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Make Your Automobile Road Trip Ready!

Authored By: Community Focus FCU on 5/16/2022

A woman and a man snapping a selfie in the car

Nothing will put the brakes on your road trip faster than a major car repair. Even a minor repair, or forgetting to pack something crucial, could slow down the fun. Use this check list and you’ll be in the clear for a worry-free vacation!

  1. Schedule a checkup for your vehicle and perform basic maintenance, even if it isn’t due for it quite yet. If any major repairs need to be done, have them completed a month before your planned vacation to allow time for any problems related to the repair to surface and to take care of them.
       
    Make sure to examine, top off, or replace the following: windshield wipers, air filter, coolant mixture of antifreeze and water, oil, windshield wiper fluid, brake pads.
      
  2. Check your battery to make sure it’s holding a full charge and has clean terminals. You can clean the terminals yourself, all your need is a wire brush, a mix of baking soda and water, and some good old elbow grease.
      
  3. Tires are next on the checklist. Ensure they have sufficient tread left and examine them for any tears, punctures, or bulges in the side wall. Don’t forget to double check the spare is fully inflated and that the jack, wrench, and other tire-changing tools are in the trunk. If your car doesn’t have a spare tire, you should have a tire inflator kit.
      
    Before you leave town, properly inflate your tires for the total vehicle load—passengers and cargo included! Many vehicles have two recommended inflation ratings or levels: one for light loads and one for heavy loads and/or high speeds. You can find this information in the owner’s manual or on a sticker in the door jamb. Always remember, set the pressures when the tires are cold.
      
  4. Give your car a thorough cleaning. On any road trip, you’ll quickly acquire a collection of splattered bugs on the windshield and snack crumbs on the seats. You can at least start your trip grime free!
      
  5. Bring supplies to help in case of an accident, medical issue, or break-down on the side of the road. Pack a first-aid kit, flashlight(s), visibility vest, blanket, any additional medications, and some basic tools. Have plenty of water in re-fillable bottles on-hand as well as snacks.
      
  6. When deciding what to pack, check your vehicle’s load capacity so you don’t pack too much. The load rating includes passengers and cargo. If you’ve calculated the fuel cost into your vacation budget (and you should!), know that carrying a heavier load means reduced gas mileage than what you’re used to.
       
    Only pack light, bulky items in roof-top cargo containers. If you’re not using the roof rack, remove it for better fuel economy. If you're carrying heavy objects, place them forward in the trunk space and distribute the weight evenly on both sides. Make sure things like purses, pillows, books, and blankets can easily be reached without unbuckling.
      
  7. Pick up a road atlas and download travel apps. In addition to a reliable map app, consider downloading an app to show you lowest gas prices or one to show you charging stations if you drive an electric or hybrid vehicle.
      
  8. Call your car insurance provider and make sure you’re covered for road-side assistance and any out-of-state services you might need. Many new cars have road-side assistance as part of the warranty.
      
  9. Tuck crucial paperwork in the glovebox, like the owner's manual, registration, and proof of insurance. Double check your registration, insurance, plate tags, and driver’s license won't expire while on your trip.
      
  10. Before you leave, fill your gas tank in-town as it’s usually cheaper than on the road.

The 5Cs of Credit

Authored By: Community Focus FCU on 3/24/2022

Photo of dollar bills with text How to Build Good Credit

When you apply for a loan, lenders must assess your credit risk—i.e., the risk to them that you will default on the loan—based on the following five factors, often referred to as “The Five Cs of Credit.”

Credit History

This first C contains the most information on you as a borrower. Your credit history consists of information provided by previous lenders that have extended credit (loans or credit cards) to you. This history is listed on your official credit report, pulled from one or more of the three credit reporting bureaus, and includes the names of previous and current lenders, types of credit you have, payment history, and credit history length. Your credit score—based on a scale of 300–850, with better scores at the higher end—will also be checked as an indicator of risk.

Capacity

Lenders need to know if you can comfortably afford the payments on the loan you applied for. They determine this by looking at your net income amount, type, and stability (payment regularity/history), sometimes through submitted paystubs or direct deposit history. Another tool lenders use to assess your credit capacity is your debt-to-income ratio (DTI), calculated as the ratio of your current credit capacity plus the new loan debt to your net income.

Collateral (for secured loans)

If you’re applying for a home or auto loan, you’re applying for a secured loan—one that’s protected by an asset and used as collateral in case you default on the loan. The item acting as collateral is usually the item you are taking the loan out to purchase. The lender will hold on to the title of the car or the deed to the house until the loan is paid in full, including interest. The lender will also evaluate the value of the collateral. Any existing debt already secured by the collateral will be subtracted from that value. The remaining equity will be a factor in the ultimate lending decision.

Capital

It’s expected that your income will be the primary way you will make loan payments; however, your capital—including savings, investments, and other assets—could be used to help repay the loan if your income decreases or you incur unexpected expenses.

Conditions

This last C refers to how you intend to use the loan as well as to factors such as the economy. This especially applies to business loans. A lender will want to see due diligence on your part to ensure the money will be used wisely to increase business income and that the market is favorable for your business to take on this additional debt.


Assets First-Time Homebuyers Should Have

Authored By: Community Focus FCU on 3/24/2022

Believe it or not, you’ll need more than just a pile of cash to make your first (or second, or third) home purchase. There are other non-monetary assets that you’ll need in order to qualify for a home loan with the lowest interest rate. Add these five assets to your list of things to have before you begin your house hunt!

Steady Income

Proof of a steady, reliable income shows a lender you are capable of affording the monthly mortgage payments and are a low risk for defaulting on the loan. Usually, lenders want to see a work history of at least two years at your current employer or in your current field. If you’re self-employed, the required work history length may be longer.

As proof, lenders may ask for a signed letter from your employer stating your position and salary or two years’ worth of paystubs. Or you may be asked to provide your last two years of income tax returns.

Low Debt-to-Income Ratio

This ratio is a non-cash asset, but it’s important in the eyes of lenders. Although a lending agent won’t ask for your entire personal budget, they will look at the ratio of your monthly debt obligations (student loans, car loan, credit card balances, personal loans, etc.) to your gross monthly income. This is your debt-to-income ratio. You want to keep this ratio as low as possible, with your estimated new mortgage payment included in the calculations. These days, lenders offer the best mortgage rates to borrowers whose total monthly debts (including the estimated mortgage payments) are no more than 43% of their total gross income.

Carrying a high debt-to-income ratio will make it harder to qualify for a mortgage. Before beginning your house hunt, work to pay off current debts and lower that ratio.

Good Credit Score

This is another non-cash asset that is an important part of every home-buyers’ mortgage application. Your FICO credit score is the primary way lenders gauge how well you’ve managed credit, loans, and debt in the past and if you pay your bills on time (a big factor when they’re considering you for a mortgage!). Scores fall on a scale of 300 to 850. While a credit score of 670–739 is considered “good,” applicants with a score of 740 or higher are the ones most likely to receive better-than-average rates from lenders.

You are allowed one free credit report each year from each of the three credit reporting agencies: Experian, TransUnion, and Equifax. While you’re saving up for a hefty down payment, you can also check on your credit score and work to improve it: pay off debt (e.g. student loans, credit cards, medical debts, etc.), pay all bills on time, and don’t open or close any lines of credit (e.g. store credit card, personal loan, etc.).

Cash for a Down Payment

The money you plan to spend as your down payment on a house should be in the form of cold, hard cash in an account you can easily access (not in a CD or share savings account where you may pay a fee for the withdrawal). It can be tempting to put all or part of the down payment on a credit card, but this will affect your debt-to-income ratio, which ultimately lowers your creditworthiness.

In order to receive the best loan rate and avoid paying private mortgage insurance (PMI) on a conventional loan, you need to save up for a down payment of at least 20%. With other strong financial elements—like low debt-to-income ratio and excellent credit score—you may be able to put less money down and secure a decent mortgage rate, but you’ll still be taking out a larger loan and ultimately paying more interest on that larger principal over the life of the loan.

Cash for Closing Costs

Be sure to earmark some of the cash you’ve saved up as cash for paying closing costs, an often-overlooked home-buying expense. Closing costs include loan origination fee, title search and recording fee, appraisal fee, inspection fee, property taxes, and others. While these costs can vary, they generally fall between two percent and five percent of a home’s purchase price.

While you can sometimes roll these costs into the mortgage, it’s best to be able to pay them up front with cash, thereby avoiding a higher monthly mortgage payment and possibly a higher loan rate. You may also pay these fees with monetary gifts from relatives or by negotiating with the seller to have them pay these costs—especially if they’re eager to sell.


Buying a Home: Seven Easy Steps

Authored By: Community Focus FCU on 3/24/2022

Home ownership remains one of the best investments you'll ever make. Just think, what other investment can you make that will not only give you a solid return on your money but will also be something you use each day?

If you are looking at buying a home, here are the seven basic steps to follow:

  1. Pinpoint your target. Decide where you want to live. Consider things such as commuting time, quality of schools, and proximity of stores and services. If you limit your hunt to one or two areas, you'll be able to keep closer track of available properties. Talk to people who live in that area or pick up a local newspaper to find out more about what's going on there.
  2. Get pre-qualified for a mortgage. This way you will know your price range and how much of a down payment you're going to need. You will also be able to move fast if you find the right property. Finally, you’ll learn in advance if there will be any hitches in securing a mortgage.
  3. Start shopping. Be prepared to run into a lot of real estate agents. It's important to know that agents represent the seller and not you, the buyer, unless you've hired someone specifically for that purpose. So buyer beware! Open houses are usually held on Sundays, but don't hesitate to ask for a private viewing. Read the classified ads and drive through the neighborhoods that interest you and look for "For Sale" signs.
  4. Ask lots of questions. Agents should be able to answer most of your questions but always ask for the seller's disclosure, which is a document on which sellers must list whatever defects they are aware of in the home. It may also show the age of the roof, furnace, and other critical parts of the house. Ask the agent for "comps," statistics which compare what other houses in the neighborhood have sold for. Check your library for books on home buying and home repair. The more you know, the better the decision you can make!
  5. Now get that mortgage. Even if you've been pre-approved, you can still shop for a better deal on your mortgage. You might play it safe by staying with the company that pre-qualified you, but if your credit is sparkling, it'll be easy to shop around.
  6. Get an inspection. Municipalities often issue "certificates of occupancy," but these are based only on limited criteria. A professional inspector is like a detective and may unveil problems you can't spot. If you are unhappy with the home after the inspection, you may be able to get out of the deal without suffering any financial loss.
  7. Close on your mortgage. The closing is where you sign all the papers, take legal possession of the property, and become indebted for your mortgage. Again, don't be afraid to ask questions. You're signing a legal contract, and you definitely want to know what you're getting into before signing all those forms. You may have an attorney with you at closing, although most people don't want to go the extra expense. If you want to be a little more careful, you can try to have a lawyer look over the papers in advance.

