How long should I wait to spend those funds?
​These days moving or transferring money has become increasingly more electronic through ACH
​or Wires and the use of checks is becoming extinct. Occasionally you may still receive a check in hand.
Now what?

You deposit the check, and the funds show up in your account, which is generally a good thing. Even though your checking account balance increases, it doesn’t mean the money is definitely there—checks can be confusing and susceptible to scams. It's very important to understand exactly what this does or doesn't mean. If you don’t know the person giving you the check – give it a few extra days or more to clear. Don’t let accepting payment by check be a costly lesson.
 
The method to clear a check involves moving money from the check writer’s bank account to your bank account. Once this process is complete, it should be safe to spend the money. Even today with as fast as transfers can happen, the check process takes time, and a check might still bounce after you deposit it, even if your bank allows you to withdraw cash from that deposit.

Did that check Really Clear?
Unfortunately, the term “released” or “cleared” sometimes gets used too soon. A check has only cleared after your bank receives funds from the check writer’s bank. Your bank’s computer systems might show that you have those funds available for withdrawal, but that doesn't necessarily mean you can spend the money risk-free. Most of the time, this informal terminology is fine, because funds typically arrive as expected.
 
Generally, the confusion around checks is derived from bank policies and federal laws that allow you to have some access to money before a check clears. Banks are required to make a portion of your deposit available promptly— such as freeing up the first $225. The remaining funds will be released after several business days. That policy however might prematurely provide access to the money, but it does not mean the funds successfully arrived from the check writer’s bank.

What if You Spend the Money?
If a check you deposited does bounce, the bank reverses the deposit from your account; regardless if you spent some or all of the money from that deposit. If you don't have enough money in your account to cover the reversal, you end up with a negative account balance, which means you will start bouncing other payments and incurring additional fees. Ultimately, you are responsible for deposits you make to your account, and you are the one at risk. To get your money back, you may have to go after whoever gave you the bad check.

Protect Yourself
Here are some ways to avoid getting ripped off. First, wait a longer time to spend the money, increasing your chances that the check is valid. In many cases, a few weeks to a month is more than enough time to wait. Most checks from banks within the United States should clear or bounce, within a few business days, but exceptions are possible.
 
Another example of a problem that could come up is if the check is fraudulent, and it was stolen from someone else's legitimate bank account. For example, a thief could pay you with a stolen check and the check might clear initially, but once the fraudulent payment comes to light, you may eventually lose that money.
 
In most cases, it’s difficult or impossible to track down the person who intentionally paid with a bad check. But if it was an honest mistake, you might be able to resolve the situation simply by asking for another payment.

​Red Flags
If you don’t know the person you’re dealing with, consider other forms of payment such as cash or a legitimate payment processor instead. Just be mindful of scams on those networks, as well. Be especially careful in the following situations:

• A check received from somebody you don’t know
• A check Written for more than the requested sum
• A sender wants you to return excess money or send it to another business associate
• A check is from a foreign bank or otherwise suspicious entity
• A check came from somebody who is not local

 
When in doubt, you can always call the bank that the check is drawn on to see if you can get any information about the check. Ask them if it has cleared. Don’t call the number printed on a check, since it may go to a scammer. Instead, look up the bank’s phone number on the bank's official website.
 
Tips To Protect Yourself From Being Scammed
If you are sending money to someone else, then confirm their identity and why you are transferring money. Many scams involve electronically transferring or wiring money.

• For example, you shouldn’t send money to a family member in distress unless you have spoken to them and can confirm their identity. If you are elderly and don’t hear that well, then ask another person to speak to your family member. Create a code word for family members to use to confirm their identity.
• Never send money or gift cards to someone claiming to be with the IRS, police department or utility company. They never ask that you pay in this way.
• Avoid sending money to people you have only met online, no matter how close you feel to them. This is a common scam.
• Don’t give out your account information to someone you don’t know. They can use that information to access your bank account. If someone asks for your routing and account numbers, say "No."
• Don’t pay for goods or services by transferring money directly into someone’s bank account. Instead, insist on paying with a credit card or with PayPal.

