Author Archives: Chief Marketing Officer Jessica

Advance Fee Scams: Warning Signs and How to Protect Yourself

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An advance fee scam typically involves a promise of a loan, credit card or cash advance in exchange for an upfront payment. Once the fee is paid, the promised funds never arrive.

According to data from the Federal Trade Commission (FTC), consumers lose billions of dollars to fraud each year. As scammers become increasingly sophisticated, understanding common warning signs can help protect your finances and personal information. Understanding how these scams work can help you protect your finances and avoid becoming a victim.

What is an Advance Fee Scam?

An advance fee scam occurs when a person or company claims they can provide a loan, credit card or financial service, but requires payment before delivering the promised funds.

The fees may be described as:

  • Loan processing fees
  • Insurance fees
  • Application fees
  • Security deposits
  • Administrative costs

In many cases, scammers claim the payment is required to guarantee approval, even if you have poor credit or limited borrowing history. Once the fee is paid, the promised money never arrives.

What are Some Warning Signs of an Advance Fee Scam?

Recognizing these common red flags can help you avoid fraudulent offers.

Guaranteed Loan Approval: Be cautious of any “lender” that guarantees approval without reviewing your financial information. Legitimate financial institutions evaluate several factors such as income, credit history, and repayment ability before making lending decisions.

Requests for Upfront Payment: One of the most common indicators of an advance fee scam is a request for payment before receiving loan proceeds. Remember this simple rule: Never pay money to receive money.

Pressure to Act Quickly: Scammers often create a sense of urgency by claiming an offer is available for a limited time or that immediate action is required. Pressure tactics are designed to prevent consumers from researching the offer or asking questions.

Unsolicited Loan Offers: Unexpected emails, text messages, social media messages or phone calls offering guaranteed loans should be treated with caution.

Requests for Unusual Payment Methods

Be wary if someone asks you to pay using:

  • Gift cards
  • Wire transfers
  • Cryptocurrency
  • Peer-to-peer payment apps

These payment methods can make it difficult to recover lost funds.

How Can You Protect Yourself from Loan Scams?

Before applying for any loan or cash advance, take these precautions:

Verify the Lender: Research the company online and confirm that it has a legitimate website, physical address and customer service contact information.

Read Reviews and Check Credentials: Look for independent reviews and verify that the lender operates legally in your state.

Protect Personal Information: Do not provide sensitive personal or financial information to unsolicited callers, emails or text messages.

Review Loan Terms Carefully: Take time to understand the loan terms, fees, and repayment requirements before signing any agreements.

What Should You Do if You Suspect a Scam?

If you believe you’ve encountered a loan scam:

  1. Stop communicating with the individual or company.
  2. Do not send additional money or information.
  3. Monitor your financial accounts for suspicious activity.
  4. Change passwords if personal information may have been compromised.
  5. Report the incident to the appropriate consumer protection authorities, such as the FTC.

Taking action quickly can help limit financial losses and protect your personal information.

Frequently Asked Questions

Are Upfront Loan Fees Legal? Some legitimate loans may include fees that are disclosed within the loan agreement. However, lenders generally do not require consumers to send money before receiving loan funds.

Can Scammers Use Fake Lender Websites? Yes. Fraudsters often create professional-looking websites, emails, and advertisements that mimic legitimate financial institutions. Always verify a lender’s contact information and reputation before sharing personal information or applying for a loan.

What is the Biggest Warning Sign of an Advance Fee Scam? A request for payment before receiving a loan is one of the most common warning signs. If a lender asks for money upfront, take time to verify the legitimacy of the offer before proceeding.

How Can I Verify a Lender is Legitimate? Before applying for a loan, research the lender’s website, verify contact information, read customer reviews and confirm that the company is authorized to operate within your state. Legitimate lenders are transparent about their products, fees, and lending requirements.

Protecting Your Financial Future

Financial scams continue to evolve, making awareness one of the most effective tools for protecting yourself.

Before accepting any loan offer, take time to verify the lender, review the terms, and ask questions. If an offer seems too good to be true, it may be worth taking a closer look.

