Three Things To NOT Use a Credit Card To Pay For

Credit cards can be valuable tools to help cover unplanned expenses and can help really boost your credit score when used correctly.  At the same time, though, credit card debt can spiral out of control easily leading to a damaged credit score, a lot of stress, and hefty interest on a large balance.  Here's three things to avoid using your credit card to pay for:

1.     Down Payments – If you are looking at a large purchase that requires some sort of down payment, it’s best to opt for your own cash instead of a credit card or cash advance.  With purchases that require down payments, you are likely going to have a loan with a monthly payment and interest already, so paying interest on the down payment too only hurts you in the long run. 

2.   College Tuition – College debt is a very real situation for many students, but avoiding credit cards as part of that debt will help you graduate to the best financial situation possible.  Opt for student loan options that typically have lower interest rates, more manageable monthly payments, and offer the flexibility of waiting until after graduation to begin repayment. 

3.  Special Events – Whether it’s a big family vacation or a wedding that you are faced with financing, take a look at other finance options before swiping that credit card.  Don’t damper your special event from the get go with the interest rate that comes along with many credit cards.  If you don’t have the cash to pay for that vacation or wedding, look at other ways to finance like a secured fixed rate loan or even a home equity option that could give you a clearer repayment plan and often much lower interest rate.

A best practice on using credit cards is to only use them to purchase items that you know you can pay off in full.  We know that can sometimes that can be easier said than done though, so if you find yourself in a credit card situation that you aren’t sure how to handle give Honor a call.  Debt consolidation and balance transfer options might be an option that your local credit union, like Honor, can offer to make credit card repayment a realistic and manageable goal. 

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

Ways Your Credit Union Can Help You Raise Your Credit Score

It’s that little three digit number that determines a whole slew of things in your life, from if & when you’ll get that mortgage for the three bed, two bath ranch style on Main Street, or a loan for that Mustang GT you’ve been dreaming about since you could drive. It’s your credit score; And it packs a punch. But if your credit score is less than stellar, never fear! Your credit union is here! Most credit unions offer a number of ways to help out their members with polishing up their tarnished score. Here’s a few ways your credit union may be able to help!

1.    Credit Building Loans-These loans are usually given out in small amounts, usually no more than a few thousand, with relatively low interest rates. They’re aimed at helping members rebuild their credit over time, through making your payments on time each month. The loan amount is deposited into a savings account as collateral, and it can't be touched. When the loan is repaid, the member gets the balance in the account, including dividends. Monthly payments are reported to credit bureaus, bumping up your score.

 

2.    Secured Cards-A secured credit card can be a creditworthy tool for people with little or no credit histories. Typically, a savings account is used as collateral against a credit card loan. Your borrowing power builds over time, as you make more deposits into your account. Many credit unions offer secured credit cards, so there are lots of choices. Some even waive annual fees and give you free credit scores.

3.    Online Tools-Many credit unions offer a multitude of credit building tools. Honor Credit Union has free online resources, such Money Desktop, which keeps all of your accounts and bills in check in one convenient, online location for you to keep track of your finances and when payments are due. Honor CU also has Account Alerts. You can set up automatic reminders for when your payments are due, when automatic deposits or withdrawals are processed, and it can even let you know when your balance is getting low! Check with your credit union to see what sort of online tools they have available that can get you on the right financial track and bring your credit score back up!

Getting out of debt is hard, but bringing your credit score back up is even harder. But don’t be discouraged! With dedication and close attention to bills and due dates, you can have your score back in the green in no time!

 Don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

Three Reasons You Should Start Saving For Retirement Before You're 25

How far away is retirement for you? 10 years? 30? 40? Even if retirement isn’t for another 50 years for you, there are plenty of reasons to start saving up for your golden years as early as possible.

1.   You can reach retirement sooner: If you begin saving for retirement at 16 when you get your first job, putting away $2,000 a year for just 40 years, you could have around $560,000, assuming earnings grow at 8 percent annually.  And that's a heck of a lot more than you would have if you weren't saving anything at all. When you're young, you can invest relatively little for a short period and wind up with far more money than someone older who saves much more over a longer period. Seems like a no-brainer, right? Save a little now and reap big rewards later
2. Avoid Procrastination & be financially secure in old age: Start saving ASAP. There are plenty of ways to get yourself in the habit. If your job offers a 401(k), sign up. If you don’t have a company retirement fund, use a Roth IRA instead. Be aggressive with your investments, and put 90 percent of your investments in stocks; Stocks are interchangeably referred to as equities, since as a stockholder you own a slice of the company's value in the market, its equity.
3. More money = More time for the things you want to do and buy: Begin putting automatic deposits into an emergency fund, then you’ll always have a cushion for when things come up. You’ll never have to dip into your retirement savings to cover those unexpected expenses.

Remember, you should start your retirement savings right this second. If you contribute $100 a month, appreciating at 10% a year, you' could have over half a million dollars after forty years. Your most valuable asset is time, so make sure you use it.

To listen to 97.5 Y-Country’s Wild Bill and Honor’s CEO Scott McFarland talk about saving for retirement early, listen to the Mason Jar Monday episode below!

Clearing The Air On Credit Card Balance Transfers….Benefit or Waste of Time?

