5 Ways to Keep Your Credit Card from Sabotaging Your Finances

Understand the terms of the card.

You shouldn’t apply for a credit card without reading the terms. Evaluate the card based on the fees, interest rates, and possible rewards. The many cards available each fit different consumers. You have a lot of options and choosing the wrong card could threaten your financial health.

Pay in full.

Making only the minimum payment each month increases the amount of time it will take to pay off your debt. That increase in time allows the interest rate to add on to your debt. Always make sure to pay off as much of your balance as you can each month.

Don’t use your card on everyday purchases.

Using you credit card as a substitute for cash is a bad habit that can easily lead you down a path to debt. When you buy food, clothes, or gas, try to use cash or your debit card so you won’t overspend.

Don’t go over your limit.

If you’re getting close to your limit, clearly you are spending too much. The last thing you can afford to do is go over that limit and incur the additional fees that come with it. These situations are avoidable by responsibly monitoring your spending.

Understand how it effects your credit score.

Ideally you should be paying off your debt every month. If you are unable to do that, you have to make sure that you are paying off at least the minimum (but preferably more than the minimum). This will not damage your credit score, but it will not improve it either. If you miss a payment you can do major damage to your credit score. If you look untrustworthy to creditors it’s not beyond reason that the credit card company would lower your limit. It is a vicious cycle that can be easily avoided by paying in full each month.

First Financial’s Visa Credit Cards come fully loaded with higher credit lines, lower APRs, no annual fees, no balance transfer fees, a 10 day grace period, rewards, and so much more!* Click here to learn about our cards and apply online today.

*APR varies from 11.40% to 18% for the Visa Platinum Card and from 13.40% to 18% for the Visa Signature and Secured Cards when you open your account based on your credit worthiness. These APRs are for purchases, balance transfers, and cash advances and will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fees. Other fees that apply: Cash advance fee of 1% of advance ($5 minimum and $25 maximum), Late Payment Fee of up to $25, Foreign Transaction Fee of 1% plus foreign exchange rate of transaction amount, $5 Card Replacement Fee, and Returned Payment Fee of up to $25. A First Financial membership is required to obtain a VISA Credit Card and is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties.

Article Source: Tyler Atwell for CUInsight.com

 

Financial Spring Cleaning: Free Credit Report Reviews March 27 – April 1st

It’s almost spring, which means it’s time for Spring Cleaning … Financial Spring Cleaning that is. The week of March 27 – April 1st is Clean Up Your Credit Report Week. Make an appointment for a free credit report review today!

credit-score-explanation-graphicWe’ll help you gain insight by reviewing your credit report to help you understand:

  • Why you have the credit score you do
  • How you can improve your score
  • How you can keep your score high for years to come

Log into annualcreditreport.com, print your credit report, and bring it to your scheduled appointment. Don’t have easy printer access? A staff member will print it for you, or walk you through the website during your appointment.

Schedule your appointment now! Email marketingbd@firstffcu.com or call 732.312.1500.

*Your free credit report from AnnualCreditReport.com does not guarantee results and is not a product of First Financial Federal Credit Union. Appointments during 3/27/17 – 4/1/17 are not credit repair tools. First Financial does not guarantee that taking the actions suggested through the credit report process will produce improved or identical changes to bureau risk scores. The scoring model used to generate scores may not be the same as the model used at First Financial or other financial institutions. 

The 4 Fastest Ways to Pay Off Credit Card Debt

Customer in store struggling to remember PIN number

There are many reasons why most of us decide to sign up for a credit card. Whether it’s to help boost your credit score or as a means of purchasing a more expensive item that you plan to pay off in increments, credit cards can be a smart option for your finances. Unfortunately, they can also be very detrimental to your budget if not used wisely or paid off in a timely manner. If you’re feeling stressed about your card balances – keep your head up and remember you can work your way out of debt! Here are four fast tips for effectively paying off your credit cards.

Cut them up.

