- I was probably eighteen when I got my first credit card. , Well, not exactly. You see, my mom listed me as an authorized signer on hers at the time and gave me a card, noting it was "strictly for emergencies." But it wasn't until I was 21, working my first full time job, and knowing that I needed to start building my credit, that I finally took the plunge as a solo cardholder. Here are some lessons looking back. I should've started earlier. Your…, First up: try for the traditional card on your own. , Depending on your income to expenses and how long you've had your job, you may qualify right off the bat. That's not always the case, though, and that's where co-borrowers and secured cards come in., Have a trusted co-borrower apply with you., A co-borrower is someone you can put joint on your loan or credit card and – unlike an authorized signer – both parties are responsible for paying back the loan. If you're 18 to 20, for example, discuss applying with a parent or guardian as your coborrower. As someone who doesn't have a credit score or credit history , you're unlikely to get approved for your own line of credit without someone on…, The other option is a "share secured" credit card., With a secured credit card , you agree to hold some of your own money as collateral to the institution, with the credit limit tied to your investment. So, for example, if you agree to lock $500 of your savings into what your institution calls a "hold", then you now have that as a $500 credit line. It basically gives your institution the peace of mind that you – as a new borrower – have something…
- PlayStation 2, Memory Card, and Planning for the Unexpected, The year was 2001. Toys "R" Us was still a thing. And I walked into that fluorescent-filled toy palace on a chilly November day, my mom begrudgingly in tow. I didn't even know what the word meant at the time, but my excitement was "palpable." I was brimming with it. I was beaming. Today was the day. I was going to buy my PlayStation 2. Getting there wasn't easy. Back up, though. You see,…, Insert memory card, ., "What?" I stammered. "That doesn't make sense, I have a memory card in there." I took it out and blew on it – because we all know that works – put it back in the slot, yet still. Nothing. , And that's when I realized that a PS2 used a different type of memory card than PS1., Not only that, I didn't have enough money saved to buy a new one (not counting the fact that my mom wouldn't drive me back to the store, anyway). And that, my friends, is how I realized that – despite the best planning – you always need an emergency fund. You always need something to cover you when the unexpected comes up. And that's the lesson from an 11-year old who had to leave his PS2…, Thank goodness memory cards aren't a thing anymore., -Devin M.
- Looking to clean up credit card debt? There are actually several ways to get it done – some you might not have thought of. Here are the top five suggestions from Visions Federal Credit Union's Debt Experts. CONNECT WITH A DEBT EXPERT, Personal Loan, The personal loan is your likeliest solution for debt consolidation. The goal is to combine all your loan balances (and their associated APRs) into one loan at a better rate. It not only, saves you tons of interest, , but, simplifies your payments, as well. "I had a member who was paying over $1,000 a month on credit card debt," says Kham Phonechanthasone, Visions Debt Expert and Assistant Manager of the Binghamton University and University Center Branches in New York. "I helped her consolidate them into a personal loan and was able to save her over $500 a month." "She was thrilled to be able to have extra money in her pocket and know that…, Home Equity Loan, This is not always the most obvious solution, but a solid one if you've been in your home for a while. Debt consolidation is a great way to utilize your home's equity as, like the personal loan, you can combine, save, and simplify multiple lines of credit. In addition, it's a type of secured loan, which, locks in an even better rate, . "I find my go-to is to talk to members first about our home equity loans as Visions offers great rates," says Lindsay Kennedy, Visions Debt Expert and Manager of the Muhlenberg, Pennsylvania Branch. "I think people often forget about home equities to help consolidate." "I often say that you work hard to pay for your home and to accumulate equity, so sometimes in certain situations, it's time…, Mortgage Refi, You may also leverage your home's value when you, refinance to knock down mortgage payments and free up some extra cash, . You can even do a cash out refinancing in some instances, which puts money right in your hands to clean up debt., Balance Transfer, It may seem counter-intuitive at first, but if you're prepared to keep your spending under control, consolidating multiple cards and rates to a new line of credit with a low APR can really work. There are plenty of cards out there with great rates or other incentives and a Debt Expert can help find