 
Send Funds Using an ACH Transfer (Account to Account - A2A)
You can send funds electronically using an Automated Clearing House (ACH) transfer. With a credit transfer, you send money from one account to another. You can set up an Account-to-Account (A2A) transfer online, through Virtual Branch.

• Get the recipient bank’s routing number and account number, which you can find on a check.
• You must link the accounts. In Virtual Branch, Click the Pay Bills tab, then the  Transfer Money tab.  Under Transfer Money With Other Financial Institutions click "add an account."  

​

• After the accounts are linked, you can send the money to the other account. The transfer must be processed by the next business day.
• There is a small fee for sending money this way.

 
Receive Funds Using a Debit ACH Transfer
A debit transaction is another type of ACH transfer. With a debit transaction, you request (or "pull") money from another account. This type of transaction typically takes longer because the bank pulling the funds doesn’t know if the other bank has sufficient funds to cover the transfer. As with a credit transfer, you can schedule a debit transfer online.

• Go to the bank account that you want to receive the money. Link up the account with the account that has the funds.
• Request the money. This type of transaction can take up to two or more business days.

​It’s that time of year again……New Year’s Resolution time!
 
Perhaps it’s the over-indulgence from holiday parties and family meals, or the idea of a fresh start that makes us want to change our habits. However, the dream of change and new beginnings can slip away almost as soon as the resolutions are made. In fact, according to businessinsider.com less than 10% of people actually achieve their goals and 25% quit within their first week! Those are tough statistics but there are proven ways to help you stick to your New Year’s Resolutions!
 
Be Reasonable, Be Specific-
Vagueness can sabotage a goal faster than anything! Pick a resolution and be specific about it. Let’s use one of the most popular goals as an example; weight loss. Instead of thinking “I want to lose weight” pick a precise number and a precise date. Making the goal to lose 35 pounds by December 2020 is a good plan, but better yet, and for easy accountability, making the goal to lose 5 pounds per month in 2020 is even better! The more laid out the resolution, the easier it is to track progress. Concrete goals make them attainable!
 
Change your surroundings-
Old habits are hard to break! The chance of failure increases by not making relevant changes to your everyday surroundings. If quitting smoking is the goal, then avoid the people and places associated with it. Fill that time up with new, distracting activities like taking a quick walk outside, or snacking on something healthy. If weight loss is the goal, make small, daily changes in your decision making process. Avoid old eating places where you would be unlikely to choose a healthier option. If saving money is the goal, remove shopping apps from your phone, and open a separate savings account to break the spending habit. Out of sight is out of mind. Avoiding those triggers and replacing them with people, places and activities will help you stick to your goal!
 
If you fall off track, forgive yourself…..then get right back on track-
We are all human, setbacks are bound to happen. The important thing to remember is to keep on keeping on! It’s important because missing a goal by 10% or even 50% is not complete failure as long as you finish the task. A moment of weakness in the grand scheme of things is meaningless, just keep looking at the finish line. Keep your eyes on the prize with constant self-checks and positive reinforcements.
 
New Year’s Resolutions are to be taken in stride. They are fun to make, hard to keep, but worth it in the end. Celebrate the little successes along the way and by this time next year you will have accomplished something to be proud of!

Tips for Black Friday and Cyber Monday Shopping
Are you ready for the hustle and bustle? Are you looking forward to the Black Friday / Cyber Monday sales? The holiday season is approaching and with that comes the biggest shopping days of the year, Black Friday and Cyber Monday. These high holy days for shoppers follow Thanksgiving each year. To make the most of these days, we offer you the following advice:

