Author Archives: Chief Marketing Officer Jessica

5 Credit Assumptions You’ve Got All Wrong

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Credit Inscription on Red Billboard.Let’s face it – when it comes to credit and credit scoring, there’s a lot of misinformation out there. As a result, many people make assumptions about their credit that are incorrect. Here are 5 common examples of false credit assumptions, and the truth behind each one.

1. Paying a late fee means you won’t get reported to the credit bureaus.

If you slip up and pay a bill late, getting hit with a late fee probably seems like punishment enough. After all, forking over an extra $25-$35 for your forgetfulness feels like a sufficient slap on the wrist.

But if your payment is more than 30 days overdue, you could expect a negative mark to land on your credit reports, regardless of whether or not you’ve coughed up a late fee. This is a good reason to prioritize paying on time – if you don’t, it could be costly in a number of ways.

2. Your credit utilization ratio is 0% if you pay your balance in full each month.

Paying off your credit card in full each month is a good habit to get into. But as you’re patting yourself on the back for avoiding interest charges, don’t forget to remain diligent about keeping track of your credit utilization ratio.

Here’s why: Your credit card issuer could send a balance report to the credit bureaus at any time during the month – not necessarily right after you’ve paid your bill. Consequently, keeping your balance below 30% of your available credit on all your cards throughout the month is key to maintaining a solid score.

3. All of your monthly bill payments are being reported to the credit bureaus.

Personal finance experts commonly recommend that we pay all of our bills on time. This is certainly important for avoiding late fees (see above), but it causes many people to assume that all of their bill payments are being reported to the credit bureaus.

This usually isn’t the case. Rent and utility payments are typically not reported unless you become seriously delinquent. You still should always pay on time, but these payments generally won’t give your score a boost.

4. Avoiding credit cards will help your credit score.

In an effort to avoid getting into debt, some people choose to forfeit credit cards altogether. While it’s true that maxing out a card will do damage to your credit score, avoiding plastic entirely usually isn’t a good idea, either.

Getting a credit card as soon as you can and using it responsibly (which means paying your bill on time and in full every month), is one of the easiest ways to start establishing a solid credit profile. The longer you go without establishing credit, the harder it will be to do so.

The takeaway? Using a credit card to build your credit doesn’t have to result in debt if you make a budget and track your spending carefully. Usually, the benefits of doing so outweigh the risks.

5. A bankruptcy will affect your credit for the rest of your life.

It’s true: Declaring personal bankruptcy will have a serious, negative impact on your credit. But don’t let Internet rumors or sensational media reports warp your thinking – a bankruptcy won’t actually trash your credit for life.

In most cases, a bankruptcy will stay on your credit reports for 10 years, and the effect of this event on your credit score will lessen over time. This is not to say that you should treat bankruptcy lightly, but it’s important to know that no negative mark has to affect your credit forever. By letting some time pass and cleaning up your credit habits, there’s always a way to bounce back.

5 Ways to Whip Your Budget Into Shape for the Holidays

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Безымянный-2Holiday shopping is officially in full swing – but that certainly doesn’t mean you need to go broke over it. Here are just a few financial tips to whip your budget into shape for the holidays without sacrificing gift giving or your other financial goals.

Reflect on last year. If last year’s shopping season was a budget-busting disaster, then now is the time to learn from your mistakes. Take a look at your holiday bills from a year ago and think about whether your financial situation has improved or worsened since then. Be honest with yourself. Are you really up for a repeat spending performance this year? If not, start thinking about how much you can realistically afford to spend, and make sure it’s reflected in your new holiday budget.

Set a dollar amount. And stick to it! While holiday spending often feels essential, it’s easy to get swept away in the shopping frenzy and end up spending more than you can afford. So before you start shopping, use this opportunity to develop a realistic budget where you designate a specific dollar amount for each item or person on your list. Easily create, manage, and stick to your budget using a free online personal finance management tool that can also help you manage your money on the go.

Track receipts. You’ll need them for returns, price adjustments, and to compare against your credit card statement. Knowing how much you spent will keep you honest and help you plan better for future holiday shopping too. Tally the receipts from all holiday expenses, including gifts, postage, meals, entertainment, and decorations. Assess where you’ve spent and once you’ve completed your shopping list, stop shopping!  More mall or web time can amount to more spending.

Limit your use of plastic. Unless you know you’re good about paying off your credit card balances in full each and every month, leave the plastic at home. Only bring cash you’ve set aside for holiday shopping to avoid temptations for unnecessary purchases. If you must use credit this year and know you won’t be able to pay everything off right away, try this approach: Don’t rely solely on credit; make a plan in which you pay your purchases off completely within two to three months; and limit your credit card use to the card in your wallet with the lowest interest rate.

