5 Cringe-Worthy Credit Mistakes

Man cringing over credit card mistakes

You don’t need a special news alert to know…

…we’re all human.

Being human means we’re all bound to make a mistake or two when it comes to making credit decisions. Here are 5 of the most common credit card mistakes. See how many you’ve evaded.

Applying for every credit card under the sun (and being approved). Having a little buying power is great, but too much power can lead to a mountain of available credit and plenty of potential to begin mounting debt. This looks risky to a lender. Stick with one or two and be sure they’re the best card you can carry.

Misplacing your magnifying glass—you really do need to read the fine print. Within that tiny print lies the answer to whether you’ll be paying more to have that credit card in your wallet and how long. Do your homework–there are plenty of companies out there with annual fees, short introductory rate periods, difficult repayment terms, fees to transfer balances and more.

How does your card rate? Low, we hope. When applying for a credit card, you probably didn’t opt to be tied for life to its balance. Not shopping for the best rate can mean paying down a balance for much longer than you might realize. Save yourself some time, money and stress and search for the best rate you can get. The lower the rate, the faster the balance will be paid off.

Don’t listen to mom—less isn’t always more. When it comes to paying off high-interest credit cards, making the minimum payments may seem innocent enough, but it leads to bloated balances. To keep balances low and easy to maintain, don’t charge more than you can pay off within a month or two and be sure to make more than the minimum payment. Your future self will thank you.

Fashionably late or just bad credit karma? Though there isn’t a specific formula to follow for A+ credit, one thing’s for sure: making your payments on time, every time, is the best thing you can do to keep your credit score up. Be the life of your own credit party—be fashionably on time with your payments.

When you’re ready to begin building your own credit or make the switch to a card that’s in your best interest, look to MembersFirst to provide a reasonable solution to your credit needs (even for those who’ve thought ‘guilty’ after each of the 5 cringe-worthy mistakes above.) Visit membersfirstga.com for a list of solutions and details on our various credit card programs and promotions for anyone, at any age and any stage.

5 Car Finance Gimmicks and Tricks to Beware Of

Auto Loans — the offers are everywhere.  Some are greater than others while others just seem like a great deal, but are they really?

“0% for 6 months!” “No payments for 90 days!” “Cash back up to $3000!” “We’ll give you more for your trade!”

How do you know which great deal is really, well…a great deal?

While some could prove to work in your favor, here are a few auto finance gimmicks and deals to be mindful of.

  1. Too-Good-To-Be-True advertised discounts and rates.  Not all dealers are created equal.  Some use lower-than-usual rates and price discounts to draw buyers in.  The deal could be on one particular vehicle that may or may not still be available.  Be sure to get all the details before sitting down in a finance chair.
  2. Don’t be bullied by special discounts and offer time limits.  If you’ve been quoted a price with a substantial discount which also comes with a fast-approaching expiration date, don’t feel you need to make a hasty decision without time to consider.  The expiration date of a promotion should be clear and upfront and shouldn’t make you feel rushed into making a decision to buy.
  3. Focusing on the payment vs. the purchase price and terms.  While it’s important to make sure your payment falls within your means, don’t get caught up in what you would prefer to pay each month and neglect the details of the purchase price and finance terms.  Paying less each month, but stretching the terms longer to afford a higher-priced vehicle could prove to cost a lot more in the long-run.
  4. Substantial offers to pay off your trade.  You know what your trade is worth—so does the dealer.  If you’re offered much more than your trade is typically worth, be sure the overage hasn’t been retrofit into the finance side of the deal.  Traditionally, less is offered for your trade than its worth, so research the value before signing on the dotted line.
  5. Offers of 0% vs. Cash Back.  One way or another, a lender is going to profit from the sale of a vehicle.  0% offers usually work for the dealer by increasing the sales price of a vehicle.  Cash back deals are usually contingent upon the rate you pay or the price of the vehicle—sometimes both.  Give a good look to the fine print of these deals and consider traditional pricing and financing before these.

Get a quote from your credit union before finalizing a loan with a dealer.  Your credit union is here for you with one goal – to help you afford life.  It doesn’t matter where you find the car you choose (we do have some great friends at local dealers as well!), we will always check the values against the asking price, we’ll always give you a fair rate and we will ask for a copy of the vehicle title to avoid unnecessary hassle when it comes time to register your vehicle. Our GAP and Warranty programs are very affordable and save you from hidden dealer fees. You can protect your family and yourself in the event of unfortunate circumstances with our Optional Credit Life or Credit Disability Protection.  We share a financial relationship built on trust and value your membership as we work to fit your needs. You’ll always see the terms and conditions of our offers up front and receive fair pricing and rates on all the products and services we offer. With that in mind, you can feel comforted knowing an auto loan through MembersFirst is a great decision.

