Is Your Credit Score Affecting Your Quality of Life?

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The American dream is usually characterized as working hard from the bottom up, making a good salary, buying a house, and having time to create and enjoy your family life. But the vision doesn’t always come together so neatly – despite strong buyer demand, the inventory of affordable, available starter homes is relatively low, and to secure a mortgage, you need a strong credit score (something that not all Americans have or understand).

Even in the face of this unfamiliarity, most people realize that your credit score is the main determining factor in whether you qualify for a loan, and what rate you’ll pay on that loan. However, your credit score has the power to affect your life in far more than just one area — it can make or break your vision of the American dream on all sides.

JOBS

Though not all employers will check your credit score before hiring you, and most employers won’t rule out a candidate just because they have a bad credit score, your credit score could have an impact on how you’re seen by prospective employers. If they run a report and see that you’ve had a checkered financial history, and realize you’ll be handling financial responsibilities in the office, they may believe you’re underqualified, and move onto other candidates.

The good news is employers aren’t always allowed to view your credit report. According to Credit Karma, “The short answer is no, credit bureaus do not share your credit score with employers. Subject to restrictions in state law, employers may, however, ask to see your credit report. When your information is requested, credit bureaus will send over a variation of your credit report meant specifically for employers.”

APARTMENT RENTALS

Similarly, your credit score affects housing in more ways than solely influencing your mortgage rates and availability. Landlords will frequently check prospective tenants’ credit scores before choosing whether to rent the apartment to them. Obviously, if a tenant has a history of missing payments, or being late with payments, they’re going to be secondary options to tenants with strong financial backgrounds.

BILLS AND PAYMENTS

Your credit score could even affect how you’re expected to pay for utilities — especially when moving to a new location. When turning on utilities for the first time, a utility company may require you to leave an upfront deposit. If you have a high credit score, they may waive that deposit, but they may charge you more if your credit score is especially low. According to the FTC, “Like other creditors, utility companies ask for information like your Social Security Number so they can check your credit history — particularly your utility payment history. A good credit history makes it easier for you to get services. A poor credit history can make it more difficult.”

RELATIONSHIPS

Your credit score can even affect the quality of your relationships. It’s no surprise that money and financial issues are the biggest causes of couples’ fights (and breakups). If your partner is fiscally responsible, but you’ve had a more questionable history, it could lead to bigger arguments. For example, will you be willing to buy a house together? Will your credit score negatively impact your joint mortgage rate? Will you be paying off your debt together? Even a little money-related stress can quickly escalate into a bigger problem.

HOW TO IMPROVE YOUR CREDIT SCORE

If you’re reading all of this and feeling nervous about your own credit score, take a deep breath. Even if your credit score isn’t as strong as you’d like it to be, there’s always time to revise and improve it. Your first step is to know what your credit score is – and thankfully, you can check it for free. Once you know your credit score, you can take the following steps to improve it (and along with it, the quality of your life):

  • Understand your weak points. First, understand why your credit score is where it is. Is it because you’ve accumulated a lot of credit card debt? Is it because you missed several payments? There are many reasons here, but almost all of them can be corrected with better habits in the future.
  • Avoid new credit or debt. Don’t apply for any new loans or credit cards, this could tank your score even harder. Instead, focus on the lines of credit you already have.
  • Pay all your bills on time. This is the most important factor to focus on – from here on out, make sure you pay all your bills in full and on time. If you need to create a strict budget to do it, then do it. Without a steady history of on-time payments, you won’t be able to lower your score.
  • Start paying off your debt. Finally, work to start paying off your debt. Consider moving to a lower-cost area, taking on a second job, and cutting any unnecessary expenses. You can even call your credit card companies to negotiate for a lower rate. Once your debt totals start decreasing, you’ll feel happier and more optimistic as well.

Unfortunately, there’s no quick fix for a bad credit score. It takes years to build an initial score, and months to years to make a significant change. You’ll have to be consistent and patient if you want to succeed, but as long as you stay committed to your financial future, it can be done.

Need a little help understanding your credit score or want to sit down with a First Financial representative to help with debt management strategies? Stop into your nearest branch location, email marketingbd@firstffcu.com, or call 732-312-1500 to schedule an appointment.

Learn to manage your credit and reduce debt with our easy guide.

Article Source: Anna Johansson for NBCnews.com

Scammers Impersonating the Social Security Administration

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Your Social Security number is an important key for an identity thief. Scammers want it, and they think of all sorts of ways to trick you into giving it away.

