help you ease financial stress and uncertainty, through access to clear information and a personalized action plan.

Information brought to you by our partner, GreenPath Financial Wellness

GreenPath Financial Wellness

• By Kevin Alvarez

What To Do If Your Credit has Fallen – Five Tips

Your credit score can affect your life in a lot of ways, from whether you are eligible for a loan or credit card, or qualified for a security clearance. If your credit score has fallen or you want to improve your credit score, these tips can get you started.

What is A Credit Score?

A credit score uses historical information about a person’s past use of credit to calculate the likelihood that they will pay back what they owe on time and in full. Credit scores are used to determine qualification for borrowing money as a loan or on a credit card, and they can affect your interest rates, insurance premiums, leases, or eligibility for a job or security clearance. 

Ranging from a low of 300 to a high of 850 (sometimes referred to as “perfect credit”), credit scores are calculated based on payment history, amount owed, length of credit history, types of credit used, and new applications for credit. 

In general, a score of 660 and above would make a borrower eligible for credit with favorable interest rates. A score below 600 may result in difficulty getting approved for credit and is likely to be subject to high-interest rates.  

If you don’t know your credit score, you might be able to find it on your bank or loan statement or credit card bill. You can also purchase your credit score directly from one of the three credit bureaus, Equifax, Experian or Transunion. Click here for a Credit Score Guide

5 Tips to Improve Your Credit Score

#1. Get Your Payment in Before The Buzzer

Paying your bills on time is the biggest single factor used to calculate your credit score. Late payments (even a couple of days), past due accounts and accounts in collections, have a negative impact on your credit. Regular, on-time payment of the minimum amount (or greater) will improve your credit score. A positive payment history in the range of 18 months or longer will begin to show results in a growing credit score.

If you are falling behind on your bills, look for ways to get back on track. Use a monthly budget to plan your spending and make sure that your bills are covered. Automated payments can also help you avoid late fees and ensure on-time payment. If you know you will miss a due date, call your credit card company or lender. They may be able to help by moving your due date out.

#2. Pay off Debt

How much you owe is another big factor in calculating your credit score. If you have a large amount of debt or are carrying balances on credit accounts for long periods of time, it can negatively affect your score. Paying off the debt will help improve your credit score.

Start by prioritizing your budget to pay down your debt. Look for places you can redirect non-essential spending to pay extra on your credit accounts. A credit counselor can walk you through different options for dealing with debt and may be able to help you pay it off more quickly.

#3 All Things in Moderation - Use 30% or Less of Your Credit Limit

The amount of credit you use (also called credit utilization) also affects your score. Our financial counselors suggest using less than 30 to 40% of your available credit. Spending above that threshold, maxing out your credit, or carrying high balances relative to your credit limit will cause your score to fall. However, regularly using small amounts of credit and paying it off will increase your score. Generally speaking, having credit cards or installment loans and paying them on time and in full will improve your credit score over time. People without established credit typically receive lower credit scores. 

If you are using more of your credit limit than you would like, take a look at how and why you are using credit can help you make adjustments in your budget and spending choices to reduce your reliance on credit.

#4 Talk to A Credit Counselor

Talking to a credit counselor won’t have a direct effect on your credit score, but it can give you insight and information that you can use to improve your credit. We will work with you to understand your financial situation, explore different options, and make a personalized plan. We can help you review and understand your credit report. If debt is preventing you from making progress, we can help you explore debt management plans and other options that can accelerate your path forward. 93% of people who talk to us leave the conversation with a plan for achieving their goal.

#5 Stick with It! Credit Building is a Long-Distance Run

A history of credit that you have paid back on time and accounts that you have held for five years or longer have a positive effect on your credit score. Quickly opening multiple accounts, suddenly carrying balances for a sustained period, or even closing unused accounts have a negative effect on your score.

Events like foreclosure and bankruptcy, while they serve a very important purpose for those with severe debt, have a significant and lengthy impact on your credit score. (We are not lawyers, and this is not legal advice. If you are considering one of these options, we encourage you to consult a legal professional and to investigate other alternatives as well.)

Your credit score is based on patterns over time, with an emphasis on more recent information. Improving credit and rebuilding a credit score that has fallen will take some patience, but it can be done! Credit scores can and do change.

