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To help you better understand today’s financial challenges, here’s Money Minute. No matter what your financial situation might be, these consumer financial tips can benefit you and your family for life:
How to actively manage your credit history
Your credit history is not just ink on paper. It’s YOUR standard of living!
A poor credit history will cost you and your family. It dictates how high your interest rate will be on your car loan, your home loan, and your credit cards – heck, it may even prevent you from getting a job. Because your interest rate is higher, you end up paying more for less. Your home won’t be as big, your car not as nice…and worse yet, you may have to settle for a lower-paying job.
So actively manage your credit history. Pay your bills on time, and make sure you don’t overspend. Good credit can make your life a little better, and a lot more affordable.
How to avoid excessive fees on your accounts
Every financial institution charges some sort of fees, but you can avoid them if you choose the right account to match your lifestyle. If you use lots of checks, avoid accounts that have restrictions on how many you can write. If ATMs are your deal, make sure there are no monthly limits on the number of times you can use your card. The same holds true for debit cards. Avoid bouncing checks – that can get really expensive. And be aware that CDs and club accounts (Christmas Club, Vacation Club) come with early withdrawal fees.
If you shop around for the account that best matches your lifestyle, you’ll keep a lot more money in your pocket.
The most important things that affect your credit score
While most people have a credit score, we don't know how we got it – and we’re confused as to how to improve it.
You definitely want a high credit score – that equates to lower interest rates, lower monthly payments and, as a result, more money in your pocket. Two things affect your credit score more than anything else: how much you owe and how you pay your bills.
It takes time to fix bad credit, but keeping your balances low and your payments up to date are great ways to start improving your score – which means real money to you!
The best ways to save money when you buy a car
When buying a new car, be smart. Don’t buy more car than you can afford – it’s a big expense for a long time.
You’ll see, read and hear about lots of very attractive deals, so don’t be an impulse buyer. Do your homework – not only on the car itself, but also on the financing. Know what your new payment will be, and don’t stretch your payments out longer than you plan to own the car. Make sure you can pay off your loan early without any penalties. And try not to borrow money for the sales tax and license.
Be honest with yourself…too much car, too much payment, could lead to bigger problems down the road.
Budgeting will help put money in your pocket
Does your money run out long before the month does? If so, creating a budget is the first step to getting financially fit.
Know what your monthly expenses are versus your income. Cash leaks can be a big problem for a budget. Pay attention to how many trips you take to the vending machine or convenience store; that daily cup of coffee; and how often you eat out for lunch. Then do the math…Guess what…you’ve spent some serious cash!
But once you know where all the money goes, you can begin correcting your spending habits – and have more money in your pocket at month’s end.
Relationships can save you money
Check Cashing and Payday Loans are expensive…PERIOD. People tend to use these types of services because they don’t have a relationship with a credit union or bank.
But the more you use a financial institution, the more you’ll avoid unnecessary expenses. For example…sign up for direct deposit of your paycheck, and get your cash with an ATM or debit card. And be sure to write checks – they cost a lot less than money orders.
If you open both a savings and a checking account, these types of relationships will save you big money in the long run.
Make it easy with Direct Deposit
Instead of BRINGING your paycheck to your financial institution, how about using Direct Deposit?
Direct Deposit does three things. It saves you time…money…and it KEEPS you and your money safe. Your time is precious. So why spend it in line when Direct Deposit can do the job in the blink of an eye? Plus, driving to the financial institution takes gas. At almost three bucks a gallon, isn’t there a better way to spend your hard-earned money? And what about safety? You don’t want to carry around something as valuable as your paycheck.
So ask your employer about Direct Deposit. It REALLY makes sense.
Protect yourself against identity theft
Being robbed of your identity is expensive. Your credit can be damaged…and it may cost hundreds of dollars and hundreds of hours of time to fix.
The best way to avoid identity theft is to guard your social security number. It’s the key to your credit report and your financial accounts. Shred all your important documents, and any credit card offers you get in the mail – don’t just throw them away.
And NEVER give personal information to anyone who calls or emails you. Thieves like to pretend they’re somebody they are not. Unless you know who’s really on the other end…mum’s the word.
How to avoid bouncing a check
In today’s world, checks clear much faster than ever before. Your favorite merchant and financial institution are working together to clear your activity at a record pace.
Here are a few tips to help you avoid bouncing a check – and the fees that go with it. Don’t write a check unless the money is truly in your account. If there’s a hold on a deposit to your account, you better wait just to be safe. Keep track of all the withdrawals you make…not only the checks you write, but ATM and debit card transactions, as well.
Don’t take any shortcuts…if you keep good records, it will help you save money on fees.
Is a CD right for you?
Here are a couple of things to consider before investing in a Certificate of Deposit – commonly known as a CD. First, ask the question: “Will I need access to this money?” And if so, when? This quick exercise will help you decide what length of term to choose. Second…know that if you withdraw your money before the end of the term, you’ll most likely pay a huge fee and may even lose some of your hard-earned principal.
A CD normally pays higher interest than a regular savings or checking account, but the interest rates will vary from place to place…and so does the minimum deposit requirement.
If you do a little homework, you’ll be able to determine if a CD is the right investment for you.
ATM Safety
ATMs are located on just about every corner. But keep these safety tips in mind when choosing one to use.
The machine should be well-lit and highly visible from passers-by. Avoid using ATMs near bushes or other structures that would-be robbers can hide behind. When you walk up to an ATM, use your body to block the view of the screen while you enter your PIN. And whatever you do, don’t keep your PIN with your card. Count your cash quickly, put it away, keep your receipt, and leave the area.
You’ll be safe by playing it smart.
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