GCTFCU Blog

Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Ways To Get Out Of Credit Card Debt

25. October 2018 Administrator Blog (0)

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Things To Know About Unsecured Loans

16. October 2018 Administrator Blog (0)

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Finding A Credit Union

29. September 2018 Administrator Blog (0)

Credit union membership has myriad benefits such as great services, low fees, competitive rates and exclusive member discounts. When looking for credit unions, strive to look for the best and not just the most convenient one.

If you are keen on opening an account in a credit union but cannot decide on which one is the best for you, the following tips may be helpful in simplifying your search:

An Insured Credit Union: Pay attention to whether the credit union is insured by the Federal Deposit Insurance Corporation or by the National Credit Union Administration.
Eligibility: Narrow down your search by looking for credit unions for which you qualify. This will save you a lot of time and energy. Examples of factors that will determine whether you qualify for the membership in a credit union are the town you live in, the organization for which you work, etc.
Research: Consult people you know to search for credits unions in your area for which you are eligible. Listen carefully to what they have to say about its working, customer service and other services. Choose a credit union with maximum number of satisfied members.
Assess Your Needs: Finding the right credit union is not just limited to eligibility but to your needs too. Consider whether the services and products being offered are what you are interested in. Compare the interest rates of the credit union/s with that of other financial institutions. Strike a conversation with the staff and assess whether their vibe and way of dealing with customers matches your expectations.
Online Resources: Using online resources like credit union locators for finding credit unions based on location and distance to produce quick and reliable results right from the comfort of your home. All you have to do is click on “detect my location” and within a few seconds the results will be on your smartphone, tablet or desktop.
Consider The Services Provided: If you belong to a specific group or community e.g. an employee of a specific company, a member of military or a resident of a particular community, look for a credit union that provides specific services that are oriented towards your group
Variety Of Financial Services: An ideal credit union is one which provides a wide plethora of services under one roof. Example of such services are credit and debit cards, auto loans, home lending services, savings programs, financial counselling, etc.

For more information, visit Greater Central Texas Federal Credit Union at 3305 E Elms Road, Killeen, TX 76542. You can also call at (254) 690 – 2274.

Reasons Why You Should Have A Saving Account

26. September 2018 Administrator Blog (0)

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Benefits Of Increasing Your Credit Limit

25. September 2018 Administrator Blog (0)

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How To Protect Yourself From Credit Card Hacks

31. August 2018 Administrator Blog (0)

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Reasons To Opt For Credit Union Auto Loans

27. August 2018 Administrator Blog (0)

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Reasons To Open A Roth IRA

23. August 2018 Administrator Blog (0)

Roth IRAs are individual retirement accounts which promise tax-free income on retirement. Roth Individual retirement accounts are the best option for those interested in lower taxes and more retirement savings. Thus, you save after paying your taxes. It is a great form of investment for people of all ages. In addition to the tax advantage, Roth IRA’s allow you to use the money for different purposes other than as a retirement fund without being taxed or charged for the same. You can visit a nearby credit union for more information on Roth IRA’s.

If you are wondering whether a Roth IRA is a good investment option for you, here are some reasons in favor of this investment option:

Easy Withdrawal: The best thing about Roth IRA’s is that there are no restrictions on withdrawing money like in other retirement plans. You are free to withdraw any amount of money at any time for any purpose. This is helpful in case of emergencies when you might need quick cash.
Tax-Free Retirement Income: You are not expected to pay any taxes on the amount saved for decades. That translates into tax-free income in retirement. Credit unions offering Roth IRAs, charge tax only at the time of making the deposit but not at the time of withdrawing the principal amount and earnings. This also protects investors from future income tax raises.
Benefits To Your Heirs: Roth IRA’s are not only beneficial for you, but also for your heirs. The money in your account can be used by your heirs as tax-free income for the rest of their lives. However, the heirs will be subject to minimum distributions depending on their age at the time of the original account holder’s demise.
No RMDS (Required Minimum Distributions): Roth IRA’s do not impose any restriction on making contributions after a certain age (70 ½ years). Investors can keep on adding to their Roth IRA accounts irrespective of how old they get. They are not required to take distributions and pay taxes.
No One-Time Investment Amount Required: With Roth IRA’s there’s no pressure to invest a huge sum of money in one go. Most credit unions these days encourage members to pay steadily and comfortably by setting up automatic deposits. So you are saving without making much effort on your part.

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

Services Enjoyed By Members Of A Credit Union

31. July 2018 Administrator Blog (0)

A credit union is a financial cooperative which is created, owned and operated by its members. They pool in money in the form of shares in the cooperative and use it to provide loans and other financial services to each other.

Members of credit unions enjoy a whole lot of services, some of which are enlisted below:

1. Services For Convenience: These services are provided to members of credit unions to save their time and increase efficiency. Most services are either completely free for the members or require a nominal fee. They include:

Online access
Direct deposits which make it convenient for members to receive their paychecks.
Notary service
Master Card cash advance
Wire transfer
Bill pay
ATM
ACH Origination
MasterCard Gift Cards
Checking accounts which facilitate free and unlimited check writing.
A Golden Apple Checking account for members above the age of 55 years. No minimum daily balance is required and members are not charged any fee for having money that falls below the minimum balance required.
Payroll deduction

2. Services Pertaining To Savings And Investments: The goal of a Credit Union is to help its members achieve their financial goals in the easiest and most cost-efficient ways. For this, credit unions help members save for retirement, college education of children, car etc. The following is a list of some savings and investment options that members of a credit union can avail:

Regular Share Savings Accounts: These require a nominal amount to start the account. Members are offered competitive dividend rates. The dividends are figured on a day-to-day basis and paid quarterly.
Share Certificates Of Deposits: The minimum amount of deposits required vary here. There are a variety of terms available for example minimum $1000 deposits and $6 month-$36 month terms. The Annual Percentage Yields are quoted on a weekly basis and interest is compounded quarterly.
IRAs: These comprise of Variable Rate Traditional and Roth IRAs. The Individual Retirement Accounts have great tax advantages. Roth IRAs help members make tax-free withdrawals on retirement.
Club Accounts: These consist of Christmas club and vacation Club accounts.