one that improves your payment situation. For example, Visions credit cards will charge, no fees for cash advances, , which can be a great solution for moving outstanding credit card debt into your Visions account and away from other institutions that may charge higher rates and additional fees., Cash Out Auto Refi, If you don't own a home, you might also look to your vehicle to put cash on hand with an auto refinance. At Visions, you can refinance your auto loan and "cash out" based on, up to 100% of your equity, . "One thing people might not think of is you can do a cash out auto refinance," Phonechanthasone says. "If you have enough equity on a vehicle or you own the vehicle outright, you can take equity out of it to pay down other debt at a lower interest rate." Visions understands the value of having local Debt Experts across the areas the credit union serves. That's why they made it a point to place…
- , Healthcare: we need it, it's important, and it's expensive., And as I found out at age 27, with what should have been a routine procedure, it doesn't cover everything. For me, it was a little over $1,500 after insurance. Which, wouldn't you know, was a completely surprise bill. And, as you probably also know, isn't an unusual thing when it comes to the healthcare system. I'm not here to make indictments, though. I'm here to give you some tips on things…, 4. Ask about payment plans or cost reductions, The best thing I did with my unexpected healthcare bill was contact the hospital directly. As it turns out, they had an income-based financial assistance program. After providing them with a copy of my W-2, they calculated a reduction to my balance based on my income, saving me 30% of what I thought I had to spend. And, because I didn't have $1,500 laying around (kudos to you if you do), I…, 5. Ask for help when you need it, I think we can all agree that surprise bills are terrible, but leaving them out there to fester will come back to bite you. Bills sent to collections can wind up on your credit report and hurt your standing in the long run. While that can take time, don't dawdle or you'll come to regret it. If you find that you need more assistance, reach out to one of our financial coaches for help. They may be…
- Yes, You Should Probably Get a Home Inspection, Look at that – I answered your Google search right up front. And I mean it: a home inspection is a valuable part of the home buying process, even if it's not always a requirement to get a mortgage . Here's why., If these walls could talk, If you're anything like me, then you'll agree that buying a home is overwhelming. And, if you're really like me, you're also not a contractor, an architect, or a home inspector (though if you are, you probably don't need to be reading this in the first place, unless you're seeking some self-validation). That's why a home inspection is so important. A licensed inspector is trained to find the…, Remember you're putting a roof over your head, Homeownership comes with many costs, and maintenance is a big one. A home inspector will analyze different parts of the house and give you an estimate on when you may need to make repairs or replacements. While it's best practice to tag along and take notes if you can, you'll receive a detailed report of the findings once it's complete. This report will show you what you should prioritize first.…, It might bug you if you don't, Yes, this header is a pun, and I will not apologize for it. Because the fact is, that termite damage your inspector noticed can lead to costly repairs. And even little things like clearing the shrubs away from your foundation can deter pests from entering your home. , You could save money by spending it, In the grand scheme of mortgage costs, home inspections are cheap. They typically start as low as $500. That $500 can pay for itself, though, if it means you have a report stating the roof needs repairs right away. That's because in most cases, you can leverage your inspection report for discounts on your offer – or even to force the sellers to make much-needed structural repairs. Ask your real…, Know when to walk away, Finally, a home inspection is one of your last chances to back out of your purchase. Whether they find flood damage, a structural problem, or anything else, this is an opportunity to plan for your future whether you purchase your home or not. And that's important, because once you're locked into the contact and sign your paperwork, it's all on you. Still have questions? Stop by your local office…