You seek the expertise of CPAs at tax and audit time, of course. But CPAs also promote personal and professional financial security year round. Visit the CPA Referral Service on the MACPA website to search for a CPA in your geographical area or specific area of expertise.

This article was submitted by the Michigan Association of CPAs.


Home Inspection FAQ

Authored By: Community Focus FCU on 3/24/2022

If you are planning to buy a home, take time to learn what your inspector should look for. If you are planning to sell your home, a home inspection will give you a better understanding of conditions which may be discovered by the buyer's inspector, and an opportunity to make repairs that will put the house in better selling condition.

What is a "home inspection"?
A home inspection is an objective visual examination of the physical structure and systems of a home, from the roof to the foundation. Having a home inspected is like giving it a physical checkup. If problems or symptoms are found, the inspector may recommend further evaluation.

What does it include?
The standard home inspector's report will review the condition of the home's heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure.

Why do I need a home inspection?
The purchase of a home is probably the largest single investment you will ever make. You should learn as much as you can about the condition of the property and the need for any major repairs before you buy, so that you can minimize unpleasant surprises and difficulties afterwards.

Of course, a home inspection also points out the positive aspects of a home, as well as the maintenance that will be necessary to keep it in good shape. After the inspection, you will have a much clearer understanding of the property you are about to purchase.

If you are already a home owner, a home inspection may be used to identify problems in the making and to learn preventive measures which might avoid costly future repairs. If you are planning to sell your home, you may wish to have an inspection prior to placing your home on the market. This will give you a better understanding of conditions which may be discovered by the buyer's inspector, and an opportunity to make repairs that will put the house in better selling condition.

What will it cost?
The inspection fee for a typical one-family house varies geographically, as does the cost of housing. Similarly, within a given area, the inspection fee may vary depending upon the house’s size, particular features, and age. The inspection fee may also vary if additional services, such as septic, well, or radon testing, are requested. It is a good idea to check local prices on your own.

However, do not let cost be a factor in deciding whether or not to have a home inspection, or in the selection of your home inspector. The knowledge gained from an inspection is well worth the cost, and the lowest-priced inspector is not necessarily a bargain. The inspector's qualifications, including his experience, training, and professional affiliations, should be the most important consideration.

Can’t I do it myself?
Even the most experienced home owner lacks the knowledge and expertise of a professional home inspector who has inspected hundreds, perhaps thousands, of homes in his or her career. An inspector is familiar with the many elements of home construction, their proper installation, and maintenance. He or she understands how the home's systems and components are intended to function together, as well as how and why they fail.

Above all, most buyers find it very difficult to remain completely objective and unemotional about the house they really want, and this may affect their judgment. For the most accurate information, it is best to obtain an impartial third-party opinion by an expert in the field of home inspection.

Can a house fail inspection?
No. A professional home inspection is an examination of the current condition of your prospective home. It is not an appraisal, which determines market value, or a municipal inspection, which verifies local code compliance. A home inspector, therefore, will not pass or fail a house, but rather describe its physical condition and indicate what may need repair or replacement.

When do I call in the home inspector?
A home inspector is typically contacted right after the contract or purchase agreement has been signed, and is often available within a few days. However, before you sign, be sure that there is an inspection clause in the contract, making your purchase obligation contingent upon the findings of a professional home inspection. This clause should specify the terms to which both the buyer and seller are obligated.

Do I have to be there?
It is not necessary for you to be present for the inspection, but it is recommended. You will be able to observe the inspector and ask questions directly, as you learn about the condition of the home, how its systems work, and how to maintain it. You will also find the written report easier to understand if you've seen the property firsthand through the inspector's eyes.

What if the report reveals problems?
No house is perfect. If the inspector identifies problems, it doesn't necessarily mean you shouldn't buy the house, only that you will know in advance what to expect. A seller may adjust the purchase price or contract terms if major problems are found. If your budget is tight, or if you don't wish to become involved in future repair work, this information will be extremely important to you.

If the house proves to be in good condition, did I really need an inspection?
Definitely. Now you can complete your home purchase with your eyes open as to the condition of the property and all its equipment and systems. You will also have learned many things about your new home from the inspector's written report, and will want to keep that information for future reference.

How do I find a home inspector?
The best source is a friend, or perhaps a business acquaintance, who has been satisfied with and can recommend a home inspector they have used. In addition, the names of local inspectors can be found by searching the American Society of Home Inspectors® database or in the Yellow Pages where many advertise under "Building Inspection Service" or "Home Inspection Service". Real estate agents are also generally familiar with the service, and should be able to provide you with a list of names from which to choose.

Whatever your referral source, you will want to make sure that the home inspector is a Member of the American Society of Home Inspectors (ASHI®) in order to be certain of his or her professional qualifications, experience, and business ethics. A list of ASHI Members in your area is available upon request from the Association's headquarters.

What is the American Society of Home Inspectors?
The American Society of Home Inspectors (ASHI) is the oldest and leading non-profit professional association for independent home inspectors. Since its formation in 1976, ASHI's "Standards of Practice" have served as the home inspector's performance guideline, universally recognized and accepted by professional and government authorities alike. Copies of the Standards are available free from ASHI.

ASHI's professional Code of Ethics prohibits Members from engaging in conflict of interest activities which might compromise their objectivity. This is the consumer's assurance that the inspector will not, for example, use the inspection to solicit or refer repair work.

In order to assist home inspectors in furthering their education, ASHI sponsors a number of technical seminars and workshops throughout the year, often in cooperation with one of its nearly 50 Chapters. ASHI also serves as a public interest group by providing accurate and helpful consumer information to home buyers on home purchasing and home maintenance.

Who belongs to ASHI?
Members of ASHI are independent professional home inspectors who have met the most rigorous technical and experience requirements in effect today. To become an ASHI Member, an inspector must pass two written technical exams, have performed a minimum of 250 professional fee-paid home inspections, and maintained his or her candidate status for no less than six months. ASHI Members are required to follow the Society's Code of Ethics, and to obtain continuing education credits in order to keep current with the latest in building technology, materials, and professional skills.

This article was submitted by the American Society of Home Inspectors, the national professional organization of home inspectors whose mission is to meet the needs of its membership and promote excellence and exemplary practice within the profession. The American Society of Home Inspectors was formed in 1976 as a not-for-profit organization to build public awareness of home inspection and to enhance the technical and professional performance of home inspectors. Submission of this article does not imply an endorsement or recommendation of the Financial Resource Center site.


Save with these 5 Valentine Day Hacks

Authored By: Community Focus FCU on 1/22/2022

Man with flowers and gift on Valentine's Day

The earliest American valentines were simply a handwritten on a sheet of paper and adorned with the hand drawn symbols of hearts, flowers, and birds.  Those days are gone and nowadays Valentine’s Day can be a costly celebration. Here are some tips on making this holiday romantic but without breaking the budget. 

1.    Dine In – Going out on Valentine’s Day may be both expensive and not very romantic. Try to imagine carrying in on the conversation in a noisy restaurant where you might bump elbows due to the crowd. Why not cook up a gourmet meal at home for half the price? Don’t forget to set the ambiance with candles and nice music.
2.    Celebrate early or late – Take your date out to the restaurant the weekend before or a few days after the Valentine’s Day and skip the crowds. You will also avoid typical upcharges to the menu items that some restaurants have on Valentine’s Day. 
3.    Shop with a Sales App – check out shopping apps like PriceGrabber or ShopSavvy to score deals on a Valentine’s gift. The apps help you compare the prices at online and brick-and-mortar retailers and locate coupons of items of your interest. 
4.    Save on flowers – a dozen of red roses will cost you a pretty penny but if you choose less expensive flowers from your grocery store and arrange them yourself then you not only save money but also show off your creativity. 
5.    Top it off with desert – nothing says “I Love You” better than chocolate cover strawberries made from scratch. Get the recipe here.

No matter how you celebrate this Valentine’s Day, you are sure to make memories for you and your Valentine. 
 


Kick Off Your Super Bowl Party on a Budget

Authored By: Community Focus FCU on 1/21/2022

Super Bowl Party on a Budget

With prices skyrocketing putting on a Super Bowl Party this year may require some forethought and planning so that your expenses stay under control. Here are some tips that may help!

  1. Don’t fumble the decor: Keep it simple with the fun dollar store decorations or choosing party goods in your team colors instead of branded items. If you feel extra creative, check out how this DIY Lombardi trophy can be made with very few resources.  
  2. Kick off the party with some easy snacks: For starters, buy a few bags of munchies, such as pretzels and potato chips – but cut costs by buying generic labels rather than the big-name brands. Veggie platters are another great snack to serve early on in the game, and they don’t have to be pricey if you assemble them yourself.
  3. Huddle for a potluck: Don’t make a rookie mistake by purchasing and preparing all the food on game day. Invite your guests to bring their favorite game dish to share and celebrate potluck style!
  4. Tackle the drinks: Make an easy signature game day punch. Get punch recipes here or ask your guests BYOB if they want to drink something different.
  5. Score extra points with  the Super Bowl trivia: Although between halftime show and the commercials, you might not even need it.  

