Before you make your next big purchase…

Before making your next big purchase make sure you consult our new library of consumer tips on the Online Tools page on your Credit Union’s website. Considering leasing a car or buying a home? Looking for an easier way to file your taxes? Wondering how much life insurance you need? If you answered “yes” to any of these questions, you’ll want to visit our online interactive tutorials on the Online Tools page. You’ll find numerous guides, coaches and hundreds of articles with valuable facts that may alter your thinking. Even if you answered “no,” you’re bound to find relevant topics that will lead you to financially sound moves. Return each week for news and fresh features!

Let us know if you are looking for particular information or an article and we will help you find it!

Protect Yourself at the ATM

Do you always observe your surroundings before you walk up to an ATM? Do you have your card in hand when you approach the machine? Is your passenger window up and door locked when you’re waiting in line at a drive-through ATM? If you think these sound like “no-brainer” precautions, you’re absolutely right, but distractions—a cell phone conversation, a looming deadline or that appointment across town—can make us forget we’re vulnerable to unwelcome and fraudulent activity.

The Global ATM Security Alliance and Fair Isaac Corp. offer some simple measures you can take to help ensure your safety when using your ATM/debit card.

• Memorize your PIN. If you must write it down, never carry it with your card. DO NOT WRITE YOUR PIN ANYWHERE ON YOUR CARD.
• Do not disclose your number to anyone, including family members and/or the police.
• Scan the ATM for anything unusual. If it looks different or appears to have any alterations or attachments to the card slot or PIN pad, use a different machine.
• If you feel the ATM is not working normally, press the Cancel key and withdraw your card and then proceed to another ATM. Never force your card into the card slot.
• Stand squarely between the ATM and anyone behind you so that others can’t see your personal identification number (PIN) or observe your transaction amount. You may wish to use the knuckle of your middle finger to key in the PIN.
• If the ATM is poorly lit or obstructed from view, visit another ATM. Consider taking a companion if you’re using the ATM after dark.
• Keep your printed transaction record so that you can compare your ATM receipts to your monthly statement.
  USING YOUR PIN IN REVERSE IS NOT A SECURITY OPTION. Do not put yourself in danger by trying to employ this tactic.

Drive-up ATMs

• Keep doors locked, windows up and the engine running when waiting in line.
• Keep enough room between your car and the car in front of you in case you have to pull away in the event of a security threat.
• If anyone follows you after you’ve completed your transaction at the ATM, proceed to a crowded, well-lit area and call the police.

Point-of-Sale (POS) Security

• Never allow anyone to see you enter your PIN number into the keypad, even if they are assisting you with the transaction.
• Always make sure the transaction is complete and you have a receipt before you leave the POS terminal.
• If you received cash back, put it away before leaving.

If you feel you have been the victim of fraud or notice any unusual activity on your account, immediately contact the Credit Union at 800.968.5626.

Credit is bad…myth or reality?

The reason many Americans end up in financial trouble is because they don’t understand debt and credit. To be more responsible with your finances, understand the reality behind many common myths:

Myth: You have to use credit in order to buy anything. Guess what? If you don’t use credit, you’ll never have debt. If you want something, save for it.

Myth: Credit is bad. Like anything else, if credit is used incorrectly, it will hurt you. Credit is good for many things, such as buying a home. You can use a credit card to make purchases — as long as you have the cash to pay for the monthly bill.

Myth: There’s always bankruptcy. When your debt is out of control, filing for bankruptcy should be your absolute last resort. It stays on your record for ten years, making it difficult to get certain loans, life insurance, or even jobs.

Myth: Paying the minimum monthly payment means you’re handling your debt well. In fact, you’re only extending your debt for an even longer time. Also you’re paying much more than the original price of your purchases. If you can’t pay more than the minimum payment, take it as a sign that you’re teetering on the financial edge.

Myth: It’s a good idea to consolidate your credit card debt into a home equity loan. Many people are under the mistaken impression that a home equity loan is a great way to make interest tax deductible. By doing so, you put your home at risk if you default on the loan.

Car Ads…Reading between the Lines

Many new car dealers advertise unusually low interest rates and other special promotions. Ads promising high trade-in allowances and free or low-cost options may help you shop, but finding the best deal requires careful comparisons.

Many factors determine whether a special offer provides genuine savings. The interest rate, for example, is only part of the car dealer’s financing package. Terms like the size of the down payment also affect the total financing cost.

Questions About Low Interest Loans

A call or visit to a dealer should help clarify details about low interest loans. Consider asking these questions:

• Will you be charged a higher price for the car to qualify for the low-rate financing? Would the price be lower if you paid cash, or supplied your own financing from your bank or credit union?
• Does the financing require a larger-than-usual down payment? Perhaps 25 or 30 percent?
• Are there limits on the length of the loan? Are you required to repay the loan in a condensed period of time, say 24 or 36 months?
• Is there a significant balloon payment, possibly several thousand dollars, due at the end of the loan?
• Do you have to buy special or extra merchandise or services such as rustproofing, an extended warranty, or a service contract to qualify for a low-interest loan?
• Is the financing available for a limited time only? Some merchants limit special deals to a few days or require that you take delivery by a certain date.
• Does the low rate apply to all cars in stock or only to certain models?
• Are you required to give the dealer the manufacturer’s rebate to qualify for financing?

Questions About Other Promotions

Other special promotions include high trade-in allowances and free or low-cost options. Some dealers promise to sell the car for a stated amount over the dealer’s invoice. Asking questions like these can help you determine whether special promotions offer genuine value.

• Does the advertised trade-in allowance apply to all cars, regardless of their condition? Are there any deductions for high mileage, dents, or rust?
• Does the larger trade-in allowance make the cost of the new car higher than it would be without the trade-in? You might be giving back the big trade-in allowance by paying more for the new car.
• Is the dealer who offers a high trade-in allowance and free or low-cost options giving you a better price on the car than another dealer who doesn’t offer promotions?
• Does the “dealer’s invoice” reflect the actual amount that the dealer pays the manufacturer? You can consult consumer or automotive publications for information about what the dealer pays.
• Does the “dealer’s invoice” include the cost of options, such as rustproofing or waterproofing, that already have been added to the car? Is one dealer charging more for these options than others?
• Does the dealer have cars in stock that have no expensive options? If not, will the dealer order one for you?
• Are the special offers available if you order a car instead of buying one off the lot?
• Can you take advantage of all special offers simultaneously?

You’re not limited to the financing options offered by a particular dealer. Before you commit to a deal, check to see what type of loan you can arrange with your bank or credit union.

Once you decide which dealer offers the car and financing you want, read the invoice and the installment contract carefully. Check to see that all the terms of the contract reflect the agreement you made with the dealer. If they don’t, get a written explanation before you sign. Careful shopping will help you decide what car, options, and financing are best for you.

Welcome to MWFCU/UMHSF’s blog!

This new feature will allow us to tell you what is going on, not only with your credit union, but also discuss the topics that interest you the most. You will be able to leave us comments on this blog. Talk to us! We’d love some feedback from you so that we can learn how to better serve you! Thank you for taking the time to visit MWFCU/UMHSF’s blog. Please check back often for future updates! We look forward to hearing from you.

Please click on these links to learn more about MidWest Financial Credit Union and University of Michigan Health System Financial.