• Make a budget and follow it.  Know how much you can afford to spend and stick to that amount. Use cash to avoid overspending.
• Just like Santa, you gotta have a list. Write down everything you plan to shop for and put them in order of importance. That way, as soon as you enter a store, you can focus on finding those items first.
• Get out early. The earlier you get to the store, the better your chances of finding popular items in stock.
• Shop with a friend. Not only is it fun, but you can work together and find your gifts faster. While you hunt for items in one section of the store, your friend can search for items in another section.
• Sign up to get alerts about various products. There are websites, like bestblackfriday.com, dealnews.com, and theblackfriday.com that specifically leak Black Friday ads, giving you an early advantage.
• Use online price comparison tools. Google shopping, PriceGrabber, and Shopzilla allow you to compare prices at various location without having to drive all over town.
• Use loyalty programs. Many retailers have loyalty programs that offer sales and promotions to their members first and even earn rewards on their purchases.
• Follow your favorite brands on Social Media. Many retailers will offer special deals on their social media platforms and reward customers who like or follow them with special alerts to discounts.
• Check timing. Some Cyber Monday deals are for a certain window of time, offering the steepest discounts to early morning shoppers. Check deals before that Monday to know what time to shop for the best deals.
• Look for deals at Brick-and-Mortar Stores on Cyber Monday.  If a store’s Black Friday sales were lower than expected, many will offer deals to lure Cyber Monday shoppers.

After all that shopping, consider participating in Giving Tuesday, which is celebrated the first Tuesday after Thanksgiving. It’s an international movement that encourages everyone to donate their time, resources, talents, and money to helping others. You can get information and updates about the movement by going to www.givingtuesday.org/about or following it on social media sites.

Take our short two question survey regarding tips for Black Friday and Cyber Monday for a chance to win up to $750 (Learn more about our Let's Chat Promotion)

​Fall has arrived, are you ready for the cooler weather? Have you taken the time to prep your home for the cold weather? Residential electricity rates have risen on average about 15% nationwide over the last 10 years, an increase of about $0.02 per year. Consumers who use oil heat are expected to pay about 20% more this year than last year.
 
Not surprisingly, energy costs will rise again this winter as consumers try to keep their homes warm and toasty. Before the snow flies and you get your first heating bill, take these steps to conserve heat and make your home more energy efficient:

• Adjust your thermostat. Throw an extra blanket on the bed and turn down the temperature in your home by 5 to 10 degrees at night to save energy and money. Buy a programmable thermostat and let it adjust the temperature for you.
• Fill the cracks, gaps and leaks. Pick up some spray foam insulation and look for gaps around your windows and pipes. If you have a gap under your door, install weather stripping or just make a “door snake.” This can save up to 40% on your annual energy bill–for both heating and air conditioning seasons.
• Take advantage of free sunlight. During the day, open the blinds on windows that face south and turn down your thermostat. At night, close the blinds so the heat doesn't escape through the window. Remove any objects that might block sunlight from shining on heat-absorbing walls.
• Add extra insulation. Start with the larger gaps around the chimney, furnace flues, plumbing pipes, and ductwork. Then check your roof insulation to make sure it’s about 10 to 16 inches deep. If it isn’t, have more installed. If your home is more than 50 years old and still has the original insulation, consider replacing it with newer insulation.
• Use a space heater in moderation. Use it if you keep the central temperature in your house very low and you want to heat one or two rooms. Turn it off when the room reaches a comfortable temperature. Place your space heater at least three feet from any flammable objects such as bedding, drapery and furniture, and never leave a space heater unattended.

Now you can sit back and watch the flurries with a cup of hot chocolate!

​Life has a way of throwing out a curve ball every now and then! One way to be prepared for the unexpected is to maintain a savings account. There are many different reasons to use your savings account; vacation, wedding expenses, or car repair. As for me, I have a savings account established for my Furry Family Members! I came across a situation with one of my pets recently, and it made me realize how grateful I was to have that savings account.
 
I’ve adopted and rescued my fair share of 4 legged family members. Recently, one of my cats (Possum), a loving, playful and entertaining creature came down with the flu; he needed immediate medical attention. Needless to say, it was definitely an unexpected expense! When the veterinarian gave me an estimate for Possum’s treatment, I was floored….. it was $ 1,100.00! I was able to speak with my vet about what was really required to save my fur baby and I was able to bring the cost down a bit to $800.00. Still, that’s no small change!