Enjoy the game, company and fun!


To File Jointly or Not to File Jointly

Authored By: Community Focus FCU on 1/6/2022

taxes

If you’re married, you have a choice when it comes to the filing status on your federal income tax return: you can file jointly with your spouse or separately. For the majority of married couples, there are more advantages to filing jointly.

Filing jointing usually means a couple can deduct two exemption amounts from their income. It also more easily qualifies them for multiple tax credits, like the:

  • Earned Income Tax Credit
  • American Opportunity and Lifetime Learning Education Tax Credits
  • Exclusion or credit for adoption expenses
  • Child and Dependent Care Tax Credit
  • Student loan interest deduction
  • Tuition and fees deduction
  • Elderly and disabled credit

If a couple files jointly, their income is combined, giving them a higher income threshold for some taxes and deductions. For many people, this allows them to earn a larger amount of income and possibly still qualify for certain tax breaks. Those who file together do need to list their deductions the same way, so if one spouse itemizes their deductions, the other spouse must itemize as well, even if their itemized worth is less than the standard deduction.

In certain situations, filing separately may help you save more on your tax return, and on your spouse’s. For example, the IRS only allows you to deduct medical costs that exceed a certain percentage of your adjusted gross income (AGI). So, if either of you have a large amount of out-of-pocket medical expenses to claim, it can be more difficult to claim the majority of the expenses if you and your spouse have a high combined AGI. You would be able to claim a higher percentage of out-of-pocket medical expenses if you filed separately.

Filing separately may help reduce the income used to determine student loan payments. If your federal student loan payments are based on your tax return income, then filing separately can result in a lower payment plan.

However, if you file separately, you are disqualified from several of the deductions and credits listed above. Not only that, but filing separately lowers the standard deduction that’s offered to joint filers—in the past, up to 50 percent lower—and the capital loss deduction limit. If you contributed to an IRA, are married, and file separately, you may be limited to a smaller IRA contribution deduction.

The best way to decide which filing status is more advantageous to your specific situation is to work with a tax professional. They will most likely calculate both outcomes to see which net refund is higher, or which balance due is lower. Or, you can use tax software that can give you similar guidance or allow you to calculate both scenarios.


Fees and Bills You Might Be Able to Negotiate

Authored By: Community Focus FCU on 12/21/2021

Overdue bills

Most Americans don’t assume they can negotiate the prices of goods and services. It’s one of our cultural norms—you don’t expect to be able to walk into a grocery store and haggle with the cashier about the price of a gallon of milk. So, it might surprise you to discover there are bills you can negotiate, if you know how.

Over a dozen bills that could be up for negotiation are listed below, but before you read on, you should know the negotiating strategy that applies to them all:

  1. Shop around for other offers from competitors and be able to quote a better deal from them. You’ll have better luck negotiating a lower price in a competitive market where companies are eager to keep customers. Also be willing to leave your current service provider if they won’t lower your bill.
      
  2. Be in a stronger bargaining position by being a good customer and paying all of your bills on time. A strong payment history will go a long way in your favor when you suggest a lower rate on services.
      
  3. If applicable, be able to offer cash up front. Many companies would rather have a lump sum of cash now than have to pay a credit card or other billing service a fee to charge you multiple payments.
      
  4. Don’t accept the first “no” you hear from the first customer service rep. Tell them if they can’t do any better than their current price, you need to speak to someone about cancelling your service. You’ll either get a price break right then or be passed up the chain to someone who can give you the discount you want.

With those steps in mind, here are bills you can try to negotiate.

Medical bills

Medical bills can easily wipe out your emergency savings or force you to put some of the expense on credit cards. But before you do that, you have three options for lowering the bill.

First, you can offer cash up front. Hospitals are often cash strapped, so a lump sum of money up front is appealing. Offer to pay your bill in cash but at a discount. People have had success with this strategy, lowering their bills by 10 to 40 percent!

Second, you can hire a medical billing advocate to negotiate for you. This will cost a fee, but it could still be less than paying the entire owed amount to the hospital, clinic, or doctor’s office. Ask for a free consultation from the expert first to see if it’s worth your while.

Third, you can—and always should—conduct an audit of your itemized bill. It’s possible there are errors. An analysis by personal finance company NerdWallet found almost 50 percent of Medicare medical claims contained billing errors, resulting in more than 25 percent overpayment by patients! Look for duplicate charges, charges for services that weren’t rendered, and incorrect quantities of medicines.

Bonus tip: Ask for an interest-free payment plan. Tell the billing representative what amount you can pay each month and they may be able to meet that request. And that’s much better than paying the high interest rate of carrying the balance on a credit card!

Credit card interest rates and fees

Speaking of credit cards, did you know you might be able to negotiate a lower annual percentage rate (APR) on your credit card? While it’s ideal to pay off your full balance each month and avoid paying interest at all, by lowering the APR, you could save yourself hundreds of dollars a year if you do carry a balance from month to month.

Call the customer service number on the back of the card and ask a representative to lower your APR. The longer your history of responsible credit use and on-time payments, the better your chances of getting what you ask for. And don’t be afraid to use it as proof you deserve better terms on your card!

If they won’t budge on the APR, consider leaving that credit card company and consolidating to a new credit card with a 0 percent introductory rate period to save on interest costs. But watch out for balance transfer fees. Although this, too, might be negotiable with the new card.

Other credit card fees you can negotiate are the annual membership fee and late fee. Again, if you have good payment history, tell them you feel they can do better for such a good customer.

Cable and internet service

This may be the easiest service to negotiate because there is so much competition between cable, internet, and satellite television providers (unless you live in a remote area, in which case, sorry, you’re probably stuck).

For best results, call and try negotiating near the end of your service contract, since the company would rather keep you than see your money go elsewhere. Ask about any current promotions you qualify for. Have a competitor’s offer ready and ask if they can match it. If you’ve noticed a decline in service, mention it and ask about a bill credit for the time the cable or internet wasn’t working.

Alternatively, you could eliminate channels or lower your internet speed to save money. Or switch entirely to streaming services like Hulu, Amazon Prime, or Netflix. Although this will mean you’ll want a higher tier of internet service.

Rent

Like cable TV service negotiations, rent negotiations are best started at the end of your current lease before a new lease is signed. If you’ve found similar accommodations in the area for less, use that when negotiating with your landlord. Consider signing a longer lease for a discount.

Cell phone

The rise of more and more discount carriers using the same networks as the larger carriers means those big players are more willing to offer or match competitive pricing. Discount carriers are also often contract-less, giving you more flexibility of when to end or change your service.

Another option is to review your plan and see if you’re using all of the talk, text, and data you’re paying for—or if you could cut back for a cheaper plan.

Others

Try your negotiating skills on these bills, too:

  • Landline phone (if you even have one!)
      
  • Car insurance
      
  • Alarm/Security system
      
  • Storage unit
      
  • Satellite radio
      
  • Bottled water delivery
      
  • Gym memberships
      
  • Identity theft services
      
  • Gas, electric, propane gas

What To Do When Weather Damages Your Home?

Authored By: Community Focus FCU on 10/7/2021

Man fixing the faucet

The weather can be unpredictable and we are becoming more and more aware of it's impact due to the climate changes. And when it comes to your home, it can be downright devastating. From flooded basements to trees crushing your roof, weather can directly impact one of your greatest investments. Here’s what you should know when mother nature strikes at home.

Document everything

A lawyer was recently overheard saying, “The legal system is now based on reading emails.” Why? Because email is a strong record of events. The moment there is damage to your property, start taking photos and emailing them to whoever you think needs to see. If you rent, email photos to your landlord, they’re going to need them. Email photos to other accounts to act as receipts if someone denies receiving your emails.

In fact, the documentation should start before you ever need to make a claim. Take photos any time you update your home. Keep an inventory of the things you have in your home; it can be difficult to prove something is missing if there’s no record of it.

  • Keep it organized
  • Keep it up to date
  • Keep it in multiple places

If you do those three things, you’ll have a leg up on any conversations you’re having with your insurance provider or landlord.

Mitigate damage

Once you’ve assessed and documented the damage, start to mitigate its effect on the rest of your home. A tree branch through the roof? Get a tarp over it. Seal up any windows that were damaged. Turn off power and water if necessary. Start pumping the water out of your basement.

Keep documenting everything while you work to stop, or at least slow, the damage being done. It might not be common—but it has happened—but insurance companies have denied claims saying the damage was caused by the homeowner. Be cautious about making the problem worse.

Make contact

Depending on what happened, start calling, emailing, texting, or posting on social media to get in contact with the right folks.

If there are power lines down or other utilities exacerbating the damage, contact the proper utilities and let them know. A tree branch through your front window is bad. The powerlines the branch brought down in your yard are worse. Chances are you won’t be able to address the branch without getting the power lines taken care of first.

Save everything

Tarps, plywood, or anything else you spend money on to mitigate the damage to your home is probably reimbursable by your insurance. Or if you rent, your landlord should reimburse you. Don’t only save the physical receipts but also take photos. Follow the same steps you did with the initial damage: send the documents to those who might need them. Send them to a second account to keep them stored safely.

When you get to the repair stage, you’ll want to be on top of every receipt that you get from contractors. Get all quotes in writing. If you can, document when they start work and leave. Keep track of as much as possible. Hopefully, no one makes you dig that deep to fulfill your claim, but it’s better to have it and not need it than need it and not have it.

Don’t forget to breathe

Things happen. No matter how prepared you are, there is always something that can catch you off guard. And it’s your home, one of the costliest investments you’ll ever make. Having something go wrong can be devastating. Panicking and over-reacting are only going to make the situation worse. It never hurts to write out a plan of what to do when things go wrong ahead of time. Then when something does happen, you have a list to follow to help you direct your actions instead of having to improvise along the way.

