Archive for Credit Union

5 Steps to Take Before Making a Large Purchase

Have you been bitten by the gotta-have-it bug? It could be a Peloton bike that’s caught your eye, or maybe you want to spring for a new entertainment system, no matter the cost. Before you go ahead with the purchase, though, it’s a good idea to take a step back and follow the steps outlined here to be sure you’re making a decision you won’t ultimately regret.

Step 1: Wait it out

Often, a want can seem like a must-have, but that urgency fades when you wait it out. Take a break for a few days before finalizing a large purchase to see if you really want it that badly. For an extra-large purchase, you can wait a full week, or even a month. After some time has passed, you may find that you don’t want the must-have item after all.

Step 2: Consider your emotions

A bit of retail therapy every now and then is fine for most people, but draining your wallet every month to feed negative emotions is not. Before going ahead with your purchase, take a moment to identify the emotions driving the desire. Is this purchase being used as a means to fix a troubled relationship? Or to help gain acceptance among a group of friends, neighbors or workmates? Or maybe you’re going through a hard time and you’re using this purchase to help numb the pain or to fill a void in your life. Be honest with yourself and take note of what’s really driving you to make this purchase. Is it really in your best interest?

Step 3: Review your upcoming expenses

What large expenses are you anticipating in the near future? Even if you have the cash in your account to cover this purchase, you may soon need that money for an upcoming expense. Will you need to make a costly car repair? Do you have a major household appliance that will need to be replaced within the next few months? By taking your future financial needs into account, you’ll avoid spending money today that you’ll need tomorrow.

Step 4: Find the cheapest source

If you’ve decided you do want to go ahead with the purchase, there are still ways to save money. In today’s online world of commerce, comparison shopping is as easy as a few clicks. You can use apps like ShopSavvy and BuyVia to help you find the retailer selling the item at the best price.

Step 5: Choose your payment method carefully

Once you’ve chosen your retailer and the item you’d like to purchase, you’re ready to go ahead and make it yours! Before taking this final step, though, you’ll need to decide on a method of payment.

If you’ve saved up for this item and you have the funds on-hand for it now, you can pay up in cash or by using a debit card. This payment method is generally the easiest, and if it’s pre-planned, it will have little effect on your overall budget.

If you can’t pay for the item in full right now, consider using a credit card with a low interest rate. Most credit card payments have the added benefit of purchase protection, which can be beneficial when buying large items that don’t turn out to be as expected. Before swiping your credit card, though, be sure you can meet your monthly payments or you’ll risk damaging your credit score.

Another option to consider is paying for your purchase through a buy now, pay later program. Apps, like Afterpay, allow you to pay 25% of your purchase today, and the rest in fixed installments over the next few months. This approach, too, should only be chosen if you are certain you can meet the future payments.

Large purchases are a part of life, but they’re not always necessary or in the buyer’s best interest. Follow these steps before you finalize an expensive purchase.

Reach Out to a Loan Officer to Talk about Your Options for a Big Purchase! 

Resources:
https://www.thebalance.com/before-you-make-large-purchases-2385817
https://www.fool.com/retirement/2018/07/23/4-things-you-should-do-before-making-a-big-purchas.aspx
https://www.thesimpledollar.com/save-money/my-strategy-for-making-large-purchases/
https://moneywise.com/insurance/home/how-to-think-through-a-big-purchase

6 Reasons to Switch to E-Statements

Are you constantly dealing with a barrage of junk mail that clogs up your mailbox? Drowning in papers needing sifted through? Are you always afraid to throw out any paper from your financial institution, fearful that you’ll be throwing sensitive material into the trash and making it an easy steal for would-be scammers?

If this sounds familiar, you may benefit from switching to electronic account statements.

Electronic statements (E-Statements) are similar to paper statements, except for the fact that they’re delivered electronically. At the end of each statement period, which is generally monthly for checking accounts and quarterly for basic savings accounts, you’ll receive a notification from 705 Federal Credit Union informing you that your statement is ready to view through the online banking portal, app, or by downloading from a secure site. Once you access the E-Statement, you’ll find it has all the information you’re used to receiving in your paper statements. You can also access your E-Statement by logging into your online banking site or app at any time throughout the month.

Quick, convenient and clutter-free, E-Statements are the way of the future. Here are six reasons to consider switching to E-Statements.

