Mobile and online banking has made handling your finances more convenient than ever. You can check your account balance while sitting in line at the grocery store, send a payment before you even get up from the table, and transfer money across accounts during the opening credits of your favorite show.

What’s not convenient is opening your banking app and seeing a message that your account was hacked. You can take some simple yet effective steps to protect your bank account from hackers and fraud, such as using strong passwords, two-factor authentication, and avoiding phishing scams. Here, we’ll delve into eight practical tips on how to protect your bank account from hackers and ensure that your hard-earned money is safeguarded.

1. Regularly Monitor Your Bank Account

Regularly monitoring your bank account is a critical first step in defending against fraud. With online banking, it’s easy to check your transaction history and promptly identify and report any suspicious activity to your bank. Look out for small, unauthorized transactions, as fraudsters often make minor withdrawals or purchases first to test the waters.

2. Use Strong and Unique Passwords

Using strong and unique passwords is essential to protect bank accounts from hackers. Using uppercase and lowercase letters, numbers, and special characters can significantly enhance the security of your online banking account. Avoid using easily guessable information like your birth date, name, or common words. Also, remember to change your password periodically.

3. Enable Two-Factor Authentication (2FA)

Two-factor authentication may feel inconvenient, but it adds an extra layer of security to your account. If you need help setting up two-factor authentication on your accounts, reach out to a member specialist or search for an FAQ on the service’s website. Most banks offer this service, and it’s a crucial feature for bank account fraud protection.

4. Be Careful with Emails and Phishing Scams

Phishing is a common technique that fraudsters use to trick you into providing your banking details. Be wary of emails that appear to be from your bank but ask for sensitive information. Banks will never request your password or PIN through an email. Also, avoid clicking on links in these suspicious emails, as they can lead you to fraudulent websites.

5. Use Secure and Updated Devices

Ensure that your computer, mobile device, and applications are up-to-date. Regularly update your mobile apps, browser software, and computer operating system to protect against the latest threats. Installing a reliable security software solution to guard against malware and other potential threats is also advisable.

6. Avoid Public Wi-Fi for Banking Transactions

Public Wi-Fi networks are often unsecured, making them a favorite hunting ground for hackers. If you’re wondering how to protect your bank account from fraud, avoid using public Wi-Fi for banking transactions. Instead, use a secured and private network. Virtual Private Networks (VPNs) provide a secure solution for those using a public network.

7. Sign Up for Account Alerts

Many banks, including Bank of America, offer checking account fraud protection services such as automatic alerts for certain types of transactions. These can include international transactions, online and phone purchases, or cash withdrawals over a specified amount. Signing up for these alerts can help you quickly spot any irregularities and report them to your bank.

8. Regularly Review Your Credit Report

Regularly reviewing your credit report can help detect any fraudulent activities. Make a note of any transactions, accounts, or activity you don’t recognize; it could be a sign of identity theft. Many banks offer free credit reports and tracking on mobile and online banking platforms. You may also request a free annual credit report from the major credit reporting agencies in the U.S.

Understanding how to protect your bank account from hackers and fraudsters is crucial in the digital age. This list of tips to protect your bank account from hackers and fraud isn’t exhaustive, but it’s a good start. Even if you only follow a few of these suggestions, you can improve the security of your financial information and gain some peace of mind.

What is a CD and what are its benefits?

A Certificate of Deposit, commonly referred to as a CD, is a financial product that is offered by credit unions. They are a type of savings account that pays interest and reserves money for a certain length of time — the longer the term, the higher the interest. CDs are a secure and safe place to keep money that you aren’t planning to spend anytime soon. To initiate a CD, there is usually a minimum amount you need to deposit.

A CD is different from other types of savings or money market accounts, because you are assessed penalties if money is removed before the end of the term. By agreeing not to withdraw any money during the term of the CD, you will receive a higher interest return than other types of deposit accounts. You are guaranteed that you will get the return on the agreed rate regardless if interest rates fluctuate.

Benefits of CDs

–Better rate of return
— In exchange for liquidity, regular checking or savings accounts typically offer lower interest rates than CDs.
–Generally with CDs, the longer the term, the higher the interest rate. Therefore, CDs can be useful for sums of money that you don’t require immediate access to but also don’t necessarily want to tie up in a higher-risk, long-term investment, such as a bond.
— The interest rate on a CD is generally fixed for the specified duration of the term. The security of knowing exactly how much you’ll get back when your CD matures provides peace of mind.
–Removes temptation to spend
When money is too liquid, it’s too easy to spend, so CDs can be an effective way of preventing you from spending your money on things you don’t really need, especially if you’re an impulse buyer.