Did you know First Financial has a lower rate VISA Platinum Cash Plus Credit Card, great rewards, and no annual fee? Apply today!*

No emotional purchases. Let’s face it, if you’re stressed out, you might make some unnecessary purchases. Take the emotions out of your holiday shopping, and stick to your original holiday budget. Having your budget in hand and a game plan for who you are buying for and what you want to buy, can help make the daunting task of shopping a bit more manageable. It’s also worth doing a little online research and comparison shopping before leaving the house, so you don’t get caught up on the hype of the holiday sales.

So why not take a different approach this year? By following some of these tips ahead of time you’ll be able to balance your gift giving and still avoid that holiday debt hangover.

To save for holiday shopping next year, check out First Financial’s Holiday Savings Club Account – don’t put yourself into debt over holiday spending, save ahead and come out on top (and not in debt)!**

  • Open at any time
  • No minimum balance requirements
  • Dividends are posted annually on balances of $100 or more
  • Accounts automatically renew each year
  • Deposits can be made in person, via mail, payroll deductions, or direct deposit
  • Holiday Club funds are deposited into a First Financial Checking or Base Savings Account

*APR varies up to 18% for purchases, when you open your account based on your credit worthiness. The APR is 18% APR for balance transfers and cash advances. APRs 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 $10 or 3% of the total cash advance amount—whichever is greater (no maximum), Balance transfer fee of $10 or 3% of the balance—whichever is greater (no maximum), 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, 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. All personal memberships are part of the Rewards First program and a $5 per month non-participation fee is charged to the base savings account for memberships not meeting the minimum requirements of the Bronze Tier. Click here to view full Rewards First program details, and here to view the Tier Level Comparison Chart. Accounts for children age 13 and under are excluded from this program.

Article Source:

Holly Perez of Money.usnews.com, http://money.usnews.com/money/blogs/my-money/2014/11/20/5-ways-to-whip-your-budget-into-shape-for-the-holidays

8 Things You Should Do With Your Money Before the New Year

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Checkbox 3DThe last thing we want to do right now while preparing for the upcoming holidays, is probably think about money. That’s what New Year’s resolutions are for, right? While it’s tempting to put off your finances until the New Year, you might miss some critical financial deadlines or lose the opportunity to save extra money. An end-of-year financial checklist gives you the opportunity to make changes and save before the clock strikes midnight on December 31st.

Here is a year-end financial planning checklist. Use these last few weeks to get your finances organized and under control — a great way to close out the year.

1. Look over your spending.

Ideally, you’ve been tracking your spending all year. What were your spending patterns? Did you go over or under in a certain category? Take a look at what you actually spent vs. what you had budgeted for. Do you need to change your expectations? Review your financial goals from last year and consider whether they will work for you in the coming year and make the necessary adjustments. If you paid off a loan, see if you can redirect that money into a paying off another debt or adding to a savings or retirement account. Don’t let the money get eaten up by miscellaneous expenses. If you don’t have a budget, start one now. Mint.com, Level and Check are all good free budgeting tools with features to help you create a budget from scratch, track your spending, and set financial goals.

2. Order your free credit report.

You’re entitled to one free yearly credit report from each of the three major credit reporting bureaus: Equifax, Experian, and TransUnion. Get a report now so you know where you stand before heading into the new year. Look over your report and check for errors or negative information. If your credit history could use some improvement, make this the year you get back on track.

3. Get your credit cards in check.

That means checking your balances, rates, and cash back or other rewards. Make a large payment if you are carrying debt and have extra money to do so. If you can’t pay down a chunk of the debt you accumulated this year, create a debt repayment plan that will get it down next year.

4. Make an extra mortgage payment.

Making just one extra mortgage payment each year can cut your loan down by years, saving you possibly thousands in interest. Also, making an extra mortgage payment means you may be able to claim an extra month of mortgage interest deductions this year. If you can’t afford an extra payment, try to make January’s payment before the first of the month. If the payment gets credited before January 1, it may still be tax-break eligible.

5. Review your insurance plans.

Look over your health, life, homeowner’s/renter’s, and car insurance plans. Do you need to adjust your coverage, premiums, or add any dependents? Do you need to purchase new coverage, like life insurance or disability? Did you get married, have a baby, or buy a house? Do you have any changes coming in the new year that you need to plan for? Those life events all trigger insurance changes.

PS: If you answered yes to any of those questions, you might need to make changes to your W-2, too.

6. Automate everything.

It’s time to finally automate your bills and savings. The more you can automate, the easier your finances will be. Automating helps you pay your bills on time and maintain a regular savings plan. This is also a good time to cancel any automatic subscriptions you aren’t using: video and music streaming, magazines, premium subscriptions, etc.

7. Make a tax-deductible charitable contribution.

If you are going to itemize deductions on your tax return, consider making a charitable contribution to a cause you believe in. The donation must be made to a qualifying organization and the tax benefit only saves you a fraction of what you donate, but you’ll be supporting a good cause to end the year.