 1. Check your accounts at a glance

With E-Statements, there’s no need to wait for your monthly statement to arrive in the mail. Just a few clicks and you get your account statement at any time, from anywhere, using the mobile device of your choice. Some financial institutions also offer members the option of signing up for financial alerts, such as a warning when your account is running low and in danger of being overdrawn. With E-Statements, managing your accounts is easy.

2. Clear out the clutter

Why bother with piles of paperwork when you can access your accounts online? It’s neater, cleaner, and helps cut down on the correspondence you have flooding your mailbox. You’ll also save time sorting through papers when you can find your last account cycle balance with just a few quick swipes.

3. Keep your information safer

No matter how careful you are with papers containing sensitive data, there’s always a chance you can miss something and it’ll end up in the wrong hands. It can also be a pain to keep track of every incoming piece of mail and to dispose of it properly. With E-Statements, you’ll never have to worry about losing a paper that contains confidential banking information, or mistakenly tossing it into the trash where it can be easily accessed by identity thieves.

Some people are wary about sending sensitive information online and are fearful that an E-Statement can easily be hacked. However, you can access your account balance online with confidence, knowing that 705 Federal Credit Union uses several layers of protection to keep your information absolutely safe.

4. Monitor your accounts frequently for fraud

When you have instant access to your accounts throughout the month, it’s a lot easier to check for signs of fraud. Plus, when you spot the fraud sooner, you can take steps to mitigate the damage earlier and have a better chance of a full recovery.

5. Eco-friendly

When you choose to receive your monthly account statements electronically, you’ll be doing the environment a favor. Less paper statements means less paper waste and fewer trees getting cut down for something that will ultimately be tossed. Go green for the environment with E-Statements!

6. Safe and secure storage

Filing cabinets are so last century. With E-Statements, you’ll never stress about misplacing your account statements again. Your online banking portal or app acts as a convenient and secure filing cabinet, storing your account statements for you to access as needed.

Ready to make the switch to E-Statements? Signing up is easy. Log into Online Banking to sign up, today!

My Savings Has Been Wiped Clean; How Can I Replenish It?

Broken piggy bank with coins everywhere

Q: The last few months have been really tough on my finances, and I’ve been forced to use my savings for getting by. My emergency fund and savings account are basically zero. Now that my financial situation is starting to improve, I’d like to start building these up again, but it’s all so overwhelming. Where do I begin?

A: Watching savings that took you years to build up disappear in just a few months can be disheartening, but it’s important to remember that you’ve made the right choice. Using emergency funds to survive prolonged unemployment, an unexpected large expense or a medical emergency is the best way to make it through a financial hardship. If your savings are depleted, though, you’ll want to start rebuilding as soon as possible to ensure you have the funds to cover a future financial challenge without falling deeply into debt.

Here’s how to start your rebuilding plan:

Set a goal

Before getting started on saving up money, it’s a good idea to establish a tangible goal. What’s your magic number? You can try to recover the value of the savings lost, or start smaller, with a more attainable goal. Bear in mind that experts recommend having funds to cover three to six months’ worth of living expenses set aside in an emergency fund or savings account.

Review your budget and trim your spending

A good place to start finding those extra dollars for savings is by carefully reviewing your spending for ways to cut back. Look for expenses that can make a difference in a monthly budget without dramatically affecting your quality of life. Think about subscriptions or services that are rarely used, a dining-out budget that can be scaled back and expensive recreational activities that can be swapped with freebies. There’s no need to live like you’re broke, but stripping your budget of some extras can give you the boost of cash you need each month to build up your savings again.

Find a side hustle

Another great way to land extra funds is through a side job. There are many ways to pad a wallet without a major investment of time. Some options include taking surveys on sites like Survey Junkie and Swagbucks and doing gig work for companies like Uber, DoorDash and Rover.

Sell your old treasures

If you’ve spent part of the COVID-19 lockdown giving your house a deep cleaning, you may have unearthed some forgotten treasures that can turn into easy moneymakers. You can sell old clothing on ThredUp, unwanted jewelry on Worthy.com, make good money off your unwanted furniture through Chairish, sell or trade unused sports equipment on Swap Me Sports and sell kids clothing and toys on Kid to Kid. Use the cash you earn from these sales to jumpstart your new nest egg.

