Valencia’s View & IRFCU: Helping You Make the Most of Your Money!

Join Hostess Anna Valencia every Thirsty Thursday!

If you hear the words “financial segment” and “radio talk show” used in the same sentence and think “boring!” then you’ll want to tune in to the newest addition to the Valencia’s View radio show.

Making the Most of Your Money, sponsored by Indian River Federal Credit Union, offers timely, practical, money-saving tips in a brief, relaxed style.

“It’s informative yet entertaining” says hostess Anna Valencia “it’s the perfect recipe for balancing work and play the Vero way.”

“As a not-for-profit, part of our mission is to provide financial education in our community,” explains Marc Camelleri, Indian River Federal Credit Union’s Director of Marketing.  “Making the Most of Your Money is a perfect complement to the resources on our website, www.irfcu.com, and in our offices.  Plus it’s a great avenue to let our community know that we’re here to meet their “banking” needs.  It’s a win-win.”

Valencia’s View airs every Thirsty Thursday afternoon at 3:30 on 1370 AM/107.9 FM, and every Saturday at 10:30 pm on 94.7 FM.  You can also listen in via www.planetvero.com, and archived shows are available at www.valenciasview.com.   Tune in to be inspired, learn about Anna’s favorite local merchants and events, Wine of the Week, Featured Business of the Week, and of course, Making the Most of Your Money!

Making the Holidays Meaningful Without Busting Your Budget

It’s so easy to get caught up in the excitement of the Holiday Season as we shop for gifts, entertain family and friends, and make memories that will last a lifetime. It’s a special time, an important part of a fulfilling life. But you don’t have to end up paying for it into springtime.

Here’s an idea to help make the Holidays meaningful, while also keeping your budget under control:

List the people for whom you wish to buy gifts, and behind each name write down one thing about them for which you are thankful.

You might be thankful that your dad is a strong person, that your mom is so kind, that your sister is supportive, and your son is so full of life. You get the picture.

With list in hand as you shop, select gifts that help express the quality in each person for which you are grateful.

Then, take some time to write a note for each person to accompany their gift. Express in it what you appreciate about them, and how the gift you’ve chosen reflects that. It doesn’t have to be an epic piece of poetry, just be sincere.

You’ll likely discover that this approach creates a much more meaningful celebration, while preventing the Holidays from being a budget-buster.

Happy Holidays!

Veterans Day & Your Budget

Tomorrow is Veterans Day, a day we set aside to honor the brave men and women who have served in our nation’s armed forces. It’s appropriate that Veterans Day kicks off the Holiday Season. If it were not for our vets, we wouldn’t have nearly so much to be thankful for when we gather around the Thanksgiving table. And whether you celebrate Christmas, Hanukkah, or the festivities of a different religion – or even none at all – you can thank our veterans for our country’s freedom of religion.

So what does all this have to do with your budget? In a word: gratitude. Veterans Day – much like Thanksgiving – is a day we purpose to be grateful.

Years ago I knew a lady who loved to encourage people to be grateful. Sure, it becaming annoying to hear her use her catchphrase “an attitude of gratitude” several times every time you saw her, but she had a valuable point nonetheless.

One of the reasons so many people struggle with their budget is that they don’t have an “attitude of gratitude.” Instead of counting their many blessings, they focus on the things they wish they could have, which makes them vulnerable to the temptation of spending more than they should.

So as you take time to honor our nation’s veterans this weekend, allow the occassion to help you make a shift in your perspective. Let it plant the seed of “an attitude of gratitude.” Then be intentional about nurishing that tender sprout. As gratitude grows in your heart, you’ll begin to see it impact your finances, as well as many other areas of your life.

Happy Veterans Day!

Yo-Yo Budgeting

When I was growing up we had a family friend who was the classic “yo-yo dieter.”  He’d decide to go on a ridiculously-strict diet, which he’d only stick to for a few months.  Sure, he’d always lose weight while he was on it, but as soon as he threw in the towel all the weight would come right back (and sometimes bring a little more along).  In the long run he would’ve been much better off if he wouldve made some simple adjustments that he could’ve lived with, and been satisfied to lose the weight more gradually.

Do you tend to apply his dieting approach to your budget?

When debt starts to weigh heavily on your wallet, or you’re not able to save for your future they way you’d like, how do you react?  Do you make drastic changes that you couldn’t possibly live with for more than a few weeks or months?