Things to consider

— Suppose that interest rates rise in the next two years. Locking some of your cash in a six-year CD means that you could have used invested it in a higher-earning CD.
— It’s important to know that if you choose to withdraw the money before the maturity date, you’ll have to pay a penalty. For that reason, you should have a liquid emergency fund set up for medical catastrophes and other unforeseeable events; hardship withdrawals from a CD should be a last resort.

Is there a way to avoid these issues?

Yes! Supercharge your savings with a CD ladder strategy

What is a CD ladder?

CD laddering is a savings strategy where you invest in multiple CDs for varying lengths of time. One is, initially, shorter-term, while the others are successively longer-term. Over time, all CDs will help you maximize your earnings by earning the higher interest rate, yet one CD will become available each year if cash is needed, providing more flexibility than a single, long-term CD strategy. With CD laddering, a portion of your cash is freed up each year for you to reinvest in another CD at current rates (if rates are rising or level) or use for other purposes.

As the shorter term CDs mature, you’ll reinvest those funds into longer-term CDs and lock in the higher rates. Instead of initially locking up your money in the longest-term CD with the highest rate (up to 5 years or more), you create a CD ladder to safely move your money into higher rate CDs over time.
Eventually, you’ll have a ladder of CDs, all earning the highest interest rate available for your term. Ideally, at least one CD will mature each year, giving you access to some of your money as you need it.

How can a CD ladder boost your income?

As interest rates rise, using a CD ladder can help you take advantage of rate increases and boost your income over time.
For example, if you invest $75,000 in a 5-year CD at 2% APY and interest rates rise 1 percentage point each year, the rate on a 5-year CD would be 5% after 3 years but you’d be missing out on those higher rates if your money was locked in for 5 years at 2%.

But if you took that same $75,000 and split it up into the CD ladder from the above example and still assume that interest rates rise at 1 percentage point each year, after one year, your first CD would mature and you could invest it in a 3-year CD at the improved 4% interest rate.

The next year, rates rise again and your next CD matures. You can now invest those funds into a 3-year CD at 5% interest. Finally, your original 3-year CD matures and you can reinvest at the new 6% interest rate.
Here’s what rising rate CDs look like over time using a CD ladder.

How do you build a CD ladder?

This all depends on your short- and long-term goals, and when you think you’ll need access to the cash. The goal is to take advantage of longer maturities and higher interest rates, while making some of your money available at regular intervals.

How to build a CD Ladder in 4 steps

1. Determine how much you want to invest in a CD
–Before you open any CD accounts, determine the amount you want to invest in your laddered CD strategy. This needs to fit within your total budget and the money needs to be able to be locked away for a period of time.

2. Evaluate the term length that’s best for you
–Once you’ve determined the amount you want to invest, look at the term lengths for each part of your CD ladder. Remember: You’re opening short-term, medium-term, and long-term CDs, at equal intervals (usually annually).
–Look at your short- as well as medium- and long-term goals: Do you plan to buy a car in a couple of years? Do you foresee needing a large amount of cash for that wedding next year? Think carefully about when you need access to your cash and select CD ladder time frames to support your financial goals.

3. Open your CDs at staggered intervals
–Once you’ve determined how much to invest and the term lengths, it’s time to open your CD accounts. Split your money between each account and stagger when each CD will mature. This will give you several “rungs” in your CD ladder to grow over time, allowing you to reinvest and “ladder up” your interest rates.

4. Continue the CD laddering strategy
–As each CD matures, climb up the interest rate ladder by reinvesting those funds into the longest-term CD in your strategy. This will give you regular access to your money (at your set interval) and allow you to lock in the highest rates available. Continue this as long as it suits your investment strategy – enjoy the returns.
Is CD laddering for you?

Before laddering CDs, consider if the following applies to you:

You have emergency funds in a savings account.

While CD laddering can be a powerful savings strategy long-term, consider leveraging it as a supplement to a traditional savings account, which likely offers more liquidity.
–If you plan on building a CD ladder for the purposes of an emergency fund, make sure you have more frequent access to the funds. Instead of annually maturing CDs, consider ones that mature monthly or every 3 months.
–You may need to open several accounts to take advantage of the longer-term rates, but this can be a great way to put your emergency fund to work (without losing access to short-term funds if needed in a pinch).

You prefer less risk.