8. Use your Flexible Savings Account.

If you have a Flexible Spending Account for healthcare or other qualifying expenses, now is the time to submit any outstanding claims. This is also the perfect time to make any year-end doctor appointments.

If you get your finances in order at the end of the year, it can only help you get more organized for the coming one!

Don’t forget to stop in to have your annual financial checkup before the year ends, or to kick off the beginning of the new year! Here at First Financial, we encourage our members to come in at least once a year to sit down with a representative at any one of our branches to make sure you are currently placed in the correct Rewards First tier for you, and also that you are receiving the best value, products and services based on your financial situation. Give us a call at 732.312.1500 or stop in to see us today!

How to Avoid Gift Card Fraud This Holiday Season

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gift cardGift cards will be the most requested gift this holiday season for the eighth consecutive year, the National Retail Federation reports. Unfortunately, this also creates an opportunity for fraudsters who want a piece of an industry worth hundreds of billions of dollars per year.

Just ask James Bregenzer, 32, of Chicago, who purchased a $500 airline gift card as a Christmas gift a few years ago for his mother – who was planning a trip to Disney World. After he brought the gift card home from the grocery store where he purchased it, he noticed the PIN area on the back of the card was scratched off, so he called the airline. “I asked if there was any way they could exchange my gift card for a new one, use it to purchase a new one or otherwise protect my purchase with the potentially compromised PIN,” he said.

The airline said there was nothing it could do for him and suggested he use the gift card immediately while it still had its $500 value, but his mother didn’t know her travel dates yet, and he wanted to save the gift for Christmas. Sure enough, when she tried using the card just a week later, it had a zero balance.

Watch Out When Buying or Redeeming

Gift card fraud can happen when a gift card is purchased or redeemed, according to Pete Kledaras, chief risk officer at CashStar, a gift card platform that works with hundreds of major retail brands. Thieves can purchase a physical or digital gift card using a stolen credit card or simply steal the gift card number and PIN and leave the physical gift card. In the latter case, thieves will typically use the balance themselves. “Once cards are stolen, there are any number of ways that thieves can turn that into money for themselves,” Kledaras says. “They can re-sell them, or they can go into the store and purchase physical goods that they can sell.”

Another example of gift card fraud is when a thief tries to return stolen merchandise, and the retailer issues a gift card as a refund. “The criminal is getting $75 cash back from an item that they never purchased in the first place,” says National Retail Federation spokeswoman Kathy Grannis. Then the schemer might turn around and sell that gift card for cash.

To make sure you don’t become a victim of gift card fraud this season, follow these tips:

For the Giver

  • Only buy from trusted sources. Gift card resale markets offer gift cards for less than the face value of the card, but not all of them guarantee the stated value. For example, if the original purchaser still has the gift card and PIN, he or she may be able to use the gift card online even after selling it. Or, if the retailer discovers the gift card was purchased using a stolen credit card, it can cancel the gift card. To avoid these potential issues, Kledaras recommends buying directly from the retailer issuing the gift card. “If you want to buy a Best Buy gift card, it’s best to buy it from Best Buy,” he says.
  • Watch for signs of tampering. In the past, Grannis says thieves would walk into stores and write down the numbers of the gift cards on display. “Since that was first discovered, large retailers have taken steps to remove any opportunity for criminals,” Grannis states. If a card is not in plastic casing, make sure the PIN hasn’t been scratched off. Digital gift cards are also becoming increasingly popular and don’t have potential for physical tampering.

For the Recipient

  • Register your gift card. Some retailers, including Crate and Barrel and Starbucks, allow gift card holders to register their gift cards and protect the balance in case the card is ever lost or stolen. Not all merchants have this option, but if yours does, it’s a good idea to register the card just in case.
  • Treat gift cards like cash. Many states prohibit gift cards with expiration dates, but it’s still a good idea for the recipient to use the card sooner rather than later. This helps not only to prevent fraud, but also to avoid losing or forgetting the gift card. “It’s like having cash sitting on a table,” Kledaras says, “and you want to use it before something happens to it.” In fact, advisory company CEB estimates that over a billion dollars in gift cards were unredeemed in 2013. So it’s better to get the value out of the gift card now than later, when the retailer may be out of business or you misplace the gift card.

8 Ways to Protect Your Identity While Shopping Online

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Concept of mobile shoppingAs we move into the most frenzied shopping season of the year, scam artists will be on the prowl for vulnerable shoppers. To avoid becoming a victim, consider taking steps now to keep your financial accounts and personal information safe.

1. Skip attachments and hyperlinks. Even attachments from people you know can be nefarious, since those acquaintances could be infected with a computer virus. If the email contains unusual or scant wording, don’t open the attachment. The same logic applies to hyperlinks in emails (or requests for information received over text message). First hover over the link to make sure it’s going to direct you to a valid address.

