16 Apr

How to Begin Building a Strong Credit History

There are many reasons why having a strong credit history is important. It can affect everything from your ability to rent an apartment to getting a good job.

Payment history and credit score are two of the most important factors contributing to a positive, healthy credit record. Individuals who demonstrate personal responsibility by paying back the money they borrow — on time, every time — are typically rewarded with higher credit scores. A high credit score, in turn, shows lenders that you are worthy of trust for even more credit. (Scores range from 300 to 850, the higher the better.) And, utilizing credit wisely opens the door to meeting your financial goals — both short- and long-term.

If you are just beginning to utilize credit, here are some tips for starting off on the right foot:

Use your credit card(s) wisely.

It’s true that you need to use credit to build credit and having a credit card is one way to start. But rather than using a credit card sporadically, consider charging small amounts regularly that you can afford to pay off every month. Also limit how many credit cards you apply for — two is a good number — with one of the cards being a VISA® from Navigator Credit Union.

Avoid using all your available credit.

Each credit card comes with a pre-established credit limit. Don’t top out your card by using all your available credit. It’s too easy to go over your credit limit and potential lenders don’t like to see maxed-out cards. Instead, use 10 percent to 30 percent of what’s available to you.

Apply for a car loan.

Making affordable, monthly car payments is an excellent way to build a healthy payment history. A car loan represents a different type of loan than a credit card. You are borrowing a fixed amount with a specific payment and repayment term. You may need a co-signer, such as a parent, for a car loan.

Keep track of your credit.

It’s a smart idea to check your credit report at least once a year for possible errors. There are three main credit-reporting companies: TransUnion, Equifax and Experian, and you are allowed a free credit report from each every 12 months. You can check your credit reports at www.annualcreditreport.com.

We Can Help

Whether it’s a credit card or an auto loan, Navigator Credit Union can help you on your way to building a strong credit history. Come in and meet with one of our representatives today.

A WORD TO THE WISE
While you can recover from credit missteps — such as missing a payment or going over your credit limit — it can take up to seven years for your credit score to recover after a significant drop.
20 Jan

Attention Millennials! Start a 401(k) in Your Twenties

Jessie recently landed her first “real” job after graduating from college. She couldn’t wait to start. Her excitement turned to anxiety, however, during the human resources orientation. Talk of saving for retirement through participation in the company’s 401(k) plan sounded like a foreign language to her. “I’m only 22,” she thought. “Do I really need to be saving for retirement already?”

If you’re like Jessie — in your 20s and just starting out — you may also struggle with socking away money for a retirement decades away. After all, there are so many other things to be paying for! A place to live, transportation, gas, food, clothing, Internet and a smartphone likely take the lion’s share of your paycheck.

Don’t Shortchange Your Future Well-being

But starting now may make all the difference in retiring when you’re ready. Why work more years than you need to, just because you didn’t plan for retirement when you were young? For example, if Jessie starts contributing $200 a month at age 22 and earns an average annual return of 7 percent, she will have accumulated $758,518 when she is ready to retire at age 67. However, if she waits to start saving for retirement until she is 42 and earns the same return, she will need to contribute $936 monthly to reach the same nest egg by age 67.*

Regular saving started early can go a long way over time. That’s why it makes sense to take advantage of a 401(k) — if offered at your place of employment — when you start your first job. Many companies offer automatic enrollment and automatic contribution increase features that make participation easy. Be sure to contribute at least enough to your retirement account to get any matching contributions your employer may offer, essentially free money to you.

For more information on the benefits and options of your employer-sponsored retirement plan, talk to your plan’s administrator. To learn more about other retirement savings options, call 228-474-3427 to schedule an appointment with an NCU Wealth Management investment professional.

20 Jan

Housing OutlookWill 2015 Be a Good Year to Buy a Home?

As the economy has gradually improved coming out of the Great Recession, home sales have picked up too. In mid-2014, sales of existing homes were on pace to top 5 million for the year, and the figure should top 5.2 million in 2015, according to a forecast from the National Association of Realtors®.

Many young adults — some of whom have lived with their parents to save money — may be ready for a home of their own. However, many of them mistakenly believe that they don’t have enough saved for a down payment to buy a house. But in 2014, one in five homebuyers who took out a conforming, conventional mortgage put down less than 10 percent.* Some potential buyers are also unduly pessimistic about their chances of qualifying for a mortgage.

With a good supply of homes for sale, mortgage rates that are still low and a variety of mortgage options so you can select one that fits your plans and budget, 2015 could be a great time to buy a home.

We Can Help

Don’t assume you can’t buy a home! The home loan experts at Navigator Credit Union can help you find a mortgage that fits your budget. And they’ll explain how the process works so you’re comfortable with your decision. Let us help you cross the threshold to homeownership. Call (228) 474-3449 to get started.

* Source: Freddie Mac.

19 Jan

Millions … billions … trillions!Can you count that high?

Numbers help us learn about science and cool things in our world. Do you know how high numbers can go?

