Do You Need a Jump-Start?

Not for your car, but for your personal financial fitness?  Plenty of consumers need a little help getting their finances in order.  They need a fresh start, and we can help!

In particular, we can help you by lowering your payments.  All you have to do is STOP, LOOK, LISTEN and ACT and we’ll “jump-start” your financial fitness.

STOP – in at either credit union location during business hours.

LOOK – at the interest rates and monthly payments you are paying on your current loans, whether they’re for your home, auto, credit card, or any personal loan you already have.

LISTEN – to the rates and terms on similar loans we offer.  Chances are very, very good that we’ll be able to save you money.  After all, on average, credit unions can save consumers a percentage point or more on many loans.

ACT – on the information you receive.  Too many people give in to inertia.  They don’t take advantage of the credit union difference.  We’re not paying fat-cat stockholders.  Instead, we’re serving our member owners with better rates and service.

Think about the jump-start you’ll receive when you lower your payments on your loans.  It’s common for members to save more than $1,000 annually by switching to lower cost credit union loans.

New Century Credit Union is here to help.  Stop in and see us…after all, you’re an owner!

Financial Literacy Quiz Part II (Answers)

In case you missed it, Your Financial Family posted a quiz to test your financial knowledge. Don’t worry, we’re not sending any notes home to your parents, but we would love to go over the answers with you.

Questions

1. A credit report is:
c. A loan and bill payment history – It is kept by a credit bureau and used by financial institutions and other potential creditors to determine how likely it is that you will repay a future debt. Information in your credit report can affect your ability to get a job, a loan, a credit card, or insurance.

2. In terms of credit, what does APR stand for?
a. It stands for Annual Percentage Rate – The APR is a measure of the cost of credit, expressed as a yearly interest rate. Usually, the lower the APR, the better for you.

3. Who insures your stocks in the stock market?
d. No one – Your investments in the stock market are not insured. Know the risks before investing in the stock market.

4. Federal law gives you three days to cancel the purchase of a new or used car from a dealer.
False – The law does not require dealers to give buyers a three-day right to cancel. The right to return the car in a few days for a refund exists only if the dealer grants this privilege to buyers, but it is discretionary. Dealers may describe the right to cancel as a “cooling off” period, a money-back guarantee, or a “no questions asked” return policy. Before you purchase a new or used car from a dealer, ask about the dealer’s return policy, get it in writing, and read it carefully.

5. The type of car you own affects the price you pay for auto insurance.
True – Your premium is based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that enhance safety or prevent theft. These include air bags, anti-lock brakes, daytime running lights, and anti-theft devices. Some states require insurers to give discounts for cars equipped with air bags or anti-lock brakes.

6. A reverse mortgage is:
d. All of the above – Reverse mortgages allow consumers over age 62 to convert the equity in their homes to cash while retaining ownership. With a reverse mortgage, you receive money from the lender and generally don’t have to pay it back for as long as you live in your home. In return, the lender holds some–if not most or all–of your home’s equity.

7. How many days does a creditor have to acknowledge your written complaint about a billing error?
a. 30 days – The creditor must acknowledge your complaint in writing within 30 days after receiving it, unless the problem has already been resolved. The creditor must resolve the dispute within two billing cycles (but not more than 90 days) after receiving your letter.

8. If your credit card was lost or stolen and used to charge items you didn’t authorize, you are responsible for what amount?
a. Up to $50 – Your maximum liability under federal law for unauthorized use of your credit card is $50. If you report the loss or theft before your credit cards are used, the Fair Credit Billing Act says the card issuer cannot hold you responsible for any unauthorized charges. If a thief uses your cards before you report them missing, the most you will owe for unauthorized charges is $50 per card. If the loss or theft involves your credit card number, but not the card itself, you’re not responsible for unauthorized use.

9. Negative financial information (excluding bankruptcy) can stay on your credit report for:
c. 7 years – Accurate negative information generally can stay on your report for seven years; bankruptcy information may be reported for 10 years.

10. What do “points” refer to in the home mortgage application process:
d. One point equals 1% of the loan amount, paid to the lender – One point equals 1% of the loan amount. Points usually are paid in cash at closing. In some cases, you may borrow the money you need to pay points, but doing so will increase the loan amount and your total costs.

11. Each state has a law that lets pharmacists substitute less expensive generic drugs for many brand name products.
True – Each state has a law that lets pharmacists substitute less expensive generic drugs for many brand-name products and, depending on your prescription needs, your savings could be significant.

12. By using unit pricing at the grocery store, you can easily compare the cost of any brand and any package size.
True – Unit pricing is a tool for comparing prices. While the package price tells you how much you pay for a food item, the unit price tells you the price of each unit in a package. A unit can be an ounce, a pound, a quart, a square foot, or an individual piece in a package. For example, the unit price shows you the cost of each ounce in a can of soup. The package price just tells you the price of the whole can. Unit pricing helps you compare costs of different brands and various sizes without doing arithmetic. But remember, compare only similar items.

