Good credit score helps in qualifying for loans, better deals on car insurance, getting credit cards at favorable terms and more. Many factors like payment history of loans and credit cards, amount of revolving credit used, balances in one’s bank accounts, frequency of applying for credit, types of accounts, etc. affect the credit score.
Following are some tips for improving credit scores:
- Use Online Tools To Keep A Tab On Your Credit Score: The first step towards improving your credit score is to check your status. You may use free online tools as they can help you in checking your current score and also provide insights about the factors affecting credit score. This information will help in formulating a plan for credit score improvement.
- Create A Plan: After studying your credit report thoroughly, formulate an action plan to make possible improvements. You should aim to keep your credit card balance and revolving credit low.
- Set Up Payment Reminders And Automatic Payments: Avoid late payments by setting up due date alerts. Also, you can set up automatic payments as per the schedule of your pay check.
- Maintain A Low Credit Utilization Ratio: Credit utilization ratio is calculated by adding all credit card balances and dividing the amount by the total credit limit. A low credit utilization ratio is indicative of a good credit score and implies that you are managing your credit well.
- Avoid Unnecessary Credit Accounts: It is advisable to avoid opening new credit accounts as unnecessary credit may lead to overspending & accumulated debt. This may negatively affect your credit score. You should open new credit accounts in unavoidable circumstances only. Applying for new credit may harm your credit score as it results into multiple inquiries on your credit report.
- Keep Unused Credit Cards Open: Closing credit cards increase credit utilization ratio which has a negative impact on your credit score.
- Create An Emergency Fund: Build an emergency fund to ensure that you meet your debt obligations on time even during dry financial periods. You may utilize this fund, if needed instead of applying for a credit.
Improving credit score requires diligent planning and dedication over time but eventually brings about many financial benefits & provides more opportunities to achieve bigger financial goals.
Greater Central Texas Federal Credit Union is a not-for-profit financial cooperative that operates for the common benefit of its member and offers an array of services. For more information, visit 3305 E. Elms Rd., Killeen, TX -76542 or call at (254) 690-2274.
In the age of emails, online banking, e-statements and mobile applications; the direct deposit system offers a convenient & fast mode of transferring payments. Direct deposit refers to an Automated Clearing House transaction in which payments are electronically transferred into one’s checking or savings account. The payments usually include pay checks, pensions, travel reimbursements, social security payments and more.
Following is a list of benefits that direct deposit has to offer:
- Easy To Set-Up: To activate direct deposit, inform your employer and fill out a direct deposit form. You will need your credit union account number, routing number and a voided check of the account in which you intend to receive the payment.
- Fast And Convenient: With direct deposit, you are not required to wait in lines to deposit or cash a pay check. Your money is easily deposited to your account even when you are away on a business trip or vacation.
- Good For The Environment: Direct deposit is environment-friendly as there is no paper involved.
- More Secure: Direct deposit is a safe and confidential method of receiving payments. It reduces the chance of anyone sneak-peeking into your financial information as the funds are transferred discreetly into your account. Also, it eliminates the chance of your pay check being lost or stolen.
- Digital Storage Of Financial Information: Online modes of payment like direct deposit have eliminated the need to keep a tab on your payroll history. You can easily access your financial information as it is digitally saved.
- Facilitates Savings: Direct deposit makes you better at budgeting and saving. You can split the incoming payments between your checking, saving & retirement account. This set-up encourages savings. Also, it gives you time to pause and reflect on the expenses for a better budgeting.
- Automatic Bill Payments: As you know when the payment will be directly deposited in your account, you can schedule automatic bill payments accordingly to avoid the hassle of remembering due dates.
- Saves Costs And Energy: A lot of time and expenses are saved by relying on direct deposit for making paymenividual retirement accounts which promise tax-free income on retirement. Roth Individual retirement accounts are the best option for those interested in lower taxes and more retirement savings. Thus, you save after paying your taxes. It is a great form of investment for people of all ages. In addition to the tax advantage, Roth IRA’s allow you to use the money for different purposes other than as a retirement fund without being taxed or charged for the same. You can visit a nearby credit union for more information on Roth IRA’s.