Odds are you have probably received a mailing or two talking about credit card balance transfers.  If you’re anything like us, a lot of those mailings end up in your junk mail pile.  Some of them should stay there, but others could truly put you in a better financial situation regarding credit card debt.  Here are a couple of reasons you should look twice at credit card balance transfers, especially when they are with your local credit union, like Honor!

• Consolidate Your Debt – If you are like a large number of people, there is probably more than one credit card in your wallet that has a balance on it.  This is where doing a balance transfer to pull all your credit card debt into one card at your local credit union can really help you.  You will save time when it comes to making your payments each month because you will have a one stop shop, and you will be able to make a plan to pay off your debt faster when it is all under one roof!  At the end of the day, the best loan is a paid off loan and a balance transfer can get you set on that path!
• Save on interest – This is where reading the fine print on some of those flashy pieces of mail you get regarding balance transfers comes into play.  Not every one of them will truly save you money.  Look for balance transfers that offer a reasonable lower interest rate, like offers from your local credit union!  For example, Honor CU can help you look at all of your credit card debt and then tell you exactly how much we can save you in interest if you were to do a balance transfer to one of our Visa’s!
• Local Member Service – Have you ever had to call the 1-800 number to sort out the problem with XYZ credit card that ends up connecting you to a huge call center that’s not even in this country?!  If you have then you know how frustrating this can be, and if you have multiple cards that means multiple 1-800 numbers and call centers.  Balance transfers to your local credit union allow you to call one number or stop in one local branch and talk to a real person about whatever your issue or question may be.

So overall, you can see there are numerous benefits to a balance transfer, when you choose the right one.  Do your homework and make sure that whatever offer you select will actually put you in a better financial position.  And when in doubt, just pop in to your local Honor branch or give us a call and we can take a look and help you evaluate all of your options with the ultimate goal of saving you the most money and helping you achieve financial success!

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu!  

Listen to Honor' Scott and 97.5 Y-Country's Wild Bill talk about the benefits of balance transfers on Mason Jar Monday! 

Your Local Credit Union & Your Favorite Christmas Cookie Have More in Common Than You Think!

Arguably one of the best things about the holiday season are the baked goodies that come along with it!  While we’re not sure there is a bad Christmas cookie, we definitely all have our favorites that we hunt for on that cookie tray in the break room every year.  Whether you are a sugar cookie with green and red frosting type or if a peanut butter ball dipped in chocolate is more your forte, I’ll bet you didn’t know that your local credit union and your favorite Christmas cookie actually have a lot in common!

• Both have really great recipes!  Your favorite Christmas cookie is a work of baked art that all starts with following a few simple guidelines and ends with sugary perfection.  Your local credit union has the recipe you need to achieve your financial goals that all starts with a visit or phone call and ends in you achieving financial success!
• Every cookie is unique, and so is your financial situation!  Even the most dependable sugar cookie recipe might turn out different if you bake it or your Grandma bakes it, making each batch of Christmas cookies a little bit different than the rest.  The same goes for your financial situation!  Your local credit union understands that everyone’s financial goals and situation is unique to them, and we want to help you achieve your goals, whatever they may be!
• Both are dependable!  Have you ever sat down with a cup of tea and your favorite Christmas treat and NOT enjoyed yourself?  Christmas cookies are dependable and tend to make you feel good, and that’s exactly what your local credit union’s goal is, too!  Reliable, dependable, and trustworthy are all words that can describe the member experience you will receive visiting your local credit union!

What’s your favorite Christmas cookie? Don’t forget to follow us on twitter @honorcu and let us know using #askhonorcu!  

Listen to 97.5 Y-Country's Wild Bill and Honor's Scott talk about the similarities between Christmas cookies and credit unions with two special guests! 

Three Ways Credit Unions Can Help Your Credit Score

We all need a little help from time to time, and when you need help with your credit score a credit union is the place to go!  Whether you are trying to establish credit or rebuild your credit score, credit unions can provide the tools you need for financial success.  Here are three ways that credit unions can help your credit score:

Education & Guidance

When you are a member of a credit union, you are an owner.  We truly care about your financial success and are a wonderful, free, unbiased source of information to help you get your credit back where you want it!  We will teach you how to build your credit up, and then keep paying attention to it!  It doesn’t take much to knock your credit score down, but the professionals at credit unions, like Honor Credit Union, can teach you how to build it back up.

Products to Rebuild Credit

On top of providing tips and guidance, credit unions have financial products that will put your credit score on the right track.  Products like Honor’s Secured Loan options or Fresh Start Visa can help you build credit, or give your limited credit a boost.  Both of these products are great tools that will give you loan options and build your credit at the same time.  You can learn more at www.honorcu.com. 

Free Tools and Resources

Online banking and mobile banking give you visibility and access to your accounts virtually 24/7 helping you stay on top of your balances and spending.  Budgeting tools like Money Desktop can help you look at the big picture of what you are spending and set budgets every month to stay on track.  Credit unions will teach you the value in looking at your credit score! Through Honor’s website there is a link to pull your credit report.  You get one free report every year, and taking advantage of that resource can help you stay ahead...knowledge is key!  All these tools are free, to help you get your credit score where it needs to be and achieve financial success!

Once you have done all the hard work to build or rebuild your credit, we’ll be celebrating right there with you!  Your financial success is our financial success!  Share your story @honorcu using #askhonorcu

Listen to the full Mason Jar Monday episode on how credit unions can help your credit score below!

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