Ready to purchase your next vehicle?  Check with us first!  We have loan programs for everyone, in every stage of life.  Whether you’re just starting out on your journey to build credit, doing just fine or need a fresh start, look to MembersFirst!  Visit membersfirstga.com, give us a call at 404-978-0080 or stop by your local office to get the process started today. 

And, if you’re ready to start looking for a fantastic car, take a look at some of the services offered through MembersFirst:

Member Showroom:  A Car-Buying Service, Powered by TRUECar
Enterprise Car Sales:  A great pre-owned car-buying experience in your area

Goal Diggers: This one’s for you.

email header image hands on wheel splash logo color cropped

We talk often about that stress-inducing ‘B’ word (budgeting…), but why do we concern ourselves with building a basic budget and focusing on putting money in savings anyway?

One word.  GOALS.

Whether you’ve never given it much thought or voiced yours aloud, to your spouse, your mom or even to your barista, we all have financial goals.  Much like snowflakes, no two goals are exactly alike.  Your version of financial freedom may be freeing yourself from credit card debt while your BFF’s view could be paying cash for their next vehicle.

Regardless, you can’t quite get to the point of knowing how to get somewhere without defining where you’re going.  So, let’s take a moment to think on that topic:

“What do I want?”

Before the panic sets in as you realize you’re not quite sure what you want or maybe you feel you want too much and none of it feels attainable–we have good news.  Here’s a simple goal setting worksheet that helps you get it all down on paper and even helps you define the ‘why’ of it as well as suggests some next steps for tracking and rewarding.

Goal Setting Worksheet Preview
Goal Setting Worksheet

A few things to keep in mind when setting your financial goals.

1.  No goal is too small.  Believe it or not, your small goals help you build toward your larger goals anyway, so think small as much as you’d like.  Essentially, you’re testing the waters with a small goal so you can see and feel how the process works.  You’ll soon see how each of the saving/spending choices you’re making become easier.

2.  How do you eat an entire cake?  Bite by bite.  Yes, we threw a cliché out there (kinda).  But, it’s true… don’t become overwhelmed with the magnitude of your financial big picture.  Just like anyone else, you’ll be breaking each goal down into bite-size pieces that make sense for you.  Eventually, you’ll see it all coming together.  For some, that’s major motivation to keep pushing themselves to take more bites, or steps, toward their bigger goals.

3.  The only mistake is not starting to begin with.  You really only have two choices when it comes to reaching goals:  you can choose to work toward reaching them or choose to do nothing.  Even if you jot down your goals on scrap paper (note napkins count, too) and get started with a burst of enthusiasm and motivation then fall off the bandwagon (oops, another cliché) a quarter of the way through, well, at least you started.  Just don’t forget to restart.  You may have to pick yourself up and reassess, but you’re already miles ahead.  The bottom line is… it’s ok to mess up every now and then.

4.  Be lazy.  Yep.  Be lazy.  Make reaching your goals as easy on yourself as possible.  Use the tools available to you to make transitioning from a not-so-savvy to a super-savvy-saver simple.  Once you’ve set a budget to determine the amount you can comfortably save, go ahead and set up an automatic transfer to savings.  Or, even better, set up a payroll deduction from your paycheck to savings.  If you don’t see the cash entering and leaving your checking account, you’ll miss it less (if at all).

5.  See it and believe it.  For the visually inclined, personal vision boardsor tools which use images to help you better define and focus on a specific goal, are growing in popularity.  You can make yours as detailed or simplified as you’d like to help you stay on top of your goals.  For instance, if saving enough money to pay for your child’s future education is part of your plan, you may have photos of your child, images of colleges, books or school logos, along with inspirational quotes about growing up pinned, stapled, taped or glued to a poster board, corkboard or even a blank wall in your home.  Each time you pass these vision boards, they help you remember why you do what you do each day, especially when having to make a tough financial decision.

Gather your own inspiration from our “Vision Board” on Pinterest here.

6.  My goal is (not) better than your goal.  Who’s to say your financial goals are less important or exciting than anyone else’s.  You do you.  You know what works for you.  You know what’s most important to you.  Don’t worry if it seems your ideas of financial soundness aren’t aligning with your peers’; not everyone wants the same things.  In the end, what matters is you’re happy with your outcome.

Talk to us.

If you need a little push in the right direction, let’s talk.  You can drop by and talk with one of our Member Advisors a little bit about your goals, find out which tools you can use to make it easy on yourself and get a little guidance on where your focus should be.

And don’t forget that ‘note napkin’ or your Goal Setting Worksheet.  When someone asks you what your goals are and why, you’ll be ready to talk it through with them and work up a plan that best fits your budget and means.

Good luck, Goal Digger.

Download the Goal Setting Worksheet.