This may sound like an obvious solution, but it is an enormously effective one. Stop the behavior that has gotten you in trouble in the first place and put an end to making charges once and for all. Moving forward, plan to only make purchases you can pay for right away and begin the process of working your way out of the debt you’ve created.

Pinpoint the problem.

What is it that you’ve had to use your cards to purchase? Clarity is key when it comes to your personal finances. Are you living out of your means and making high end purchases that you simply cannot afford? Are you making poor financial choices like eating out too much that you can easily rectify? Sit down, look at your credit card statements, and alter your lifestyle accordingly.

Compare interest rates.

If you owe on multiple cards, go back and review each one’s interest rates. Many people automatically assume that the card with the highest balance is the one to work on first, but this is a mistake. The high interest rates are what will get you in the end, so concentrating on those cards will have a greater impact on your finances.

First Financial’s Visa Credit Cards come fully loaded with higher credit lines, lower APRs, no annual fees, no balance transfer fees, a 10 day grace period, rewards, and so much more!* Click here to learn about our cards and apply online today.

Get a side job.

Sometimes, if your debt is going to take a significant amount of time to control, it’s best to look into other sources of income. There are often easy ways to make money on the side to get a few extra dollars in your pocket.

*APR varies from 11.15% to 18% for the Visa Platinum Card and from 13.15% to 18% for the Visa Signature and Secured Cards when you open your account based on your credit worthiness. These APRs are for purchases, balance transfers, and cash advances and will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fees. Other fees that apply: Cash advance fee of 1% of advance ($5 minimum and $25 maximum), Late Payment Fee of up to $25, Foreign Transaction Fee of 1% plus foreign exchange rate of transaction amount, $5 Card Replacement Fee, and Returned Payment Fee of up to $25. A First Financial membership is required to obtain a VISA Credit Card and is available to anyone who lives, works, worships, volunteers, or attends school in Monmouth or Ocean Counties.

Article Source: Wendy Bignon for CUInsight.com

Say Goodbye to High Credit Card Interest!

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Today is National Moment of Frustration Day. But, we’ve got good news!

First Financial can help you get rid of your high-rate frustration with our Visa® Platinum Credit Card with low rates and minimal fees! Instead of being frustrated with high interest rates and various fees on your current credit card, we have a simple solution.

For one day only, Wednesday, October 12th (that’s today!), transfer your high-rate credit card balances to our Visa® Platinum Credit Card.

You’ll enjoy an introductory rate of just 0.80% APR for the first 8 months on all purchases and balance transfers (even as an existing cardholder – simply transfer a new balance of at least $800 to your Platinum Credit Card to qualify)!* Plus, there are no balance transfer fees or annual fees either.*

As an added bonus, you’ll be entered into a drawing to win an $80 Visa® Gift Card just for applying for a Visa® Platinum Credit Card today only.**

Start your application online now, call us at 732.312.1500 Option 4, or just stop by a branch today!

*APR = Annual Percentage Rate. Other fees that apply: Late Payment Fee of up to $25, Foreign Transaction Fee of 1% plus foreign exchange rate of transaction amount, $5 Card Replacement Fee, and Returned Payment Fee of up to $25. Introductory APR varies from 0.80% to 18% when you open your account based on your creditworthiness. This Introductory APR is for purchases and balance transfers and will vary with the market based on the Prime Rate. Not all applicants qualify, subject to credit approval. After the 8 month introductory period your APR will revert back to your regular qualifying rate which will vary between 11.15% and 18% depending on creditworthiness. The qualifying period for the Introductory APR is between 7/1/16 and 2/28/17. New Accounts will receive qualifying Introductory APR on all purchases and balance transfers for 8 months starting from the date the account is opened. Current First Financial Visa® Credit Cardholders will be eligible to receive qualifying Introductory APR on balance transfers with a minimum of $800 and maximum amount of $8,000.00 for an 8 month period starting from the date the balance transfer is posted. A First Financial membership is required to obtain a Visa® Credit Card and 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 or loan. **All in branch and online Visa® Platinum Credit Card applicants who submit an application on 10/12/16 will be entered into a drawing and a winner will be selected at random to win an $80 Visa® Gift Card. Do not need to be First Financial member or qualify for promotion to be entered to win. The winner will be contacted by the Marketing Department on or about 10/14/16.