2. Don’t make purchases over coffee shop lattes. Any public Wi-Fi connection, such as those offered at coffee shops or libraries, carry extra risks, since they aren’t private. Try to avoid shopping online or engaging in any financial transactions, like logging into your bank account, from such hot spots.

3. Protect your smartphone. Web browsers and retailer apps on mobile devices make it easy to shop on the go, but doing so can also expose shoppers to extra risks since many phones don’t have the same kind of data encryption that’s often installed on computers. Even taking a relatively simple step, like enabling the password lock feature on your phone, will make it harder for a thief to access private data stored on the phone in case it’s lost or stolen. The computer security company McAfee also warns against downloading apps that might steal personal information.

4. Don’t trust your “friends.” Hackers target social media, including Facebook and Twitter, because they know it’s easier to get people to click on a link that appears to be recommended from a friend. McAfee has identified dozens of examples, including free dinner offers at Cheesecake Factory and fake mystery shopper invitations. Offers that sound too good to be true, such as free iPads or free iPhones, are also a common lure. The company cautions against clicking on fake alerts from friends, who may have been hacked themselves, and avoiding shortened links on Twitter that claim to offer deals.

5. Open e-cards with caution. They can be cute, but they can also be malicious. McAfee warns that some e-cards download viruses onto your computer when you download them. To avoid that outcome, the company suggests only opening e-cards from domain names that you recognize.

6. Upgrade your passwords. The holiday season can serve as a good reminder to give your passwords a makeover; security experts recommend changing them regularly as a precaution against hackers. Avoid common and simple words, use long combinations of words that also incorporate numbers or symbols, and never use duplicate passwords for multiple accounts. Sites that offer two-step authentication, such as Twitter and Gmail, can also add another layer of protection.

7. Check up on an e-retailer before making purchases. Some fly-by-night operations take advantage of the uptick in shopping around the holiday season to collect cash without ever mailing out the goods in return, warns the Better Business Bureau. The same applies to in-person exchanges on Craigslist or other online sites. To protect yourself, the bureau recommends never wiring money or paying in advance, and bringing a friend to any in-person exchanges.

8. Review your statements. The first sign of identity theft is often an unfamiliar charge on a credit card or bank statement; reviewing those statements carefully and contacting your financial institution or card provider with any concerns can prevent a theft from expanding. Credit cards usually come with some measure of automatic protection, as long as you report the scam relatively quickly.

Following these tips might leave you feeling overly cynical about the world, but the real downer would be dealing with a stolen identity just as the holiday season is heating up.

Article Source: Kimberly Palmer for US News – Money, Http://money.usnews.com/money/personal-finance/articles/2014/09/16/8-ways-to-protect-your-identity-while-online-shopping

 

Steps to Protect Against Credit Card Fraud

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Secure purchasesIn light of recent retailer data breaches and with credit and debit card fraud becoming more frequent, be sure to read and follow these 8 steps to protect yourself and your identity from being stolen.

1. Be sure to get a new replacement credit or debit card if yours was compromised. If you suspect fraudulent transactions on your card and your financial institution hasn’t contacted you or provided you with a replacement card – be sure to call and request one.

2. Check your bank account and credit card activity online to see whether your card was used at any retailer that was recently hacked. Don’t wait for your print statement to come in the mail; check the latest account activity digitally with online access to your account information or by using a mobile banking app. Also watch out for changes to your debit card PIN.

3. Be alert for post-breach phishing attempts. Hackers don’t always get everything they need to break into your accounts, so they will typically send you emails or even call on the phone and pose as your bank or card issuer to try to trick you into giving up the missing pieces, including mother’s maiden name, account username and password, date of birth, and Social Security Number. Do not give this information out – your bank will never call, text, or email you for the information you already provided when you opened your account.

4. Lock down your credit report with a security freeze, which essentially shuts off access to your credit history by new would-be lenders. If a hacker applies for a loan in your name, the creditor is less likely to approve it if he or she can’t see your credit file. Freezes are typically free for victims of identity theft.

5. Get as many free credit reports as you can per year so you can regularly monitor them and keep an eye out for fraudulent new accounts. You can get three free credit reports (one from each credit bureau) from annualcreditreport.com.

You’re also entitled to a free credit report from each bureau after you file a 90-day fraud alert, which you should do every 90 days if you’ve been a victim of a data breach, or have a good-faith suspicion that you’re about to become a victim of identity fraud.

6. Change your passwords regularly on your various financial accounts and use strong passwords to thwart hackers and protect yourself online.

7. Don’t panic, but take a breach threat seriously, because this problem is now a fact of life until the big payment card brands, banks, and retailers improve the security of payment processing systems in the U.S.