At First Financial, we’re committed to helping our members make informed financial decisions and protect themselves from fraud through education, trusted financial guidance, and responsible banking practices.

Remember: Legitimate financial institutions will clearly explain their products, disclose applicable fees, and give you time to review your options before making a decision.

To continue learning about financial wellness and protecting yourself from fraud, visit our Tools & Publications page or explore related articles on our First Scoop Blog, including resources on financial security, identity theft protection, and smart money management. If you have questions about our financial products, account security, or potential scams, our team is here to help – contact us today.

Things That Surprisingly Don’t Hurt Your Credit Score

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When it comes to credit scores, there’s a lot of misinformation floating around. It’s common to worry that one wrong financial move will instantly damage your credit, but the reality is that not every action affects your score the way you might think.

Understanding what does and does not impact your credit score can help you make more informed financial decisions and avoid unnecessary stress. Here are some things that surprisingly do not hurt your credit score.

Checking Your Own Credit Score

One of the biggest credit myths is that checking your own score will lower it. Fortunately, that is not true. When you check your own credit, it’s considered a soft inquiry – which does not affect your score. In fact, regularly monitoring your credit can be a smart financial habit because it allows you to catch potential errors or signs of identity theft early.

You can access your free annual credit report at AnnualCreditReport.com.

Paying a Bill a Few Days Late

Life gets busy, and occasionally paying a bill a few days late may not hurt your credit score as much as people fear. In most cases, lenders do not report late payments to credit bureaus until they are at least 30 days past due.

That said, even if your credit score is not immediately affected – you could still face late fees or penalties depending on the lender. Setting up automatic payments or payment reminders can help you stay on track and avoid both fees and potential credit damage in the future.

Getting Denied for a Loan or Credit Card

Being denied for a loan or credit card can feel discouraging, but the denial itself does not hurt your credit score. In reality, lenders do not report denied applications as negative marks on your credit report. What may cause a small temporary dip is the hard inquiry that occurs when a lender reviews your credit application. However, a single hard inquiry usually has only a minor impact on most consumers.

If you are denied, it may simply mean the lender’s requirements did not align with your current financial situation. Reviewing the reason for the denial can actually help you better understand your finances and identify areas to improve before applying again in the future. Check out our recent article on this topic to learn more.

Paying Off a Loan

Paying off a loan is generally a positive financial accomplishment, even if your credit score temporarily changes afterward. In some cases, you may notice a small dip in your score after fully paying off a car or personal loan. This usually happens because your credit mix or average account age changes, and does not mean paying off debt is bad for your credit. Over time, responsible borrowing and on-time payments continue to support strong credit health.

Having Student Loans

Simply having student loans does not automatically hurt your credit score. In fact, installment loans such as student loans can help diversify your credit mix. The key factor is how the loans are managed. Making payments on time and keeping accounts in good standing can positively impact your credit over time. Missed payments, however, may negatively affect your score.

Closing a Checking or Savings Account

Closing a checking or savings account generally does not affect your credit score because deposit accounts are not typically included in standard credit reports. However, if an account is closed with unpaid fees or a negative balance, that situation could potentially impact your credit. Before closing any account, make sure all transactions and balances are fully resolved.

Shopping Around for Certain Loans

Many people avoid comparing lenders because they worry that multiple applications will damage their credit score. Fortunately, credit scoring models often recognize that consumers shop around for major loans such as mortgages, auto and student loans.

Multiple inquiries for the same type of loan within a short period are often grouped together and treated as a single inquiry for scoring purposes. This allows consumers to compare rates without significant long-term credit damage.

What Actually Impacts Your Credit

While the previously mentioned financial actions may not hurt your credit score, there are still several poor money management habits that can negatively affect your credit health over time, including:

  • Missing payments
  • Maxing out credit cards
  • Defaulting on loans
  • Frequently opening multiple new credit accounts
  • Ignoring accounts sent to collections

At First Financial, we believe financial education is an important part of long-term financial wellness. Whether you’re working on building credit, improving your budget, or planning for future financial goals – our team is here to help support you along the way.