If you’re looking for a home or home insurance, talking to your credit union is a good start. Even if your credit union doesn’t provide insurance, they probably have a few recommendations you could investigate.


6 Things to Know About Personal Loans

Authored By: Community Focus FCU on 7/1/2021

A couple closing on a loan

In recent years, personal loans have become one of the fastest growing loan products—according to TransUnion, more than 20 million people have personal loans. They’re appealing for many reasons: they can offer low interest rates for people with good to great credit, they can be for smaller loan amounts, and they can be used to pay for a range of life’s expenses, including consolidating debt, covering an unexpected expense, or making home improvements.

To determine if a personal loan is the right option for you—or if you should consider other options—consider these six facts about personal loans.

  1. It’s an installment loan. A personal loan is also an installment loan where a fixed amount of money is paid back, with a fixed interest rate, in monthly installments over the life of the loan. This period can be anywhere from 12 to 84 months. As with other loans, selecting a longer repayment period lowers the monthly loan payment, but it also means paying more interest overall.
      
  2. Typically unsecured. Personal loans are typically unsecured and aren’t backed by collateral that the lender can use to repay the loan if the borrower defaults on payments. If a lender offers secured personal loans, they will usually use the borrower’s savings account, CD, or share certificate as collateral.
      
  3. Amounts have a wide range. Loan amounts range from $1,000 to as high as $50,000. Interest rates vary from five to 36 percent. Both the loan amount and its interest rate will depend on the lender and the borrower’s determined creditworthiness.
      
  4.  Fees. Most lenders charge a one-time fee, called an “origination fee,” to cover their cost of processing the loan. This fee ranges from one to six percent of the loan amount. Usually this fee is included in the advertised APR of the loan. This means if someone needs a $10,000 personal loan from a lender that charges a five percent origination fee, the total loan will actually be $10,500, and this will be the number the interest rate is calculated on, not the lower $10,000 amount.

    Some lenders also charge a prepayment penalty if the loan is paid off early. It’s sometimes included in the interest fee (often under the term “pre-computed interest”). If possible, it’s best to avoid taking out a loan with this kind of charge as part of the loan terms.
      
  5. Hard inquiry on your credit score. The application process for a personal loan is similar to other loans. The lender will make a hard inquiry on your credit report. They will consider your income, total debt, and credit score to determine your creditworthiness, which in turn will affect the amount they are willing to lend and at what rate.

    The hard inquiry on your credit report will affect your credit score, lowering it by a few points. Usually a hard inquiry will stay on your credit report for two years. The good news is that consistent, on-time loan payments will earn those points back, plus a few more. While shopping for the best rates and terms on a personal loan, be sure that the lenders are only doing soft pulls as part of the pre-approval process so that your score isn’t lowered further.
      
  6. Interest rates range from 5 to 36%. Like other credit products, the interest rate will depend on your credit score and the lender you choose.

Other lending options

The two other lending options often considered alongside a personal loan are credit cards or a HELOC (home equity line of credit). Which of the three options is the best will largely depend on the borrower’s credit score and if they own a home.

Credit cards offer both disadvantages and advantages over a personal loan. In general, credit cards have higher interest rates, those interest rates can increase (on future purchase made on the card or if a payment is made 60 days past due), and it can take up to 30 years to pay off the balance if only minimum payments are made each month.

However, on the flip side, if you use a credit card to pay for the expense instead of a personal loan, you could benefit from the card’s rewards, like cashback. With good credit, you could qualify for a balance transfer credit card with a 0 percent introductory APR, allowing you to make the purchase and subsequent monthly payments without interest for a whole year. The last advantage is that a credit card gives you a revolving line of credit—as you pay off the balance, more credit is freed up for you to use again, whereas a personal loan is only for a set amount.

For homeowners, they have the option of a HELOC. These are usually for larger loan amounts and they use the equity built up in the home as the collateral in the loan. Like a credit card, a HELCO is a form of revolving credit, allowing you to borrow more as you pay off the credit amount. A HEL, or home equity loan, works on similar principles, but it’s an installment loan. In both cases, if payments aren’t made on the loans, the lender has the right to foreclose on the home as payment.


Some Deals Are Too Good to Be True

Authored By: Community Focus FCU on 6/16/2021

Everyone wants to get a deal when they are buying a car. Why would you pay more than you absolutely have to?

Happy couple at the dealer in front of a new car.

One of the biggest ways to save on a vehicle is to be related to someone who works for a manufacturer. Some family discounts can be as good as a 99% off the manufacturer suggested retail price (MSRP). Most tend to be 5%–10%, which is still a significant savings on a brand new vehicle that costs tens of thousands of dollars.

Those kinds of deals bring a lot of customers, desperate for a discount, to a salesperson. In fact, one salesman was recently arrested by federal agents for illegally offering $8.7 million in discounts to people who were not family. It should be obvious that such deep discounts are very regulated and mostly reserved for direct relatives and a very few select friends, if any. The dealer involved was selling the discounts on social media, often stealing coworkers discount codes. If it seems too good to be true, it is.

So what are your best bets on getting a discount?

  • Buy used. A one- or two-year-old car has almost all the same tech and features you’ll find on a brand-new car. A new model-year doesn’t mean new features because most vehicles are refreshed every two to five years with overhauls and fully new models every five to ten years.
  • Another option is to shop for vehicles that have a low turnover rate. Dealers only have so much space for inventory. They want to use that space for vehicles that are going out the door fast. They have to pay to keep a vehicle on the lot, so they are going to be willing to cut you a deal to clear out low-volume cars.
  • If you really want a new car, and never want a vehicle more than a few years old, leasing is an option. You’ll constantly be making monthly payments and never have any equity in the vehicle, but you’ll also have a lower payment than buying a new car every two or three years.
  • If you do know someone who works in the automotive industry, ask them if they do have access to discounts. Dealerships do get some, but people employed by automakers and parts suppliers usually get better discounts. It never hurts to ask someone if they can help. A lot of people have access to discounts and don’t even know it. One thing you may run into is a dealership not knowing about the discounts. Metro Detroit is full of automakers’ headquarters and suppliers to the auto industry. Dealerships in those areas are very familiar with people coming in with discount codes. Outside of that area, you might need to explain what’s going on if you have a code.

What you shouldn’t do is buy a code or discount. Paying someone to give you a deal is never the deal you think you’re getting. Another red flag is a car salesperson telling you they can get you a deal but you can’t tell anyone. Industry discounts are an above-the-board thing. In the case of the salesperson who was recently arrested, they were offering deals to bolster their own sales numbers. The more cars someone sells, the bigger bonuses they get from the dealership they work for. There are also manufacturer bonuses for high-volume dealers and dealerships.

Buying a new vehicle can be stressful enough as it is. If you know there are discounts or money-saving options available before you go in, bring those with you to the dealership. If their salesperson offers you some deal that is just too good to seem true, ask if you can talk to a manager to confirm. Or ask if the deal is valid at other dealerships. The fallout from that one salesperson’s fraud is ongoing. The people who bought from them are most likely in the clear, but it’s always better to be ethical and safe than shady and unknowingly stealing.


What to Do When Your Car Gets Repossessed?

Authored By: Community Focus FCU on 5/17/2021

Envelopes with a letter stating overdue.

It might not be everyone’s worst nightmare, but it’s probably high on the list; you walk outside, keys in hand, but your car is gone. If you missed a payment on your loan, your vehicle could have been repossessed. What should you do?

First thing’s first: minimize collateral damage. Call anyone who might need to know you’re not getting to where you were planning to go. Tell work you had a family emergency and need to take a personal day. Contact a friend to help, especially if you were planning on meeting that person.

Find out why

There are a few reasons a vehicle could have been repossessed. And not all of them are as obvious as they might seem. If you’re confident that you are up to date on your payments, contact your local police. If your car was repossessed, they’ll be able to tell you; accidents do happen. Once you’ve confirmed with the police, or you know it was a repossession, call your lender. They’ll confirm one of three likely reasons:

  • Your payment was delinquent, i.e. unpaid (the most likely cause).
  • You didn’t have adequate insurance.
  • It was a mistake—rare, but it happens.

What to do next

Once you’ve determined that your car was repossessed and it wasn’t a mistake, you should evaluate your finances. It could be you have the money, but the autopay stopped for some reason. You should be able to quickly fix this kind of issue.

If you can’t afford the vehicle—and that includes fuel, maintenance, and insurance—then your lender did you a favor. It’s a hard lesson to learn but can be a valuable one in the long run. Don’t overextend yourself.

Once you’ve analyzed your finances, you have a few options:

  • Pay off the loan. If you can afford the car and can secure the funds, you usually have the option to pay off the balance of the loan and get your car back.
  • Negotiate a payment plan. Your lender probably will make more from loan payments than selling the car at auction, so you might be able to renegotiate your payment plan.
  • Let it go. If you know you can’t afford the vehicle, this is your best option. But understand, you may still owe your lender money. More on this later.
  • File for bankruptcy. This is a worst-case scenario. If your car isn’t the only debt you’re drowning in, bankruptcy may be an option. It will pause the repossession so you can at least still get to work while you reorganize the rest of your debts.

After the repossession

After your vehicle is repossessed, if you’ve decided to let it go and not declare bankruptcy, there are a few things you need to know.

Anything in the car is still yours. The lender only owns the car; all other property is still yours and they must return it.

You may still owe the lender. If you decide to let the car go, the lender will most likely sell it at auction. If the car sells for less than the amount you owed prior to repossession, you’re still on the hook for the difference. If you owed $12,000 and the car sells for $8,000 at auction, you will owe the lender $4,000. It might not seem fair, but it was in your loan agreement.

The repossession officers are allowed on your property and even in your garage. However, they aren’t allowed to cause any damage. If there is any damage, they are liable for the repairs. This is why they aren’t allowed to break into a locked garage.

What not to do

It is true that they can’t break into a locked garage. But you shouldn’t try to hide your vehicle. The lender can take you to court, and you’ll likely owe more money for court costs and lawyer fees. On top of that, the lender can charge you for the cost of repossession—the longer it takes, the higher the fees.