Possum has had several medical issues after the flu scare, and I’ve learned from the first unexpected expense that I needed an option in case another illness came up. I spoke to my veterinarian about pet insurance after Possum recovered from the flu. It seemed like a great option, especially if you own a breed that is more susceptible to health issues. However, most pet insurance policies require you to pay a higher premium. Instead, I decided to use funds from my savings account with ECU Credit Union. Plus, you can add money into this savings account automatically out of your payroll, instead of paying for a costly option like pet insurance.  A savings account allows you to set aside money so you can prepare for unexpected expenses and I was sure glad to have done this!

I already cut my pet ownership costs by purchasing food and /or medications online, grooming at home, staying current on shots, and preparing DIY treats and DIY toys. By cutting these day to day costs and putting the extra cash into my savings, I was knowingly prepping for any unexpected emergency.
When determining how much you’d feel comfortable saving in a pet emergency fund, consider the type of animal you have. You probably won’t need to save as much if you have a pet guinea pig versus a large breed dog, of course.
​
Recommended Pet Emergency Fund amounts according to www.Kiplinger.com below By Amanda Lilly, online Community Editor are:

• Dog ranges from $ 2,000.00 to $ 4,000.00
• Cat ranges from $ 2,000.00 to $ 3,000.00
• Rabbit - $ 1,000.00
• Hamster - $ 500.00
• Turtle- $ 500.00
• Bird-  $ 500.00
• Fish - $ 250.00

The key is to consistently save for all unexpected emergencies. 

​Mobile Deposit Capture also know as Mobile Deposit is an easy and convenient way to deposit checks directly from your phone. At ECU Credit Union, if you are unable to come to us – we want YOU to be able to have the resources to make your life as convenient as possible.
 
Mobile Deposit Capture FAQs
 
Are there any fees for Mobile Deposit Capture?

• We are pleased to offer the Mobile Deposit Capture service to you at no charge.
• Other fees may still apply, however, such as those for returned items or overdrafts. Please consult the ECU Credit Union Rate and Fee Schedule for those fees.  In addition, you might have mobile carrier fees.

 
Who is eligible to use Mobile Deposit Capture?

• A member in good standing is eligible to use Mobile Deposit Capture.
• Must have the ECU Credit Union ECU Credit Union Mobile app installed on your mobile device.

​How do you gain access to Mobile Deposit Capture?

• Enroll and set up ECU Credit Union Virtual Branch.
• Go to the Apple Store or Google Play Store and search for ECU Credit Union Mobile
• Download the ECU Credit Union Mobile app on your mobile device.
• Input your Logon ID and Security Code, which you had established when setting up Virtual Branch.
• Review and Agree to the Term and Conditions of the app.
• Yippie!!  You have set up the app and you are now ready for mobile deposit.

 
What Items can be deposited?

• Checks made payable to the account owner or joint owners that have been properly endorsed with the owner's signature and “For Mobile Deposit @ ECU Credit Union”.

What Items cannot be deposited?

• Checks payable to any person or entity other than the person or entity that owns the account that the check is being deposited into.
• Checks containing an alteration on the front of the check or item, or which you know or suspect, are fraudulent or otherwise not authorized by the owner of the account on which the check is drawn.
• Checks payable jointly, unless deposited into an account in the name of all payees.
• Checks previously converted to a substitute check.
• Checks drawn on a financial institution located outside the United States.
• Checks not payable in United States currency.
• Checks dated more than 6 months prior to the date of deposit.
• Checks with any endorsement on the back other than that specified in the Mobile Deposit agreement.
• Checks that have previously been submitted through the mobile deposit service or through a mobile deposit capture service offered at any other financial institution.
• Checks that have previously been deposited or negotiated in any way via any method at ECU Credit Union or any other financial institution.
• Foreign checks
• Savings Bonds
• Returned or re-deposited checks

 
Is electronically depositing checks safe and secure?