If you have questions about credit management, lending, or financial planning, contact us today or schedule an appointment at your local branch.

A First Financial membership is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties.  A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. Contact the Credit Union for more information.

How to Save Money as a Wedding Guest

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Nothing is more exciting than celebrating love and marriage — until the expenses start adding up. One invitation may not seem like a big deal, but when you add in travel, gifts, new outfits, hotel stays, bridal showers, and bachelor or bachelorette celebrations, the costs can add up quickly.

If you’re attending one or multiple weddings this year, you’re not alone in wondering how to celebrate your friends and family without straining your budget. The good news is that with a little planning, it’s possible to enjoy wedding season while keeping your finances on track.

Cue the wedding bells! Here are some practical ways to save money as a wedding guest.

Set a Budget Before Wedding Season Starts

If you know you’ll be attending several weddings this year, it helps to plan ahead. Create a wedding guest budget that includes potential costs such as travel and lodging, gifts, attire, bachelor or bachelorette events, meals, and transportation. Having a general budget in place can help you avoid surprise expenses and reduce the temptation to rely on credit cards to cover costs.

We have a helpful budgeting guide and financial resources to get you started.

Book Travel Early

Travel is often one of the biggest wedding-related expenses, especially for destination weddings or out-of-town events. If possible, book flights and hotel accommodations early to take advantage of lower prices.

You can also look for additional ways to save by:

  • Sharing hotel rooms with friends or family
  • Booking early enough to utilize the hotel block
  • Using travel rewards points
  • Comparing airfare and hotel prices across multiple sites
  • Carpooling if the wedding is within driving distance

Even small savings on travel can make a big difference when attending multiple events throughout the year.

Be Strategic About Wedding Attire

Between photo ops and social media posts, there’s often a lot of pressure to buy a new outfit for every event. Unfortunately, that can add up quickly if you’re not careful. Rewearing the same outfit for every event may not be everyone’s cup of tea – so instead, consider borrowing wedding-appropriate clothes from friends or family.

If you still want the shopping experience, you can also try thrifting for secondhand clothing. This is a great way to find something truly one-of-a-kind without sacrificing style. Renting formalwear is another option, depending on your budget.

Stick to a Comfortable Gift Budget

Wedding gifts are meant to celebrate the couple, not create financial stress. It’s okay to choose a gift that fits comfortably within your budget. If you’re trying to save money, consider shopping directly from the couple’s registry for items within your price range or splitting a larger gift with a group of friends. Remember, most couples appreciate your presence and support more than the price tag of a gift.

Be Honest About What You Can Afford

Weddings often include additional celebrations beyond the ceremony itself, such as engagement parties, bridal showers, bachelor or bachelorette trips, and post-wedding brunches. Attending every event may not always be financially realistic.

It’s okay to politely decline activities that don’t fit your budget. You do not need to overexplain your financial situation. A simple and honest response such as, “I’d love to celebrate with you, but I can’t make this event work financially right now,” can go a long way. If you still want to show support – consider sending a thoughtful card, contributing to a group gift, or making plans to celebrate with the couple another time.

Avoid Last-Minute Spending

The biggest no-no is last-minute spending. Rush shipping fees, expensive convenience purchases, and impulse spending often happen when plans are made too late. Creating a simple checklist ahead of time can help you stay organized and avoid unnecessary expenses. Planning early also gives you more time to compare prices and find better deals.

Use Credit Carefully

It can be tempting to put wedding expenses on a credit card, especially during a busy wedding season. However, carrying balances from multiple events can lead to long-term debt and interest charges that last far beyond the celebrations.

Whenever possible, try to pay for wedding-related expenses with money already built into your budget. If you do use a credit card and have accumulated some debt, utilize smart strategies to help get it under control.

Celebrate Without Overspending

Being part of someone’s special day does not have to mean overspending or taking on debt. With thoughtful planning, realistic budgeting, and smart spending choices, you can enjoy wedding season while keeping your financial goals on track.

If you have questions about managing your budget, building savings, or planning for major life events, First Financial is here to help you every step of the way. Contact us today or make an appointment at your local branch to further discuss the options that may be available to you.