13. The recommended gasoline for most cars is regular octane.
True – In most cases, manufacturers recommend using a regular octane gasoline. Using a higher octane gasoline than your owner’s manual recommends offers absolutely no benefit. Unless your engine is knocking, buying higher octane gasoline is a waste of money. Premium gas costs 15 cents to 20 cents more a gallon than regular. That can add up to $100 or more a year in extra costs. Studies indicate that altogether, drivers may be spending hundreds of millions of dollars each year for higher octane gas than their cars need.

14. All telephone numbers that begin with an “8” are toll-free.
False – To date, only numbers that begin with 800, 888, 877, or 866 are free. And even then, there are some exceptions: Companies that provide audio entertainment or information services may charge for calls to 800, 888, and other toll-free numbers, but only if they follow the Federal Trade commission’s Pay-Per-Call Rule. In addition, some area codes begin with an 8. For example, the area code 809 serves the Dominican Republic. If you dial this area code, you’ll be charged international long distance rates.

15. In financial transactions, a CD is a:
b. Certificate of Deposit – A CD in this case is a type of savings account that earns a fixed interest rate over a specified period of time. At a credit union it is called a share certificate of deposit, which earns dividends.

16. The “Rule of 72” tells you how long it will take to double your money.
True – The “Rule of 72” tell you how long it will take to double your money. To use the “Rule of 72,” divide 72 by the interest rate you’re getting. For example, if you deposit $3,000 into an account with a 2% interest rate, divide 72 by two. The answer—36—tells you that you will double your money in 36 years; in 36 years, you will have $6,000.

So! How’d you do? Don’t forget – New Century Credit Union is here to help you with your financial needs. Financial counseling, auto loans, free credit checkups, homeowners insurance: NCCU has it all!

Test Your Knowledge; Financial Literacy Quiz

The arena of personal finances can be very convoluted:  It ranges between truly knowing what you are doing and being just completely lost, which can, frankly, be scary.

Whether your finances are in good working order or not, how often do you stop and think about how you’re generally handling your personal finances? Without some basic knowledge and a good handle on personal finances, one will more than likely make poor spending decisions, not save for emergencies, max out several credit cards, pay higher interest rates, have their identity stolen, make poor investment choices, and underestimate their financial needs in retirement.

Unsure of where you stand?  Try this financial literacy quiz. You can take it here online, or you can print it off and take it at home. Either way, it’s a good way to determine what you know and what you don’t know so you can take important steps toward improving your financial future.  Answers to the quiz will be provided next week.

Questions

1. A credit report is:
a. A list of your financial assets and liabilities
b. Your monthly credit card statement
c. A loan and bill payment history
d. Your credit line with your financial institution

2. In terms of credit, what does APR stand for?
a. Annual Percentage Rate
b. Annual Penalty Rate
c. Annual Payment Rate
d. Annual Payoff Rate

3. Who insures your stocks in the stock market?
a. The Federal Deposit Insurance Corporation
b. The Securities and Exchange Commission
c. The U.S. Department of the Treasury
d. No one

4. Federal law gives you three days to cancel the purchase of a new or used car from a dealer.
True
False

5. The type of car you own affects the price you pay for auto insurance.
True
False

6. A reverse mortgage is:
a. A rising debt loan
b. Only available to someone 62 years of age or older
c. Generally not tied to income
d. All of the above

7. How many days does a creditor have to acknowledge your written complaint about a billing error?
a. 30 days
b. 60 days
c. 90 days
d. 120 days

8. If your credit card was lost or stolen and used to charge items you didn’t authorize, you are responsible for what amount?
a. Up to $50
b. Up to $100
c. Up to $500
d. All unauthorized charges

9. Negative financial information (excluding bankruptcy) can stay on your credit report for:
a. 2 years
b. 5 years
c. 7 years
d. 10 years

10. What do “points” refer to in the home mortgage application process:
a. One point equals 1% of the purpose price, paid to the seller
b. One point equals 1% of the purchase price, paid to the lender
c. One point equals 1% of the loan amount, paid to the seller
d. One point equals 1% of the loan amount, paid to the lender

11. Each state has a law that lets pharmacists substitute less expensive generic drugs for many brand name products.
True
False

12. By using unit pricing at the grocery store, you can easily compare the cost of any brand and any package size.
True
False

13. The recommended gasoline for most cars is regular octane.
True
False

14. All telephone numbers that begin with an “8” are toll-free.
True
False

15. In financial transactions, a CD is a:
a. Certificate of Debt
b. Certificate of Deposit
c. Citizens Deposit
d. Certificate of Collateral

16. The “Rule of 72” tells you how long it will take to double your money.
True
False

Finished? Good! Check your answers here.

New Century Credit Union is here to help you with your financial needs. Financial counseling, auto loans, free credit checkups, homeowners insurance: NCCU has it all!