CDs keep money secure while typically earning more interest than a checking or savings account. And if the account was opened with an institution that’s backed by the FDIC or the National Credit Union Association, the CD and its funds are insured up to $250,000 per depositor, for each account ownership category.

You’ve planned ahead so funds will be available for projected expenses.

Is there a big expense in your future, such as a wedding, college or business expansion? Think ahead and ladder CDs so they mature at intervals that will accommodate your financial needs.
–CD ladder for retirement
–A CD ladder can be a great way to invest for retirement and to create predictable income during retirement.
–When you retire, a CD ladder can help provide predictable income. If you start your ladder prior to retiring, you can complete the “laddering-up” process by the time you need the income and have several years of high-interest income available.
–CD ladder for college savings
–If you’re saving for college, many 529 plans offer the CD investment opportunities. You can create a college savings CD ladder to safely grow your interest earnings.
–Using a CD ladder for college savings gives you a predictable rate of return. And if you start early, you will have many years to “ladder up” your CD investments.

Managing your CD ladder

Stay on top of rates and maturity dates.
–If you expect rates to go down, lock as much as you can in a longer-term CD. If you’re living in a low interest rate environment, you may anticipate a rise and therefore, consider shorter-term CDs.
–Be flexible — if a six-month CD matures but pays a lower rate than it did previously, invest in a one-month CD until rates improve.
— You may even find that savings or high-yield checking accounts sometimes pay higher interest than do shorter-term CDs such as three- and six-month CDs.
–Create calendar alerts for CD maturity dates so you can reinvest efficiently.

When you’re taking out an auto loan, it’s important to shop around and find the best lender for you. Be sure to include your local credit union in your list of options because they always give their members competitive rates and great service. As well as lower rates, a credit union auto loan might be more flexible so you can borrow the amount you need over the term you want. Read on to find out why your local credit union could be the best choice.

1. Not-For-Profit Business Model

One of the main ways that credit unions are different from other financial institutions is that they aren’t trying to make money for themselves. Instead, the revenue a credit union makes from interest and fees is given back to you – the valued members. Members receive credit union revenue in the form of:

• Low-interest loans and credit cards
• Generous rates on deposits in savings and share certificate accounts
• Updated products, services, and features
• Resources, tools, and programs to help members thrive

2. Competitive Rates

As mentioned, credit unions can offer great rates on auto loans because of their not-for-profit business model. Here are a few pointers on how interest works and why you should consider a credit union auto loan:

• The annual percentage rate (APR) you get will impact your monthly payment and how much your loan costs in total, so it’s an important factor when choosing your loan.
• Your credit score will determine your APR – the better your credit, the lower your rate.
• If your credit isn’t so great, some financial institutions might not approve your auto loan.
• The personal relationship you form with your credit union may mean they’ll take other factors into account so you could still get a loan.

3. Lower Minimum Loan Amounts

You don’t want your car payment to use up most of your paycheck. Luckily, credit unions often let you borrow a smaller amount for your auto loan compared to other financial institutions. A lower auto loan minimum can be helpful if:

• You’re looking to buy a less expensive vehicle.
• You’ve saved up a sizable down payment.
• You want to avoid paying a lot of interest.
• You want to pay off your auto loan sooner.

4. Dedicated to Helping Members

All credit unions come with a story. They are usually established to meet the needs of a particular group in a community, which might be underserved by big financial institutions. For example, Great Lakes Credit Union was founded to serve civil servants in Lake County, Illinois, at a time when there weren’t many other options. In addition to competitive rates on auto loans, credit union revenue is used to fund:

• Community investment activities such as member scholarships and donating to local causes.
• HUD-approved housing and financial counseling (fewer than 10 federally insured credit unions in the U.S. offer this service!).
• Community programs that help generations of families maintain their financial well-being.

5. Local Service

These days, there’s something nice about talking to an actual person who lives, works, or worships in your same ZIP code. When you become a member of your local credit union, you’ll be able to:

• Drop into a friendly local branch on your way home from work or on your lunch break.
• Call and speak to a local person who may understand your situation better than an assistant at a centralized or outsourced call center.
• Keep all your accounts in one handy place, from your auto loan to mortgage and investments.

Thinking About Applying for a Credit Union Auto Loan?

There’s no doubt about it, an auto loan is a convenient way to purchase a car – and your local credit union might offer you the best deal. The next question is, how much car can you afford? Before you apply for your credit union auto loan, it’s a good idea to crunch some numbers and figure out the right loan amount for your budget. The car sticker price is just one of many factors you should consider. Don’t forget you need to include repairs, gas, and insurance in your monthly budget. Plus, you might want to save up for a down payment. Click below for some simple tips to determine how much you should spend on your car!