The One Way to Never Fall Into Debt Again

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Debt is literally a four letter word; it just also happens to mean you owe money.

Many Americans have a dream they’ll never realize: living without debt. Yet, the dream is possible for nearly everyone – just be prepared for the sea change of behavior required to make it happen. If you are unprepared, your ship will never make it to the safe harbor of paradise, and you will crash upon the jagged rocks of financial ruin.

Follow these simple steps to make your dreams of a safe financial future come true, and steer clear of financial ruin.

Make Up Your Mind

Many people fall into debt because they grow complacent, spending above and beyond their means, living from paycheck to paycheck with barely enough to make the bills. They don’t have enough to pay for dinner out on Friday, the new clothes that go with it, or the movie after.

Yet they do it anyway, and on the credit card the spending goes. The honest, painful truth is that if you don’t have the money for those things, you shouldn’t be doing them. Learning to be satisfied with your limitations is difficult. You want to be accepted by your personal crowd, but if your crowd’s habits are decaying your account balance one bad habit at a time, you have to ask yourself if the consequences are really worth it.

Once you decide that the lush greens of financial security offer an abundance that the Jones’ can’t match, then the seas gets glassy and the waters are far easier to ease through.

Say Goodbye

Once you’ve made up your mind to live within your means, it’s time to say goodbye to your plastic.

Either cut them or bury them far, far away. You may even want to freeze your credit cards. You can’t open the dam for the credit flood waters if you don’t have access to it. Don’t panic. It’ll be tough at first to say goodbye because you’ll feel like you’re being left without a life preserver, but the truth is you’ll be gaining a lifeboat in exchange.

Pay Off Your Debt First

Cutting up your card was the first step. Now you must be proactive about slashing it to zero. Snowballing is an extremely effective way to quickly demolish your debt. Establish your payoff plan and stick to it. This debt is now a “need” on your financial map.

You have a plan for paying off your credit cards, now lay out your map to help you get from paycheck A to paycheck B.

Lay Out Your Map

What are your needs? What are your wants?

By organizing your finances by needs and wants on a paycheck to paycheck scale, you can pay off the needs first, then have whatever is left for you. When you draw your financial map, classify bills, debts, and savings as needs, don’t forget to calculate things like clothes and the once in a while purchases too. Otherwise, your budget won’t resemble reality. The only rule is to determine needs from wants when you allot your funds.

Track Your Money

The beauty of online bill pay is that using it for everything keeps you from running blind through your budget, while showing you exactly what’s happening with your balance. Without credit or debit cards sucking the life from your account, it’s one way in and two ways out – cash and bill pay.

Use bill pay for everything and withdraw your cash for the extras bill pay can’t handle such as gas and petty expenses. Once your cash is gone. You’re done. No more spending until the next paycheck is securely in your account.

Remember to withdraw enough cash to get you through. Allot the amount of cash required for groceries, fuel, kid’s needs, and anything else you may need for the period. If you know your child needs new clothes, establish a plan for that spending and only use cash you have readily available.

Some people label envelopes so they can distribute the cash they need to the places they need it, without cutting into funds from another category. Do whatever works for your mind and your system. The only unbreakable rule is that you can’t spend beyond the cash you have, so you must manage it well.

Once you have learned to live within your means, and have your debt under control, life will be sweeter and you’ll never return to the choppy waters of too much debt again.

*Original article courtesy of Vincent King of MoneyNing.

Kids Off To College? Here’s How To Get Them Started With Credit

ahmxmt-woman-displaying-credit-cards-in-park-college-student-2How can you build good credit if no one will give you a credit card? This is the predicament many college students face. Generally, banks and credit card companies don’t want to take a risk on someone with no credit history. But, with no credit history, adults face extreme financial limitations that can affect all kinds of situations, including renting an apartment.

