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! 

Holiday Spending: How To Keep It Under Control

Have you blown your Holiday budget this year, or are you holding onto your cash with an iron fist? The holidays are definitely a time to take into consideration what you can realistically afford for children, friends, and family. Sure, Sally may really want that $50 Christmas Barbie, and Joey may have been dreaming about that insanely expensive Star Wars collectible. But can "Santa" buy those items for them without going broke, or worse, into debt? Whatever your stance on spending around the holidays, it’s safe to say most families are thinking about how to afford them. Here are some things to consider when getting ready to shop:

1.  Setting a budget and sticking to it- Many times, people will just blindly go to the stores without a set budget in mind. This is dangerous, as 9 times out of 10 you will end up spending much more than you anticipated.
2. Write down what you want to buy for everyone on your list- If Dad wants a new pocket knife, Mom has been dreaming about this new necklace she saw on TV, and the kids have been wishing for specific toys, write it all down. You won't forget what everyone really wants, and you may even find something very similar for a more affordable price once you start looking and are thinking about those specific items!
3. Do not deviate from your list-This way, everyone gets what they desire, and you won't end up buying a bunch of other items they really don't care about to go with what they actually want. AND you won't be tempted to buy for yourself and spend money you probably don't have!
4. Don’t be swayed by “good deals” near the checkout line! PS- usually, they really aren't good deals, anyways. Companies put items near the checkout line to help sway you and tempt you into spending when you don't need to. Do you really need that $8 nail polish? That chocolate bar looks tasty, but will it taste as good as $5 feels in your pocket? Think before you grab these little temptations off the checkout shelf.

 If you know that you need a little extra help to get your shopping done, a holiday loan or a special credit card rate might be good options. Honor Credit Union has a couple solutions:
 

1. A holiday loan with 12 month financing can help spread your purchases out throughout the year
2. Or take advantage of a discounted credit card rate for all Honor Credit Union Visa purchases made throughout the holiday season

If one of these sounds interesting to you, let us help you shop for the holidays smarter! Check out Honorcu.com or stop into your local branch for details

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

Swipe, Sign, & Done!

It’s Holiday Shopping Season! And while some Bah Humbug at the thought, if you’re like me, you’re excited! The holiday decorations, the lights, the smells, the yummy holiday treats- I can’t wait! But there’s one little thing you should keep in mind when heading to the shops for gifts and sales- debit vs credit when swiping your plastic.

 

The Facts–

·         When you swipe your debit card and choose Debit, this means the machine will ask you to enter your PIN (Personal Identification Number). Then the money will automatically come out of your checking account right then and there. However, if you choose Credit, this means you are requesting to conduct a signature-based transaction, which requires just your signature--not your PIN--to complete.

·          You can also conduct signature-based transactions over the Internet or telephone, where you don’t have to have a physical signature  

·         Not only is swiping and signing better than swiping and punching in your super-secret number, there are other benefits to signing off instead!

·         Signing instead of using your PIN greatly reduces the risk of exposing your PIN number to identity thieves.

 

  For signature transactions –

·         Make shopping easier by just swiping your card and signing for your purchase. At Honor, we recommend you sign and run your Debit card as “credit” when you are given the option

·         You can even up the security of your card by registering your MasterCard Secure Code.

·         Honor’s Debit MasterCard Prewards allow you to save at your favorite stores instantly via text, email, or online! Sign up online at Honorcu.com

 

Tips for signing-

·         With most store signature pads, selecting Credit allows you to sign your name instead of punching in your PIN

·         Even if you have already selected Credit, you may be asked to enter your PIN.  Ask the cashier to run the purchase as Credit.

·         Many times, this means hitting the “red” button or the “cancel” button

 

·         For smaller transaction amounts, a signature may not even be needed.

 

 

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!

Don’t Punch In Your PIN; Sign Your John Hancock!

Whether you’re out on the town, shopping at the local mall, or just paying for lunch, you may use your debit card. And when you swipe your card, the cashier might ask you if you want to pay by Credit or Debit. But what does that really mean in relation to a debit card?

When you swipe your debit card and choose "credit," this means you are requesting to conduct a signature-based transaction, which requires your signature-not your PIN-to complete. You can also conduct signature-based transactions over the Internet or telephone, where you don’t have to have a physical signature.  And there are benefits to signing off instead!

Benefits of using your signature-

1.  Signing instead of using your PIN greatly reduces the risk of exposing your PIN number to identity thieves.
2.  Make shopping easier by just swiping your card and signing for your purchase. At Honor, we recommend you sign and run your Debit card as “credit” when you are given the option
3. You can even up the security of your card by registering your MasterCard SecureCode
4. Honor's Debit MasterCard Prewards allow you to save at your favorite stores instantly via text, email, or online! Sign up online at Honorcu.com 

Tips for signing-

1.  With most store signature pads, selecting Credit allows you to sign your name instead of punching in your PIN
2.  Even if you have already selected Credit, you may be asked to enter your PIN. Ask the cashier to run the purchase as Credit.
3. Many times, this means hitting the “red” button or the “cancel” button
4. For smaller transaction amounts, a signature may not be needed.

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! 