Do you swear you’ll NEVER go out to eat again?  Do you completely cut off your cable, internet & cell phone?  Do you buy absolutley NOTHING but beans & rice at the grocery store? Do you turn your AC &/or heat COMPLETELY OFF?

If those sound familiar – or you readily have a few to add to the list – you might be a “yo-yo budgeter.”

Yo-yo’s are for kids – & maybe that guy on America’s Got Talent – not your budget.

Sure, you can still go out to eat.  But you could probably go a little less frequently, &/or choose less expensive restaurants, &/or forego the expensive drinks, appetizers &/or desserts.

You can probably keep your cable, internet & cell phone.  But perhaps you wouldn’t notice a few less channels, and maybe a more affordable cell phone plan would be a painless sacrifice.

You don’t have to live on nothing but beans and rice.  Instead, you can erase a few expensive items from your grocery list, make better use of coupons & sales, and try some generic brands.

And you don’t have to live without AC &/or heat.  You can tweak the thermostat a bit, maybe add a sweater when it’s cool.  And you can consider options such as a programmable thermostat and other utility-friendly home improvements.

As with dieting, many people find that making small adjustments that they can live with long term is the best approach to financial health.

For more resources to help you make the most of your money, visit the IRFCU Vault section of our website.

Media Touts Credit Unions as Banks Add Fees

Unless you’ve been living in a cave, you’ve surely heard about Bank of America’s new debit card fee.  The extensive media coverage of this story has been a boon for credit unions:

Good Morning America ran a segment Monday Oct. 3 that looked at ways to avoid rising bank fees.  ABC News Correspondent Elisabeth Leamy looked at the recent B of A news and showed how credit unions were not charging the fees.  Fox Business Channel had CUNA President/CEO Bill Cheney as a guest on the Gerri Willis Report.  Cheney was asked about the new fees Bank of America is putting on customers.  Willis actually cut up her B of A card on the air.  Cheney said that credit unions are meeting members’ needs and how their motivation as not-for-profit co-ops differs from for-profit, investor-driven banks like B of A.*

Cheney is absolutely correct.  The philosophical difference between banks and credit unions (for-profit vs. not-for-profit) is the key.  It’s a difference that shows in the wallets of consumers: many of our members save hundreds each year, simply by “banking” with Indian River Federal Credit Union!**

If you’re tired of your bank finding new ways to take your money, we invite you to join your local credit union.  Membership is open to those who live, work, worship or attend school in Indian River County.  To learn more, go to  www.irfcu.com, visit your local office, or call us at 772-770-5020.

* from LSCU article “Credit unions receiving press coverage after banks announce new fees”
** from CUNA’s report for Credit Union members in Florida, 2009

Welcome Lyndee — Our New Sebastian Branch Manager!

Lyndee Dutrow, IRFCU Sebastian Branch Manager

Indian River Federal Credit Union welcomes Lyndee Dutrow as the new Manager of our Sebastian office.  Peggy Haley, who managed the branch since its opening in 2003, has retired after a distinguished career in the Credit Union industry.  We thank her for her many contributions to IRFCU and our community, and wish her well!

Dutrow joins our staff after 26 years of employment with U.S. Postal Service Federal Credit Union in Maryland.  She has held numerous positions throughout her career, and looks forward to providing our members with personal service to help them meet their financial needs.

Lyndee and her family live in Sebastian.   She volunteers at Liberty Magnet School, and enjoys swimming, reading and spending time with family.  Welcome Lyndee!

DIY Credit Score Repair

Having read our previous articles about Credit Scores, you now know how to obtain your free credit report, how to correct any errors it might contain, and you have an understanding of Credit Score basics.  So now let’s get to work improving your score!

1.  Get Current: 

Get current on any past due loans and pay off any charge-offs.

2.  Reduce your Debt-To-Income Ratio:

Paying down your balances and keeping them well below your credit limit can improve your credit score quickly.

3.  Maintain and Establish Good Credit:

Continue paying your bills and loan payments on time.  If you don’t have an open loan or credit card, you might want to establish credit by opening an IRFCU VISA or perhaps a secured loan.  Make small purchases regularly and pay your monthly balance in full to demonstrate good credit habits.

4.  Seek Help Carefully:

Lots of companies make outrageous promises when it comes to improving your credit score.  Red flags to watch for include upfront fees, claims that they can remove negative items or promises to give you a new social security number.