• Yes, the on-line transmission of checks is secured through a secure SSL encrypted browser session.
• You should protect your login and password for Mobile Deposit Capture as you would your login information for other on-line banking services. Remember for added security to log out completely when you finish using the Mobile App.

 
Are electronic versions of checks legal?

• Yes, Check 21 legislation allows credit unions to exchange images of checks for collection instead of paper. In fact, the majority of checks in the U.S. are cleared electronically today.

 
What are the deposit limits?

• Per check limit is $1,500
• Total daily deposit limit is $3,000

 
What type of endorsement is required on the back of the check? 
Each check MUST be endorsed with Your Signature and include “ For Mobile Deposit Only at ECU Credit Union”
​

How do I process a mobile deposit?

• Log into the ECU Credit Union Mobile app.
• Menu Bar - select Deposit
• Deposit screen - select Deposit a check
• New mobile deposit screen - select Deposit into Select to account (Pick which account to deposit to)
• Check amount – select Enter amount (input check amount)
• Select Take photos (take front and back photos)
• Confirm deposit screen – select Make deposit
• Hooray!!  You have completed your mobile deposit

 
How am I notified that my deposit has been made?

• In the ECU Credit Union Mobile app
• Menu Bar – select Deposit
• Deposit screen – select View mobile deposit history
• Deposit history screen – select either All, Accepted, Pending, or Failed to see status of mobile deposit

 
What is the cut-off for making a deposit and getting credit into my account?

• Mobile deposits transmitted by the member and received by the Credit Union by 3:00 p.m. Eastern Time on any business day (federal holidays and weekends are not considered a business day), shall be credited to the Member's applicable account after 6:00 p.m. on the same business day.  Two Hundred Dollars ($200) of the credit amount will be made available after 6:00 p.m. on the same business day.  The remainder will be available after a 2-business day hold as stated in Reg CC.  Upon review, longer holds may apply as deemed necessary.
• Items deposited after 3:00 pm Eastern Time will be processed the following business day.  Saturdays, Sundays and Federal Holidays are not considered business days for processing purposes.

 
How are deposits made on the weekend handled?

• Deposits made on Saturday, Sunday, or Federal Holidays are not considered business days for processing purposes, thus they are conducted on the next business weekday.

 
What do I do with the checks once I have deposited them electronically?

• We recommend you mark your check as being electronically deposited once it is submitted and keep deposited checks for up to 90 days before destroying.

 
What are other helpful tips?

• Flatten folded or crumpled checks before taking your photos.
• Keep the check within the view finder on the camera screen when capturing your photos.
• Try not to get too much of the areas surrounding the check.
• Take the photos of your check in a well-lit area.
• Place the check on solid dark background before taking the photo of it.
• Keep your phone flat and steady above the check when taking your photos.
• Hold the camera as square to the check as possible to reduce corner to corner skew.
• Make sure that the entire check image is visible and in focus before submitting your deposit.
• No shadows across the check.
• All four corners are visible.
• Check is not blurry.
• The MICR line (numbers on the bottom of your check) is readable.

 
What phone number do I call if I need assistance with mobile deposit capture?

• Contact ECU Credit Union at 800-382-2400 and a branch associate would be happy to help.​

Authored by:  Joanne Yoder
​
Are you a recent college or high school graduate? Or are you newly employed with that big ‘adult’ job? Have you thought about how much you will save, what will you splurge on buying, or what will you do with that first paycheck? As a young adult, and starting a new career, there are some financial decisions you make without thought. Sometimes you say “I’ll look into it later”, so it becomes out of sight, out of mind. You don’t really think about end of life decisions, because you are just starting to live… right! You may think “That kind of stuff is for older people to do”. In reality, you should be thinking about it!
​
It rarely seems that there is a right time to sit down and make financial plans for the future, update beneficiaries, create a Will, etc. This type of planning usually gets moved to “I’ll look at next week”.  I know, because I have done this myself. It is important however, at any age, to plan, review, and update according to life changes (getting married, having children, getting divorced etc.). No matter how old you are, planning for your wishes is important because it helps in the event something were to happen unexpectedly. With that said, beneficiaries should not be the last thing you think about!