Credit Union Mythbusters - Common Financial Tips

We all have that friend or co-worker or just that guy you met on the street that is full of financial tips.  Many financial tips are repeated so often that you begin to wonder…should I be doing that?  We are taking a closer look at three common financial tips* to determine if they are Myths or True good advice!

• Cut Up Your Credit Cards – MYTH! Some people’s opinions of credit cards is that they are a dirty word and should be cut up to get out and stay out of debt.  Don’t do this!  While abusing credit cards is a no-no, credit cards are WAY more secure than carrying cash, and in the issue of fraud or theft can be dealt with easier and faster to get your life back to normal.  Be responsible with your credit cards, but don’t cut them up!  If you have a hard time controlling your spending when there is a credit card at your fingertips, consider cutting up all but one and asking for a low limit so you can’t overdo it.

• Leave A Buffer In Your Checking – A great idea, but not true for everyone!  To avoid the issue of overdraft fees, it is always a good idea to keep a determined amount sitting in your checking.  However, not everyone can do this.  It’s a great goal to lead up to, but if this doesn’t work for your situation right now, don’t sweat it.  Just keep a good eye on your checking balance and budget to avoid overdrafting that way.

• Skip that latte – MYTH! While it may not be a great idea to choose that morning latte over your electric bill, treating yourself a little bit is alright!  Even if you are on a tight budget and watching your pennies, if you compensate in your budget in some other area and that latte is what really sets your day off on the right foot, then do it!  Once again, just keep an eye on your budget and balance so you can enjoy your morning treat, or whatever your splurge may be, without worrying or feeling guilty about it!

What other common financial tips have you heard that make you think twice?  Let us know on twitter @honorcu using #askhonorcu!

Listen to the Mason Jar Monday episode that aired on 97.5 Y-Country with Wild Bill! 

*Source: http://www.dailyfinance.com/2014/07/28/common-financial-tips-you-should-ignore/#!slide=2774313

Three Reasons You Should Be Using An Online Personal Finance Tool

Do you use an online personal finance tool?  Personal finance tools are tools that can make managing your money easier.  These convenient applications can make a big difference when it comes to managing the coins in your mason jar even more effectively!  There are many different options that you can use, but Honor’s version is called Money Desktop.  Here are three reasons that you should be taking advantage of one of these tools:    

1. Account Aggregation – We know that a lot of you have more than one financial institution or credit card, and that’s ok!  Keep track of all of your accounts on one website with account aggregation.  Whether it’s tracking your Kohl’s credit card, a retirement account, or a checking/savings account, you can view everything at one time on one screen with personal finance tools like Honor’s Money Desktop.   
2. Debt Payback Breakdowns – Did you know that the average number of credit cards per household is 3.5*? If this is you, did you also know that with an online personal finance tool you can track and look at different options to pay down all of your credit cards, loans, or other debt with just the click of a button?  For example, with Honor’s Money Desktop, an interactive tool with a graph for easy viewing will show you how to pay down debt based on “Fastest Payoff,” “Highest Interest First,” “Lowest Balance First,” or “Highest Balance First.”  And once you select one of those options it even projects when you will be out of debt based on the minimum payment!
3. Set Goals! – With an online personal finance tool, you can integrate your financial goals right in with all of your accounts.  You can set savings goals or debt payoff goals and keep track of your progress all in the same place.  No need to keep an excel spreadsheet that you may or may not remember to update each month, when you have an online personal finance tool to update it for you automatically!

If you want to learn more about Honor’s online personal finance tool, Money Desktop, visit our website!  Don’t forget to follow Honor Credit Union on twitter @honorcu and let us know using #askhonorcu!  

Listen to the Mason Jar Monday episode and hear Scott & Wild Bill's full conversation on Personal Finance Tools below! 

*Source - United States Trade & Development Agency

From College To The Real World - Tips For Parents Of Recent Graduates

Did your college student become a college graduate this spring?  Now what?  If your recent graduate is now struggling to adjust to the “real world” and balance student loans and debt here are a few tips to get them on the right path:

• Take this opportunity to teach!  You know you child better than anyone else.  If you feel they are lacking in basic financial knowledge, don’t wait any longer to sit them down and teach them the basics.  Many students nowadays are graduating without knowing how to write a check, or how interest works on a loan or savings account.  Even if your child knows these financial basics, understanding finances is going to be very valuable as they enter the workforce.  At Honor our Account Specialists sit down with members all the time to teach these very things.

• Cut Down The Credit Cards – If your child has slipped into the credit card trap that many recent graduates do, consolidation is key.  Credit card companies target this age group, so when you start to see the number of “irresistible” credit card offers addressed to your child increase it is no coincidence.  Having just a few cards, like Honor’s Visa, will make credit card debt more manageable and easier to work down to a zero balance. 

• Plan ahead for student loans – While most students will receive a 6 month grace period from the date they graduate to start paying off student loans, don’t wait that long to make a plan.  Addressing the situation of exactly what the monthly payment will be and a plan to get that balance to zero will make that first bill a lot less stressful.

What other questions does your recent graduate have entering the real world and what solutions have you offered?  Follow Honor Credit Union on twitter @honorcu and let us know using #askhonorcu!