How Much Car Can I Afford?

With all the brands, models, and options that exist, the process of buying a car can seem overwhelming!

But the basics can focus on one simple question: how much car can I afford? The search for that answer begins before you even set foot on the lot. Read below for tips in finding your new ride!

Get Your Budget On Track

Be proactive in preparing for your car search! Go into the car purchasing process with key numbers from your budget. This is the best first step in figuring out how much car you can afford.

Take a few minutes to run down what you spend every month. From your monthly take-home pay, subtract rent or mortgage, bills, groceries, child expenses, savings, and miscellaneous spending.

When you calculate that amount (your net income), consider the 20% rule, which is the idea of limiting your expected monthly car loan payment (excluding fuel, maintenance, and insurance) to 15% or less of your net income. Following this rule helps ensure you have money left over each month to cover the rest of life’s varied expenses. 

Know Your Monthly Auto Expenses

Once your budget is organized, it’s time to figure out the ongoing costs of car ownership. This includes not only your monthly payment but also the cost of insurance, car maintenance, and fuel.

Monthly auto expenses differ based on your location, driving history, and vehicle. It may take a little time to determine the specifics, but knowing these costs can help you choose the car that works for you and your budget.

A few tips to get an accurate estimate:

• Get quotes from insurance agents. It’s a good idea to have a few options to compare and contrast. Keep in mind that the more expensive the vehicle, the more its insurance will cost.
• Be prepared for the varied costs of maintenance and repair. All cars whether new or used will require maintenance such as oil changes and brake pad replacement at some point. Keep in mind that some manufacturer’s warranties and extended warranties require that scheduled maintenance be performed by a certified dealership, potentially adding more cost for several years.
• Don’t forget the gas. The Environmental Protection Agency’s fueleconomy.gov website has detailed listings of annual fuel cost prices as well as calculators that let you compare fuel rates across different vehicles.

Breaking Down the Monthly Payment

Your monthly car loan payment is largely affected by your loan amount, interest rate, and loan term. These figures will usually depend on factors such as trade-in value, down payment amount, and the Annual Percentage Rate (APR).

Interest Rates

Auto loan interest rates are based on several factors, such as your income and debt, as well as your credit score.

Your credit score is often the most significant factor determining your interest rate. The higher your credit score, the lower your auto loan interest rate. If your credit score is less than stellar, consider finding ways to build it up before shopping for a car. 

GLCU can help you with tips to improve your credit score.

Term Length

When deciding on what loan term length is right for you, consider your overall budget and financial situation. 

If you prefer to save on the total amount you pay for your car, choose a shorter loan term or a less expensive car. A shorter loan term usually means your monthly car loan payment will likely be higher because you’ll pay off the loan balance with fewer monthly payments but pay less in interest.

How Much Car Can I Afford? Let GLCU Help!

Now that you’ve figured out your budget, have estimated your monthly costs, and are happy with your credit score, it’s almost time to go shopping! 

But remember that getting pre-approved for an auto loan can give you an advantage at the dealership. Talk to one of our loan consultants today and get pre-approved for a loan ahead of time. This will give you confidence and bargaining power at the dealer, plus you will know where you stand with budget and payments before you make your final decision.

You can also be confident that you’re on the right path with GLCU’s auto loan calculator. Input your unique financial information and it can help you find an accurate monthly payment that will work with your lifestyle.

Here are a few security reminders that can help protect your online and mobile accounts, including your GLCU digital banking accounts, from being accessed by a fraudster as a result of data breaches that occur at other institutions

• Update your username. Change your username and make it complex – don’t use your first initial and last name, or your email address. You can do this within “Settings” in GLCU Online Banking.
• Vary your login credentials. Don’t use the same username across accounts, and vary your password. Don’t use the same username and password combination on any account.
• Verify your personal information. Whether at a branch or within digital and phone channels, verify that GLCU and other institutions have your up-to-date information so you can be contacted.
• Create difficult passwords. Use a combination of letters, numbers and special characters. Or, use a password manager to generate unique passwords for you. Consider changing your password on a regular basis, such as every 90 or 120 days.
• Track account activity. Make sure you have account alerts enabled.
• Regularly update your login information. Get on a regular cadence of updating usernames and passwords – just be sure not to store them on a file on your computer.
• Set up account alerts. Whenever possible, set up alerts on your online and mobile accounts so you are notified when there’s activity on your account. You can do this within “Settings” in GLCU Online Banking, then select “Alerts.”