For additional resources to help you improve your credit score, visit the IRFCU Vault section of our website.  And be sure to visit IRFCU – since we’re a small, local not-for-profit, we’re able to look at your specific situation, and we can often offer credit rebuilding help in the form of secured loans and other opporunities.

 

Credit Score Basics

In recent posts we’ve offered a few reasons why your credit score matters –even if you plan to never borrow money again.  We’ve explained how to obtain your free credit report, and what to do if you find errors on it.

Before we get into ways to improve your credit score (a future post), let’s get a basic understanding of what comprises your credit report:

Payment History (35%)

Your score is negatively affected if you’ve paid bills late, had an account sent to collection or declared in bancruptcy.  The more recent the problem, the lower your score.

Outstanding Debt (30%)

If the amount you owe is close to your credit limit, it will likely have a negative affect on your score.

Length of your Credit History (15%)

The longer your accounts have been open the better.

Recent Inquiries on Your Report (10%)

If you have recently applied for many new accounts, that may negatively affect your score.  Promotional inquiries don’t count.

Types of Credit in Use (10%)

Installment credit, revolving credit, monthly due cards (i.e. gas cards).  Excessive use of finance companies or buy-here-pay-here financing can lower your score.  FICO says this is most important when there isn’t a lot of other information upon which to base a score.

Building/Improving Your Credit Score: Disputing Errors

In our last blog post, we offered a few reasons why your credit score matters – even if you plan to never borrow money again.  In future posts, we’ll offer some advice for improving your credit score.  For today’s article, we’ll start that process with some information on obtaining your credit report and correcting any errors you might find on it.

Obtaining Your FREE Credit Report

The US Government requires the nationwide consumer reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months.  You have several options to get your free credit report:

-  Visit www.annualcreditreport.com

-  Call 877-322-8228

-  Complete the Annual Credit Report Request form and mail it to:  Annual Credit Report Request Service, PO Box 105281, Atlanta, GA 30348-5281. This form is available on-line at www.ftc.gov/credit, and is also available at IRFCU offices in our lobby literature racks (inside the How to Dispute Credit Reports pamphlet).

Correcting Errors

Step One:

Tell the consumer reporting company(ies), in writing, what information you believe is incorrect.  Include copies (not originals) of documents that support your argument.  Be sure to provide your complete name and address.  Clearly identify each item that you’re disputing, state the facts, explain why you’re disputing the information, and request that it be removed or corrected.  Enclose a copy of your credit report with the items in question circled.

Unless the reporting company feels that your dispute is frivolous, they are required to investigate.  When the investigation is complete, they must provide the results to you in writing, as well as a free copy of your credit report if the dispute results in a credit report change.

Step Two:

Tell the creditor (or whoever is providing the information in question to the reporting agency), in writing, that you dispute the item.  Include copies (not originals) of documents that support your argument.  Be sure to include your full name and address.

What If Something Is Missing?

Not all creditors supply information to credit reporting agencies.  Many travel, entertainment, gas card and local retailers do not.

If you’ve been denied credit because of an “insufficient credit file” or “no credit file” and you have accounts with creditors that do not appear in your credit file, you can ask the consumer reporting companies to add this information to future reports.  While they are not required to do so, many will for a fee.

In future blog articles, we’ll address ways you can improve your credit score.  Additional information is available in the IRFCU Vault section of our website, as well as in IRFCU lobbies.

Why Your Credit Score Matters

Everyone knows that a poor credit score costs you money by raising your interest rate on a loan.  And if your score is too low, it can even cause lenders to deny you a loan.

But what if you have no debt (or are working toward that goal) and plan to never borrow again?  Does your credit score matter then?

Yes!

First of all, plans can change.  If one day you find yourself needing to borrow money, you’ll be glad that you maintained a respectable credit score.

But even if that day never comes, a good credit score is valuable for other reasons:

- Insurance companies often use credit scores to determine premiums

- Landlords commonly use credit scores to measure how responsible a potential tennant is with their money

- Employers frequently use credit scores (& entire credit reports) to learn about a candidate’s private life and their level of responsibility

So maintaining a good credit score is a worthwhile endeavor.  But you don’t have to go into debt to ensure a respectable credit score.

We’ll discuss ways to build a strong credit score in an upcoming blog article.  Meanwhile, for resources to learn more about your credit score visit the Consumer’s Toolbox page in the IRFCU Vault section of our website.