Tag Archives: credit card

5 Tips for Getting your Finances Vacation-Ready

Learn how managing your money this summer can make travel season even easier

Presented by Member One Federal Credit Union

Planning for summer travel means choosing a location, booking your stay, and counting down until vacation time. It also means effectively managing and protecting your money so your anticipated getaway doesn’t turn into an unexpected staycation. Follow these simple tips for keeping your financial life in order before, during, and after vacation. 

Notify your financial institution before you hit the road. Nothing could ruin a vacation faster than a lack of funds due to a limited cash supply and/or a frozen credit or debit card because of suspicious-looking account activity. Letting your financial institution know that you’ll be traveling helps keep your accounts safe and avoids interruptions in your credit or debit card services, especially if you’ll be out of the country. Many financial institutions offer a simple online form that you can complete ahead of your travel.

Record card information and other important documents. Before you leave, record card numbers and customer service contact information, your passport, and insurance cards. Take photos of each item or write the information down on paper and keep it in a safe location, like a hotel safe. You can also store the information on your computer or email it to yourself. As long as you can locate an Internet connection, you’ll have quick access to this information in case you need to report that it’s been stolen.

Pay for larger purchases with cards. A credit card in particular offers the most security because, unlike a debit card, it’s not linked directly to your bank account—so there’s no risk of fraudsters gaining direct access to your money. Plus, purchases made with a credit or debit card might be replaced by the card company if the item is stolen. 

Don’t carry all your money at once. One tactic to keep cash safe is to split it up. Keep a certain amount in your wallet and another amount stashed away for later. Overall, the best approach is to carry a combination—a credit card for the majority of purchases, another card as a backup, and cash. While cash can be easily stolen, it’s a good idea to keep a small amount on hand in case you encounter a merchant or service that only accepts cash. 

Review your bank and credit card statements. Upon returning from your trip, look at your bank and credit card statements to check the accuracy of transactions. Get a receipt for every transaction made while on vacation and compare this to the total charged to your account. Receipts are also helpful to have on hand in case you have to dispute a charge with a vendor. 

Join Member One here each month for more money-saving tips and financial advice! Be sure to visit their website, www.memberonefcu.com, for more info on their products and services. Member One Federal Credit Union is federally insured by the National Credit Union Administration.

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Four Reasons to Buddy Up with a Credit Card

Combined with responsible spending, these tips could help improve your financial wellness.
Presented by Member One Federal Credit Union

High-interest rates, nasty fees, or the inability to pay back debt—all can leave you feeling glum when it comes to credit cards. Cheer up! Credit cards don’t have to be your worst financial enemy. If you educate yourself, you’ll discover how befriending your credit card, while spending responsibly, could actually benefit your overall financial health. 

Build and/or improve your credit. Are you planning to get a loan for a car or a home? That loan will depend on your credit score. By using a credit card and making monthly payments (or better yet, paying off the entire balance each month), you’re helping to establish good credit. You’ll also want to consider your credit utilization ratio—the amount you owe compared to your credit limit. Keeping this ratio low, usually below 10 percent, will make you more appealing to lenders.

Maximize the value of your dollar. If you use your credit card wisely, rewards can be a good way to maximize the value of every dollar you spend by earning cash back, points, or miles that you can later redeem. Why not benefit from purchases you’re already making? Just be cautious—don’t charge more to your credit card just to earn a certain reward, such as an airfare ticket or hotel stay. This could lead to significant debt if it gets out of control. One way to keep track of spending is to use your credit card for specific things like groceries and gas.

Keep your budget in check. Credit cards can be a great way to consolidate your debt. You can save yourself some money over time by rolling all of your debt onto a single credit card; however, make sure the card you’re putting debt onto has a lower interest rate than your other cards. This could make your life simpler by paying one bill each month instead of several, and the lower interest rate could help you save money.

Protect your money. With credit and debit card fraud on the rise, using a credit card as opposed to a debit card could help protect you and your funds. Debit cards are linked to your checking account, so fraudsters could drain your account quickly if your card is compromised. With credit cards, you have the advantage of fraud protection. Review your credit card provider’s fraud protection policy to learn more. Another great feature of credit cards is purchase alerts that notify you when your card is used. 