GLCU also puts security measures in place to better protect our members’ information:

• Use advanced encryption technology. This keeps your information, like usernames and passwords, protected when you enter them into a GLCU digital banking channel.
• Authentication security. This provides a security image, a security passphrase and security questions for higher-risk online transactions.
• Install regular updates. By regularly updating our digital banking channels, we ensure the latest security features are enabled.

If our system alerts us to changes on your account that seem out of place, a GLCU representative will contact you to confirm the change. If we are contacting you, we will not ask you for your account number, password or PIN.

Fraudsters are constantly finding new ways to target unsuspecting consumers, but you can outsmart them by simply following best practices.

For home buyers on a budget or who want some of the perks of apartment life, buying a condo is one option. 

According to the Institute for Housing Studies at DePaul University, the majority of neighborhoods in Cook County have condos, with a higher concentration in urban areas with high property values. If you’re considering buying a condo, here are a few key things to consider.[1]

Lifestyle: Condos are often located in busy, urban areas. Additionally, shared walls can make it so that you can hear your neighbors at any time of the day or night, similar to an apartment. Increased interaction with your neighbors isn’t all bad, however. 

Many condo communities offer regular social events, making it easier to get to know your neighbors. Having a group of neighbors so close by can also be a benefit in case of an emergency.

Affordability: Condos are often more affordable than single-family homes, particularly in urban areas or for first-time homebuyers. However, condos come with additional fees, called Homeowners’ Association (HOA) fees to offset the cost of shared maintenance. These fees are paid in addition to the mortgage. They are applied toward things like repairs, maintenance of amenities, and building updates. Condos have reserves to pay for large purchases. A condo with healthy reserves can indicate better financial health overall. 

There is no firm rule, but prospective buyers can ask to see a reserve study, which details the size of the reserve and any recent repairs or larger capital expenditures. If a condo has insufficient reserves to cover projects, the board can level an assessment, which requires condo owners to pay an additional amount of HOA fees.

Privacy and Freedom: For those who value being able to decorate and renovate exactly how they want, a condo might not be the best choice. The HOA can dictate how members can renovate and decorate, whether they can have pets, and what kind of outdoor decorations they can display. 

Noncompliance with the HOA’s terms, whether through nonpayment of HOA dues or through another breach, may result in fines or even legal judgments.

Amenities: Depending on the size, location, and price of the condo, many offer amenities like lawn care, weekly social events, snow removal, and even a pool. These can be an attractive perk for homeowners who would otherwise not be able to afford them.

Financial Management in Community: Being part of an HOA means that financial decisions are made with group input. The board of directors has a responsibility to act in the best interest of the HOA as a whole. The HOA should have a healthy budget and reserves, meeting at least four times per year. In addition to reviewing the budget and reserves, attending HOA meetings and talking to prospective neighbors are good ways to assess the financial and community health of the condo.

Condo ownership isn’t for everyone, but it can be ideal for those looking for an affordable option and a close-knit community. If you’re considering buying a condo or want to know more about homeownership options, our HUD-certified counselors are here to help. Contact us at 224-252-2620 or housing at glcu dot org.

  [1] For further reading on aspects of condo ownership compared to owning a single-family home, see https://www.investopedia.com/articles/mortgages-real-estate/09/issues-purchasing-condo.asp

Do you want to buy a home but are worried that you do not have enough saved for the down payment? You’re in luck! If you are an Illinois resident, you may qualify for the myriad of down payment assistance programs offered through the State and local municipalities.

The Illinois Housing Development Authority, IHDA for short, offers down payment assistance in various tiers. The amounts range from $6,000 to $10,000. There are different repayment requirements for each amount listed. For example, the $6,000 down payment assistance amount is 4% of the home purchase price for a maximum of $6,000. You do not have to pay this back as it will be forgiven over a 10 year span as long as you remain in your home.[1] The $10,000 in down payment assistance covers 10% of the purchase for a maximum of $10,000. This assistance is paid back monthly over ten years at a 0% interest rate. IHDA has a list of participating lenders on their website.