This is not the end

Yes, your credit is going to take a big hit. You’re going to need to make some sacrifices when it comes to finding a replacement car. Expect a high down payment. You’ll probably have high-interest payments. Until you can improve your credit score with on-time payments.

Be smart, work with your lenders, and reign in your finances and you will recover from this. It will take time and effort, but a vehicle repossession is only a temporary setback.


Want to Shop a Used Car Auction?

Authored By: Community Focus FCU on 4/29/2021

Front of a gray car

There are three kinds of car auctions: One is where cars go for hundreds of thousands to millions of dollars for extremely rare vehicles. Another is where slightly less valuable classic cars sell for tens of thousands of dollars. And the last—the focus of this article—is used car auctions. If you want to get the best deal on a used car, keep reading.

There’s more than one kind

Before you get too deep, there are two types of used car auctions—public and dealer. Often there are days open to the public and days reserved for used car dealers to fill their lots. Unless you’re a registered dealer, you’ll have to go on a public day. Dealers usually can go whenever.

Where do the cars come from?

Most of the vehicles in these auctions come from dealerships that bought them as trade-ins. Saving themselves the hassle of an odd collection of cars, they sell them at these auctions for whatever they can get. Buying a car at the auction is going to be cheaper than going to a dealer simply because there are fewer people needing to make a profit.

Others come from insurance salvage. Damage done to the vehicle could deem it totaled by the insurance company. However, that doesn’t mean there are problems with the safety of the vehicle. A vandalized car can easily have damage in excess of the market value of the car.

Before you bid

  • Set a budget
  • Check the list of cars to be auctioned
  • Look at values
  • Read the auctions warranty, if there is one
  • If you can, check the VIN

Know if it works

Every auction is going to have a system that quickly identifies the roadworthiness of the car. Usually a green, yellow, and red stoplight concept. Green would mean it’s good to go out the door with no known issues. Yellow would signify the car needs work, but remember, this could be vandalism like spray paint or deep scratches. Red would mean the vehicle is barely running at best and is either good for parts or a huge project. The system at your auction may be different, so make sure you read up on their system before you start bidding.

Check them out

Before the bidding starts, most auctions allow you to inspect the cars going across the block that day. Take the list you made earlier and give them a look. Seeing the vehicles in person is going to give you a lot more information than a simple description and maybe a few photos.

Endnotes

Flexibility is key to buying at an auction. The goal is to get a deal. Bidding up a car because you really want that one is going to hurt you and only you. If the vehicle you’re bidding on starts creeping up in price, drop out. There are more cars that will be rolling across the block.


Are You Ready to Buy a House?

Authored By: Community Focus FCU on 3/2/2021

A couple in front of the house with the Sold sign.

Homeownership is a goal for many Americans, and it can be good for your financial health as an investment…but only if you go in well prepared and know under what circumstances it isn’t a good move for you and your wallet.

How much can you afford?

Answering this question as accurately as possible is crucial to moving forward in your house search. The factors that go into the answer will help you decide what “affordable” means for you and keep you from buying too much house.

The first factor to know about is your debt-to-income ratio (DTI). To calculate this, add all of your monthly debt payments (credit card, car loan, personal loans, student loans, etc.) and divide it by your monthly gross income. Including anticipated housing-related expenses—mortgage, mortgage insurance, homeowners’ association fees, property tax, homeowners insurance, etc.— your debt payments shouldn’t be above 43% of your monthly gross income.

So, to figure out how big of a monthly mortgage payment you can afford using this DTI, multiply your monthly gross income by 0.43. This gives you the total you should be spending on debt payments. Now, subtract existing debt payments (those credit card, student loan, etc. payments listed above). That final number is what, theoretically, you can afford to spend each month on a mortgage.

Of course, the lower your DTI, the better!

The 43% debt-to-income (DTI) ratio standard is generally used by the Federal Housing Administration (FHA) to determine if the borrower can make their payments each month. But you should also consider the front-end debt-to-income ratio, which calculates the monthly debt you would incur from housing expenses alone, such as mortgage payments and mortgage insurance. For this, lenders like the ratio to be 28% or less.

The affordability of a house for you should also include the money needed to cover closing costs, which can range from two to four percent of the purchase price, a down payment of 10 to 20% of the purchase price, and the credit score you need to secure the best interest rate.

Do you have the down payment?

The ideal for most people is to be able to put down 20% of the home price. This allows you to avoid paying private mortgage insurance (PMI). PMI is added to your mortgage payments and can add anywhere from $30 to more than $70 to your monthly payments for every $100,000 borrowed. And PMI is not the same as your homeowners’ insurance policy, which you’ll also need to purchase separately.

If you can’t put the full 20% down, you can still buy a home with as little as 3.5% down, for an FHA loan, for example. However, in general, it will limit your choice of lenders and increase your monthly mortgage payments in the long run.

Where do you want to put down roots?

If you’re considering tying your finances to a 15- or 30-year mortgage, you’d better be confident where you’re putting your roots down! Will your job or education likely change in the near future and require you to relocate? Are you near a support network, like family? Would you rather remain flexible about your living situation?

How much time do you have to spend on being a homeowner?

Are you ready for the time commitment of homeownership? We promise most maintenance issues, DIY projects, and rehabs aren’t as easy or as quick as the TV shows would have you believe!

If you can’t pay for someone else to clean your gutters, repair your driveway, install a new bathroom, landscape your backyard, etc., you’ll need to spend time learning how to do it yourself. And then do it.

Not everyone wants to commit the amount of time a home can take. Be sure you consider this lifestyle change before you buy a home.


Avoid Costly Mistakes When Buying a Car

Authored By: Community Focus FCU on 2/5/2021

Two young people in the car with a smart phone

Are you buying your vehicles backward? Most people seem to. What do we mean? This: most people, when shopping for a new vehicle, go to the dealer, pick out their car, and then figure out financing. How is that backward? You might think they don’t know their budget until they start talking numbers, but the result is almost always spending more than they intended to. How can you avoid this costly mistake? Keep reading for a few tips and a few things you should keep your eye out for when starting your journey to buy a new vehicle.

First things first

Preapproved or prequalified? What’s the difference?

Preapproval:

  • Full credit check
  • Makes you a cash buyer
  • Rate locked-in, as long as the car is in the criteria of the loan
  • Less back-end work with your lender

Prequalified:

  • Credit score is most likely all they looked at
  • Interest rate may change for any number of reasons
  • Not guaranteed, lender could deny you in the end
  • More back-end work with your lender

It’s your choice in the long run. You have more freedom to do what you want with pre-qualification, but preapproval will speed up the process if you know what to do.

Budget

Knowing how much you can spend before you get to the dealership is more than putting some information into an auto loan calculator and getting a vague idea.

Going to your credit union before you even start seriously shopping is the best way to know your budget ahead of time and set it in stone.

The high ground

Holding the high ground in any fight is to your advantage. Negotiating the price of a car is no different. And one way to get the high ground is to have cash. That is what you have when you walk in with a preapproved or prequalified loan: cash. The dealership will get paid the second you sign the papers. And like anything, cash gets things done faster.

Avoid markups

Having your financing squared away before you go to the dealer helps you avoid any financial markups before you close the deal. You’ve already signed the papers and have a clear understanding of what your interest rate is going to be. Waiting to figure out financing with the dealer, you could end up with higher rates, random fees, and generally just spending more than you should.

Avoid upsells

The stereotype of dealers finding random ways to up the price has truth. Mostly gone are the days of un-necessary underbody coatings or strange fees like making sure the bolts are tight and the paint is fresh.

When you have your financing in place before you even start shopping, it’s harder to sneak those fees. If the price you shook on starts going up, walk away from the table and go to another dealer. The ball is in your court. You’re helping them by buying a car; they aren’t helping you by financing it.

The process

Getting your pre-loan work out of the way is going to vary depending on your credit union or the lender of your choice. However, many lenders have simplified the process over the past few years. So simplified in many cases that you can apply online or through an app.

The best way to get the details is to contact your lender and ask a few questions. Due to Covid, there is a chance their process has changed, depending on how you’d like to apply. Other than that, enjoy your new vehicle.


Buying a Home In the Spring

Authored By: Community Focus FCU on 1/21/2021

Young Couple Holding Keys in front of New Home

Home shopping season is upon us! Spring is the most popular time of the year for buying and selling homes. With so many buyers in the market, you’ll want to make sure you stay competitive. Follow the tips below to help you land the home of your dreams.

Research & Preparation

If you are planning to move to a new area, it is a good idea to explore and talk to locals. Drive around in the neighborhoods you like most and use online tools to research the town and local real estate agents. Visit the neighborhood during different days and times to get a better understanding of traffic and lighting.

Finding a local real estate agent that is well versed with the neighborhoods you are looking in is extremely valuable. They will be able to tell you what the market is like, how fast the homes are selling, and information about the neighborhood. You can ask for a referral from a real estate network you’ve used in the past or ask friends from the area if they have an agent they could recommend.

Your Mortgage & Pre-Approval

Get in touch with a mortgage lender to figure out how much home you can afford. Our partner, Mortgage Center, offers a free pre-approval that will show sellers you’re serious.

Your pre-approval letter will show you the maximum loan amount you are approved for, but you’ll want to create a budget to figure out how much home you can afford. Don’t forget about expenses like utility bills that could increase depending on your home. Make sure you’re comfortable with a new monthly budget.

Have Questions?

Join us for a free homebuyer webinar on March 4th at 6pm from the comfort of your home! Together with our partner Mortgage Center, we will be discussing the ins and outs of the home buying process. There will be experts on hand to answer your mortgage questions.

As an added bonus, you can receive $500 off* your closing costs for attending the seminar. Click here to learn more and RSVP, limited seating is available.

 

Equal Housing Lender
Mortgage Center NMLS# 282701

Information as of January 2021.