A First Financial membership is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. Contact the Credit Union for more information.

How to Read and Understand a Business Credit Report

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If you run a small business, your credit report matters more than you may realize. Whether you’re applying for financing, negotiating with vendors, or planning for growth – your business credit profile can make a difference.

The good news? Business credit reports are easier to understand once you know what to look for. At First Financial, we believe small business owners should feel confident when making financial decisions. Here’s a closer look at what’s included in a business credit report, why it matters, and how you can strengthen your company’s credit profile over time.

What is a Business Credit Report?

A business credit report is a financial snapshot of your company. Credit reporting agencies collect information about your business’ payment history, debt obligations, public records, and financial activity. Lenders, suppliers, insurance companies, and even potential business partners may review your credit report before deciding to work with your company.

Unlike personal credit reports, business credit reports are often publicly accessible. That means maintaining a healthy business profile can help strengthen your reputation in addition to improving borrowing opportunities.

What Information Appears on a Business Credit Report?

While each reporting agency formats differently, most business credit reports include similar categories of information.

Business Information:

  • Business name and address
  • Industry classification
  • Years in operation
  • Number of employees
  • Ownership information

It’s important to review this section regularly to ensure your business information is accurate and current.

Payment History: Payment history is one of the most important parts of your report. It shows how consistently your business pays loans, credit cards, suppliers, and vendors. Late payments can negatively affect your score, while a strong history of on-time payments can help improve it.

Credit Utilization: Credit utilization measures how much of your available business credit you are currently using. High balances relative to your available credit may signal financial strain to lenders. Keeping balances manageable can help demonstrate responsible credit management.

Public Records:

  • Tax liens
  • Judgments
  • Collections
  • Bankruptcies

These items can significantly impact your business credit profile and may remain on the report for years.

Credit Inquiries: When lenders or vendors review your business credit file, inquiries may appear on your report. Too many credit applications within a short period of time can sometimes raise concerns about financial stability.

How Business Credit Scores Work

Business credit scores are different from personal credit scores. Depending on the reporting agency, scores may use different scales and scoring models. In many cases, higher scores indicate a lower lending risk.

Generally, business credit scores are influenced by factors such as:

  • Payment history
  • Outstanding debt
  • Length of credit history
  • Industry risk
  • Public records
  • Credit usage trends

Because scoring models vary, it’s a good idea to focus less on chasing a perfect number and more on maintaining healthy financial business habits overall.

Why Monitoring Your Business Credit Matters

Checking your own business credit report does not typically hurt your score. Reviewing your report regularly can help you:

  • Catch errors or outdated information
  • Identify signs of fraud or unauthorized accounts
  • Track improvements over time
  • Prepare before applying for financing

Monitoring your report can also help you spot any issues early.

Tips for Building Strong Business Credit

Building business credit takes time, but consistent habits can make a major difference.

Separate business and personal finances: Open accounts in your business’ name whenever possible. Using dedicated business accounts can help establish an independent credit profile for your company.

Pay bills on time: Consistent, on-time payments remains one of the most effective ways to strengthen business credit. Even small recurring expenses can contribute positively when vendors report payment activity.

Work with vendors who report payments: Not every supplier reports payment history to business credit bureaus. Ask vendors if they report trade activity, as this can help strengthen your profile.

Keep debt manageable: Avoid maxing out business credit lines whenever possible. Responsible borrowing habits can improve how lenders view your business.

Review reports regularly: Mistakes happen. Reviewing your report periodically allows you to dispute inaccuracies and keep your business information up to date.

Strong Business Credit Can Support Long-Term Growth

A healthy business credit profile may help your company qualify for better financing options, stronger vendor relationships, and improved borrowing terms in the future. Understanding your business credit report is an important step toward making informed financial decisions and positioning your business for long-term success.

If you’re exploring business banking options for your Monmouth or Ocean County NJ business, First Financial offers personalized solutions designed to help local businesses grow with confidence. Reach out to us today.

What Can You Do With a 529 Account if Your Kids Decide Against College?

