GCTFCU Blog | Credit Union Killeen TX | Home Loans, Secured Auto Loan in Central Texas

Savings Accounts Offered By GCTFCU

30. April 2019 Administrator Blog (0)

How Does A Credit Union Work

26. April 2019 Administrator Blog (0)

A credit union is a financial cooperative that is created, owned and operated by its members. It provides credit at competitive rates in addition to a plethora of financial services to its members.

Following is a list of some terms that are commonly used in credit unions:

Account Agreement: The agreement that determines membership eligibility, conditions for share accounts and other banking operations.
Accrued Interest: Interest that is due but has not yet been paid to an account holder of a share account. It can also be due interest that has not yet been paid to the credit union by borrower of a loan.
Adjustable-Rate Mortgage: A mortgage without a fixed interest rate. The rate fluctuates on the basis of market conditions such as index rate.
Annual Percentage Rate: Percentage indicating the cost of credit on a yearly basis.
Annual Percentage Yield: A percentage indicating the total amount of interest paid on a share account. The amount is based on the interest rate and frequency of compounding for the year.
Annuity: Life insurance contract sold by brokers, insurance companies and other institutions as retirement investment.
Automatic Bill Payment: An automated system for an account holder to pay recurring bills.
Available Credit: The remaining amount of funds in a line of credit or account that a member can borrow.
Closing Costs: Expenses incurred by sellers and buyers when transferring the ownership of property.
Collateral: Assets offered by a borrower for securing a loan or some other form of credit.
Drawer: A person/entity who writes a check or draft asking the drawee to pay another.
Drawee: The credit union or financial institution expected to pay a check or draft that is presented for payment.
Escrow: The act of holding money or documents by a neutral third party prior to closing the property.
Foreclosure: Legal process of selling property and using the proceeds for covering a mortgage debt.
Open-End Credit: A credit agreement allowing members to borrow against pre-approved credit line for purchasing goods and services.
Overdraft: When the amount in an account falls short of the amount being withdrawn from a checking account or share draft account.
Payee: A person or organization to whom a check, draft or note is made payable.
Payoff: Complete repayment of a loan.
Share Draft Account: Checking accounts are called share draft accounts by credit unions. They are transaction accounts.
Uncollected Funds: A part of a deposit balance that is due to be collected by the depository financial institution.

For more information, visit Greater Central Texas Federal Credit Union at 3305 E. Elms Rd., Killeen, TX-76542 or call at (254) 690 – 2274.

Improving Your Credit Score

30. March 2019 Administrator Blog (0)

Good credit score helps in qualifying for loans, better deals on car insurance, getting credit cards at favorable terms and more. Many factors like payment history of loans and credit cards, amount of revolving credit used, balances in one’s bank accounts, frequency of applying for credit, types of accounts, etc. affect the credit score.

Following are some tips for improving credit scores:

Use Online Tools To Keep A Tab On Your Credit Score: The first step towards improving your credit score is to check your status. You may use free online tools as they can help you in checking your current score and also provide insights about the factors affecting credit score. This information will help in formulating a plan for credit score improvement.
Create A Plan: After studying your credit report thoroughly, formulate an action plan to make possible improvements. You should aim to keep your credit card balance and revolving credit low.
Set Up Payment Reminders And Automatic Payments: Avoid late payments by setting up due date alerts. Also, you can set up automatic payments as per the schedule of your pay check.
Maintain A Low Credit Utilization Ratio: Credit utilization ratio is calculated by adding all credit card balances and dividing the amount by the total credit limit. A low credit utilization ratio is indicative of a good credit score and implies that you are managing your credit well.
Avoid Unnecessary Credit Accounts: It is advisable to avoid opening new credit accounts as unnecessary credit may lead to overspending & accumulated debt. This may negatively affect your credit score. You should open new credit accounts in unavoidable circumstances only. Applying for new credit may harm your credit score as it results into multiple inquiries on your credit report.
Keep Unused Credit Cards Open: Closing credit cards increase credit utilization ratio which has a negative impact on your credit score.
Create An Emergency Fund: Build an emergency fund to ensure that you meet your debt obligations on time even during dry financial periods. You may utilize this fund, if needed instead of applying for a credit.

Improving credit score requires diligent planning and dedication over time but eventually brings about many financial benefits & provides more opportunities to achieve bigger financial goals.

Greater Central Texas Federal Credit Union is a not-for-profit financial cooperative that operates for the common benefit of its member and offers an array of services. For more information, visit 3305 E. Elms Rd., Killeen, TX -76542 or call at (254) 690-2274.

How To Avoid Late Auto Loan Payments

26. March 2019 Administrator Auto Loans (0)

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Smart Money Management Tips

22. March 2019 Administrator Blog (0)

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Benefits Of Taking Secured Loan

28. February 2019 Administrator Blog (0)

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Things To Consider When Opening A Checking Account

25. February 2019 Administrator Blog (0)

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Managing Your Credit Card Wisely

21. February 2019 Administrator Blog (0)

Responsible credit card usage is important for effective financial management. It helps in building credit score, preserving savings accounts, minimizing risks and enjoying financial rewards.

To gain maximum benefits from credit card usage, following are some tips on how to manage your credit card wisely:

Borrow Wisely: A thumb rule is to borrow what you can pay back easily. Create a budget based on your monthly income and expenditures to have a clear picture of how much you should spend with your credit card.
Check The Interest Rate: While applying for a credit card do make sure that you research the market and get a card which offers lowest rate of interest. Do pay attention to the annual fee and reward system offered by the lender. You may consider getting a credit card from a credit union for a competitive rate of interest.
Pay Off Debts On A Monthly Basis: Restrict your interest charges from growing exponentially by paying off your balance every month. Avoid skipping a payment, as this will lead to higher expenses due to late fee and will negatively impact your credit score.
Maintain A Low Credit Utilization Ratio: Use less than the credit utilization ratio i.e. borrow less than what you are authorized to borrow. Experts recommend keeping this ratio under 30 percent.
Keep Checking Your Credit Reports: Keep a tab on your credit reports by asking for a copy from a credit reporting company annually. The report will provide you an insight into your credit history and also throw light on fraudulent accounts, incorrect information, if any and more.
Beware Of Hidden Fees: Ask the lender for any hidden fees such as late payment fees, processing fees, balance transfer fees, credit limit fees etc. before applying for the credit card.
Limit The Number Of Cards: Limiting the number of credit cards you own, makes it easier to manage them. Having more cards may translate into higher debts which can affect your credit score. Once you have decided the cards that you want to keep, hold onto them. Sticking to your credit card, keeping the account active and maintaining a good payment history can build your credit score.
Use Technology: It is much easier to manage accounts now as most financial institutions offer free online tools to enable clients to keep a tab on their accounts.

Greater Central Texas Federal Credit Union is a not-for-profit financial cooperative that operates for the common benefit of its member and offers an array of services. For more information, visit 3305 E. Elms Rd., Killeen, TX -76542 or call at (254) 690 – 2274.

The Rise Of Credit Unions

30. January 2019 Administrator Blog (0)

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