Credit cards don’t have to be a foe. With a little willpower and a bit of know-how, they can help you achieve financial ease and security. 

Join Member One here each month for more money-saving tips and financial advice! Be sure to visit their website, www.memberonefcu.com, for more info on their products and services. Member One Federal Credit Union is federally insured by the National Credit Union Administration.

Warm Up to Responsible Spending

With warm, sunny days upon us, it’s time to plan for more than just your tan: summer spending. Vacations, airline tickets, dining out, and entertainment—it adds up. If you haven’t budgeted for these expenses in advance, a quick swipe of your credit card takes care of it. But if responsible credit card use isn’t your strength (or you just need a refresher), these tips could help curb the temptation to overspend this summer.

Be selective. There are several factors to look at when picking a credit card. First, you’ll want to see what your limit is. If you don’t think you can handle the freedom of a credit card, start with one that has a lower limit, like $1,000. Additionally, look at the credit card’s annual percentage rate or APR. That interest will add up if you’re not planning on paying off the total each month, so shop around for a low APR. Finally, look out for cards that charge annual fees just for keeping them open.

Monitor your balance. You should keep credit card payments to 10 percent of your monthly take-home income. For example, if your monthly income is $2,000, your monthly credit card payment should not be more than $200. This doesn’t mean your balance should not exceed $200, but make sure your minimum payment is no more than that. Keep in mind, however, that paying off the entire balance each month is in your best interest financially.

Know the benefits. By making purchases with your credit card and paying the balance off each month, you’re proving to lenders that you’re a responsible, creditworthy consumer. It boosts your credit score and will help you in the future if you ever want to get a loan—or another credit card.

Stick to a budget. It’s important to set parameters for yourself when using a credit card. One simple way to do this is to use the credit card for one specific purpose, like gas or groceries, so it’s easier to keep your spending in check. Another way is to get a card with a low limit. This forces you to keep your spending under a certain amount.

Smart credit card use doesn’t have to be a mystery or limit your fun this summer. Follow these simple tips and your poolside lounge session (while possibly chasing the kids) will be that much more relaxing.

Presented by Member One Federal Credit Union

The Art of Avoiding the Scam

As technology evolves to secure our identities, so has scammers’ creativity and resourcefulness to steal it. While we may think we’re savvy enough to avoid becoming a victim of identity theft and fraud, the reality is that we’re all susceptible to the threat. Secure yourself with these helpful tips.

Don’t give out personal information unless you’ve initiated contact. Scammers will contact you by phone, mail, and even email requesting personal information. Never give out that information unless you’ve initiated contact or know exactly whom you’re dealing with.

Avoid logging on to personal accounts on public computers. This can make your information accessible to the next person who uses it. Additionally, accessing your checking account via public Wi-Fi puts your information at risk. Only use your personal computer on a private, trusted Wi-Fi signal to access any information that people could use to do you harm.

Create strong passwords. Make it something challenging for others to guess by interchanging E with 3, switching between upper and lowercase, and adding special characters. For example, if you wanted to make your password “animal”, a better alternative might be @N!mA1. That’s much harder to guess and still easy to remember.

Check your credit report annually to look for any discrepancies. The three major credit reporting agencies—Equifax, Experian, and TransUnion—are required by law to provide you with a free credit report every 12 months. To request a free copy, visit www.AnnualCreditReport.com or call toll-free 1-877-322-8228. Be cautious of websites that advertise a “free” credit report. They often require you to sign up for a monthly subscription fee in order to receive your report.

Secure your debit and credit cards. You can sign up for digital wallets, which help add a layer of security to your debit and credit cards by encrypting the card information. You can also sign up for purchase alerts where you’re notified via phone and/or email if a certain parameter, such as a dollar amount on a transaction, is hit. It’s also a good idea to let your financial institution know if you’ll be traveling to prevent your card from becoming locked due to unfamiliar transactions.

Being proactive and staying on top of your credit and finances goes a long way toward protecting yourself from scammers; however, if you find you’re already a victim, visit https://www.ready.gov/cyber-attack to learn what your next steps should be.

 

Article provided by Member One