Trump Credit Card

Copyright (c) 2010 Suzy Vanstrusen

So you have ordered a copy of your credit report and score and now that it’s in your hands, what should you do about it?

What are the steps you should take if you want to build up your credit and credit score? Here are some valuable tips that can help you add points to your credit score within the next few months:

Timely Payments

Many consumers tend to forget paying their credit card bills or their monthly loans exactly on their due dates. Did you know that the timeliness of your payments make up about 30% of your total credit score. Can you imagine how a few late payments or even just one late payment can lower your credit score? If you have the tendency to do so, it’s about time to make drastic changes in your payment habits.

One way to avoid delays in your payments is by setting up an automatic payment system with your bank or a credit union. This means, each month, your payment will be automatically deducted from your savings so you can be assured that all your creditors will be receiving your payment on or before your scheduled payment due. At least six months of consecutive on-time payments will significantly boost your credit score.

But what if emergencies arise or you may be experiencing unexpected financial trouble? How can you avoid incurring late payments in your credit report? In such situations, the best thing to do is contact your creditor and try to work out a repayment plan. Request that your payments not be reported as late if you can submit them within the period extended to you by your creditor. Most creditors would agree to this set-up especially if you explain the weight of your situation.

Keeping old accounts

The length of your credit history occupies a valuable percentage in your credit score. Some people that are stuck in credit card debts choose to close their old credit card accounts especially the ones with high rates. However, this is a BIG mistake. Such a move can only do more damage than good to your credit score.

Although you should stop using your high-rate credit cards, this doesn’t mean you have to cancel them especially if they have been with you for a long time. Closing out your oldest credit card accounts will be like deleting a part of your credit history. Instead of cancelling these unused cards, use them once in awhile to make a small purchase just to prevent them from automatically closing. After you’ve used that old credit card for a small purchase, pay it off right away to avoid incurring the high interest rate.

Setting your credit limit free

How much of your credit limit you use also affects your credit score. Ideally, you should not go beyond 40% of you allowable credit limit. With this in mind, be careful about using your low interest credit card in charging all your expenses as this can lead to a maximized use of your credit limit. To keep much of your credit limit free, you should pay close attention to where and how you spend your available credit.

I was reviewing our logs and noticed that someone had come to Jumbo CDs, looking for the answer to, “What is the difference between FDIC and NCUA Insured?”

Boy, did I feel silly because I didn’t actually have the answer on our site. After all, it is an important question for people investing their money into banks and credit union CDs.

And the answer is, there is really no difference as far as federal protection. Both cover your bank accounts (CDs, Savings, Checking, Money-Market) up to $250,000 through 12/31/13. If the Gov’t doesn’t extend that it will revert back to $100,000. Both cover your IRA accounts assuming they are in a bank account and not a securities account up to $250,000. That was a permanent change made in 2004. IRAs are insured separately then your regular bank accounts.

Both are federally guaranteed. The FDIC oversees and insures banks and the NCUA oversees and insures credit unions. However, the NCUA is currently in far healthier shape. Not that I believe the FDIC won’t be able to meet its obligations, you just don’t here about the NCUA having to bail out too many credit unions.

The biggest difference is credit unions overall, are in better shape then banks. We have dealt with countless bank closures the last two years. There has only been a handful of credit union closures. And the reason is the foundational difference between a credit union and a bank. At a credit union, everyone is a member and has one vote, no matter how big their deposits are. The credit union exists to extend the lowest loan rates and highest savings rates it can to its members. Credit Unions are non-profit organizations. Because of their non-profit status, they are limited in what they can invest in. Most of their investments are in boring things like CDs ( :O) ), Gov’t bonds, and treasuries. They are limited in who and what they can lend to. Both of these drastically lower the risk of having problems.

Now, I don’t want my banker friends to get mad at me. Usually, small community banks operate much like credit unions in that they put the people first. However, a bank is a for profit organization. Usually, a small group of investors has put their capital into the bank and they want a return on their money. The pressure for higher returns leads banks to make riskier decisions. And over the last two years we’ve seen the result of that.

So when it comes down to it, there is no difference in your insurance protection between FDIC and NCUA insured accounts. If either a bank or credit union fails that is federally insured, you will get your money back.  But, there may be differences between the credit union CD Rates

PENTAGON-FEDERAL-CREDIT-UNION is one of the largest credit unions in the US with 700,000 members from all over the world. The large number of members and the 72 years of experience give high credibility to the services provided. However, apart from being large and safe, this federal credit union is also convenient, as they make sure to provide a wide variety of services to suit all of their client-members.

The field of membership of PENTAGON-FEDERAL-CREDIT-UNION includes members of the US Air Force, Army, Coast Guard, Department of Homeland Security, Department of Defense and Veterans of foreign wars. New members can join from all over US, as there are branch locations in not only the Washington, D.C. area, but also in Colorado, Hawaii, Missouri, New Jersey, New York, North Carolina, and Texas. For present or prospect members living in foreign countries, but not only, 24 hours a day services by Internet or phone are available.

This federal credit union is not only one of the largest, but also one of the safest financial institutions in the US. It has around 8 billion dollars in assets, which build a guarantee to its capability to maintain capital and solvency. A large number of client-members, which have benefited from its services since 1935, can state and support the safety of their collaboration with PENTAGON-FEDERAL-CREDIT-UNION.

Besides secure, planning your financial resources with the help of such a credit union is also convenient. Each of its wide variety of services is part of an offer within the characteristic concept of non-profit institutions that credit unions are. This means that higher dividend (interest) rates on shares (deposits) and lower interest on loans are components of an offer, which exceeds competition against any of the classical banks.

Checking and savings accounts, various types of credit cards, vehicle loans, education loans, personal loans, small business loans, mortgages and investments are some of the services provided for minimal fees by PENTAGON-FEDERAL-CREDIT-UNION. The applications for any of these, as well as the membership application, are facile and their processing is rapid.

Some of the advantages of creating an account with this federal credit union include the following: increased transaction flexibility, no monthly service fee and free bill pay services. Unlimited ATM transactions can take place on any machine in the US with no fee and free 24-hour online banking. There are approximately 32000 ATM machines nationwide that you can use for your transactions, more than any other bank can guarantee.

Another aspect is that no additional fees or monthly charges are necessary. Moreover, all the money you deposit goes into your account. This means that your savings will accumulate faster into your Retirement Account or a student checking account, for example. This can guarantee you a financially secure future for yourself after retirement and all the resources your children will need during school and college years.

This nonprofit institution indirectly helps each of its client-members. However, the federal credit union also supports charitable activities and training programs to further aid the community of its members. The young, but not only, benefit from personal finance management and even more specific training in the fields of Finance and Management for those who volunteer to be members in the board of directors. Charitable events will also come to know frequent organization and wounded soldiers and their families will receive support.

A credit union offers many advantages to its members and their community. Some of the lowest interests on loans and highest dividends on deposits are a frequent practice with such an institution. The 70 years of experience and the large number of members give PENTAGON-FEDERAL-CREDIT-UNION very high credibility. They provide a wide variety of services to fit the needs and expectations of any client-member.