*Offer for $500 off closing costs is valid for 90 days after the seminar. Must have attended the seminar to be eligible. Applies to Residential 1st Mortgages only and excludes Home Equity Loans and Home Equity Lines of Credit. All loans subject to credit approval.


Pay Off Debt or Save for Retirement

Authored By: Community Focus FCU on 1/14/2021

Middle age couple sitting at the table and looking at paperwork.

Paying off debt. Saving for retirement (or financial independence, if you prefer). They’re both important to your financial health, but is one more important than the other? Can you manage to do both at the same time and call it a wise decision?

Ultimately, the answer depends on your current situation, including the types of debt you have and at what interest rates, and what retirement matching plan is offered by your employer. As your situation changes throughout life, your strategy to both pay off debt and save may change, and that’s okay.

Formulate a plan with manageable steps and automate your savings as much as you can. Here are eight steps you can follow to pay off debt and save for financial independence.

1. Figure out what you have and what you owe.

Essentially, this is a snapshot of your net worth. By laying out what your income is and what your debt obligations are, you can more clearly see your current balance between savings (for retirement and an emergency fund) and debt. Knowing where you’re starting from will not only show you which direction to take but will also show you when progress is made.

2. Find and list the interest rates on all of your debt.

Create a simple spreadsheet where you list out your total remaining debt balances, their interest rates, and the monthly minimum payments. Organize the debts from highest interest rate to lowest. Include credit cards, hospital debt, student loans, personal loans, payday loans, car loans, mortgage, etc. You will use this to prioritize debt payments against the potential growth of retirement contributions.

3. Create a budget.

The goal of your budget should be to pay all of your fixed expenses (rent, loan/debt minimums, insurance, etc.) and needs (food, utility bills, gas in car, clothing on your back, etc.) and then divert as much money as possible toward paying off debt, building an emergency savings fund, and saving for retirement. If you can set aside at least 20% of your net income for these goals (excluding what you put into your 401(k) pre-tax), then you’ll make progress at a steady pace.

4. See if you can refinance your loans.

If interest rates on car loans and mortgages are currently lower than when you took out the loans, it may be a smart move to refinance and take advantage of the lower rates. When refinancing your mortgage, consider looking at a shorter-term mortgage. See if your budget will comfortably allow the bump in monthly payments to shorten the loan and ultimately pay less in interest. If you have questions about refinancing, speak with a financial advisor at your credit union.

5. Reevaluate your credit card usage.

Start using your credit card like a debit card: only spend the money you have in the bank. Cancel automatic charges and turn them into auto-debits from your checking account (if the expense still fits in your new budget). Call your credit card companies and ask for a lower interest rate or to wave the yearly fee. If you can’t lower the interest rate, see if you can transfer the balance to a card with a 0% interest offer. The goal is to not continue racking up credit card debt while you’re working to pay off the balance.

6. Create an emergency savings fund.

At minimum, you need one month’s worth net income saved for emergencies before aggressively paying down debt. While building your emergency fund, continue to pay the minimums on your loans and debt, but put all extra money into savings. Once you’ve saved your goal amount, apply those extra dollars toward paying down debt. An emergency fund prevents you from falling back on credit cards (and amassing more debt) when an unexpected expense comes up—like a car repair, vet bill, or home repair.

7. If you can afford it, take advantage of your employer’s 401(k) or 403(b) match. If you can’t, then cut expenses or earn more money so you can.

Not taking advantage of an employer retirement 401(k) or 403(b) match is like throwing away free money. While paying off the minimum monthly payments on your debt, do whatever it takes to take full advantage of the offered retirement match. If they’ll match up to 6%, scrounge every penny to meet that full 6%. It’s an immediate return on your investment.

8. Now figure out how much you can pay toward your debt.

You have a budget that prioritizes saving and debt repayment. You’re cutting expenses and perhaps creating new income. You have an emergency fund of at least one month’s net income. You’re making the minimum monthly loan payments. You’re meeting any retirement match offered by your employer.

Now’s the point where you aggressively pay down your debt. Where before every extra dollar not paying for food or the mortgage went toward your emergency fund and then your company’s retirement match program, now any and all extra money goes toward paying off debt, starting with the loan with the highest interest rate.

Depending on your time horizon for retirement and the interest rate on your debts, you may be advised to shift the balance of those extra dollars in favor of saving for retirement. Or, if you have any debts with interest rates over 6%, some financial advisors suggest paying off those debts first before going back to minimum payments on lower-interest-rate loans and more aggressive retirement savings.


Black Friday 2020 Cancelled?

Authored By: Community Focus FCU on 11/23/2020

Family window shopping

We can now confidently say that the Black Friday traditions of lines out the door for doorbuster deals, crushing crowds, and in-store sales starting on Thanksgiving Day are a thing of the past. And while online shopping and events like Cyber Monday had already weakened Black Friday’s position as the biggest and best day for deals, the coronavirus pandemic is forcing retailers to press the “reset” button on how this year’s holiday shopping season will run.

Retailers have more responsibilities to juggle this shopping season, namely creating a safe shopping and working environment through social distancing logistics, limited store capacities and opening times, and additional cleaning protocols. But they must also contend with ongoing inventory challenges, disrupted supply chains, an economic recession that weakens their customers’ buying power, and building and running a new shopping experience that relies heavily on e-commerce and curb-side service.

What you can expect

With all of these factors in mind—not to mention the pressure on retailers to make up for money lost during the shutdowns earlier in the year—many big-name stores will be starting holiday sales in October. That’s right. You’ll be able to buy stocking stuffers and Halloween candy at the same time.

Hooray?

If you’re not happy about mixing holiday-themed sales and decorations, you might be happy to learn that many stores won’t be open for shopping on Thanksgiving Day.

The trend of starting Black Friday shopping by dessert time on Thanksgiving kicked off when, because of where Thanksgiving fell relative to Christmas, there were going to be six fewer days of shopping between the holidays. And then the trend stuck—until public backlash encouraged some retailers to stay closed on Thanksgiving, putting time with family before a few extra hours of sales and profit.

The pandemic is now giving a bigger and harder push for all stores to reconsider opening on Thanksgiving.

Here are the holiday shopping changes that have been announced so far from some of the biggest names in retail:

  • Target will launch holiday sales in October but will be closed on Thanksgiving Day.
  • Amazon is moving its annual Prime Day sales into October as well, with rotating, limited-time deals.
  • WalMart will be closed on Thanksgiving, with normal shopping hours resuming on Black Friday.
  • Best Buy, Kohl’s, the TJ Maxx family of stores, Costco, and Bed Bath & Beyond have all said they will be closed on Thanksgiving.

In the end, these new changes could all work out in your favor. An extended season of sales means more time to consider and spend wisely.


Coronavirus Scams

Authored By: Community Focus FCU on 11/20/2020

A photo of a computer screen with a Fraud Alert notice

Fraudsters and scammers take advantage of fear and uncertainty—two things in abundance during the coronavirus pandemic. The Federal Trade Commission (FTC) had logged about 192,700 consumer complaints related to COVID-19 and stimulus payments by September 7, 2020. Victims reported a median loss of $300, for a total of $134 million lost to scammers.

To keep your time, money, and personal health information safe, review this list of top pandemic scams. For a continually updated list, visit the Federal Trade Commission website (www.ftc.gov) or the Federal Communications Commission (FCC) website (www.fcc.gov).

Fake contact tracers

Fake coronavirus contact tracers hope to use your fear of exposure to the virus to extract payment, financial information (bank account or credit card number), your Social Security number, or immigration status. A legitimate tracer will not need nor ask for any of this information. Depending on your state’s program, legitimate contact tracers may call, email, text, or visit your home to collect very specific information: your name and address, health information (but not Medicare or Medicaid information), and the names of places and people you have visited within a specific timeframe.

Stimulus payment scam

There are a few different stimulus payment scams that have been reported to the government. The easiest way to avoid all of them is to follow these rules:

  • Only use www.irs.gov/coronavirus to submit stimulus information to the government.
  • Do not respond to texts, emails, social media messages, or calls claiming to be from the IRS about your stimulus payment (that’s not how the IRS would contact you if they have questions; they’ll do it by snail mail).
  • You don’t have to pay anyone to get your stimulus money. If you receive a communication claiming to be the IRS and instructing you to deposit your stimulus check and then send them money back because they overpaid you, it’s a fake check scam.

Fake vaccines and test kits

Phony vaccinations and home test kits for sale are rampant on the internet and as a part of email phishing schemes. There is no guarantee these products work, and in most cases, nothing shows up at your door, but you’re already out the money. Some scams are targeted at Medicare beneficiaries, requiring the Medicare and personal information needed to commit healthcare fraud.

Illegal robocalls

Even if you avoid scams on the internet, scammers are also using illegal robocalls to sell low-priced health insurance, free virus test kits, cures, work-from-home opportunities, debt consolidation services, and student loan repayment plans. Some versions target high risk individuals with diabetes, offering a free COVID-19 testing kit and a free diabetic monitor; others claim to be from the U.S. Department of Health, warning of a coronavirus outbreak in your area and recommending a (fake) vaccine sold by a phony "health advisor."

What all of these robocall scams have in common is asking for your personal and financial or payment information.

Fraudulent government and health organization emails

Health organizations like the Centers for Disease Control (CDC) and the World Health Organization (WHO) will never email you personally. But scammers want you to think that’s who’s contacting you with dire warnings and some request for personal or financial information.

Only use sites like www.coronavirus.gov and www.usa.gov/coronavirus for the latest information.

Small business scams

Small businesses can also be victims of fraudsters. Businesses can receive phone calls, emails, or targeted ads online about fake virus-related loans or Payroll Protection Program and Economic Injury Disaster Loan process help. The only place to officially and safely apply for government assistance related to the pandemic for a small business is at www.SBA.gov.


When it's better to use a Debit Card?

Authored By: Community Focus FCU on 11/16/2020

Woman holding shopping bags and a debit card

“Debit or credit?”