What is a beneficiary? It is someone (or a legal entity such as a trust) that is entitled to money upon your passing. The beneficiary designation takes precedence over what is in your Will. Let me repeat that because it is very important, Beneficiary designations take precedence over what is in your Will. That means, if your ex-husband (ex-wife) is listed as the beneficiary of your $50,000 IRA and you pass away, it does not matter what your Will says, in most cases your new spouse would not be entitled to that money!
​
My family experienced a similar situation when my brother passed away. He had an insurance policy that he thought had lapsed; and he never verified or changed beneficiaries after his divorce. After his passing, instead of his children receiving the insurance distribution directly, it was given to the beneficiary designation, his ex-wife.
 
Assets are generally transferred in the following ways:

• Ownership: Certain assets that are held jointly automatically go to the surviving owner.
• Beneficiary Designation: Assets pass to person(s) or entity designated as beneficiary on certain contracts or accounts, such as life insurance policies, annuity contracts, 401(k) plans, and IRAs.
• Trust: Assets transfer according to terms of trust.
• Will: Assets that aren’t transferred by ownership, beneficiary designation, or trust will be distributed according to the terms of your Will. If you do not have a will, assets will then transfer according to the laws of your state.

 
Here are some reasons why you should name proper beneficiaries:
It costs nothing, but a few minutes of your time – Most of the time you can make beneficiary changes by logging into your account online or requesting a change of beneficiaries form. Making changes to a Will, involves signing updated documents and attorney fees.
Saves on probate cost – Costs will vary based on the amount and complexity of the estate. Attorneys will typically charge 2% - 4% of an estate to settle affairs. Listing heirs as beneficiary, is more efficient and cost effective.
Keep matters private – When a Will is in probate it becomes a matter of public record. Anyone has the ability to look at how assets were divided, how much money the deceased person had, etc.  The beneficiary designation provides privacy and allows you to divvy up assets as you deem appropriate. This can help avoid hostilities between siblings, previous spouses, or other family members.   
Quicker than probate – It is not uncommon for probate of an estate to take a year or longer depending on the complexity. This means assets can be tied up or not accessible during that time. When beneficiaries are properly designated, their portion of benefits can be accessed as soon as a week or two after death.
Ensures people get what you want after passing – Remember, regardless of what your Will says, the beneficiary form dictates how the associated asset is distributed. Which means, it is important to keep the beneficiaries current or the distribution can become very complicated if the beneficiary is someone who has passed away.

Common Mistakes to Avoid in Beneficiary Designations

• Failing to review beneficiary designations periodically
• Failing to name a contingent beneficiary
• Not Identifying a new beneficiary after the death of a primary beneficiary
• Forgetting to remove an ex-spouse after divorce and /or remarriage
• Neglecting to complete a separate beneficiary form for each plan or arrangement, and/or mistakenly assuming that a separate beneficiary can be designated for individual accounts within a plan or arrangement
• Failing to update beneficiary designations after the birth or adoption of a child
• Young, single adults naming their parents as beneficiaries, then forgetting to update the forms after they marry, or have children, and/or their parents die
• Naming the owner’s “estate” as beneficiary without guidance from an estate planning attorney
• Naming a minor (or even young adult) directly as a beneficiary and forget to select a guardian. The court will appoint a guardian for you and it may not be the person you would choose.