Help is Here

When it comes to building your credit history, you don’t have to do it alone. Through our partnership with GreenPath Financial Wellness, you have direct resources for improving your financial wellness, including FREE financial counseling.

Learn more by clicking the button below.

GreenPath Financial Wellness

GreenPath Financial Wellness

• By Kevin Alvarez

Free Webinar March 9 — Starting From Scratch: How To Build Credit

This free, one hour webinar is presented by GreenPath Financial Wellness

What do renting an apartment, getting a job offer, and car insurance rates all have in common? Your credit history could impact every one of these things (and more)! Credit is important for more than just getting a loan, although it impacts that too. If you know you need to build credit and aren’t sure how to do so without going into debt, this webinar will provide guidance and tools to start you down the path to building positive credit history. Whether you have never had any credit history or are looking to rebuild credit after an extended period without, this webinar will cover why it is important to build positive credit history and how to do so responsibly.

Click through each tab below to learn more.

Who Should Attend

  • Anyone with no credit history
  • Anyone with no credit history for 5+ years
  • Parents of teenagers who want to help their children start building good credit

What You Will Learn

  • Why credit is important
  • Tools to start building positive credit history
  • Healthy credit habits for using credit responsibly

Details

Date: Wednesday, March 9, 2022

Time: 10:00 am PST

This webinar will be recorded and a link will be sent out to all registrants after the webinar.

Click the red button below to register.

Register Now

• By Kevin Alvarez

Credit Reports – How to Get Your Annual Credit Report

How to Get Your Free Credit Report

The Fair and Accurate Credit Transactions Act of 2003 (FACT Act) entitles you to receive a free copy of your credit report once a year from each of the reporting companies – Equifax, Experian, and TransUnion. The three companies have set up one central website, toll-free telephone number, and mailing address. You can request your free report either online, by phone or even mail by visiting www.AnnualCreditReport.com or calling 1-877-322-8228.

Should Consumers Order All Their Credit Reports at Once or Space Them Out Over 12 Months?

It is entirely your choice whether you order all three credit reports at the same time or order one now and others later. If you request all three at the same time, you can compare them, however you won’t be eligible for another free report for 12 months.  On the other hand, if you space them out, (for example, requesting one report every four months), you can keep track of any changes or new information that may appear on your report. If you order from only one company today you can still order from the other two companies in the future.

Consumer Alert! Beware of Ads Claiming "Free" Credit Reports

Many other websites claim to offer “free credit reports, free credit scores, or free credit monitoring.” But, be careful.  Their claims of “free” are not always no cost. These sites are not part of the official, government-mandated annual free credit report program. In most cases, these sites will provide you with a free credit report and score, and they will attempt to enroll you in some type of credit monitoring or protection service. Before signing up for such a service, do your research and determine if it’s something that you really need. The Federal Trade Commission has received complaints from consumers who thought they were ordering a free annual credit report, but instead paid hidden fees or agreed to unwanted services. Don’t be fooled by misleading TV ads, e-mail offers, or online search results.

Other Situations That Warrant Getting a Free Credit Report

Under federal law, you may be entitled to a free credit report if a company takes “adverse action” against you such as denying an application for credit, insurance, or employment, based on information in the report. In addition, other circumstances include unemployment, receiving welfare benefits, and any report of fraud (including identity theft).

Is it Important to Review Your Credit Report Frequently?

Yes, absolutely! The information in a person’s credit report is used to evaluate applications for credit, loans, insurance, and employment. Therefore, making sure that your information on your credit report is accurate and up-to-date is very important.

It may be helpful to go over your credit report with one of our financial wellness counselors.  Call us to get started today.

GreenPath Financial Wellness

• By Kevin Alvarez

Free Webinar: Family Lessons About Money

Register Now

This free, one hour webinar about Financial Transformation is presented by GreenPath Financial Wellness

Join us for a lively discussion about tips, challenges, and resources needed in order to raise financially healthy kids. Be part of our audience for our live podcast, Real Stories: Journeys of Financial Wellness. Our panel will feature GreenPath clients who are inspiring their children to be financially resilient. We'll also chat with Professor Bernard Dillard. Come along with GreenPath Financial Wellness for an enlightening session on how we might support the next generation in their financial in their financial wellness journeys.

