SafeAmerica Credit Union

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• By Kevin Alvarez

Free Webinar September 14 — Try These Financial Life Hacks

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

Inflation is impacting all of us, from trips to the grocery store to the gas station. Financial life hacks are all about reducing stress and effort. The most powerful way to succeed is to keep it simple, and we want to show you how. If you are looking to reduce your financial stress and optimize your finances, we hope you will join us to learn these financial life hacks.

Click through each tab below to learn more.

Who Should Attend

  • Anyone feeling financial stress
  • Anyone who feels like their financial situation needs relief
  • Anyone who want to improve their overall financial wellness

What You Will Learn

  • Tips to monitor your spending
  • Ideas to build financial health
  • Ideas to bulk up savings

Details

Date: Wednesday, September 14, 2022

Time: 11:00 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

National Financial Awareness Day – August 14, 2022

August 14th marks National Financial Awareness Day! Financial Awareness Day is a great time to review where you are now and where you’re going financially. Use this day as a reminder to take investing and saving seriously to build financial stability and prepare for the future. Here are a few things to consider when planning your financial future.

Financial Awareness

What You Can Do Now

Financial awareness does not have to be a difficult or daunting task for anyone, especially with the many resources readily available for members to take advantage of.  Through our partnership with GreenPath Financial Wellness, we provide our members financial education, free financial counseling, credit report reviews, student loan counseling, and much more!  We invite you to utilize this free service made available to you as a SafeAmerica Credit Union member.

GreenPath Financial Wellness

Sources

• By Kevin Alvarez

Choosing The Right Credit Card

There is no right or wrong answer to the question, "Is this the right credit card for me?" You need to understand the various features and benefits of the credit card, and then make a decision after comparing a few options. Here are some guidelines to help you with choosing the right credit card:

Understand What The Fees Really Mean

Don’t pick a card just because it offers a zero annual fee. Many unsecured credit cards still offer a zero annual fee these days. Banks understand that a “no annual fee” card is attractive to many consumers. This doesn’t mean you should never consider a card because it comes with a fee – if the card comes with a substantially lower interest rate, that might justify paying the annual fee. Or, the perks and benefits that come with the card (such as airline frequent flier miles) might outweigh the downside of paying an annual fee.

Understand all the fees that could be applied. Credit Card agreements will disclose the possible fees that could be charged to card holders:

  • Annual fee – The card’s annual fee is simply the amount that is charged to you, as the cardholder, for using the card each year.
  • Cash advance fee – This fee is charged to the account when the card is used to process a cash advance (if the card has this feature included). The cash advance fee may be accessed either as a flat fee amount or as a percentage of the cash advance amount.
  • Balance-transfer fee – This is a fee that is charged if you are transferring a balance from one card to another — often 3% of the transferred amount.
  • Late payment fee – This fee is fairly self-explanatory. You are charged a fee if your payment arrives after the invoice due date. Fees could be as high as $39-$49 per month.
  • Over-the-credit-limit fee – This is a penalty fee that is accessed when you make a purchase that goes above your current credit limit. Fees could be as high as $39-$49 per month.

Look For The Lowest Interest Rate

If you’re not going to pay off the balance in full each month, choose the card with the lowest annual interest rate. Don’t get distracted by offers for cash back or rewards. The amount you will pay in interest charges will exceed the value of the perks.

Creditors will determine your interest rate AFTER you apply for the card. The rate will be based on your credit history. A solicitation in the mail to apply for a card is not a guarantee that you will receive a particular rate. Once you apply and the lender reviews your credit report, you may get approved for the card but at a higher interest rate than you thought. Finally, understand that your rate can change – credit cards are unsecured lines of credit, and creditors often use variable interest rates which adjust based on economic and market conditions.

Get Value From Perks, but Don’t Get Distracted by Them

If you’re going to pay your balance in full each month, consider a card that offers something you really value. The interest rate here doesn’t matter, since you’ll be paying your balance off immediately. Cash-back options are an example.  Once you accrue a certain level of spending on the account, you become eligible to receive a cash-back “reward.” There are other perks such as travel rewards, frequent flier miles, roadside assistance, insurance, and “member-only” privileges that could be attractive to the card holder.

Don’t pick a credit card just because it offers great rewards or cash back. Credit cards that offer cash back or perks may sound great, but if rewards come with many strings attached, then it might not be worth it. If you aren’t sure whether you’ll pay the balance in full each month, a high APR may cost you more money than you save with the rewards. Also don’t pick a credit card just because it has a low introductory or “teaser” rate. The introductory rates are only a fraction of the total time the average person retains a credit card.

