USING CREDIT CARDS WISELY - FirstCity Credit Union · 2019. 11. 15. · USING CREDIT CARDS WISELY...
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Did you know the average American household carries $6,358 in credit card debt? Also consider this: A debt of $5,000 at a rate of 24.99% where only the minimum payment is made, can accumulate $4,823 in interest in five years. Here’s how to use your cards wisely: THE MINIMUM PAYMENT MINDSET If you use your card for purchases you can’t afford and then make only the minimum payment, you can get trapped in this mindset while your balance barely budges. Making more than the minimum payment each month will help you put a dent in that debt. CREDIT SCORES AND DEBT Having a high balance can hurt your credit score. A low credit score can make you ineligible for loans or even affect employment opportunities. SHOULD I THROW OUT MY CARDS? Keep your oldest accounts open and active to maintain a healthy credit score, but use your cards responsibly. First, be careful to avoid that minimum payment trap. Second, try to use your credit cards for non-discretionary payments. Third, if you can pay your monthly bill in full, you can avoid interest. Finally, consider switching to a lower- interest rate card. A First City credit card starts with an interest rate as low as 11.25% for excellent credit. A lower rate can save you money. For more information on this and other topics, visit BALANCE at firstcitycu.org or look for the insert with this month’s statement. USING CREDIT CARDS WISELY Build Your Emergency Fund Would you be able to pay for a financial emergency? From hospital visits to car repairs, unexpected expenses can throw a wrench in your finances. According to consumer surveys almost half of American adults are unable to cover a $400 emergency expense without selling something or borrowing money. Having money set aside can help you handle unexpected costs without skipping vital expenses. • Make Saving Easy - A great way to save money is to automate a set amount from your paycheck to go directly into a savings account. We can make it easy for you to put your savings on autopilot. • Leverage What You Have - Starting a savings plan can be tough, especially if you feel like your paycheck is spent before you get it. Take advantage of the savings that already came out of your paycheck by saving a big portion of your tax return. It could be a big help down the road when an emergency does happen. • Make a Plan - Think about the bills you have due each month and the order of their importance. Saving for an emergency fund will help you pay the critical bills like a mortgage if something unexpected happens such as the loss of a job or a medical bill. • Keep it Going - It is easy to spend money when you have it. Make sure you keep your emergency savings fund separate. You never know what life will throw your way, so be prepared with a financial safety net. Even if you start small, it’s never too late to begin saving for an emergency. It’s always a great idea to plan for the unexpected. First City is here to help you and your family prepare for that “rainy day”. MESSAGE FROM THE PRESIDENT Jim Miller, President/CEO OCT - DEC 2019 Keep older accounts open and active to maintain a healthy credit score
Transcript of USING CREDIT CARDS WISELY - FirstCity Credit Union · 2019. 11. 15. · USING CREDIT CARDS WISELY...
Did you know the average American household carries $6,358 in credit card debt? Also consider this: A debt of $5,000 at a rate of 24.99% where only the minimum payment is made, can accumulate $4,823 in interest in five years.
Here’s how to use your cards wisely:
THE MINIMUM PAYMENT MINDSETIf you use your card for purchases you can’t afford and then make only the minimum payment, you can get trapped in this mindset while your balance barely budges.
Making more than the minimum payment each month will help you put a dent in that debt.
CREDIT SCORES AND DEBTHaving a high balance can hurt your credit score. A low credit score can make you ineligible for loans or even affect employment opportunities.
SHOULD I THROW OUT MY CARDS?Keep your oldest accounts open and active to maintain a healthy credit score, but use your cards responsibly.
First, be careful to avoid that minimum payment trap. Second, try to use your credit cards for non-discretionary payments. Third, if you can pay your monthly bill in full, you can avoid interest.
Finally, consider switching to a lower-interest rate card. A First City credit card starts with an interest rate as low as 11.25% for excellent credit. A lower rate can save you money.
For more information on this and other topics, visit BALANCE at firstcitycu.org or look for the insert with this month’s statement.
APY*USING CREDIT CARDS WISELY
Build Your Emergency Fund Would you be able to pay for a financial emergency? From hospital visits to car repairs, unexpected expenses can throw a wrench in your finances. According to consumer surveys almost half of American adults are unable to cover a $400 emergency expense without selling something or borrowing money. Having money set aside can help you handle unexpected costs without skipping vital expenses.
• Make Saving Easy - A great way to save money is to automate a set amount from your paycheck to go directly into a savings account. We can make it easy for you to put your savings on autopilot.
• Leverage What You Have - Starting a savings plan can be tough, especially if you feel like your paycheck is spent before you get it. Take advantage of the savings that already came out of your paycheck by saving a big portion of your tax return. It could be a big help down the road when an emergency does happen.
• Make a Plan - Think about the bills you have due each month and the order of their importance. Saving for an emergency fund will help you pay the critical bills like a mortgage if something unexpected happens such as the loss of a job or a medical bill.
• Keep it Going - It is easy to spend money when you have it. Make sure you keep your emergency savings fund separate. You never know what life will throw your way, so be prepared with a financial safety net.
Even if you start small, it’s never too late to begin saving for an emergency. It’s always a great idea to plan for the unexpected. First City is here to help you and your family prepare for that “rainy day”.
MESSAGE FROM THE PRESIDENTJim Miller, President/CEO
OCT - DEC 2019
Keep older accounts open and active to maintain a healthy credit score
Antelope Valley Claremont LAC+USC Medical CenterLakewood Los AngelesPasadenaWest Covina
(213) 482-3477 24-Hour PhoneTeller: (800) 934-2489
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Mailing Address:P.O. Box 86008Los Angeles, CA 90086-0008
Website: www.firstcitycu.org
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WE LOVE BEING INVOLVED WITH OUR SPONSORS AND COMMUNITIES!HERE ARE SOME OF THE EVENTS WE’VE SPONSORED IN THE PAST FEW MONTHS:
HUNTINGTON HOSPITAL SITE VISITNatalia & Mandy, members of First City and Huntington Hospital employees, smile for the camera during our Business Development site visit.
IN THE
DPSS FUNMANIA 2019Department of Public Social Services employees, including Director Antonia Jiménez, show their appreciation for First City at their annual picnic. First City loves serving its DPSS members!
FRIENDS OF LAKEWOOD GOLF TOURNAMENTL.A. County Sheriff’s Deputies including Captain Sprengel and the Lakewood Station team gather around for their annual golf tournament to raise money for charity.
TO SCHEDULE A FINANCIAL LITERACY SESSION AT YOUR EMPLOYER SITE, CONTACT DIONNE ARCIGA AT 800-944-2200, EXTENSION 2510. WE HAVE IN-HOUSE EXPERTS AVAILABLE ON BUDGETING, REAL ESTATE, IDENTITY THEFT, CREDIT, AND MANY OTHER SUBJECTS.
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