Who should attend

  • Parents who would like to learn from others' experiences about kids and money
  • Anyone who wishes to mentor a young person about money
  • Teens or young adults who wish to jump start family conversations about money

What You'll Learn

  • How to communicate with your kids about money
  • How to overcome family financial challenges
  • About resources to share with your family and community

Details

Date: Wednesday, July 28, 2021

Time: 10:00 am PST - 11:00 am PST

Register Now

• By Kevin Alvarez

What Influences your Money Habits?

Information brought to you by our partner, GreenPath Financial Wellness

When our financial counselors speak with members about specific challenges they might be facing, it can be helpful to have a conversation about the factors that influence money habits and behaviors. 

From family experiences to other factors such as the media, a range of influences shape our views of the world – including the money habits we put into practice each day. 

Whether we have patterns of spending, saving, investing or even budgeting, these habits are usually shaped by our past experiences. 

As the webinar highlight notes, there are three key influences when it comes to money habits:

Family

How we regulate to finances is very much related to what we experience in our families, and the money lessons people experience across generations.

Perhaps our parents were not comfortable spending money and had a distrust when it comes to taking on debt. Or maybe we witnessed a family where there was a high tolerance for spending and taking on loans for purchases both big and small. whether we were in families that were big spenders or big savers, or somewhere along the spectrum, many people can identify with the role their family's played in their money habits.

Media

Movies, television shows and social media often romanticize the appeal of beautiful homes, nice cars, new gadgets, and brand-name clothing and jewelry. The media plays a big role in emphasizing the desire to have the latest and greatest of everything - despite the realities of our financial situation.

While the entertainment industry is a big part of our media diets, our social media feeds serve up a never-ending stream of photos and updates showing off expensive vacations, cars, elaborate events and more. As a result, many of us are tempted to "keep up with the Joneses" and by ramping up our spending. This is a significant influence on our money habits.

Culture

Attitudes and perceptions about how we handle our money are also influenced by the larger culture. For those living in a culture of consumption, the "buy now, pay later" philosophy is everywhere. For those in a culture that puts an emphasis on economic restraint, that philosophy and influence is likely quite different.

While cultural influences affect how we view money, we also have the power to choose how we interpret cultural exceptions. Many people turn the "conspicuous consumption" influence into a positive effect to encourage good money habits. They might see the cultural behaviors as life lessons on what not to do.

Know Your Money Habits

Where do you stack up when it comes to money habits - especially when it comes to credit card debt?

All told, knowing your money habits is a good step towards financial health and wellness. If spending is getting out of hand, for instance, due to the pressures of keeping up with a friend's social post, it might be time to slow down and take a hard look at spending.

Take the next step - check out the educational course - Redesign Your Money Habits

Learn More

• By Kevin Alvarez

Why Credit Matters!

Information brought to you by our partner, GreenPath Financial Wellness

Understanding your credit is easier than you may think. Building it properly has it's benefits. It can help with everything from buying a car, house, to getting a job. Yes, even a job. That three-digit number can be important building block in establishing a solid financial foundation.

Sometimes, the unexpected can happen; like a pandemic, a temporary loss of income, or an illness. Improving your credit may take time and patience, but it is worth it. If you have run into a bump in the road or experienced hardship in your finances, there are programs to help.

Why Is A Good Credit Rating So Important?

Juggling your credit is possible with planning and knowledge to get a better handle on your financial future. it is helpful to understand how it can impact you, your family, and your goals for the future.

Credit scores are increasingly important as the economy continues to recover, and more people apply for loans, rent, and buy homes. Banks and other lending institutions use your credit scores to decide who is a good risk based on their previous financial history.

Having A Good Credit Score Can Save You Money!

What does this all mean? A good credit score is part of a path to provide opportunities you may not otherwise be able to access. Lower interest rates are offered to people with better credit scores - that means more money staying in your pocket. It's also easier to get a loan or line of credit. Many companies require at least a fair credit rating before they will even consider doing business with you.

