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9 Things to Remember When Using Your First Credit Card

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Getting your first credit card is a significant financial milestone. After sorting through an endless array of program options and promotional offers, you made your choice, filled out the application, and saw those two magic words: You’re approved!

After the initial excitement wears off, it’s important to remember that just like your first car, your first credit card comes with a lot of responsibility. While it may be tempting to grab some friends to take the new plastic for a test drive, it’s a good time to exercise a little restraint. The financial decisions you make now will have long-term effects. It only takes a momentary lapse in judgement, to make a mistake that could follow you for years to come.

Before you start exercising your newfound financial freedom, here are a few tips to make sure your first credit card experience is a positive one:

1. Pay attention to the fine print. Even if you don’t need reading glasses, you may want to have a pair handy. The big credit card companies tend to sneak stuff in the small print. Introductory interest rates can be attractive (like 0% APR for a certain amount of time), but once those offers expire, you could be left paying higher interest on your purchases. Not to mention, if you are carrying a balance when your 0% offer expires – you could be left to pay an extremely high APR on that balance.

2. Don’t be a card counter. If you have multiple cards, it can be tempting to spend more than you intended. Also, it makes your wallet pretty large – which makes for uneven seating or a heavy purse. Simplify your life – stick to a single card, and keep the credit limit sensible.

3. Consistency pays off. This simple step will help you avoid additional interest charges, and it’s an effective way to build an excellent credit rating.

4. Always pay your bill on time. Late payment charges are usually more expensive than your minimum payment, which can make it hard to keep up with your bill. If you’re worried that you’ll forget the due date, most cards offer an automatic payment option. Use it. Or set a recurring reminder for yourself on your phone or a computer calendar.

5. It’s your budget, don’t fudge it. Try to think of your credit card as for emergencies only. Do your best to continue using your checking account or cash to cover everyday expenses. Your credit card is like that friend you call when you need help moving or a ride to the airport. There when you need it, but not to be overused.

6. Steer clear of cash advances. These advances usually charge a higher interest rate than regular credit card purchases. The convenience isn’t worth the cost.

7. Keep your monthly credit card payments to less than 20% of your income. Once your bill exceeds that amount, it becomes exponentially more difficult to stick to a sensible, reasonable budget.

8. Review your credit card statements each month. In addition to being a smart way to track your spending, regular monitoring is the most effective way to combat credit card fraud and identity theft.

9. Be honest with yourself. If you find that your spending gets out of hand, there’s no shame in putting your credit card away (or getting rid of it all together), until you correct your bad financial habits.

Credit cards can be useful tools for emergencies, and when used properly, they can help you maintain a strong credit rating. But with so many card options available today, it is essential to choose the one that’s right for you.

If you haven’t secured your first card yet and are wondering where to find a trustworthy offer, First Financial Federal Credit Union offers a variety of Visa Credit Cards to meet your financial needs. If you live, work, worship, attend school, or volunteer in Monmouth or Ocean Counties in NJ – we’ve got the perfect credit card to fit your lifestyle. Learn more here, and apply online 24/7.

 *APR varies up to 18% when you open your account based on your credit worthiness. These APRs are for purchases 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: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. 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. See firstffcu.com for current rates. 

5 Things to Consider Before Signing Up for a Store Credit Card

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Many times, you’re at a store paying for your items when the cashier asks, “would you like to save 20% off your purchase today by signing up for our credit card?” Sounds like a great deal, doesn’t it? You’re inclined to say yes, fill out the easy application and have the instant gratification of saving on things you were willing to pay full price for. Is it too good to be true though?

Retail stores have been tempting customers for years to sign up for credit cards with discounts, free gifts, and special promotions. While it may seem like a no-brainer to sign up and get instant savings, there are longer term implications that can affect your finances for years to come.

Make sure you consider these five important things before signing up for a store credit card:

Your Credit Score May Be Impacted

Whenever you sign up for a credit card, especially one from a retail store, your credit report will most likely be pulled. While that doesn’t seem like a big deal, it might actually have a negative effect on your credit score. This is what is called a ‘hard pull’ which happens usually when a financial institution, like a credit card company, asks for your credit report. Hard pulls can decrease your credit score by a few points. While it is temporary and usually only stays on your credit report for about two years, it is something to consider, especially if you are applying for any bigger loans (like a vehicle or mortgage) in the near future.

Read and Fully Understand the Terms

When you’re signing up for a store credit card on the spot at checkout, you’re mostly likely not taking your time to read the fine print. But, make sure you fully read and understand the terms and conditions of your new card. Store credit cards are notorious for having very high interest rates and fees, so you should thoroughly consider the terms before signing your name on the dotted line. You don’t want to be stuck paying a high interest rate in the long run. If it sounds too good to be true, it most likely is.

Consider the Sign-Up Bonus

The number one reason people apply for a store credit card is because of a special sign-up bonus. Often, stores will offer you a discount on your purchase that day or for a specified period of time. They might also give you free products and other perks. While it feels great to be able to save money instantaneously, you should really consider the sign-up bonus before you commit. While saving 15% on your purchase seems like a no-brainer, is it really that much of a bonus in the long run? In the grand scheme of things, sign-up bonuses are almost insignificant when compared against drawbacks, like interest rates and fees if you are carrying a balance on that store card.