It’s a question you probably hear every time you buy something in person. If you have the option of using either a debit or a credit card, is there a reason you choose one card over the other? Is there ever a wrong choice between the two?

There could be, depending on your situation.

How your cards work

It’s first important to understand how the two types of cards work.

Debit cards draw money straight from your checking account. You won’t get a bill later or pay interest on what you spend, but you could pay an overdraft fee if you spend more than what you have in your account. A debit card also allows you to get cash from an ATM, drawn from whichever account you choose (checking or saving).

Credit cards allow you to borrow money that must be repaid, with interest if you don’t pay your entire credit card bill when it comes due. You will have a credit limit on each credit card—the maximum amount of money you can charge to a card, but it will likely be much more than you have in your checking account.

Credit cards have many perks, like fraud prevention, helping you build credit, earning perks (like cash back or airline miles), extended warranties on electronics, and additional insurance on air travel or car rentals.

If someone steals your debit card information and withdraws money from your account, there’s a good chance that money is gone forever, although your credit union may offer additional protection up to a certain dollar amount. However, with a credit card, you are protected against fraudulent charges by federal law, and you can dispute any charges by dishonest sellers.

Even with all of the advantages of using a credit card, there are times when it might be smarter for you to use your debit card.

If using a credit card incurs a fee

It’s not uncommon for a surcharge to be added to your bill if you use a credit card. Examples include using a credit card to get money out at an ATM, to pay taxes, or to pay a tuition bill.

If you’re buying from a small business

Businesses must pay a credit card processing company money to offer credit cards as an accepted form of payment. To help offset this cost, the store may set a credit card minimum, ensuring you spend enough to make the credit card charge worth it. Using your debit card when shopping from small, local businesses helps the business keep more of the profit, helps keep you from overspending to meet that purchase minimum, and helps prevent the business from increasing its overall prices to compensate for the credit card processing fee.

If you’re in credit card debt

If you’re currently facing deep consumer debt on your credit cards, or have only recently paid off your credit card debt, or struggle to resist spending beyond your means, you should be reaching for your debit card more than a credit card.

When you run out of money in your checking account, your credit union won’t let you spend any more! It’s a natural prevention to overspending!

Summary

An easy way to decide which card to use in the moment is to match the card type to your goal.

If you’re avoiding debt, use your debit card.

If you’re trying to build credit and can pay off your bill each month, use a credit card.


The Most Fuel Efficient 2020 Models

Authored By: Community Focus FCU on 11/9/2020

Man holding dollar bills by a fuel pump

On a day-to-day basis, fuel is going to be the biggest cost of owning a car. Even with the pandemic and most people driving less, it still takes money to get your vehicle moving. If you’re in the market for a new vehicle and looking to save for those times you do drive, here is a list of the most fuel-efficient vehicles on the market, both hybrids and standard configurations.

Hybrids

Since the arrival of the Toyota Prius, hybrid vehicles have dominated fuel efficiency.

  1. Toyota Camry Hybrid – The first car on the list to crack the 50-mpg mark with a 52-mpg rating, the Camry Hybrid comes in at around $28,430. Another legend of reliability, the Camry gives you a little more than you need without breaking the bank.
  2. Toyota Corolla Hybrid – Sharing its big brother’s 52-mpg capability, the Corolla saves even more with its smaller size and minimal appointments, bringing the price tag to $23,100.
  3. Honda Insight – The first model on the list to only come as a hybrid, the Insight offers 52 mpg and a price of $23,930. Don’t expect a lot but also don’t expect to empty your wallet to fill it up.
  4. Toyota Prius – The original modern hybrid, the Prius continues to set the standard for fuel-efficiency. With 56 mpg and a $24,325 price tag, the Prius has solid value. Not to mention, the Prius also has history as a safe car—now made safer with a full suite of driver-assist features.
  5. Hyundai Ioniq – At 58 mpg, this is the most fuel-efficient vehicle of 2020. And a price tag of $23,200 sets it below many of the others on the list. If you’re looking to skimp on gas and don’t need much in the way of features, the Ioniq is a solid choice in the saving category.

Standard

  1. Nissan Versa – With 30 mpg combined fuel economy, the Versa sips fuel for a standard configuration, and at $14,830 it’s a bargain all around.
  2. Toyota Yaris – The Yaris boasts 35 mpg and a price tag of $17,750. You aren’t going to get a lot of exciting features, but the Yaris is going to last a long time.
  3. Honda Fit – This compact comes in at 36 mpg for $16,190. If you need to haul around anything, the ample cargo space of the Fit is something you should check out.
  4. Kia Rio – If you want the fuel economy of a hybrid from a decade ago, here you go, 36 mpg. With a sticker price of $15,850, the Rio is a value car all the way around. The aggressive styling makes up for a lack of power.
  5. Hyundai Accent – With an impressive 37 mpg, this is a solid contender even against hybrids. And at nearly half the cost ($15,395) of hybrids, you’re going to have plenty of cash left in your pocket to make up the difference in fuel costs.

Things to think about

None of these are recommendations for any particular car. What suits you best is what you should shop for.

Another thing to think about is buying used. Newer models will have better fuel economy, but one or two mpg isn’t going to really be noticeable, especially when the purchase price of the car is greatly reduced.


Tax Credits: Electric and Hybrid Vehicles

Authored By: Community Focus FCU on 10/1/2020

Electric and Hybrid Vehicles Tax Credit

A lot of people buy electric vehicles or hybrids for fuel savings, but the tax credit associated with these vehicles may be an even bigger draw. A $7,500 tax credit can be quite the incentive! But there is more to know than just a number (like everything to do with taxes). Here is what you should know about electric vehicle (EV) and hybrid tax credits.

Don’t expect a check. It’s a credit not a rebate. That means you can receive up to the maximum amount reduced from your income tax. If your tax bill is only $5,000, then receiving the full EV tax credit would zero out your bill—but you won’t get a check for the remaining $2,500. The small print basically says that it’s up to a $7,500 non-refundable credit.

Not all credits are the same. Depending on the vehicle you’re looking at, you may not get a $7,500 credit. As time passes, the amount of tax credit offered on a vehicle drops because the amount offered is based on sales volume—the more popular vehicles that have been around longer (i.e. higher sales volume) get a smaller credit when purchased. A 2012–18 Ford Focus EV will net you a $7,500 credit, but a Prius will get you somewhere between $2,500 and $4,502, depending on the year of the vehicle.

There is a limit. The credit only applies to a certain number of vehicles. Each company is limited to 200,000 credits. There is some leeway since it’s impossible to know who bought the 200,000th car, but if there is a car you want and the manufacturer is getting close to its limit, act soon. Tesla is the first to have run out of credit qualifications. GM followed shortly behind. So if you want a Tesla, sorry, you’re not getting a tax credit. But don’t worry; there are still plenty of options out there. If you’re more focused on the deal than the vehicle, you should have no problem finding something that suits your needs.

There are more credits. Most people focus on the federal credit. However, there are state credits too! So even if you missed out on a Tesla federal tax credit, you might still get a credit through your state’s program. Better yet, you can stack your credits and rebates. If you live in a state with a credit or rebate, you can get more money back by cashing in at both the federal and state levels.

More than cars. As mentioned above, states are doing their own thing. Not all of those credits or rebates are for the vehicle itself. Electric vehicles and plug-in hybrids require special equipment to charge. A lot of states offer programs to reduce or totally off-set the cost of installing a charging system. Some of these programs apply to businesses too. If you own a business, you could install a charger at little to no cost.

This could also be applied to an apartment complex or condo development. If you live in a communal living development and buy or lease a plug-in vehicle, you could work with the property management to install a charger for your new vehicle.

Paperwork. To claim your federal tax credit, you’ll need to fill out Form 9836 and Form 1040. There are a few other criteria you’ll need to meet to get your credit:

  • Proof you own the vehicle. If it is leased, only the lessor can claim the credit since they actually own the vehicle.
  • Proof the vehicle is registered and used during the tax year.
  • Only using the vehicle on public roads and highways.
  • Being the first person to use the vehicle.
  • Not acquiring the vehicle for the sole purpose of resale.
  • Mostly using the vehicle in the U.S.

Exposing Hidden Fees - They Are Everywhere!

Authored By: Community Focus FCU on 9/15/2020

Exposing Fees

Undisclosed and deceptive fees are becoming commonplace and end up costing American consumers billions of dollars each year. According to a report by the Consumer Federation of America, hidden and additional fees can increase bills by up to 25%.

Companies may choose to hide the true cost of a product or service through fees—often added at the very end of the purchase process—so they can appear to be the lowest-price provider in a competitive marketplace. When, say, an airline service disguises part of a ticket’s cost as fees, the true and total cost may not be picked up by online shopping engines, showing you a much lower price. Industries notorious for hiding fees include shipping, airlines, non–credit union banking services, cable providers, car rental agencies and dealers, hotels and resorts, phone providers, medical services, and retirement funds.

Types of hidden fees and fee pricing

  1. Drip pricing. This fee tactic slowly accumulates costs as you progress through check out. A company might lure you to a product with a super-low price, but once you hit the “purchase” button, additional options (some of which are unavoidable, like a charge for the color of the item), upsells, tax, and shipping and handling costs will slowly push that price up.
      
  2. Default upgrades. This often happens with bargain-basement travel deals with airlines, hotels, and car rental companies. The seller has boxes automatically ticked for product, service, or shipping upgrades by default. If you don’t go through and uncheck each box, you’ll pay a much higher-than-advertised price.
      
  3. A surcharge. This is an additional fee that is usually higher than what you could pay for the item or action on your own. For example, the fuel surcharge from a car rental company.
      
  4. Transaction fee. These are simply for the act of fulfilling an order, like for an online concert ticket purchase.
      
  5. Undisclosed/Hidden fee. These are the fees that you weren’t told about or able to discover on your own. These can be legal or illegal. They are considered illegal if they or the quoted price was deceptive, fraudulent, or the result of false advertising.
      
