Going to College? You Don’t Have to Leave Us!

Are you leaving town to attend college? You might think that means you need to leave First New York FCU behind, but we’d hate to see you go.

Once you join a credit union, you’re a member for life–no matter where life takes you. So even if you’re leaving the state to go to school, you can stay with us. We’re still here to help you with all your financial needs.

And with today’s technology, staying in contact with us and using credit union services is easier than ever. Visit us at www.firstnewyork.org for more information.

We enjoy having you as a member at First New York FCU, and we’d like to keep you with us. Contact a representative to learn more about how you can remain a member even though you aren’t in town.

Debit or Credit–What to Choose and When

We’ve all done it. We’re out shopping, ready to use our debit cards, and the sales clerk asks “debit or credit?” We really don’t know what the difference is. It is a debit card, so we say “debit,” right? Wrong.

By choosing “debit” and entering a PIN (personal identification number), your transaction is treated as an ATM transaction-which quickly could put you over your free monthly number of ATM transactions. Instead, when you’re making retail purchases with your debit/ATM card, choose “credit.” You’ll bypass any potential fees-and the funds still come out of your share draft/checking account. Another good reason: Credit transactions require a signature, which helps against fraud.

So save your PIN for ATM use (or if you need to get cash back) and say “credit” when you’re at the mall, gas station, or grocery store. For more information about debit cards contact First New York FCU. We’ll explain the differences between debit and credit cards and how debit cards can work for you.

Ways to Boost Your Credit Score

Every time you apply for a credit card, mortgage, car loan, or insurance, your application is judged in part by your credit score. Lenders use your credit score to determine whether to grant credit, and at what cost. The higher the score, the more likely you are perceived to repay the credit. Consumers with scores less than 600 usually are seen as higher risk and may pay a higher interest rate or are denied credit.

Fortunately, you can take steps to boost your credit score. These tips can maximize your score and influence your credit-worthiness.

1. Be punctual. Late or missed payments, foreclosures, and bankruptcies have the greatest negative effect on your credit score.

2. Check your credit report regularly. Don’t let inaccurate information ruin your credit score. Consumers are entitled to one free credit report per year from each of the three major credit bureaus (Equifax, Experian, TransUnion), which you can get online at annualcreditreport.com. Even though the credit report is free, getting your credit score will cost extra. You can obtain your credit score at myFICO.com, or from the individual bureau’s websites, experian.com, equifax.com and transunion.com. Plus, First New York will run a credit report and score for members at no cost, at any time!

3. Keep debt in check. Try to keep your account balances below 50% of your credit limit. For instance, if your credit card has a limit of $2,000, keep the balance less than $1,000.

4. When shopping for a loan, submit your applications within a limited time. If done in a short period of time, multiple inquiries on a credit report will count as one inquiry to a potential lender looking at your report. Excess inquiries strung out over a longer period, however, could negatively affect your credit.

5. Keep accounts open. Time is one of the most significant factors that can improve your credit score. Closing old accounts—especially ones with a good payment history—shortens your credit history and lowers your score. Lenders take into account the average age of your accounts, so an older account can help balance newer credit.

6. Keep a healthy mix of credit. This includes things like a mortgage, a credit card or two, a car loan, and perhaps a retail card. First New York FCU can help you acquire the mix you need and make suggestions on how to improve your credit score.

Phone Scam Alert

Important Information Regarding a new Visa phone scam.

We have been made aware of a telephone scam that recently targeted Credit Unions and is circulating throughout the country. Targeted Credit Union members are receiving an automated message claiming that their Credit Union has suspended their VISA card and instructing them to call an 800 number to reactivate the card. When the consumer calls the number, they are prompted to dial in their account number, expiration date and PIN number. They are then instructed to press ‘1′ to reactivate the card. Duplicate cards are being created in Spain and used to withdraw cash or make purchases.

PLEASE DO NOT CALL THE PHONE NUMBER PROVIDED OR PROVIDE ANY SPECIFIC MEMBER INFORMATION TO THIS REQUEST.