The Federal Home Loan Bank of Chicago has two programs, Downpayment Plus & Downpayment Plus Advantage, that also offer down payment assistance. Downpayment Plus is a matching program that provides down payment and closing cost assistance for income-eligible homebuyers. The assistance is provided in the form of a forgivable grant paid on behalf of the borrower at the time the borrower closes on mortgage financing with a participating FHLBank Chicago member financial institution. Grants are forgiven on a monthly basis over a five-year retention period. Downpayment Plus Advantage is a similar program but assists income-eligible homebuyers participating in homeownership programs offered by nonprofit organizations that provide mortgage financing directly to the homebuyer; it is not a matching program. Nonprofit organizations providing direct first-mortgage financing, such as Habitat for Humanity or Neighborhood Housing Services, must partner with an FHLBank Chicago member financial institution to access DPP Advantage funds. Grants are forgiven on a monthly basis over a five-year retention period.[2] The maximum grant amount for both programs is $6,000.

Local organizations and counties also offer their own down payment assistance programs. The MMRP Purchase Assistance Grant provides up to $15,000 in down payment assistance for the purchase of a home in one of the City of Chicago’s 10 Micro Market Recovery Program (MMRP) Areas. This grant is available to low and moderate-income households earning up to 120% of the Area Median Income (AMI) for the Chicago Metropolitan Area.[3] It does require that you be a first-time homebuyer or not have owned a home in the previous 3 years.  More information can be obtained by contacting Neighborhood Housing Services of Chicago.

Community Partners for Affordable Housing, CPAH, provides eligible Lake County, Illinois homebuyers with up to 5% of the purchase price to help with down payment and closing costs. Assistance is provided in the form of a 0%-interest deferred loan with no monthly payments, forgiven at a rate of 1/60th every month. Loan forgiveness begins 60 days after closing. The loan is fully forgiven after 5 years and 60 days in the home. Other eligibility factors require that you put down $1,000 or 1% of the purchase price, whichever is greater, and that you qualify for financing with a CPAH Participating Lender.[4]

Kane County, Illinois offers a First-Time Homebuyer Loan Program that provides up to $10,000 in down payment and/or closing-cost assistance to first-time homebuyers in the form of a zero-interest, deferred-payment loan.  No interest accrues on the loan, and no payments are due until the home is sold, the title is transferred, or the home is no longer used as the homebuyer’s principal residence. Up to an additional $10,000 may be available if the home purchased is located within the city limits of St. Charles, under these same terms and conditions.[5] A nice perk with this program is that Kane County does not require First Mortgage Lenders to be pre-qualified. Homebuyers may work with a Lender of their choice to obtain their first mortgage.

There are down payment assistance opportunities in other counties and cities throughout Illinois from Madison County down south to Rockford up north. Madison County Community Development offers a 5-year forgivable loan, based on 80% of area median income or less, for closing costs and down payment. This loan, for up to $5,000, will be forgiven only after five full years’ occupancy. Homebuyers who receive funds must obtain one-on-one pre-purchase counseling from a HUD-certified agency. A list of agencies may be obtained from a participating lender.[6] The city of Rockford offers a Homebuyer Assistance Program that provides financial assistance to make the purchase of a home more affordable to income-eligible homebuyers. The city of Rockford determines the amount of financial assistance, up to a maximum of $14,999, based on the applicant’s income, debt, and anticipated mortgage. The homebuyer must live in the home from the time of purchase through the end of the forgivable loan; approximately 6 years.[7]

You may be wondering why there are so many down payment assistance programs available to homebuyers. The Community Reinvestment Act (CRA) of 1977 required federally regulated banks to make an effort to lend to low and moderate income clients in their service area.  As a result, most of the larger federally regulated banks and mortgage lenders in our country have created CRA home loan programs.[8] Some of the programs mentioned above are the result of this initiative.

References:

[1] “IHDA Mortgage Program Directory.” IHDAmortgage.org, Illinois Housing Development Authority, www.ihdamortgage.org/program-directory.

[2] “Downpayment Plus Programs: FHLBank Chicago.” FHLBC.COM, Federal Home Loan Bank of Chicago, www.fhlbc.com/community-investment/downpayment-plus-programs.

[3] “Grants at Nhschicago dot org.” NHS Chicago, Neighborhood Housing Services of Chicago, www.nhschicago.org/purchase-assistance/mmrp-purchase-assistance-grant/.

[4] “Down Payment Assistance.” CPAH Down Payment Assistance, Community Partners for Affordable Housing, www.cpahousing.org/home-buying/down-payment-assistance/.

[5] “Pages   – First-Time Homebuyer Program.” Kane County – Established January 16, 1836, Kane County Office of Community Reinvestment, www.countyofkane.org/Pages/ocr/firstTimeHomebuyer.aspx.