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As a parent or grandparent, you may have diligently saved money in a 529 account to help fund your child’s or grandchild’s college education. But what happens if they decide college isn’t the right path for them? It’s a valid question that many families are facing as more and more people choose alternatives to traditional four-year colleges.

It’s a more common situation than you might think. Fewer students are going to college, and the expenses continue to climb. American undergraduate enrollment rates peaked in 2010 and have steadily declined since. During the same period, the average costs of tuition and fees at a four-year public institution have risen by over 12 percent in inflation-adjusted dollars.1,2

A 529 plan is a college savings plan that allows individuals to save for college on a tax-advantaged basis. The state tax treatment of 529 accounts is only one factor to consider before committing to this savings plan. You should also consider any fees and expenses associated with a particular plan. Whether or not a state tax deduction is available will depend on your state of residence. State tax laws and treatment may vary, and state tax laws may differ from federal tax laws. Earnings on non-qualified distributions will be subject to income tax and a 10 percent federal penalty tax.

First and foremost, it’s important to remember that having a 529 account doesn’t mean that the funds are reserved only for a four-year college education. Several choices are available for using the money saved in the account.

One option is to use the funds for a two-year program, such as those for an associate’s degree or at a trade school. Many vocational schools offer programs that can lead to careers that don’t require a four-year degree. When you use the funds in a 529 account for these programs, you are still investing in your child’s or grandchild’s future and providing them with skills that may help them succeed.3

Another option is to use the funds for education expenses outside the United States. Many countries have educational institutions that offer programs that may interest the student in your life. By using the funds in a 529 account, you can help support their academic goals, no matter where they choose to pursue them. Certain restrictions apply, so you will need to explore this option more thoroughly if you decide to pursue it.3

The rules for 529 accounts allow paying up to $10,000 per year in tuition expenses at elementary, middle, or secondary schools with 529 assets. Furthermore, a lifetime maximum of up to $10,000 of 529 assets can repay existing student loans. So if the student doesn’t use the 529 plan, it could be used by a different beneficiary. This means that you can transfer the funds to another family member who may be preparing to attend college, or you might even use the funds for your education if you decide to return to school.3

A 529 account holder can move money to a Roth IRA account under certain conditions, including:3

  • The 529 plan must have been open for a minimum of 15 years.
  • Changing beneficiaries to another student may restart the 15-year clock.
  • The owner of the Roth IRA must be the beneficiary of the 529 plan (meaning the student).
  • Any money moved from a 529 plan into a Roth IRA account will be subject to the Roth IRA annual contribution limits. The Roth IRA contribution limit in 2025 is $7,000, with an extra $1,000 allowed for individuals over 50.
  • The lifetime limit is $35,000.

To qualify for the tax-free and penalty-free withdrawal of earnings, Roth IRA distributions must meet a five-year holding requirement and occur after age 59½. Tax-free and penalty-free withdrawals can also be taken under other circumstances, such as the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.

It’s important to note that taking the money out of a 529 account for non-qualified expenses comes at a cost. Doing so may result in federal income taxes and a 10 percent penalty on the earnings portion of the withdrawal.

The truth is that for some young adults, college does not offer what they need. A person who aspires to enter a creative field might find more value in a vocational school or pursue their chosen field through smaller classes or institutes of learning. While most universities and colleges offer these courses, the cost involved could be a problem, as might the requirement to take courses beyond the student’s chosen field to earn a full degree.

In short, college is not for everyone. As you are guiding and advising the student in your life through these complicated decisions, it’s important to remember that a 529 account offers you a great deal of versatility and is designed with these variables in mind.

Remember that the funds in a 529 account can support the student’s educational goals no matter their path. By understanding how it functions and working with a financial professional, you will find that a 529 plan offers many potential opportunities.

Questions about this topic? Contact First Financial’s Investment & Retirement Center by calling 732.312.1534.  You can also email maureen.mcgreevy@lpl.com

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

  1. Education Data Initiative, December 21, 2024
  2. Collegeboard.com, 2024
  3. Schwab.com, June 14, 2024

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.