The Federal Trade Commission has been getting reports about calls from scammers claiming to be from the Social Security Administration. They say there’s been a computer problem, and they need to confirm your Social Security number.

Others have come across spoof websites that look like the place where you would apply for a new Social Security card – but these websites are actually a setup to steal your personal information.

If you get a phone call or are directed to a website other than ssa.gov that is claiming to be associated with the Social Security Administration, don’t respond. It’s most likely a scam.

Here are some tips to deal with these government imposters:

  • Don’t give the caller your information. Never give out or confirm sensitive information – like your bank account, credit card, or Social Security Number – unless you know who you’re dealing with. If someone has contacted you, you can’t be sure who they are.
  • Don’t trust a name or number. Con artists use official-sounding names to make you trust them. To make their call seem legitimate, scammers use internet technology to spoof their area code – so although it may seem they are calling from Washington DC, they could be calling from anywhere in the world.
  • Check with the Social Security Administration. The SSA has a warning about these scams and suggests you contact them directly at 1-800-772-1213 to verify the reason for the contact and the person’s identity prior to providing any information to the caller.

If you come across one of these scams, please report it to the Social Security Administration’s Fraud Hotline at 1-800-269-0271 and then report it to the FTC.

Article Source: Ari Lazarus for the Federal Trade Commission

 

Debt and Dating: Can Poor Financial Habits Keep You in the Friend Zone?

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It’s the month of love. And dating is all about discovery. It can be fun to open up and share a few personal details with someone we’re attracted to. In turn, learning more about the other person is a great way to spark conversations that go beyond polite formalities. But while we’re more than happy to show our highlight reels, we all have those things we’d rather not talk about. You know, things like misspelled tattoos. Failed relationships. An affinity for Nickelback. High school, in general. But what about our financial habits?

Is it possible that the way you manage money could have an impact on your relationship prospects? It’s a fair question, and a recent survey of 2,000 millennials uncovered some interesting opinions about debt and its impact on a person’s dating potential.

Does debt matter? Yes. And no.

In short, significant debt is frowned upon, but according to survey responses, it’s not viewed as negatively as being a workaholic. That’s the dating game in a nutshell, isn’t it? Don’t work too little and don’t work too much. Apparently, sensible moderation is attractive. So, what do you do if you’re interested in someone but your finances aren’t as solid as you’d like?

Before you start fumbling for the right words to confess your mountain of debt, don’t get ahead of yourself. Less than 10% of people thought that this kind of information should be shared early on. More than 87% thought it best to wait until the relationship becomes exclusive or moves to the point of sharing household expenses. So, if you’ve just started seeing someone and have more debt than you’d care to admit—relax.  You’ve got time.

To share or not to share, that is the question.

Maybe all this talk about debt and dating has you wondering whether you’d be willing to share your most intimate financial details with a potential partner. The survey designers wondered the same and posed an interesting question: Would you rather tell your partner about your large debt or a pre-existing medical condition? Not surprisingly, the majority of respondents said they’d rather spill the beans about bloated borrowing. But it’s worth noting that more than 39% said they’d find it easier to divulge their most personal medical details.

If almost 40% of people would rather reveal their personal medical history instead of discussing monetary struggles with a potential partner, it’s safe to say debt-related anxiety can impact us emotionally as well as financially. If there’s a takeaway from this survey, maybe it’s the fact that debt and relationships have something in common: Neither improves when ignored.

Three tips for navigating the debt discussion

  • Understand your debt. Rather than lumping everything you owe into one negative category, it’s important to remember not all debt is bad. Home mortgages and student loans are traditionally viewed as desirable, while credit card debt and payday loans can be roadblocks to financial success. Knowing the details of your debt is essential to managing it effectively. (It can also help you sound smarter if, and when, the topic comes up on a date).
  • Eliminate bad debt ASAP. High-interest credit cards, auto loans, and title loans can throw you into a tailspin of making minimum payments that never pay down the principle balance. Whether you cut frivolous spending or pick up a side job, find ways to pay off the accounts with the highest interest rates first.
  • Get a good wingman. When it comes to your finances, there’s no shame in admitting you need help. With debt management tools ranging from credit counseling to low-interest consolidation loans, your credit union can play a pivotal role in your financial success. And judging from many of the survey responses, a solid financial foundation may improve more than just your credit rating.

Need a little help managing your debt and want to sit down with a First Financial representative to help with debt management strategies? Stop into your nearest branch location, email marketingbd@firstffcu.com, or call 732-312-1500 to schedule an appointment. We’ll help you get back on track!

Learn to manage your credit and reduce debt with our easy guide.