Getting one’s first credit card has become an even trickier process in recent years, but fortunately if parents are willing to help get their kids set up, it can be pretty simple.

“Due to the CARD act, it’s now prohibited for credit card companies to give credit cards to anyone under 21 unless they have their own income, or have a co-signer,” said Liran Amrany, the founder and CEO of Debitize. “For parents sending their kids off to college, it’s usually a good idea to offer yourself as a co-signer so your child can start building credit.”

In fact, it’s probably a good idea to take this step before your child is off to college. Vinay Bhaskara, co-founder of CollegeVine, strongly recommends adding kids to your credit card while they’re still at home. Essentially, the earlier one forms credit with a parent’s help, the sooner they can branch out on their own.

“In practice, establishing credit is a process that should actually start in high school, where the parent makes their child an authorized user on one or more of the parent’s cards,” said Bhaskara. “The student should spend a little bit each month to start building some credit history. After a few months, they can set up a student credit card with a small ($500-800) limit. From there, the student is off and running.”

If your child is already starting college in the fall and hasn’t yet forged a line of credit, you can still add them as an authorized user. Also, Bhaskara notes, your child will probably discover a bank on campus that can set them up with student credit accounts.This may also require your co-signature.

The earlier that young adults can form credit with a parent’s help, the sooner they can branch out on their own.

If your credit is decent, you shouldn’t have any issue adding your child to your credit card. The real challenge comes with making sure they understand the responsibility of having a credit card.

“Because the easiest way parents can help their children establish and build credit is to initially co-sign and/or open joint accounts, they must be willing to talk with their children honestly and openly about what they’re comfortable with in terms of spending by the student,” said Bhaskara. “Parents are also probably the most important source of personal finance knowledge for their children, so they must be comfortable with this concept.”

You’ll want to explain that if they’re attached to your credit card, any irresponsible actions can reflect poorly on you and the good credit history you’ve worked years to build. Also, you’ll want to set spending limits, if not through the credit card company, then through a verbal or written contract with your child.

Ideally, your child will be on your card for awhile, and then branch off to get his or her own credit card(s). It’s important to continue educating your kids at this point of independence. If they’ve built up good credit with your help, credit card offers are going to start pouring in, and young adults may be all too tempted by the deceptive promise of money at their fingertips.

“Money is already tight enough for college students, so while the thought of quick and easy money is appealing, the reality of 20 percent interest rates can be crippling, especially if you won’t be able to really start paying down balances until after graduation,” said Kristina Ellis, financial expert and author of How to Graduate Debt Free: The Best Strategies to Pay for College. “Teach them to be wise and very leery of the dangers of credit card debt.”

Ellis also stresses that under no conditions should students turn to credit cards to pay for college, as “in most cases, the benefits of spending on student credit cards don’t come close to the eventual costs.”

First Financial can help your college students build and establish credit!* There are no balance transfer fees, no annual fees, and our cards are also equipped with an EMV chip for maximum security. To apply or for more information, please call 732.312.1500 Option 4, visit our website, or email info@firstffcu.com.

*APR varies from 11.15% to 18% when you open your account based on your credit worthiness. This APR is for purchases, balance transfers, and cash advances and will vary with the market based on the Prime Rate. Subject to credit approval. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No Annual Fee. Other fees that apply: Cash advance fee of 1% of advance ($5 minimum and $25 maximum), Late Payment Fee of up to $25, Foreign Transaction Fee of 1% plus foreign exchange rate of transaction amount, $5 Card Replacement Fee, and Returned Payment Fee of up to $25. A First Financial membership is required to obtain a VISA Platinum Card and is available to anyone who lives, works, worships, or attends school in Monmouth or Ocean Counties. Federally insured by NCUA.

Original article source courtesy of Nicole Audrey of NBC News.