How Is Your Credit Score Determined?

Your FICO score (Fair Isaac Corporation) is a three-digit number based on the information in your credit reports. It helps lenders determine how likely you are to repay, and how much it will cost (the interest rate).

When you apply for credit, lenders need a fast and consistent way to decide whether to loan you money. In most cases, they'll look at your FICO Scores which track history with credit card debt.

There are several factors that help determine your credit score. Understanding them can get and keep you on a great path.

Payment History (35%) - Are you paying your bills on time? Keeping up with your payments and having a history of doing so, is a big factor in your credit score. If you've fallen behind, or need to get back on track; you can set up automatic payments, set reminders, maintain a monthly budget or savings plan.

Amounts You Owe And How You Use Available Credit (30%) - Know your credit limit and keep your balances low (30% of available credit or less).

  • If your balances are high, create a proactive plan to pay them down.
  • As you are working to pay down balances, stop using the card altogether, Also, instead of paying the minimum, increase your monthly payment.

Length Of Credit History (15%) - How long you have gad a line of credit open can help you.

  • Review your credit report to see how long it has been open.
  • Keep accounts active. If possible, keep older accounts active, without interest charges.

Types Of Credit You Use And Your/Credit Mix (10%) - it's important to have a combination of revolving accounts and installment loans. This shows your ability to responsibly handle different types of loans like auto loans , personal loans, or student loans.

New Credit/Having Too Many Lines Of Credit (10%) - Opening an account is certainly alright. Opening five accounts at once, not so much, when you apply for credit remember:

  • Applications for new credit stay on your account for two years.
  • When you do apply, it can cause a slight dip on your credit score.
  • Remember it is important to handle any new accounts responsibly to avoid more significant impact to credit.
  • If you are taking on too much credit, it could signal you are having financial issues.
For more Financial tips and education, visit GreenPath Financial Wellness.

• By Kevin Alvarez

3 Tried and True Facts About Personal Finances

Information brought to you by our partner, GreenPath Financial Wellness

No matter your age or stage in life, it pays to know the facts about personal finances. When you understand the basics, you can set yourself up for success and build a healthy financial future.

Here are three facts to know about personal finance to get on the right track.

Fact #1 - Good Financial Habits Pay Off

Making it a habit to set aside money each month helps you save to meet both short and long-term goals. For many of us, the big savings goal is purchasing a home, and eventually retirement. But people also save to build up an emergency fund, afford a new vehicle, education, and more.

Making regular deposits, no matter how small, will add up over time. Besides setting aside money and ensuring your funds earn a competitive rate of interest, the second most important habit is to control spending. By budgeting wisely, you not only set aside more money for potential savings, but you also develop spending habits that serve you in the  long term.

Fact #2 - There's a Smart Way to Manage Debt

Many people find it helpful to understand the facts of managing debt wisely. For example, making only the minimum payment each month on a credit card extends how long it takes to wipe out your debt and adds to the amount of interest you pay. Minimum monthly payments can be a short-term approach to dealing with financial challenges - because you are keeping up on bills - however, making more than the minimum payment each month helps avoid digging yourself into a financial hole.

If you've hit the maximum balance on credit cards, or run into issues keeping up with other debt, it is time to take a hard look at where your money is going and make a plan to change any habits that are not beneficial to your financial health.

Fact #3 You Don't Have To Go At It Alone

There are times in life when you might need to get a handle on high credit balances, understand your options when facing financial challenges, or figure out how to get a healthier credit score. A financial counseling session, working one-on-one with a certified counselor, is a good first step. Not only will the counselor help you understand your full financial situation, but they will also help you to develop a customized plan for your unique situation.

Whether it's overwhelming credit card debt, student loan balances or issues with keeping up with housing costs, the path is easier when you work with a trusted resource.

A trusted source, along with an action plan that provides proven strategies, can propel people toward financial health with confidence.

Connect with a GreenPath Counselor Today

Through our partnership, counselors at GreenPath Financial Wellness are ready to share some "tried and true" facts when it comes to financial health. Gain a better understanding of your financial picture and whats steps to take to improve financial wellness.

Get started with a free, confidential financial counseling session by clicking the link below.

Learn More