Do Competitive Shopping

Consider your options before you sign up for a store credit card. Every store has different cards and policies and you want to make sure to pick the one that is right for you. If you’re really set on opening a store credit card, look first at the retailer where you spend the most money. You’ll probably get the most return if it has a good rewards and points program. Opening a card at a store you don’t really go to often probably won’t benefit you much. And of course, compare the terms and conditions between all cards.

Take Your Time to Make a Decision

Finally but most importantly, don’t make a spur of the moment decision. Stores will often reel you in with an engaging sales pitch at the register and many customers feel almost pressured into making a decision right then and there. If you’re interested in signing up, ask how long their current promotions and sign-up bonuses are valid for. Also ask for an application to take home for when you’re ready. Many companies will also allow you to apply online. This way, you can take your time to read the fine print and make a decision that is right for you (and your credit).

Store credit cards are very enticing, but they aren’t for everyone. Make sure you understand all the ins and outs of the card before you sign up. Otherwise, you can really do some damage to your credit score and debt levels. Choose wisely!

First Financial’s Visa Credit Cards offer benefits that include higher credit lines, lower APRs, no annual fees, no balance transfer fees, a 10-day grace period, rewards (cash back or on travel & retailer gift cards), an EMV security chip, and more!*

Click here to learn about our credit card options and apply online today.

 *APR varies up to 18% when you open your account based on your credit worthiness. These APRs are for purchases 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: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. 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. See firstffcu.com for current rates. No late fee will be charged if payment is received within 10 days from the payment due date.

Article Source: Connie Mei for Moneyning.com

The 4 Fastest Ways to Pay Off Credit Card Debt

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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, 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 up to 18% when you open your account based on your credit worthiness. These APRs are for purchases 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: Balance Transfer and Cash Advance Fees of 3% or $10, whichever is greater; Late Payment Fee of $29, $10 Card Replacement Fee, and Returned Payment Fee of $29. 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. See firstffcu.com for current rates. No late fee will be charged if payment is received within 10 days from the payment due date.

Article Source: Wendy Bignon for CUInsight.com

4 Tips to Help 20-Somethings Manage Their Debt

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Debt can be a heavy burden on anyone, no matter what their age, but increasingly, young adults are starting out deeper in the hole. A recent report from credit-score provider FICO shows that student loan debt has climbed dramatically for those ages 18 to 29, with average debt rising by almost $5,000 over the course of five years.

The good news, though, is that young adults are taking steps to get their overall debt under control, reducing their balances on credit cards and their debt levels for mortgages, auto loans, and other types of debt. With 16% of 18 to 29-year-olds having no credit cards, young adults are getting the message that managing debt early on is essential to overall financial health.

With the goal of managing debt levels firmly in mind, let’s take a look at four things you should do to manage your debt prudently and successfully.

1. Get a Handle On What You Owe.

In managing debt, the first challenge is figuring out all of what you owe. By pulling a free copy of your credit report you’ll get a list of loans and credit card accounts that major credit bureaus think you have outstanding, along with contact information to track down any unexpected creditors that might appear on the list.

Once you know what you owe, you also have to know the terms of each loan. By making a list of amounts due, monthly or minimum payment obligations, rates, and other fees, you can prioritize your debt and get the most onerous loans paid down first. Usually, that’ll involve getting your credit card debt zeroed out, along with any high rate debt like private student loans before turning to lower rate debt like mortgages and government subsidized student loans. With your list in hand, you’ll know where to concentrate any extra cash that you can put toward paying down debt ahead of schedule.

2. Look for Ways to Establish a Strong Credit History.

Having too much debt is always a mistake, but going too far in the other direction can also hurt you financially. If you don’t use debt at all, then you run the risk of never building up a credit history, and that can make it much more difficult for you to get loans when you finally do want to borrow money. The better course is to use credit sparingly and wisely, perhaps with a credit card that you pay off every month and use only often enough to establish a payment record and solid credit score.

First Financial hosts free budgeting, credit management, and debt reduction seminars throughout the year, so be sure to check our online event calendar or subscribe to receive upcoming seminar alerts on your mobile phone by texting FFSeminar to 69302.*

3. Build Up Some Emergency Savings.

Diverting money away from paying down long term loans in order to create a rainy day emergency fund might sound counterintuitive in trying to manage your overall debt. But especially if your outstanding debt is of the relatively good variety — such as a low rate mortgage or government subsidized student loan debt — having an emergency fund is very useful in avoiding the need to put a surprise expense on a credit card. Once you have your credit cards paid down, keeping them paid off every month is the best way to handle debt, and an emergency fund will make it a lot easier to handle even substantial unanticipated costs without backsliding on your progress on the credit card front.

4. Get On a Budget.

Regardless of whether you have debt or how much you have, establishing a smart budget is the best way to keep your finances under control. By balancing your income against your expenses, you’ll know whether you have the flexibility to handle changes in spending patterns or whether you need to keep a firm grip on your spending. Moreover, budgeting will often reveal wasteful spending that will show you the best places to cut back on expenses, freeing up more money to put toward paying down debt and minimizing interest charges along the way.

Click here to view the article source, from The Daily Finance.

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