 
Frequently Asked Questions about Beneficiary Designations
I have a Will – isn’t that enough?  No. Regardless of what your Will provides, your retirement accounts will pass to the beneficiaries designated on each account – or perhaps according to the default provisions of your retirement plan. Time may have passed, your life circumstances may have changed, and your designated beneficiaries may no longer reflect your current wishes. If you neglect to update your beneficiary forms, your retirement money may not get distributed the way you intended.
​
Do I need contingent beneficiaries? Yes. It’s best to name a contingent beneficiary. If you haven’t and your primary beneficiary dies before you, the assets will be distributed according to the rules in your retirement plan, IRA, or 401k document upon your death.
The important take away message is to follow-up. Review beneficiary designations every few years and always review them when a life-changing event occurs, such as a marriage, divorce, birth, or death of a loved one.  Include all investments, financial accounts and insurance policies. Here are just a few types of accounts that typically have beneficiaries associated with them:

• Bank Accounts
• Retirement Accounts
• Traditional IRA & Roth IRA
• 401(k)
• Annuities
• Savings Bonds 
• Life Insurance, including Term Life, Whole Life and Employer Paid Life (also called Group Life)

 
To verify beneficiaries for your ECU Credit Union accounts, they are listed on your monthly statement. If you do not have beneficiaries listed call us at 800-382-2400 to update or add beneficiaries to your Credit Union accounts. We will be happy to help update your accounts. As a reminder to add a beneficiary to your account we will need the beneficiaries’ legal name, address, date of birth, and social security number.

​When I started out to write a blog about Vacation Loans I thought it was going to be easy.  But, as I got further into my research, I realized it wasn’t going to be the cakewalk I had originally envisioned.    There is some disagreement out there on whether or not “Vacation Loans” are a good thing or not.  One web site even went so far as to say “Any financial advisor worth their credentials would give an emphatic ‘no’ to using loans, or in other words, go into debt, to go on vacation.”   What??  I was shocked.  I’ve worked here almost 30 years and I’ve always thought they were a valuable option for our members.  But, let’s face it… it does make a little sense. 

In general, vacations should be paid for with money you already have, or that you save up until you do.   However, the more I read the more I realized that ECU Credit Union’s vacation loans were not the evil products some were trying to make them out to be.  For starters, our vacation loans come with a repayment plan and a low interest rate.  They must be paid off in one year.   So, if you compare our vacation loan to say charging the trip on your credit card, the vacation loan may cost you less in the long run because they impose discipline and payback deadlines.  

Yes, saving up for your vacation in advance and paying with money you already have is ideally the easiest and least expensive way to fund a trip.  However, under the right circumstances, it may make sense to take out a vacation loan.  Perhaps a close friend or relative is getting married or maybe a family reunion you want to attend.  The more I thought about it, the more convinced I was that an ECU Credit Union's Vacation Loan was an excellent option.  Keeping the amount you borrow low so you can pay it back easily within a year is a great alternative to adding to credit card balances.  There are a lot of loan options out there and many lenders are not always looking out for your best interest.  That’s why I’m glad we continue to offer vacation loans to our members.  Even after all my research, it’s still a product that I can stand behind.  

Authored by Filomena Iuliucci, 9 years with ECU Credit Union

Credit affects more aspects of your financial life than you may realize! The ability to buy a home, a car, get a credit card, rent an apartment, or even get a job can be affected by your Credit Score. Your Credit Score is a number that lenders use to determine whether you qualify for credit - and if so, how much interest they’ll charge you. Credit Scores are widely used in lending decisions, and knowing your score should be a vital part of your credit health. Let me share some reasons as to why you should keep up with your Credit Score.  

Your Credit Score ranges from a low 300 to a high 850. The higher your score, the more likely you will qualify for the lower interest rates. FICO gives its formula to three credit bureaus—Equifax, Experian, and TransUnion—and they apply a certain math to your credit reports. Each bureau pulls information from a slightly different network of lenders to compile its own report on you. Because of this, you actually have three different FICO scores, and they would span within this range.
 
You can get your Credit Scores from each of the three credit bureaus from myfico.com for a fee. You are also entitled to one free copy of your report; one every 12 months. Access them at AnnualCreditReport.com.  This report, however, does not provide you with a score.

FICO looks at these five factors to calculate your score:
1. Your Payment History.

• How do you handle your credit?
• Have you ever paid an account late, how often, and by how many days?