Make a plan

Once you have a goal in place for building your savings, and you’ve maximized the possible monthly contributions toward savings each month, it’s time to create a plan. Map out a timeline of how long it’ll take to reach your goal when putting away as much as possible each month. Remember: the more aggressively you save now, the sooner you’ll reach your goal.

Start saving

It’s time to put the plan into action!

The best way to ensure regular savings happens each month is to make it automatic. You can set up an automatic monthly transfer from your Section 705 Checking Account to your Section 705 Savings Account on a designated day of the month. You may want to have the transfer go through several days after you receive your monthly salary, or it might work out better to put a smaller amount of money into savings each week. Give us a call at 337-232-8450 to discuss your options.

Put unexpected windfalls into savings

To speed up the process of rebuilding depleted savings, you may want to resolve to put unexpected windfalls into an emergency fund or savings account. This can include tax refunds, a work bonus and gift money. If another round of Coronavirus stimulus checks is approved, consider using these funds for your savings as well. Earmarking future windfalls for savings can shorten the amount of time spent cutting corners in a budget and taking on extra jobs to build up a savings account.

Rebuilding an emergency fund and savings account from the bottom up isn’t easy. It takes commitment, hard work and the ability to keep a long-term goal in mind; however, the security that comes from knowing you have a safety cushion to fall back on in case of a financial setback will make this goal worth the effort many times over.

Resources:

https://www.policygenius.com/blog/money-milestones-how-to-rebuild-a-depleted-emergency-savings-fund/
https://www.fool.com/the-ascent/banks/articles/rebuilding-emergency-fund-after-coronavirus/
https://www.moneymanagement.org/credit-counseling/resources/how-to-rebuild-your-personal-savings-account

Still Focused on Serving You

Image of coronavirus

COVID-19 Doesn’t Impact Our Service

Dear member,

We are still here to help you

You and your family may be worried about the coronavirus disease (COVID-19), but the leadership at 705 Federal Credit Union want you to know we are here for you as we always have been. Your deposits are safe and insured. We’re not going anywhere, because at its core, our credit union is not a building or a business, it’s people unified for a common goal.

Your money is safe and insured

There are a lot of things to worry about these days, but the safety of your money in your credit union isn’t one of them.  Your money is safe, and your accounts are fully insured by the National Credit Union Share Insurance Fund (NCUSIF) up to $250,000.  There is no risk to keeping money in your account, but there are countless risks to holding cash.     

COVID-19 has cancelled, postponed, and slowed down much of American life, but the nation’s financial system operations are still strong. You can meet nearly all of your financial needs without leaving your home. If you do not have it on your mobile phone, now is a good time to download our app or sign up for online access. You can transfer and deposit money, and pay bills through your debit card, credit card, or electronic transfer. 

If you’ve been impacted by this pandemic, our staff is dedicated to working with and helping you through these uncertain times. Now, more than ever, we are here to support our members. 705 FCU has 2 loan specials available to help those affected. Please, call 337-232-8450 option 7 or email a loan officer to discuss taking advantage of the COVID-19 Relief Loan and/or the COVID-19 Skip-A-Payment

Use caution and minimize social interaction

Health professionals say if you must leave your house use an abundance of caution and minimize social interactions.  If you need to visit our branch through the drive-through (with normal operating hours) or utilize our ATM.

We’re here if you need any additional assistance

If you want to learn more about COVID-19, visit the CDC’s resource center or our state health department website. Please take care of yourself and those around you and do not hesitate to contact us for any assistance at 337-232-8450.

Sincerely,

Melanie Riedl

705 FCU President & Chief Executive Officer

P.S. Connect with us on Facebook for COVID-19 updates!

Meet Our New CEO, Melanie Riedl!

The Next Chapter

705 Federal Credit Union is thrilled to introduce the new 705 CEO, Melanie Riedl! Melanie has been within the credit union industry for the past 12 years at UL Federal Credit Union and 18 years within the financial industry. During that time, she has acquired many skills that are sure to bring the credit union to the next level. She began as the Marketing Manager and later became the Compliance Officer, Building Committee Chair, Grant Committee Chair, a member of the Asset Liability Management Committee and settled into her role as the Vice President of Development and Strategic Initiatives and part of the Executive Management Team.  

Melanie is a 2016 graduate from the Southeast Regional Credit Union School of Management earning honors for both her individual project and group project. She is a 2001 honors graduate from UL Lafayette earning her degree in Public Relations and Business.