- Whether you're 18 or 48, at some point you're likely to buy a new car – even if it's just new to you. Unfortunately, cars aren't cheap. That's why many people go for an auto loan . The issue? Auto loans are confusing, especially if you've never had a loan before. Between APR, GAP, MRC, terms, and down payments, you're basically swimming through an ocean of acronyms and words that might not…, Does the APR matter?, Yes. Yes it does. If you're not familiar with loans, your APR is how much the institution will charge you to take out a loan. And, while APR and interest rates are technically a little different, it's the interest charge and subsequent payment that you need to think about – especially when added up with the principal plus auto coverage (see "The Extra Stuff" below) and debt protection to make…, What determines my APR?, Your APR varies based on many things – your credit score being the biggest factor. The better your credit score, the lower your APR is likely to be. That's because lenders look at credit scores as a form of financial trust. With a higher credit score, they figure they're more likely to be paid back, thus the lower rate. Alright, Give Me The Term... In the lending world, "term" can mean many…
- Has something ever happened out of nowhere that made you think, "How am I supposed to pay for this?!" Savings accounts or lines of credit are potential options for a bailout if you happen to have ample funds, and in this case my credit card came in handy. But not the way you'd expect! I use my credit card as if it were a revolving door. Out go the funds, then in come the payments. Not only…, Man, I can't wait to use my rewards to travel again!, -JMS
- One Budget, Two Weddings, , Our original outline and budget for the wedding put us at $15k-$18k., We decided to elope first. We assumed it would remove pressure off the bigger event and encourage us to keep it affordable. Because we were already married. Right? And how could I say "No" to two weddings? Twice the love, twice the party, twice the bliss! But at what cost? (literally) Our elopement cost us less than $350, not counting the rings or the modest dinner that followed. It was an…
- Preparing for Baby Costs, Oh, baby., I found out in February., I came home to a scavenger hunt – clues scattered by my wife throughout the house. At the end, I discovered a drawer filled with tiny booties, a Captain America onesie, and a board book about dads and babies. And there I was. I was going to be a dad in October. Elation and excitement turned to planning and anxiety. Amidst the thoughts of, What color should the room be? and, Is it a boy or a girl…, Plan ahead (if you can), My wife and I knew we wanted to be parents, which is something I want to be clear about up front: not everyone has that luxury. To quote the great Dr. Ian Malcolm, "Life uh...finds a way." So while the considerations I'm putting forth here are great for parents who plan ahead, know that – depending on your circumstances – the advice may shift. That means establishing a budget (which can actually…, About that budget..., Perform a Google search about the average cost of having a baby and you're going to get different numbers. Like, super different. But, as an expecting parent, I figured we'd probably be looking somewhere around $5,000 (with a frequent prayer that it will be less). That's based on where I live, the insurance we have, and anecdotes from friends and families who had their own little ones with…, You're going to buy a lot of stuff. Look for discounts, First time parents need a bunch of stuff. Bottles, crib, mattresses, books, car seats, monitors, swaddles, and cute outfits for holidays so that you can laugh when she looks like a super tiny but super pudgy Santa at Christmas. Y'know – the important stuff. The first thing we did was sign up for discounts and look for sales. There are dozens of discount baby clothes options online, secondhand…, Ask your network, We had the advantage of siblings and friends who have had babies before. You may, too. Ask around or post on social media for baby items. I can almost guarantee that you'll have parents reach out almost begging you to take stuff so that they can clear space in their ever-expanding closets for new clothes. Don't have baby friends? Join a group online. Nearly every community has a local group for…, Don't discount the value of a baby shower, Our baby shower was one of the single biggest hauls of items we received. The big-ticket items, the wishlist items, and everything in between. Remember: anything that you're not spending money on is money you can save. And you're going to need to. , Plan ahead for those long-term costs, Unless you're fortunate enough to have a family support system or can afford to have a parent stay at home (that's assuming you're part of a two-parent household, which not everyone is), you're going to have to pay for childcare. And the cost? Wooboy. Just look up the average cost of daycare . Like searches for the cost of having a baby, the numbers vary. And they vary drastically based on…, The other stuff and the unexpected, There's paint, nightlights, changing tables, diapers, and a million other things. Make that wishlist early and add to it often. It'll help you reevaluate your budget as you go. Oh, and remember our dear friend, Dr. Ian Malcolm? Life will uh...find a way, so remember that your baby is going to be calling the shots at the end of the day. They may come early and there may be unexpected costs, so…