America’s Credit Unions: Secure, strong

Recently the news of the IndyMac Bancorp failure has raised questions on the safety and soundness of financial institutions.  The credit union industry in general, and First New York Federal Credit Union in particular, are safe and sound places to invest money.  Rest assured that funds invested with credit unions are federally insured.

Here is an information sheet from the Credit Union Association of New York which addresses the secure, strong positions that credit unions maintain.

Credit Unions: Secure, strong

Tips for Parents of College-Bound Students

High-school students bound for college will embark on many new experiences–including financial independence. Here are some tips for parents to help kids prepare for what’s in store.

• Explain how credit works. If your son applies for a credit card at a campus table promotion, he’ll not only take home a free T-shirt, but a credit line he may not be able to afford, and may not know how to manage. A credit card is not free money; it’s instead a means of putting off paying for purchases until a later date. Accompany him to the credit union for the best rates on credit cards and consider urging him to use a debit card instead.
• Create a spending plan. Write down all college expenses such as tuition, books, room and board, toiletries, entertainment, and so forth. Determine which expenses you’ll be paying and those for which your child will be paying.
• Come to a no-bail-out agreement. If your daughter ends up charging more than she can afford, or runs out of money before the end of the month, your first reaction may be to send money and bail her out. Don’t do it. If she needs to figure out a way to get out of debt, such as working or staying home on weekends, chances are good she won’t make the same mistake twice.

For more information on how First New York can help college bound students and parents, call us at 393-1326, press ‘2′ or visit one of our branch offices.

Tip: Keep PINs Private

Personal identification numbers (PINs) are everywhere. They enable users to access automated teller machines, make purchases with their debit cards, shop from home, and even unlock their car doors. For each access, it makes sense to choose the same number–which means something to you, but not to anyone else – and more importantly – it’s easier to remember!

But, remember, that increases your vulnerability should you divulge or lose your PIN. Never carry your PIN with you or write it on your card, and don’t divulge it to anyone outside the family.

Remember, keep your personal identification number, personal!

Reduce Credit Card Debt: Pay Biweekly

Did you know that the sooner you make a payment to a credit card company, the less interest you’ll pay. And you’ll save more in interest charges by making a payment days or weeks early. Federal law requires credit card companies to process payments the day they arrive.

If you only can afford to pay the minimum each month, there’s still a way to accelerate your payoff. Stop charging on the card–and make payments every other week rather than every month. Never decrease the payment amount until you pay off the card.

For example, take a credit card with a $5,000 balance, a minimum monthly payment of $100, and an annual interest rate of 14%. By paying $100 each month, you would pay the card off in six years and four months, with a total interest cost of around $2,547.

However, by sending $50 payments biweekly, you would pay off the card almost 10 months earlier–and save $339 in interest. If you’re managing to pay the minimum payment, consider the biweekly pay-down method. You need to be organized and financially disciplined for it to work. But, it does work, and can save you money!

How to beat the high cost of fuel!

The high cost of fuel has an affect on everyone.  For some of us, we are taking vacations closer to home, not taking “joy rides” and planning our fuel usage better.  For others, we are looking at trading in our low mileage SUVs and trucks for smaller cars and hybrids that get better gas mileage.

 Here are some common sense tips that will help improve your gas mileage and stretch our dollars more!

• Don’t fill the gas tank past full–too much will just slosh or seep out
• Buy the lowest grade (octane) of gasoline your car can use–check your owner’s manual for this information
• Drive slower, within the speed limit–the faster you drive, the more gas you use
• Make one trip for all your errands and plan the most efficient route
• Keep tires properly inflated and regularly check alignment and balance
• Get regular tune-ups
• Empty the trunk–a weighted-down car uses more fuel
• Buy a fuel-efficient car

How Fireworks Work!

With the fourth of July holiday weekend upon us, many of us will be looking into the night sky and going “oh and ah” at the brightly colored lights and loud explosions. They are fireworks!

Here’s a great article from Howstuffworks.com on fireworks and what makes them work:  http://www.howstuffworks.com/fireworks.htm

Enjoy a fireworks display near you, and on behalf of First New York Federal Credit Union, I would like to wish everyone a safe and happy Fourth of July!