If you are wondering whether a Roth IRA is a good investment option for you, here are some reasons in favor of this investment option:
- Easy Withdrawal: The best thing about Roth IRA’s is that there are no restrictions on withdrawing money like in other retirement plans. You are free to withdraw any amount of money at any time for any purpose. This is helpful in case of emergencies when you might need quick cash.
- Tax-Free Retirement Income: You are not expected to pay any taxes on the amount saved for decades. That translates into tax-free income in retirement. Credit unions offering Roth IRAs, charge tax only at the time of making the deposit but not at the time of withdrawing the principal amount and earnings. This also protects investors from future income tax raises.
- Benefits To Your Heirs: Roth IRA’s are not only beneficial for you, but also for your heirs. The money in your account can be used by your heirs as tax-free income for the rest of their lives. However, the heirs will be subject to minimum distributions depending on their age at the time of the original account holder’s demise.
- No RMDS (Required Minimum Distributions): Roth IRA’s do not impose any restriction on making contributions after a certain age (70 ½ years). Investors can keep on adding to their Roth IRA accounts irrespective of how old they get. They are not required to take distributions and pay taxes.
- No One-Time Investment Amount Required: With Roth IRA’s there’s no pressure to invest a huge sum of money in one go. Most credit unions these days encourage members to pay steadily and comfortably by setting up automatic deposits. So you are saving without making much effort on your part.
For more information, visit Greater Central Texas Federal Credit Union at 3305 E Elms Road, Killeen, TX 76542 or call at (254) 690 – 2274.
A credit union is a financial cooperative which is created, owned and operated by its members. They pool in money in the form of shares in the cooperative and use it to provide loans and other financial services to each other.
Members of credit unions enjoy a whole lot of services, some of which are enlisted below:
1. Services For Convenience: These services are provided to members of credit unions to save their time and increase efficiency. Most services are either completely free for the members or require a nominal fee. They include:
- Online access
- Direct deposits which make it convenient for members to receive their paychecks.
- Notary service
- Master Card cash advance
- Wire transfer
- Bill pay
- ATM
- ACH Origination
- MasterCard Gift Cards
- Checking accounts which facilitate free and unlimited check writing.
- A Golden Apple Checking account for members above the age of 55 years. No minimum daily balance is required and members are not charged any fee for having money that falls below the minimum balance required.
- Payroll deduction
2. Services Pertaining To Savings And Investments: The goal of a Credit Union is to help its members achieve their financial goals in the easiest and most cost-efficient ways. For this, credit unions help members save for retirement, college education of children, car etc. The following is a list of some savings and investment options that members of a credit union can avail:
- Regular Share Savings Accounts: These require a nominal amount to start the account. Members are offered competitive dividend rates. The dividends are figured on a day-to-day basis and paid quarterly.
- Share Certificates Of Deposits: The minimum amount of deposits required vary here. There are a variety of terms available for example minimum $1000 deposits and $6 month-$36 month terms. The Annual Percentage Yields are quoted on a weekly basis and interest is compounded quarterly.
- IRAs: These comprise of Variable Rate Traditional and Roth IRAs. The Individual Retirement Accounts have great tax advantages. Roth IRAs help members make tax-free withdrawals on retirement.
- Club Accounts: These consist of Christmas club and vacation Club accounts.
3.Lending Services: Credit unions offer various lending services to members to help them possess whatever they dream of, be it a new vehicle, a vacation to an exotic locale or even purchasing a dream home. They provide loans for New and Pre-Owned Vehicles at very competitive rates. Members are also assisted in the pre-approval on vehicle loans.
For more information, visit Greater Central Texas Federal Credit Union at 3305 E Elms Road, Killeen, TX 76542. You can also call at (254) 690 – 2274.