How to Plan Financially for the Roaring 20’s

A new decade is upon us. Before we know it, we’ll be popping bottles of champagne and kissing our loved ones at the stroke of midnight. Many people are already penning their traditional resolutions, and it’s smart to do so. There’s still time left before the clock strikes midnight, and we haven’t turned into pumpkins yet. The more time and effort you put into your plans for the new year, the more likely you’ll be to actually fulfill them. It’s easy to write goals down every year and then discard them, but writing detailed plans can help make your goals feel more achievable.

Additionally, most goals require some financial aspects. Whether that be in the form of a gym membership fee or a savings account, goals can feel expensive at their forefront. Beginning the initial planning process now allows you to detail those ideas later and break down what exactly you need to get the ball rolling. Many people rely on systems like a bullet journal, which allows for free-form systems to plan just about anything for their financial New Years’ goals. Traditional writing may seem tedious, but it’s a good idea to get all of your thoughts down.

GO Federal Credit Union offers several financial planning options to help get your goals on track. For example, our partnership with 4Points Planning helps you organize detailed plans within the most important factors in your financial health. Our credit unions in Dallas are conveniently located for you to be on the right path for healthy finances. Additionally, we offer My GO Finances, which is a helpful tool for mobile online banking.

“But why should I start planning now?”

If these reasons aren’t compelling enough, think of it this way:

How quickly did this year go by? 2019 flashed right before our eyes. A year is 365 days most of the time, but it often feels like a lot less. Weeks blend, and before you know it, you’ve missed two credit card payments and haven’t been to the gym since last Tuesday. If you plan goals now that you can carry with you through the rest of the year, there’s virtually nothing stopping you from getting them done! GOFCU is among the best credit unions in Dallas. Be sure to call GOFCU and make an appointment today with one of their financial advisors.

Money Management: College Student Edition

College students are often navigating the “real world” for the first time in their lives, so understanding smart money management is pivotal to survival. Having this skill is key in learning how to keep themselves afloat, as well as in preparing for their future. Talking to your college student about how to handle finances is one of the most important conversations you’ll have with them. However, if you find it difficult to open the door to this topic, you can get help at your credit union in Texas. They are another constructive avenue to take in educating your college-age student about managing their money throughout college.

Credit Card Concession

·         Credit cards can come in handy in the middle of an emergency, but they need to be utilized responsibly. Break the ice with your college student and discuss if they’re keeping up with payments on time, and about the frequency of their usage. Understanding how credit cards are meant to function is always of great importance. Texas credit unions can also show your student ways to manage money wisely, even while using their credit cards.

Coupons, Coupons, Coupons

·         Couponing is not just for soccer moms; anyone can benefit from them! Share your couponing resources with your student and show them just how useful they can be. In this modern age, coupons can also conveniently be clipped digitally! They can save a lot of money by only taking a few minutes to clip or click away.

Savvy Student Discounts

·         Help your student scope out local stores and retailers that will provide and honor student discounts. Search together and find out if there are any mobile apps where coupons and discounts can be obtained online, specifically for college-age students.

Financial literacy is a necessary component of everyday life. It is crucial for everyone to possess, especially for those who are just gaining their footing in the world. Don’t be afraid to communicate with your college student in various ways; be sure to keep them abreast of any ways to save that you can find.

Discuss the benefits of them becoming a member of your credit union to take advantage of low interest rates, great savings plans and getting help from a member services representative to guide them through the process. Knowing how to locate and implement these financial strategies on their own will propel them into a prosperous and successful future.

Federally insured by NCUA and Equal Housing Lender

Why Your Credit Score Matters When Getting a Car Loan

Are you looking for a new car? Perhaps the one you have has decided not to start again. Maybe you’re just ready for a change. If this is the case, then a Texas credit union loan is on the horizon and GO Federal Credit Union can help. Car loan rates are forever changing, and the deciding factor will be your credit score.

Credit Scores and Interest Rates

Credit score companies will break down scores into ranges. The range you fall into will determine the interest rate you will pay according to car loan rates.

Those ranges include:

·         Exceptional - Good: Expect to get a low interest rate

·         Good - Fair: You may not get the lowest interest rate, but you won’t get the lowest.

·         Poor: Expect to pay the highest interest rate

Contacting a Dallas credit union will help you understand where you are.