Before joining the credit union, Melanie served in the Louisiana National Guard and is an Alumni of University of Louisiana at Lafayette.

Melanie has served as President, Vice President and Secretary for the Lafayette Chapter of Credit Unions and as a member of various committees for the Credit Union National Association Marketing and Business Development Council.

She has been a guest speaker at both National and State Credit Union Conferences and Schools.  She is a Certified Credit Union Compliance Expert and a Credit Union Enterprise Risk Management Expert as well as a Certified Credit Union Financial Counselor. She serves as a founding member of the Louisiana Credit Union Compliance Peer Panel.

Melanie was named one of CUNA’s 2018 Credit Union Rock Stars and CUNA’s 2019 Compliance Champion.

Melanie is a native of Acadiana, growing up in Abbeville, and has lived in Lafayette for the past 25 years.

Melanie has an infectious smile, always puts the member first, and is an amazing leader! We know that you will love her just as much as we do.

How to Dispute A Credit Report Error

Quick-what’s your credit score?

As a financially responsible individual, you should be checking your credit on a regular basis. You can do this by signing up for free credit monitoring on a reputable website like CreditKarma.com, requesting your annual complimentary credit report from AnnualCreditReport.com and reviewing your monthly credit card statements.

If all goes well, your report will hold no surprises and your score will be in excellent shape, or steadily increasing. Sometimes, though, you may find an error in your report. It might be a sharp decline in your score when you know you haven’t changed your spending or bill-paying habits, a large transaction you’re sure you’ve never made or an unfamiliar line of credit. While it can be disconcerting to find a mistake in your credit report, the good news is you can contest errors like these and fix your score.

Mistakes you may find on your credit report

Woman looking at bill with a concerned look on her face

Credit report errors are quite common. In fact, 26% of participants in a study by the Federal Trade Commission found at least one error on their credit reports that brought down their score. A lower score can mean getting hit with higher interest rates on loans, and can prove to be an obstacle when applying for a new line of credit or a large loan.

Most of these errors can be traced back to clerical mistakes, though some are caused by a lack of action on your part, or by criminal activity.

Credit report errors include the following:

  • You’re mistakenly identified as someone with a name similar to yours.
  • A credit account was never included in your report, weakening your perceived credit worthiness.
  • Your loan or credit card payments were applied to the wrong account.
  • A legitimate credit account or debt has been reported and recorded multiple times.
  • Your name is still linked to your ex-partner’s accounts and debts.

Identity thieves have used your name and credit file to open accounts and take out loans you knew nothing about – and it’s unlikely they have been making payments on those loans.

To avoid credit report errors, make sure to use your legal name on every line of credit you open, to remove your name from any accounts you are no longer associated with and to have all of your creditors report your open accounts to the major credit bureaus. As mentioned above, it is also crucial that you monitor your score to find mistakes as quickly as possible.

3 steps to disputing an error

If you’ve spotted an error on your credit report, don’t panic. Follow these three steps to dispute the error and fix your credit:

Step 1: File a dispute with each of the major credit bureaus.

You’ll need to inform all three major credit bureaus, Equifax, TransUnion and Experian, about the error. All three bureaus allow you to file disputes online.

In your written dispute, you’ll need to clearly identify each disputed item in your report, explain why you are disputing these items and ask that the errors be deleted or corrected. Include your full contact information, as well as copies of any documents that support your claim. You can also include a copy of your credit report, highlighting the items you are disputing.

To file your dispute online, follow these links for each of the three major credit bureaus: Equifax, TransUnion, Experian.

You can also file your disputes by mail to Equifax and TransUnion; Experian currently accepts online disputes only. If filing by mail, it’s best to send your letter via certified mail with a requested return receipt. It’s also a good idea to keep a copy of your correspondence for your own records.

Mail your Equifax dispute to the following address:

Equifax Information Services LLC
P.O. Box 740256
Atlanta, GA 30348

Mail your TransUnion dispute to the following address:

TransUnion LLC
Consumer Dispute Center
P.O. Box 2000
Chester, PA 19016

Step 2: Contact the creditor

After you’ve contacted each bureau, you can also reach out to the creditor that’s linked to the error in your report. This step isn’t necessary, but it may speed up the correction process.