[6]Madison County HOMEbuyer Program, Madison County Community Development, www.co.madison.il.us/departments/community_development/homebuyer_program.php.

[7]Homebuyer Assistance Program, City of Rockford Community & Economic Development Department, cdn.rockfordil.gov/wp-content/uploads/2020/08/Homebuyer-Brochure-08.19.2020.pdf.

[8] “First-Time Home Buyer Loans – Conventional, CRA, FHA, HUD, USDA, State Bond and VA Loans.” CRA Home Loan Programs, First Home Advisor, 12 Mar. 2019, firsthomeadvisor.com/home/loans/.

How is my credit score an asset?
Having a good credit score can be key to getting a great rate on that mortgage for your dream home. Credit can help secure your education. Credit can help you land your dream job.

What difference does it make?

• Auto Loans: Having a good credit score can make all the difference! Car shoppers with scores in the 650 – 699 range can expect rates to be double what top tier borrowers receive. Those with scores in the 450 – 649 range are looking at interest rates three times higher than the best rates available.[1] This means, if your credit score is below 700, you could end up paying thousands more over the life of a car loan. The difference in money saved between a score that is below 620 and a score of 720+ could be $109 per month, or $6,540 over the life of a five-year $20,000 auto loan!
• Mortgages: When shopping for a home, the difference in savings could be tens of thousands of dollars depending on your credit score. According to the loan savings calculator on myfico.com, you can save $180 per month on a $200,000 home loan if your score improves from a 620 to a 760. That’s $64,000 in savings over a 30 year term! You can also use strong credit to negotiate terms.
• New Job: If you think credit checks are an uncommon part of the hiring process, think again. According to The National Association of Professional Background Screeners and HR.com, 25% of HR professionals use credit or financial checks while hiring for some positions, while 6% check credit for all applicants.[2]
• Student Loans: Credit also affects the ability to obtain a lower rate for student loans. For some individuals, this can mean the difference between being able to go to college and not. Higher credit scores allow borrowers to refinance loans and save money. com states that, “borrowers who choose a loan with a shorter repayment term, in order to maximize overall savings, reduced their interest rate by 2.13 percentage points and will pay $17,344 less over the life of their new loan.”[3]

When is the best time to try to fix your credit score?
NOW! If your credit score is less than ideal, contact our Housing and Financial Counseling Team! Together we can walk through your credit history, budget, and address your goals, concerns, etc. Schedule a screening to get started!

[1] Vincent, John M. “What Is a Good Credit Score to Buy a Car?” U.S. News & World Report, U.S. News & World Report, 21 Jan. 2020, cars.usnews.com/cars-trucks/good-credit-score-to-buy-a-car.

[2] NerdWallet. “Why Employers Check Credit – and What They See.” NerdWallet, 18 June 2019, www.nerdwallet.com/blog/finance/credit-score-employer-checking/.

[3] Carter, Matt. “Refinancing Student Loan Debt Can Save Thousands.” Credible, Credible, 9 Mar. 2020, www.credible.com/blog/refinance-student-loans/credible-savings/.

What if you got a phone call one day and find out your industry is not doing well financially, and all employees may take a pay cut? Or you came home one day to find out your partner just got laid off. Maybe you’ve had a successful business, but one day wake up to a slump in sales that could go on for months due to the current economy.

We have all, at one time or another, had a financial shock that arrived without notice. Unexpected events like these are terrifying. An unfortunate reality is that the above examples are increasingly common as COVID-19 has more and more of an economic impact. When households experience some form of financial hardship, it’s time to review a bare essentials budget.

Necessary vs Discretionary

When someone sits down to do a household budget, they are usually categorizing spending in two broad categories: Necessary or Discretionary. Necessary expenses are vital to your life. There is not a lot of opportunities to cut back on ‘must-haves,’ but it does get us to think about how we spend on items like shelter and food.

Discretionary expenses are where we spend for leisure, such as eating out or going to the movies. This concept may seem simple, but what we consider necessary can significantly vary. A cell phone, car, or internet may not seem “vital,” but these all might be vital to your income. What this means is that we often have to look at both “necessary” and “discretionary” expenses to figure out where we can cut back.

Let’s take a look at an example:

Jane Doe’s Budget

Jane’s expenses went from $1,820, to $1,395. Saving $425 after reviewing only 8 expenses.

Jane Doe recently lost her job. She decides to take a look at her budget to begin cutting back on expenses. Jane spends $400 on food and $50 a month for household items. However, she knows that there are certain expensive foods and cleaning products that she could cut back on. Jane decides to cut back on costlier items in to be more budget-conscious. She researches cheaper brands and estimates spending caps to stay under her limit.