2. Your credit utilization ratio.

• How much total debt you have versus how much credit is available.

3. The length of your credit history; how long have you had your accounts?

• The longer you've had an account, the better.

4. How much new credit you have?

• Multiple requests for new credit means you're a greater risk.
• FICO looks at the number of new accounts that you've opened, as well as the number of requests.

5. Your credit mix - the variety of accounts you have.

• FICO looks at he number and "quality" of each type of account. For Instance, a credit card from a national bank carries more weight than one from a department store. Revolving accounts (such as credit cards) tend to count more than installment loans (mortgages, car loans) because they're better predicators of your debt management.

 Important elements to look at regarding that magic number:
1. Make Timely Payments - or better yet - Pay Off that Balance!

• Pay your bills on time: delinquent payments, even if only a few days late, and collections, can have a major negative impact. Most banks offer payment reminders through their online portals that can send you an alert reminding you when a payment is due.
• If you have missed payments, get current and stay current; maintain consistent, good payment patterns.
• If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor. This won't rebuild your credit score immediately, but if you can begin to manage your credit and pay on time, your score should increase over time. And seeking assistance from a credit counseling service will not hurt your Credit Score.

2. Reduce the amount of debt you owe:

• This is easier said than done, but reducing the amount that you owe is going to be a far more satisfying achievement towards improving your score. Higher debt patterns work against you. Lenders look at your “usage ratio” - how much debt you owe compared with the total amount you could borrow (a percentage of your debt to income ratio). Keep your usage ratio low, don’t max out your cards, and try not to overspend.
• Use your credit report to make a list of all of your accounts and then check/compare recent statements to determine how much you owe on each account, and what interest rate they are charging you. Develop a payment plan that puts most of your available budget towards the highest interest cards first, while maintaining minimum payments on your other accounts.
• Don't open a number of new credit cards that you don't need; stay within your limits.

You know your Social Security number, a certain PIN number, and certain passwords. But do you know the number that could cost or save you money? Knowing your Credit Score should be just as important! You are more in control, and accountable, by making it a part of our financial health. Be diligent, patient, consistent; and you could see your credit score at its best!

 For additional information on building your Credit Score CLICK HERE  

Contact ECU Credit Union at 1-800-382-2400 or www.ecucreditunion.com for information about opening account or adding additional services to your current account.

Authored by Misty Blakeway

With so many financial institutions soliciting for your business these days, why should you join a credit union? The answer is simple…….the credit union focus is to help members succeed financially!

Credit unions exist to help people, not make a profit. Our goal is to serve all of our members to the highest standard, including those of modest means - every member counts. Members remain loyal for this reason. They know their credit union will be there for them in bad times, as well as good. The same people-first philosophy causes credit unions and their employees to be there for the community.

 A credit union is a not-for-profit cooperative, which means they are owned by their members, not stockholders. A credit union’s board of directors consist of a dedicated group of volunteers. Profit cycles back to the members for better rates on deposits and loans. In other words, credit unions are an economic democracy. Each member has equal ownership and one vote -- regardless of how much money a member has on deposit. At a credit union, every customer is both a member and an owner. Banks can’t claim that exclusive benefit!

 All credit unions have membership requirements, so do your homework to find out where you are able to join and which best fits your financial needs. Many products offered are similar to a bank but tailored to fit the needs of their general membership.

 Above all, the most important credit union difference is customer service! For the past 5 years, credit unions have ranked higher than banks in this category, according to the American Customer Service Index. ECU Credit Union, for one, is always looking for solutions and ways to provide the best experience. When was the last time you were able to pick up the phone and have a conversation with a local person about your banking needs or a financial concern? Personal service is truly the top benefit over modern day financial institutions.

What are you waiting for? Jump feet first into the credit union movement and see what the hype is all about! Explore new credit union products and services that exist to help you, our members, prosper!

Contact ECU Credit Union at 1-800-382-2400 or www.ecucreditunion.com for information about opening account or adding additional services to your current account.