Go For Low APR

In general, opting for a credit card with a low APR is a good approach. If you are one of the 30 percent of Americans who pay their credit card balances in full each month, the interest rate is irrelevant to you, since almost all cards come with a grace period allowing a period of time to pay the balance in full without incurring interest fees. However, if you regularly carry a balance on your credit cards, the interest rate should always be a top consideration.

Talk to your credit union, and understand their different card products.  Compare the terms and rates from national lenders, and most importantly, always use the card wisely and within your spending means.

Your Credit Union Can Help

Because we're a credit union, we are not-for-profit, so our earnings are returned to our members in the form of higher dividends, lower loan rates and reduced fees. As a SafeAmerica Credit Union member, you have exclusive access to our Visa Platinum Rewards credit card. Our card offers no fees - not even for balance transfers!

You get:

  • Rates as low as 9.90%APR
  • Rewards points, one for every dollar you spend
  • No annual fee
  • No balance transfer fee
  • No cash advance fee
  • More!

Plus, for a limited time, we offering our cardholders a chance to win one of three Amazon gift cards, up to $1,000*, just for using our card. For full details, click below.

Learn More

APR (Annual Percentage Rate) as of 7/1/22, is based on credit worthiness and is subject to change without notice. Cash advances and balance transfers do not qualify to earn rewards points.  Program is subject to terms and conditions.

*Minimum 5 credit card purchases but no more than 30 in the promo period (July 11 – August 19, 2022) required for sweepstakes entry. Each time you use your card acts as one entry.  Balance transfers and cash advances do not qualify as a card transaction/raffle entry. Promotion valid July 11, 2022 through August 19, 2022.  See official contest rules.

• 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

Take These Steps With Your Student Loans

What steps should you take with your student loans – even with the extension of federal student loan payment relief measures? The pause continues on federal student loan debt collection and reduced interest rates on federal student loans to 0% until May 2022.

For those with government-held loans, the relief options provide a record-long “breather.”

It’s not too early to take steps in preparation for the relief programs to end. Borrowers should be ready to make student loan payments, even as policy makers discuss further extensions in the face of an increased number of borrowers becoming delinquent or defaulting on their loans.

Listed here are steps to move forward as protections end.

Take Inventory

How’s your memory in the midst of the longest payment freeze of federal student debt in history? As a first step, take the time to document how much you owe and who to contact about student loan balances.

To get current loan balances, log onto the National Student Loan Data System (NSLDS). The portal will display how much you borrowed, the type of each loan and interest rate, payment history, and the current loan servicer for each loan.

For private student loan information, jog your memory with your credit report, which tracks current and past credit obligations, including student loans. AnnualCreditReport.com provides borrowers with a free report from the three main credit reporting agencies: Equifax, Experian and TransUnion.

These resources are also useful to track current student loan servicers – the organizations that handle payment and administration of your debt.

Track Your Interest Rates

Student loan interest rates vary depending on the loan type and other terms such as the date the funds were first disbursed to you. Again, NSLDS is the go-to resource to discover the interest rates of your federal student loans.

To track interest rates on private student debt, contact each lender for fixed and variable interest rates. SafeAmerica Credit Union offers private student loans through our partner, Lendkey. Click here for current rates and loan programs.

Look at Affordability of Payments

After the lengthy payment pause ends in May 2022, consider overall affordability. Based on your current monthly income and expenses, you might find that resuming payments for federal student loans will stress your budget.

Explore options to lower monthly payments by switching to an income-driven repayment plan.

Private student loan lenders typically don’t offer income-driven plans, but they might offer alternative repayment plans on a case-by-case basis.

Loan forgiveness might be an option. In the last few months, the Department of Education overhauled the Public Service Loan Forgiveness Program. Teachers, nurses, first responders, service members, those working in nonprofit hospitals and other nonprofit and public service workers can potentially have their student loans forgiven

Explore whether you can take advantage of the changes to the public servant loan forgiveness program..

See if Loan Consolidation is Possible

Again, if affordability is an issue, consolidating your student loans sets you up with a single monthly payment.

For most borrowers, consolidation lengthens the repayment period, so your cost of borrowing will actually be higher since you will likely pay more interest over the long run.

This option will depend on your specific financial picture, so be sure to research all the pros and cons of loan consolidation.

Take the Steps that Work for You

It's great to have the added breather for your budget!

Looking ahead to later this year when the payment pause ends, our partners at GreenPath is a useful source of independent information.

Student loan counselors can suggest ways to manage an individual situation if you are feeling overwhelmed as you look to the May 2022 deadline.

This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit

 

Greenpath Financial Wellness