The numbers go higher but, we can’t show them all. Some wouldn’t fit on a page! One centillion has 303 zeroes! Something that is too big to count in numbers = infinity.

HOW BIG? HOW MUCH? HOW MANY?

Here are some fun facts about really big numbers.

How much could $1 million buy? About 400,000 school lunches. Or 3 million pieces of string cheese. That’s more than anyone could eat in a lifetime!

How long would it take to count to 1 billion? Too long! Counting to 1 billion nonstop would take almost 32 years.

How many people live on planet Earth? There are 7 billion people on the planet … and they do a lot of talking! More than 4 billion people use mobile phones worldwide.

What would 1 trillion pennies look like? One trillion pennies stacked in a tower would be 870,000 miles high. That’s farther than the moon!

04 Nov

Build the Foundation: 6 Steps for Financial Success in Your 20s

Your 20s is a time to enjoy your freedom and learn new life lessons. Often a decade of important decisions (career, marriage, home), it can also be a time for big financial mistakes if you’re not careful.

Making smart financial decisions now could lead to financial freedom in the future. It could mean the difference between retiring early or late, or whether you can afford the vacation home you’ve always dreamed about. Here are a few steps to build a solid financial foundation in your 20s.

1. Develop a marketable skill. Income is your wealth builder, and your 20s is a time to learn what you love – if you’re lucky, it will be what you went to school for. Find a skill that could translate into a career.

2. Make a simple budget. Sound easy? It is. By learning to create a budget now and sticking to it, you’ll also be able to apply that principle later in life.

3. Create a debt-repayment plan. Yes, you aren’t the only one who has enormous amounts of student debt. And waiting to pay it off until you’re more established in your career could have negative effects on your financial stability. Start paying it back now. It’s easy to set up automatic payments online so you aren’t tempted to skip a month.

4. Build an emergency fund. Even though you may live on little these days, it’s smart to have at least $1,000 set aside for emergencies. After all, it’s inevitable that your clunker car will break down eventually.

5. Start your retirement saving. Don’t stop reading now! This might be the hardest one to put into action, but completely worth it. The key to long-term compounding is to start early. If a 25-year-old invests just $100 a month, assuming an 8% average annual return, it totals to more than $300,000 by the age of 65.*

6. Start building your credit. Make sure to keep up with monthly payments on your loans and credit cards because that will be beneficial for your credit score. If you are considering opening a credit card, Navigator Credit Union has competitive interest rates and can help you manage payments.

* Rate of return is for illustration only and does not represent the return of any specific investment. Your returns will vary. Depending on the type of account, taxes may be due upon withdrawal.

Investment (and/or insurance) products:
Not federally insured
Not a deposit of this institution
May lose value

04 Nov

A message from the NCU Wealth Management ProgramNew Records – Is it Time to Protect Your Gains?

Record highs for stocks. Record lows for interest rates. Recent months have seen new records for the stock market and a continuation of the historic lows for interest rates. Consider these facts:

• The S&P 500 Index, which tracks the top 500 U.S. stocks, surpassed 1,900 – a record.*

• The Dow Jones Industrial Average, which follows 30 large publicly traded U.S. stocks, topped 17,000 – a record.*

• Certificate of deposit (CD) rates have never been this low for this long, with 6-month CDs below 0.15% – a record.*

• The Federal Reserve has kept rates on short-term funds under 0.25% since 2008 – a record.*

The stock market has made a steady recovery since the financial crisis of 2008, and the growth in the past year has translated into attractive equity gains for many investors. But with these new records, people are now worried another stock market drop could come to threaten their retirement plans.

Some investors have sought shelter from market volatility in certificates of deposit (CDs) and money market accounts. Unfortunately, those accounts have set records of their own – historically low returns that have not kept pace with inflation.**

There Could Be a New Way

There are new annuity products now available in the industry that allow you to participate in the market’s upside potential while setting a limit on your downside risk. Other annuity options let you guarantee a retirement income you cannot outlive. The new record stock market highs and interest rate lows could mean it’s time to review your current portfolio and discuss these new opportunities. It may be time to protect retirement gains and reduce risk as part of your overall investment strategy.

For more information about new retirement planning options, contact Jeff Hamm, the NCU Wealth Management Representative located at Navigator Credit Union at 228-474-3427.

* SOURCE | Dow Jones Industrial Average and S&P 500, finance.yahoo.com; 6-month CD rates, ratewatch.com; Federal Funds Rate, bankrate.com; July 30, 2014.

** Campbell, Dakin, “Banks Want Higher Interest Rates,” BusinessWeek, Bloomberg, November 2013.

All guarantees are based on the claims-paying ability of the issuer and do not extend to the performance of underlying accounts which can fluctuate with changes in market conditions.