Most creditors will provide a link or an address for disputes. When filing your dispute, follow the guidelines above and include all relevant information and documentation. Be sure to let the creditor know you’ve also contacted the credit bureaus, as they’ll want to include this information and a copy of your dispute if they report their findings to the bureaus. You can also ask to be copied on all correspondences between the creditor and the bureaus.

Step 3: Follow up in 30 days

Expect to be contacted by the bureaus and the creditor within 30 days after filing your disputes. If all goes well, your dispute will be accepted, and your credit will be restored. In many states, you are eligible to receive a complimentary credit report following a registered dispute.

If one of the credit bureaus or a creditor refuses to accept your dispute or does not resolve the error in your favor, you can ask the bureau or creditor to include a copy of your dispute in your file and in all future credit reports. This way, a lender or creditor will be made aware of the alleged error when reviewing your credit. You may be charged a small fee for this service, but it is generally worth the price. If you feel the error is too significant to ignore, consider hiring a lawyer to help you contest the report and fix your credit.

Disputing an error on your credit report is fairly simple. Always monitor your score and be vigilant about correcting errors. The payoff can affect your financial wellness for years to come.

Speak with a 705 Financial Representative about Getting Your Credit Where You Want It To Be in 2020!

All You Need to Know about Savings Certificates

Watch your money grow! Share certificates are a great low risk investment option. See how much you could earn on your money. Learn more!

Are Savings Certificates Right for You?

If the lump under your mattress is getting uncomfortably big and you’re looking for a safer, more lucrative place to park your savings, look no further than Section 705. As an institution that’s completely devoted to your financial wellness, we offer several secure options for savings, including: Share Certificates, Traditional IRAs, Lucky Lagniappe Savings, Christmas Club, Vacation Club, Super Green, Youth Savings, and Regular Savings Accounts.

Another excellent option we offer our members to help their savings grow is our savings certificates. They are sometimes also known as share certificates, and referred to by banks as CDs. These unique accounts offer the best of both worlds when it comes to your savings. First, you’ll be giving your money a greater chance at growth than it would have in a typical savings account. Secondly, you are not subjecting your savings to the inherent risks and potential for loss that accompanies investing in the stock market.

Let’s take a closer look at the way this fantastic savings product works and why it might be the perfect choice for you.

What is a Certificate?

A savings certificate is a federally insured savings account with a fixed dividend rate and a fixed date of maturity. The dividend rates of these accounts tend to be higher than those on savings accounts and some money market accounts. Generally, there is no monthly fee to keep the certificate open.

However, unlike a savings account, your money will be tied up in a certificate. A typical certificate will not allow you to add any money to the certificate after you’ve made your initial deposit. You also won’t be able to withdraw your funds before the maturity date without paying a penalty.

Terms and conditions of Certificates

As a member of Section 705, you can open up a certificate today. However, there are some basic requirements that must be met before you can do so, including a minimum opening balance and a commitment to keep your money in the account for a set amount of time.

The minimum amount of funds you’ll need to deposit to open a certificate will vary widely from one financial institution to the next and also depends upon the term you choose. Some institutions will accept an initial deposit as low as $50 for a certificate. Others, such as a “jumbo” certificate, will demand an opening balance of $100,000. In general, the more money you invest in a certificate, the higher rate of interest it will earn. At Section 705, you can open a certificate with as little as $100 at an Annual Percentage Yield (APY) of .25%.

Certificate term lengths also vary greatly among financial institutions, with most offering a choice of certificates that run from three months to five years. Typically, certificates with longer maturity terms will earn a higher rate. Here at Section 705, we offer our members certificates that can be opened for just 3 months or as long as 4 years. Our dividend rates start at .25 for short-term certificates and go up to 2.75 for our long-term options. To hear more about our certificate terms and rates, speak to a Section 705 representative today. Click for the dividends and disclosures on our share certificates.

Is a savings certificate for everyone?

While keeping your savings in a certificate can be an excellent option for your money, it is not for everyone. Before you go this route, ask yourself these important questions:

  • Do I have an emergency fund set aside to help me get through unexpected events or circumstances?
  • Do I anticipate needing to access these funds during the life of the certificate?

Remember: Your money will be tied up in the certificate and you will not be able to access it without paying a penalty. A certificate works best for people who have money set aside for a rainy day and are fairly certain they will not need to access the funds in the certificate until its maturity date.

Why keep your money in a certificate?