  6. Excessive costing. You might know this scheme as the claim “You only pay shipping!” A company will sell you an item “for free” and you only have to pay shipping and handling fees—but of course those fees are inflated. This is how the company covers manufacturing costs and generates a profit.

Examples

Here’s where you’re most likely to find hidden fees:

  1. Hotels. Today, hotels often charge “resort fees” to cover items that you might expect to be a part of your basic hotel price and experience. Resort fees can run $10 to $100 per night. They usually cover your room’s “free” wifi, “complimentary” bottled water or coffee, access to the gym and swimming pool, towels, housekeeping service, the “included” breakfast, the safe in your room, and potentially other items and services. Ask about resort fees before you book your next hotel room and ask if any of them can be removed (like the one for a safe in your room if you don’t need it).
      
  2. Car rentals. Be sure you look for these fees and charges before deciding which company truly offers the best deal: additional insurance, age surcharge, additional driver fees, overcharged toll feels, fuel charges, drop-off fees, mileage fees.
      
  3. Car dealerships. These might be some of the most well-known fees, which are added to the sale price before you sign documents and drive off the lot: advertising, documentation, dealer prep, inventory, and delivery fees, as well as extended warranties. Many of these can be negotiated.
      
  4. Phone service. Beware of “cramming”—adding fees to your phone bill for services you didn’t sign up for. They’re often small-amount fees, but they add up over time. They can include voicemail, mail server, membership, minimum monthly usage, premium text message, or simply “other” fees. These aren’t always illegal, but you have the right to contact your phone company and ask to cancel or negotiate a better deal.
      
  5. Modem fee. Many internet providers charge broadband customers a monthly fee to rent a modem. You can avoid this by purchasing your own. It will most likely pay for itself in less than a year!

When is it better to use a Debit Card?

Authored By: Community Focus FCU on 9/4/2020

Debit Card or Credit Card

“Debit or credit?”

It’s a question you probably hear every time you buy something in person. If you have the option of using either a debit or a credit card, is there a reason you choose one card over the other? Is there ever a wrong choice between the two?

There could be, depending on your situation.

How your cards work

It’s first important to understand how the two types of cards work.

Debit cards draw money straight from your checking account. You won’t get a bill later or pay interest on what you spend, but you could pay an overdraft fee if you spend more than what you have in your account. A debit card also allows you to get cash from an ATM, drawn from whichever account you choose (checking or saving).

Credit cards allow you to borrow money that must be repaid, with interest if you don’t pay your entire credit card bill when it comes due. You will have a credit limit on each credit card—the maximum amount of money you can charge to a card, but it will likely be much more than you have in your checking account.

Credit cards have many perks, like fraud prevention, helping you build credit, earning perks (like cash back or airline miles), extended warranties on electronics, and additional insurance on air travel or car rentals.

If someone steals your debit card information and withdraws money from your account, there’s a good chance that money is gone forever, although your credit union may offer additional protection up to a certain dollar amount. However, with a credit card, you are protected against fraudulent charges by federal law, and you can dispute any charges by dishonest sellers.

Even with all of the advantages of using a credit card, there are times when it might be smarter for you to use your debit card.

If using a credit card incurs a fee

It’s not uncommon for a surcharge to be added to your bill if you use a credit card. Examples include using a credit card to get money out at an ATM, to pay taxes, or to pay a tuition bill.

If you’re buying from a small business

Businesses must pay a credit card processing company money to offer credit cards as an accepted form of payment. To help offset this cost, the store may set a credit card minimum, ensuring you spend enough to make the credit card charge worth it. Using your debit card when shopping from small, local businesses helps the business keep more of the profit, helps keep you from overspending to meet that purchase minimum, and helps prevent the business from increasing its overall prices to compensate for the credit card processing fee.

If you’re in credit card debt

If you’re currently facing deep consumer debt on your credit cards, or have only recently paid off your credit card debt, or struggle to resist spending beyond your means, you should be reaching for your debit card more than a credit card.

When you run out of money in your checking account, your credit union won’t let you spend any more! It’s a natural prevention to overspending!

Summary

An easy way to decide which card to use in the moment is to match the card type to your goal.

If you’re avoiding debt, use your debit card.

If you’re trying to build credit and can pay off your bill each month, use a credit card.


COVID-19 Fraud Scams

Authored By: Community Focus FCU on 8/31/2020

Fraud and Scams

The recent COVID-19 pandemic has resulted in large numbers of unemployment filings. Unfortunately, many agencies are also reporting an increased number of unemployment scams in which victims’ identities are being used to file false unemployment claims. Victims, who have not filed unemployment claims, are receiving notification from their employer’s Human Resources department, or the Unemployment Insurance Agency indicating an unemployment claim has been filed on their behalf. Unemployment Insurance Agency is recommending the following steps for anyone who knows or believes that they are a victim:

Steps to report fraud and identity theft

1. Contact Human Resources – reach out to your HR department to coordinate and report the incident to your employer.

2. Report the fraud to the Unemployment Insurance Agency fraud unit in your state 

3. Get a free credit report and place a fraud alert– contact one of the credit report bureaus: Equifax, Experian, or TransUnion at www.annualcreditreport.com or call 1-877-322-8228. Report that the fraudulent claim was made using your identity. You can then put a free fraud alert on your identity with one or more of the credit report bureaus or freeze your credit. Find more information about freezing your credit here.

4. Contact the IRS – if it is confirmed that a payment has been made as a result of unemployment identity theft, report the payment as fraudulent by completing an IRS Affidavit Form 14039 (Search Forms and Instructions).

How to protect yourself from becoming an identity theft victim

  • Guard your Social Security Number. Give out your number when absolutely necessary and don’t carry your Social Security Number card with you.
  • Don’t respond to unsolicited requests for personal information (your name, birthdate, Social Security Number, or bank account number) by phone, mail or online
  • Shred receipts, credit offers, account statements, and expired cards, to prevent “dumpster divers” from getting your personal information
  • Review your credit report at least once a year at www.annualcreditreport.com to be certain that it doesn’t include accounts that you have not opened.

How can Community Focus FCU help you in preventing identity theft and fraud?

  • Sign up for e-Statements in Online Banking to reduce the chances of becoming an identity theft victim through mailed account statement
  • Sign up for SavvyMoney in Online Banking to view changes to your your credit report 24/7. If you see any fraudulent or unknown accounts, you can easily dispute your report via the Dispute Report button within SavvyMoney.
  • Sign up for MobiMoney and get instantaneous notifications anytime your Debit Card is used 
  • Set up E-Alerts in Online Banking and get updates on your balances, transactions, unauthorized logins or upcoming loan payments

For more information on the Unemployment Insurance Agency fraud, please visit the Unemployment Insurance Agency's website.

To learn more about identity theft and fraud prevention tips, please click here


Don't Forget to Ask These Questions When Buying a New Car

Authored By: Community Focus FCU on 8/28/2020
Buying a new car
There are many questions you’ll be asking yourself, the dealership sales associate, and probably car review websites before you decide to buy a new vehicle—but here are six questions you should ask before signing any purchase papers. These questions should be your “deal testers,” a way for you to verify the purchase terms, understand all the fees, and ultimately decide if further negotiation is needed.


"What's my out-the-door price?" or “What other fees will I be charged?”

Usually, up to the point of signing the vehicle purchase contract, you’ve only been discussing and negotiating the price of the car. However, there are always additional fees to pay—some legitimate and unavoidable, others questionable or negotiable. Fees to expect include sales tax, registry and new license costs, tire recycling fees, and a documentation fee.

“How much is your documentation fee?”

All car dealers charge a documentation ("doc") fee for filling out the contract to buy a new car. As ridiculous as it may sound, it’s a universal fee charged by all dealerships. Doc fee rates vary state by state. Some states cap the doc fee, usually at a price under $200. Other states don't regulate the fee at all, so it can be $500 or more. If you live in a state without a capped fee and feel the fee is too high, your best bet is to negotiate the price of the car down to compensate for the high doc fee, rather than try to get the dealer to waive the fee altogether.


“Are there any dealer-installed options on the vehicle?”

Dealers often add options to new vehicles after they receive them from the factory. Options added by dealers are called “add-ons” and the markup can be steep to boost dealership revenue. Add-ons can include nitrogen-filled tires, LoJack car recovery system, window tinting, wheel locks, all-weather floor mats, paint protection, and others. Dealers will sometimes install an add-on to all new cars in their inventory to make it appear as if it’s a standard feature. But, if you know it’s not a standard feature, you won’t be tricked into paying for an add-on you don’t want. Because the mark-up for the feature is set by the dealer, its price can be negotiated by a savvy buyer.


“What tax credits are available for this vehicle?”

If you’re considering buying a new fuel-efficient hybrid or electric vehicle, you may be eligible for a federal tax credit. But did you know there are other tax credits that may be available for other types of vehicles? Researching this question before you get to the dealership, as well as asking the sales associate, will give you more information when trying to calculate the final take-home price of a vehicle.


“How many miles are on the vehicle?”

This question is important for both internet and in-town shoppers. Even a brand new never-been-owned car can have more miles on the odometer than expected, which may change how much you’re willing to pay for it. Perhaps the vehicle has been taken on a lot of test drives, or it's a "dealer trade” and was driven from one dealership to another. As a general rule, if there are more than 300 miles on a car, you should negotiate a lower price if it isn’t already marked down. For any new car that has higher mileage or has been on the lot for a while, ask to see the “in-service date.” This is the date when the factory warranty begins, and it’s important to know if some of that time has already elapsed before you purchase it.


“Can you deliver the car?”

This question applies primarily to internet shoppers. Delivery of your new car is a great last perk to negotiate that saves you time and gas. Vehicle delivery also has the added benefit of allowing you to skip the sales pitches from the finance and insurance manager at the dealership for extended warranties and additional services. If you do want one of these extras, you always have the option of speaking with the appropriate manager over the phone.

 

 

 

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