Article Source – Survey Data

4 Power Tips for Achieving Your Financial Goals

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Power Tip #1: Harness the Power of Loss Aversion.

Loss aversion is the principle that we humans are often motivated (or discouraged) by the threat of negative outcomes. If positive motivation isn’t working, try negative motivation. Poor financial choices don’t always have an immediate negative impact, but you can create one. For example, you could bet on your ability to follow through with the necessary steps to reach a financial goal. Losing money — especially to something you dislike or someone you rival, can be powerfully motivating.

Power Tip #2: Bring in the Power of Accountability.

Accountability to ourselves isn’t as motivating as accountability to others — whether it’s a friend, sibling or member of a group you belong to. If you don’t have a personal network, use fitness and financial apps to draw on a more public social network. It’s amazing how much motivation can spring from “competing” with strangers trying to achieve the same goals!

Power Tip #3: Take Willpower Out of the Equation.

We often think willpower (or motivation) is integral to achieving financial goals. If we fail, we must not have enough of it. Some willpower is necessary for taking the first step and gaining momentum toward our goals, but its tendency to fluctuate (much like our emotions), means we can’t count on it to drive us to completion.

With other disciplines, such as healthy eating or exercising, willpower is more of a constant battle until new habits are formed. With finances, it’s easier to eliminate willpower because you can draw on the help of technology — through automation.

Automatic savings and payments aren’t exactly set-it-and-forget-it categories, because you should still check in on your finances – but they only require one dose of willpower to get them going. Try it. You’ll be surprised how much more you can achieve by just having an automated schedule.

Power Tip #4: Focus on the Power of One Goal.

Another reason we often fail to achieve our financial goals is that they’re goals (plural), versus a goal (singular). Pick the biggest area of opportunity, the easiest one to achieve, or the one you feel most excited about — whichever strategy works best for you. Having a singular focus for the year is less stressful and daunting while allowing you to dedicate more of your resources and attention to perfecting it, rather than just barely hitting the mark.

There are different kinds of power, and they play into the success or failure of our financial goals in surprising ways.

Need help setting your financial goals? Make an appointment at your nearest branch location, email marketingbd@firstffcu.com, or call 732-312-1500.

Article Source: Jessica Sommerfield for Moneyning.com

 

More Bad Money Habits You Need to Let Go Of

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Habits happen. When it comes to money, it’s a good idea to recognize the bad ones and kick them to the curb as soon as possible. Here are a few less-than-stellar money habits that you need to let go of right away.

Not setting goals: If you don’t have savings goals, you’ll never have the savings you need. You should be packing away money for retirement and at least have an emergency fund for those unexpected bills. If you don’t know how much you need to retire, checkout a retirement calculator like this one.

Picking up every check: It’s great to buy dinner sometimes, especially when you’re out with friends and family, but don’t feel you have to pay the check every time. Even if the bill is only $40-50 bucks, if it’s a regular thing, it can really add up. Having separate checks is the best plan, and feel free to pick up the check every now and again.

I’ll have what he or she is having: If you see your friend pick up a new 60” flat screen, it can make you very envious. Remember just because your friend has some new, cool toys doesn’t mean they haven’t put themselves in debt to get it.

Paying ATM fees: When you are going somewhere and you need cash, make sure you plan ahead. You may feel like stopping at a random ATM is no big deal, but those little service fees will rob you blind over time. If you’re going somewhere that doesn’t take plastic, plan to stop at your local branch and use the free ATM that’s provided for you.

3 Ways to be Financially Responsible with Your Tax Return

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Here are some smart ways to spend your tax refund this year:

Pay down your debt. This may be the smartest choice when deciding what to do with your refund. Decreasing your debt helps alleviate the interest you’re paying, which will be a huge weight off your wallet and credit score. Debt can feel like a mountain, so use this opportunity to start digging yourself out from under it.

Put it into retirement. If you’re not steadily adding funds to your retirement account (401k, Roth IRA), you’re doing yourself a disservice. Even if you’re young and it doesn’t seem that important right now, you’ll be 65 before you know it.

Need help with retirement planning? To set up a complimentary consultation with the Investment & Retirement Center located at First Financial Federal Credit Union to discuss your savings goals, contact us at 732.312.1500, or stop in to see us!*

Build up an emergency fund. If you’re doing a good job of saving for retirement, congratulations. But you may get yourself into trouble if that’s all you’re saving. Take this opportunity to use your tax return to create an emergency fund in case things go south (you lose your job, car dies, etc).

*Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

Article Source: John Pettit for CUInsight.com