Here are some of the most popular reasons people choose to open a certificate:

  1. Low risk. While nearly every investment carries some sort of risk, your money is always safe in a certificate. With each Section 705 certificate insured by the National Credit Union Administration up to $250,000, you can rest easy, knowing your money is completely secure.
  2. Higher dividend rates. Certificates offer all the security of savings accounts with higher yields. It’s more for your money, just for choosing to invest it in a certificate.
  3. Locked-in rates. There’s no stressing over fluctuating national interest rates with a certificate. The APY is set when you open the account and is locked in until its maturity date. Instead of playing guessing games, you can determine exactly how much interest your money will earn over the life of the certificate the day you open it.

If a certificate sounds like the perfect choice for you, stop by Section 705 today to learn more. We’re committed to giving your money its best chance at growth.

Sources:

https://www.nerdwallet.com/blog/banking/cd-certificate-of-deposit/
https://www.thebalance.com/cd-basics-how-cds-work-315245
https://www.businessinsider.com/5-things-no-one-knows-about-cds-2012-10

Can I Trust Credit Karma?

Q: I’m trying to increase my credit score ahead of applying for a large loan, so I’m considering signing up for Credit Karma to track my score. How accurate are the credit scores it shares? Is there anything I need to be aware of before signing up for this service?

A: Credit Karma is a legitimate company; however, for a variety of reasons, its scores may vary greatly from the number your lender will share with you when it checks your credit.

We have answers to all your questions about Credit Karma.

What is Credit Karma?

Credit Karma LogoCredit Karma is an online credit service that operates under the principle that everyone is entitled to a free and honest credit score. To that end, the site allows you to check your credit whenever you’d like without paying any fees-a privilege that can cost you about $20 a month from its competitors. You’ll need to sign up for the service and share some sensitive information, like your Social Security number and your financial goals, but you won’t be asked for any credit card numbers or account information.

Scores are updated once a week, and the company only performs a “soft inquiry” on your credit to get the necessary information.This means your score is never impacted by it checking your credit on your behalf. Credit Karma also offers lots of credit advice, customizable loan calculators and reviews on financial products of all kinds.

Credit Karma earns its profit through targeted ads. As you learn your way around the site and start to frequent it more often, you’ll see ads that are geared toward your specific financial situation. For example, if your credit is excellent and you’re looking for a home loan, you’ll probably find loads of ads from mortgage companies. While this may seem like a breach of privacy, it’s no different than the way much larger online platforms you likely use, including Google and Facebook, earn a profit.

How does Credit Karma calculate my score?

The online credit company uses information from two of the three major credit reporting agencies, TransUnion and Equifax, to give you a VantageScore 3.0. While this type of credit score is gaining popularity among lenders, you may not recognize it-and for good reason. The FICO scoring model is by far the most widely used credit score among financial institutions and lenders across the country, with 90% of lenders using this score to net potential borrowers.

The atypical scoring model used by Credit Karma, coupled with the absence of information from Experian, the third of the three major credit reporting agencies, tends to make Credit Karma scores differ from scores pulled by other companies and financial institutions. The credit service is usually within range and a good indicator of your overall credit wellness. You can also get a report with a thin credit history through this model, which is super-helpful for those seeking to build their credit from nothing.

How do other lenders calculate my score?

Most financial institutions use a FICO scoring model to measure consumers’ credit scores. As mentioned, this number will likely be lower than the score you see on Credit Karma, but will fall within the same general range.

It’s also important to note that, each time you apply for a specific kind of loan with an individualized lender, it will likely also use its own customized formula. For example, if you were applying for a mortgage with a home loan company, it would probably use a score that is specifically developed for mortgage loans. Similarly, if you were to apply for a car loan from an auto lender, it will use its own score designed to predict the likelihood of you defaulting on an auto loan. This can result in an even lower credit score from these lenders.

Is there any other way to get my credit score?

If you’re looking for a more relevant credit score, you have several options. You can ask a potential lender to pull your credit, though this might cost you both in fees and in a knock to your credit for the hard inquiry. You can order your free credit report with information from all three credit bureaus once a year, at AnnualCreditReport.com. Lastly, for more frequent monitoring, you can sign up for access to your FICO score and 3-bureau credit report on Experian.com, where packages start at $19.99 a month. There are other similar services out there, but most are not legitimate or are grossly overpriced.