3.Lending Services: Credit unions offer various lending services to members to help them possess whatever they dream of, be it a new vehicle, a vacation to an exotic locale or even purchasing a dream home. They provide loans for New and Pre-Owned Vehicles at very competitive rates. Members are also assisted in the pre-approval on vehicle loans.

For more information, visit Greater Central Texas Federal Credit Union at 3305 E Elms Road, Killeen, TX 76542. You can also call at (254) 690 – 2274.

Taking Advantage Of Skip-A-Payment Option

25. June 2018 Administrator Blog (0)

At one point during a loan period, financial institutions usually invite their clients to avail a skip-a-payment option in order to save some money. This is usually once every year provided your mortgage is not in arrears and the current balance of your mortgage plus the payments you desire to skip are not more than the original value of the mortgage. It pays off to know some ways in which such an option can be used to your advantage if you decide to avail it.

Here is a list of some ways in which a skip-a-payment option can be taken advantage of:

Holiday Months Shopping: The money you save on skipping a payment can be used during the holiday season. You can make the most of heavy discounts and sales by creating a buffer budget. With more money in your pocket, it is easier for you to purchase essential decoration items during the holiday season. This works best for those who have not planned their holiday expenses in advance and end up incurring more than they had planned for.
Post-Holiday Expenses: If your financial institution offers you a skip-to-payment option at the beginning of the year, it might be a great chance to pay a part of your holiday expenses that are lingering on in the form of credit card balances. The skip-to-payment option in this case works best for those who have spent in advance for the holidays.
Vacation Expenses: If you are all set for a family vacation but not quite prepared financially for any sudden expenses that might crop up, a skip-to-pay option gives you the much needed financial cushioning during such times. You can always bank upon the extra cash.
Sudden Unexpected Expenses: By deferring your loan payment for a month, you can easily adjust to sudden expenses that may arise due to a medical condition, loss of job, auto or home repairs etc. At least for that trying period, you don’t have to worry about your incoming bills.

Conclusion: A skip-a-payment option is no doubt a very valuable tool when extra finances are required suddenly, it should however be used smartly. You cannot depend on it as a long term solution to your financial insufficiencies. It is advisable to consult a private budget counsellor or an expert in this matter from your financial institution for guidance as to how to make the most of this option.

For more information, visit Greater Central Texas Federal Credit Union at 3305 E Elms Road, Killeen, TX 76542. You can also call at (254) 690 – 2274.

GCTFCU Blog | Blog

Greater Central Texas Federal Credit Union,
3305 E Elms Road
Killeen, TX 76542
Telephone: 254-690-2274
www.gctfcu.net

Ways To Get Out Of Debt

21. May 2019 Administrator Blog (0)

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Reasons To Borrow Secured Loan

17. May 2019 Administrator Blog (0)

Secured loans, also referred to as collateral loans are backed by an asset (usually a home or car) that is pledged as security to the lender. You can also get a secured loan against your savings account, a certificate of deposit or anything of value. In case the borrower is unable to return the loan, the lender has the right to take possession of the collateral and sell it to compensate for the unpaid amount. Lenders often seek collateral that is of a greater value than the amount of loan.

Common types of secured loans are mortgages, secured credit cards, secured personal loans and home equity loans. Secured loans offer numerous benefits to the borrower, some of which are listed below:

Enhances Credit Rating: Secured loans are easy to acquire even if the borrower’s credit rating is low. However, a borrower can work towards building his credit score over time by making timely payments towards his secured loan.
Lower Interest Rates: Another major reason for borrowing secured loans is their rate of interest. Since the loans are secured with a collateral, lenders feel more confident and may disperse loans at lower interest rates.
Flexible Terms: Borrowers who avail secured loans enjoy flexible repayment terms. A consumer can choose a repayment schedule that suits his financial circumstances. The repayment terms may be as long as 30 years. Lenders offer longer terms because real estate pledged as security, usually appreciates over time and this adds to the value of collateral while the loan is being repaid.
Usage: Secured loans can be used for a variety of purposes provided the purpose is legally valid. A consumer can use the money for investing, home improvement, weddings, funeral expenses, moving expenses, etc.
Larger Loans: With secured loans, borrowers enjoy the benefit of being able to borrow larger amount of money for a longer duration. This is because of collateral in the form of tangible assets guaranteed to the lender by the borrower. Lenders know that if for any reason the borrower defaults to pay back the loan amount, collateral can be sold to recover the unpaid amount of loan.
Easy To Acquire: The main requirement for a secured loan is collateral. Thus, if you have collateral in the form of a valuable asset such as a piece of real estate, a car, precious jewelry, a house or deposited cash, you can easily acquire a secured loan.

Greater Central Texas Federal Credit Union offers affordable secured loans to its members in Killeen. The loan officers at the credit union help the members in choosing loan amount and terms as per their financial situation. To know more about secured loans in Killeen, call at (254) 690 – 2274 or visit 3305 E. Elms Rd., Killeen, TX - 76542.

Savings Accounts Offered By GCTFCU

30. April 2019 Administrator Blog (0)

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How Does A Credit Union Work

26. April 2019 Administrator Blog (0)

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Credit Union Terms

16. 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.

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.