Jane then looks at her rent. Having signed a new lease just two months ago, this expense is not going to change. Jane keeps the rent budgeted as is and moves on to her internet expense; another item deemed essential due to necessary job hunting to restore income. While the internet is a necessary expense, Jane’s TV/internet bundle can be reduced to include fewer TV channels for additional savings.

Finally, Jane takes a look at discretionary items to see what she can cut; movies aren’t essential, certain subscription services can be removed, and Jane aims to cut back on eating out.

Why an Emergency Budget is Worth the Effort

While not easy, cutting back on spending can significantly help with the stress of keeping finances together. In the above case Jane may have lost a job, but by lowering expenses in her budget, she extends how long her income from unemployment and her reserves in emergency savings will last her. For another person who doesn’t make these kinds of budgetary cuts, the stress from mounting bills and dwindling savings can cause adverse impacts.

One thing that is often important to remember is that a bare essentials budget does not have to be forever. Strict budgeting is a safety measure that you follow to get back on track during hardship.

Following a budget while confronting financial difficulty can help you avoid serious debt, hurting your credit, and making sure that you have money to pay for groceries week to week. An essentials budget helps with financial safety and alleviating stress, and it may be one of the most important tools to have during an unexpected life event.

If you are experiencing financial hardship or simply want to chat about your financial future, do not hesitate to contact GLCU at (800)982-7850.  We offer several free financial wellness services including but not limited to; budget counseling, debt management, credit counseling, bankruptcy/foreclosure prevention, and more. No question is too big or small for GLCU’s HUD-Certified Housing Counseling team and we are standing by ready to assist!

Your checking account is about far more than having somewhere to safely store your money and obtain debit card access. You can take advantage of your checking account to move forward in reaching your financial goals. These five checking account benefits can help you on your path to financial stability. 

1. Budget Easier

Using a checking account for your purchases and deposits allows you to keep track of your exact income and expenses. 

When you operate using other methods such as cash only, it’s more challenging to track how much you spend. Therefore, it’s not as simple to create a monthly budget.  

When you’re ready to develop your budget, you can review your income and expenses from the last three months based on your checking account statements. That information will help you determine your budget categories and amounts, along with any areas in which you’re spending too much. 

2. Automate Payments

If you’re repaying loans or credit cards, one of the worst things you can do is miss a payment or pay late, as it can harm your credit score. Sometimes you have no choice but to miss a payment due to financial hardship, but other times, it’s as a result of mere forgetfulness. 

A checking account with bill pay allows you to remove that possibility by automating payments. All you have to do is set up automatic bill pay to ensure your payments are made on time every month. Never worry about paying late fees or having your late payments reported to the credit bureaus. 

3. Meet Your Savings Goals

Saving money can be a challenge.

According to a study by the Associated Press-NORC Center for Public Affairs Research, two-thirds of Americans would struggle to come up with $1,000 in an emergency. 

Are you one of the two-thirds? If so, you can use your checking account to automate your savings by making automatic transfers to your savings account each month. 

If you’re on the other side and have at least $1,000 in the event of an emergency, you can still take advantage of automatic savings to build upon what you have already saved. 

4. Know Your Financial Standing

With the convenience of a checking account, you can quickly review your finances at any point to determine how much money you have available. 

This knowledge enables you to make well-informed choices related to how you will spend your money and how much you could be saving, investing, etc. to move you forward in your life. 

5. Protect Your Money

As long as your checking account is with an insured financial institution, your funds are protected for up to $250,000 per depositor per account.

If you have a bank, it will be insured by the Federal Deposit Insurance Corporation (FDIC) while a credit union is protected by the National Credit Union Administration (NCUA).  

This insurance means that in the event of a financial mishap, including identity theft or fraud, any money taken from you will be returned to you as soon as possible. 

If you solely use cash or keep your money in accounts places that don’t provide insurance coverage, you are not protected if something unfortunate happens. 

Choosing The Best Checking Account For Your Finances

When you select a checking account, it’s essential to look at the options that will offer you the best features so you can reap all the benefits possible. 

At GLCU, we offer no monthly fees, no minimum balance, mobile check deposit, and an instant-use Visa Debit Card. 

You’re striving to improve your credit, and while a checking account can help you do that, you want to choose one that gives you all of the benefits and features you need to make your journey even easier. 

Learn more about our checking account options today.