How does Section 705 decide if I’m eligible for a loan?

We use the FICO model to calculate your credit score when you apply for a large loan. While this number will likely differ from your Credit Karma score, it gives us a broader picture of your credit as it includes information pulled from all three credit bureaus. We’ll also review your full financial history and trajectory to determine if you are eligible for the loan.

Here at Section 705, our goal is to help you achieve and maintain financial wellness. Consequently, we are far more likely to approve a loan for one of our members than a random lender who doesn’t know the first thing about you or your financial history.

If you’re trying to increase your credit score before applying for a large loan, we can help! Stop by Section 705 today to speak to a financial counselor about steps you can take to improve your credit.

If you’re ready to take out that loan, make Section 705 your first stop! Our stress-free application process, low interest rates and reasonable terms make us the best choice for your next large loan. We’ll help turn your dream home or car into a reality.

Sources:

https://www.investopedia.com/articles/personal-finance/103015/are-credit-karma-scores-real-and-accurate.asp
https://www.moneyunder30.com/credit-karma
https://www.creditkarma.com/question/credit-karma-score-is-way-higher-than-experian-score-why-is-that/
https://www.thebalance.com/why-the-lender-s-credit-score-may-differ-from-yours-960525

10 HACKS YOU NEED TO KNOW BEFORE HITTING THE MALL

Holiday Shopping Hacks

family shopping for holiday gifts in a mallQ: When the holiday season rolls around, I practically take up residence at the mall. There’s so much shopping I need to do and the mall is the best place to pick up most of my gifts. And yet, the experience causes so many headaches—and it’s expensive! Is there a way to spend less at the mall and to make the entire experience more pleasant?

A: You’re not the only one who feels like skipping out on their mortgage this month and paying rent at the mall instead. In the weeks leading up to the holidays, the crowds at the mall can be as dense as the foot traffic on a street in Manhattan.

There’s more than just the thick crowds you have to battle at the mall, though. There’s also heavy manipulation by retailers priming you to overspend. Kit Yarrow, PhD and professor of psychology and marketing at Golden Gate University, says the red and green décor that covers the malls this time of year urges us to splurge. Red energizes us and green is perceived as an optimistic, lucky and wealthy color. Both colors will push us into going over budget.

The crowds and the endless spending can take a toll on anyone. No worries, though; we’ve got 10 incredible mall shopping hacks to make your trip a little easier on you and a bit lighter on your budget!

  1. Map out a route

The less time you spend at the mall, the better off your budget will be. Before spending yet another afternoon roaming aimlessly until you find what you’re looking for, jot down a short list of your intended purchases before heading out and then create a route of the stores you’ll hit to look for them. Most malls offer a printable map on their websites to make this task a little easier.

Have your route pre-planned and do your budget a favor. As a bonus, you might even make it home headache-free!

  1. Turn it up

Plug into your favorite playlist while scouring your favorite stores for fantastic finds. You’ll be calmer and less stressed—and a lot less likely to overspend.

  1. Cash only

If you can’t seem to stick to a budget at the mall, leave the plastic at home and only bring along the amount of cash you plan on spending. It’s hard to feel the hole a swipe makes in your pocket, but slipping the cashier a pile of bills actually feels like you’re spending money—and you’ll spend less of it. You’ll also be forced to stick to your budget no matter how tempted you are to overspend.

If you dare, consider only bringing newer, high-denomination bills, like 50s and 100s. You’ll think three times before breaking up those crisp, large bills.

  1. Find the hidden cashier

Skip the endless lines in the bigger stores this holiday season by seeking out the cashiers set up in out-of-the-way spots of the store. You might find these quieter checkout lines near the lingerie department, in a far-off corner or near the fitting rooms. Zip in and out of the store in minutes!

  1. Box it

When a cashier offers to box your purchases for you, say yes! It might mean a bit more time for you at the checkout, but you’ll get a head start on all that gift wrapping and save money on wrapping paper, too. Ask for a box even if your purchase isn’t a gift and then use it to wrap another gift item when you get home.

  1. Shop late in the day

Skip the crazy crowds by shopping right before closing. The malls usually see the fewest shoppers during the late evening hours, so you’ll be able to shop quickly without jostling your way through the crowds.

Also, many stores stay open an extra hour after the mall closes in the weeks leading up to the holidays. Hit the mall first, and then shop the extended hours at the department stores to get a whole lot done in one stress-free trip.