Representatives are registered, securities are sold and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, IA 50677, 866-512-6109. Investment and insurance products are not federally insured, may involve investment risk, may lose value and are not obligations of or guaranteed by the financial institution. CBSI is under contract with the financial institution, through the financial services program, to make securities available to members. ANN-1213-NMPG

03 Nov

Credit class: Choose the Best Loan for You

Credit allows us to borrow money to pay for items we couldn’t otherwise afford — like homes and cars and a college education. Mortgages and vehicle loans are examples of secured loans. The lender uses your home or car as collateral, and if you fail to pay back the amount borrowed in the allotted term, the lender can reclaim the item.

Unsecured loans are not backed by any type of collateral. You simply promise the lender that you’ll pay back the loan. This affords you some freedom in borrowing — you can use the funds to pay for a computer, a vacation or anything else you’d like. But that freedom comes with a price: higher interest rates than secured credit.

Types of Unsecured Loans

Three common types of unsecured credit are:

Credit cards. A form of revolving credit, the card issuer approves you for a set amount (your credit limit) and you access the credit whenever you need it. The lender charges interest on the balance each month and asks that you pay off a portion of the balance regularly.

Personal loans. Personal loans let you borrow a set amount of money at a particular interest rate, then pay it back in a series of fixed payments.

Personal lines of credit function very similar to credit cards, except the funds can be accessed by check, online transfer or withdrawal rather than a card.

When Unsecured Credit Makes Sense

While a personal loan may come with a higher interest rate than a secured loan, it offers a smart alternative to riskier forms of borrowing, like payday or pawn shop loans. Finance companies may charge excessive interest rates and their loans may come with unreasonable terms.

What’s more, a personal loan can help build your credit history and enhance your ability to qualify for better loan rates and terms in the future. Making payments on time and managing your loan responsibly hows lenders you’re a smart credit consumer, and may make lenders more willing to extend a loan in the future.

To learn more about how a Navigator Credit Union credit card, personal loan or personal line of credit can help improve your financial picture, talk to a representative today.

15 Oct

The history of money: Fun facts

Did you know that over the last 10,000 years, money has changed a lot? It’s gone from cattle and shells to today’s electronic currency. Here are some fun facts about how money has changed!

Trading used to be used for everything. Just like you might trade baseball or other cards with your friends, people used to trade for everything. Farmers might trade their corn to their neighbor the shoemaker for a pair of shoes. This type of trading was called bartering.

The first coins date back all the way to 700 B.C. They were used by a group of people called the Lydians who live in what is known today as Turkey. Do you have any old coins you collect? A coin from 1950 is old to us, but even that coin was made over 2,600 years after the first coins!

The first paper money was used in China around A.D. 800. That was many years before Europeans started using paper banknotes. But, too much paper money was made. After about 500 years of use, paper money disappeared from China for a long time.

It’s amazing to think how much money has changed over the years. Now your parents probably use electronic transactions more than paper money and coins! What do you think money will be like in another 10,000 years?

15 Oct

How to help others this Thanksgiving

Thanksgiving is a special day. Many families cook a turkey and eat their favorite foods. It is also a day of giving thanks for all the good things you have.

Some families may not have money for a big meal during the holidays. Other people don’t have family and friends to share it with. That’s why many people help others in need during the holiday season.

Here are some ways you and your family can help others.

Donate food to a food shelf. Ask your mom or dad to buy extra food when grocery shopping for your family’s meal. Help deliver the extra bags of food to places that give the food to those who may go hungry without it.

Make holiday cards for older people in nursing homes. There are people with few friends or family members close by. Cheer them up with a homemade holiday card just for them!

Serve food to the homeless. Find a group that is planning to serve a meal to those in need on Thanksgiving. See if your family is willing to volunteer and help serve the meal.

Invite another family to your holiday dinner. Do you have a friend at school whose family is not able to have a special dinner? Ask your parents if you can invite them to your house.

At Navigator Credit Union, we also believe in helping others. We help you reach important goals each time you save money in your Navigator Credit Union savings account.

19 May

How to Save Money when Dining In

If you’re among the 71 percent of Americans who are cooking at home more and eating out less to help cut costs,* then these tips may help you save even more.

Plan ahead. Cut coupons and review your grocery store’s weekly circular (often available online or via email), then create a menu for the week that takes advantage of the deals. Consider how you can use leftovers. And always shop with a grocery list.

Stick to the perimeter. You’ll find fresh produce, meats, dairy products and frozen foods along the outside of most supermarkets. Concentrate on this area for the healthiest and most reasonably priced items in the store.

Think value. Consider the nutritional value of food for the price and opt for nutrient-dense rather than calorie-dense items. A bag of carrots offers a lower price and higher nutrition than a bag of chips, for example.

Eat before you shop. A hungry shopper is an impulsive shopper .

Cook in bulk. Prepare more than you’ll eat, and freeze what’s left for an easy meal another day. Just be sure to keep a leftovers list so that you remember what’s in your freezer.

* Source: “Seven in Ten Americans Cooking More Instead of Going Out to Save Money,” Harris Interactive, May 2012.