  1. Shop in heels

Leave your comfortable flats at home! A Brigham Young University study found that shoppers spent a lot less money when their minds were focused on staying balanced. If you don’t like teetering through the mall, you can hit the shops after a yoga class or after riding an escalator for a similar effect.

  1. Don’t become fast friends with the checkout clerks

According to Forbes, shoppers tend to overspend when they feel a kinship with the cashier. Be cordial and be polite, but don’t get too chummy with the checkout clerks this season.

  1. Carry a snapshot of your financial goal

What’s your financial dream? An Alaskan cruise? A luxury car? Print out a photo of your dream and stick it into your wallet. Pull it out whenever you’re tempted to bust your budget on a purchase and it will help you keep your mind on your goal.

  1. Suck on a mint

Did you know that stores use scents to manipulate shoppers into spending more? Suck on a mint or chew a piece of mint-flavored gum to help you block out the store’s smells and stick to your budget.

Don’t get stressed or go broke at the mall this season! Follow our hacks for a budget-friendly and stress-free shopping trip.

For more savings tips, connect with us on Facebook, Instagram, Twitter, and YouTube!

SOURCES:

https://www.seventeen.com/fashion/style-advice/tips/a37264/money-saving-shopping-hacks-that-will-you-money-at-mall-stores/
http://ourfinancialpath.com/spend-less/
https://www.rd.com/advice/saving-money/psychology-tricks-spend-less-shopping/
http://www.coupons.com/thegoodstuff/shop-smart-12-mall-shopping-hacks-you-should-know/

CREDIT CARD FRAUD IN 5S

Financial Self Defense against Credit Card Fraud

An image of someone typing in credit card information into the computerWhodunnit? When we’re talking about credit card fraud, everyone’s pointing fingers at everyone else. Consumers tend to blame the credit card issuer, but the vulnerability usually lies with the point-of-sale terminal.

Tampering with a credit card reader takes just a few minutes and can be done with an inexpensive device that’s available on Amazon. There are lots of other ways your information can be skimmed, too. However, none of that points to a security deficiency with your credit union or credit card company.

Thankfully, there are steps you can take to prevent and recognize credit card fraud before it happens. Read on for all you need to know about credit card fraud.  

5 ways your card can be frauded 

  1. It’s physically lifted from your wallet.
  2. A restaurant or bar server skims it while it’s in their possession.
  3. A terminal you use is compromised.
  4. An online breach puts your information on the black market.
  5. Your computer has been hacked. 

5 signs a terminal’s been compromised 

  1.    The security seal has been voided. When the pump is safe to use, the label has a red, blue or black background. A breached seal shows the words “Void Open” in white.
  2.    The card reader is too big for the machine.
  3.    The pin pad looks newer than the rest of the machine.
  4.    The pin pad looks raised.
  5.    The credit card reader is not secured in place. It should fit tightly and not be easily rattled. 

5 times you’re at high risk for credit card fraud 

  1. You lost your card.
  2. You’ve patronized a business in an area that’s unfamiliar to you.
  3. A company you use has been breached.
  4. You shared your information online with an unverifiable contact.
  5. You downloaded something from an unrecognizable source. 

5 ways to protect yourself against credit card fraud 

  1. Check all card readers for signs of tampering before paying.
  2. Never share your credit card information online unless you’re absolutely sure the website is authentic and the company is trustworthy.
  3. Check your monthly credit card statements for suspicious activity and review your credit reports on a frequent basis.
  4. Use cash when patronizing a business in an unfamiliar area.
  5. Don’t download attachments from unknown sources. 

5 steps to take if your credit card’s been frauded 

  1. Lock the compromised account.
  2. Place a fraud alert on your credit reports.
  3. Consider a credit freeze.
  4. Alert the FTC.
  5. Open new accounts. 

At 705 Federal Credit Union, we’ve always got your back! Call, click, or stop by today to ask about steps you can take to protect your information from getting hacked. 

SOURCES:

https://www.thebalance.com/how-credit-card-skimming-works-960773

https://www.thebalance.com/more-at-risk-of-credit-card-fraud-960780

https://www.makeuseof.com/tag/credit-card-fraud-works-stay-safe/

http://gizmodo.com/home-depot-was-hit-by-the-same-hack-as-target-1631865043

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