Before Shopping for a New Car

Before shopping for a new car, there are a few actions to be completed. First, you need to know what your credit score is. Look at all three credit bureaus at least once a year. Once you have gathered your credit information, reach out to a Dallas credit union for pre-approval.

Getting pre-approved for your car loan will help you find your ideal budget and ensure that you get credit union financing at the dealership. Another tip is to consider a down payment. Having a down payment can affect the amount of your Texas credit union loan and lower your payments.

Don’t want to deal with the hassles that come with buying a car? Use GO Federal’s car buying service. Tell them the year, make, model and preferred options of the vehicle you want. They will take it from there. They will do the shopping for you and negotiate the best possible price.

Improving Your Credit Score

Once you have found your credit score, you may find it needs some improvement. Here are tips to improve your credit score.

·         Pay bills on time monthly.

·         Keep credit balances low.

·         Only open a new credit card if you need too.

·         Work with a Dallas credit union to improve your credit score.

Federally insured by NCUA and Equal Housing Lender

Financial Smarts: Planning for the Holidays During the Summer

It may seem like the holidays are a long way off when you’re basking in the Texas sun, but now is the best time to start planning for them and GO Federal Credit Union has you covered with these valuable tips.

Why plan during the summer?

Summertime tends to be slower and allows you time to find solutions to any financial challenges you may face around the holidays. Starting the planning early also grants you the opportunity to make adjustments as needed without being under a time crunch, which reduces overall stress.

What is the first step in planning?

The first thing to do is to set yourself a holiday budget so you can make a savings plan. Make sure you include all holiday expenses like travel, gifts, food, and don’t forget your pets, especially if you need to board them.

How do you make an accurate budget?

First, make a list of all the potential gifts for everyone on your list and start to research what the cost of each gift is to plan out your gift spending. Research your travel in advance to find deals and see if you can travel on alternative days to save money and hassle.

How do you start saving for the holidays?

Start by looking over your expenses now and seeing where you can start reducing. Things like lowering your cable bill, streaming services, using coupons, and favoring free entertainment activities, are all great ways to reduce your monthly expenses.

What if your budget is more than you can save?

You have to trim the budget. Look for deals to lower the cost of gifts and explore trading services like pet sitting to reduce expenses around the holidays.

Are there any other moves to make before the holidays?

Sign up for retailer discounts and coupons if you know where you’ll be shopping for the holidays. Many stores offer exclusive deals on their list-serve or via text. If you plan on making some of your gifts, start the process now, so you don’t run out of time and end up defaulting to a store-bought gift.

With these tips, you’ll be able to reduce stress around the holidays and keep your finances under control.

Federally insured by NCUA and Equal Housing Lender

All about Money Market Accounts

There are many options to grow your savings, and it can be hard to know what the right option is for you. Money market accounts are one option that may offer higher annual yields over traditional savings accounts. But what is a money market account? Don’t worry, GO Federal Credit Union has got you covered.

Money market accounts

Money market accounts are set up similarly to traditional savings or checking accounts using a typical deposit and interest gained system with the ability to write limited checks. These types of accounts are like a savings or checking account hybrid.Although users tend to earn higher interest there are some pros and cons.

Money market pros

·         Access: easily access your funds by writing a limited number of checks per month or withdrawing cash.

·         Earnings: Money market accounts usually have higher interest rates than savings accounts and they’re insured just like the checking and savings accounts offered by your credit union in Dallas.

Money market cons

·         Limited withdrawals: most accounts limit how many times you can make a withdrawal in a month.

·         Minimum balance: these accounts have a higher minimum balance that has to be maintained.

Money market accounts, savings accounts and CDs

As stated above, money market accounts can yield a higher interest rate than most savings accounts. They do have high minimum deposits in general, which can limit accessibility to some members. The same withdrawal limits tend to apply to both.

CD accounts (certificate of deposit) are time-centered, needing between six months and five years to mature. CDs, though typically earning a higher interest rate than money market accounts, don’t allow for electronic transfers and most penalize you for early withdrawal. But, CDs have fixed interest rates which tend to be higher than other accounts.

With so many options, the most important factors are how much money you have to deposit, how frequently you may need to access it, and what kind of interest rate you are looking for.

Federally insured by NCUA and Equal Housing Lender

Leveling the Playing Field

Recent surveys have shed light on the goal of credit unions and other financial institutions. Almost all have a shared interest in leveling the playing field through a stronger digital presence. Up from 19% in 2018, they continue to work diligently to expand. 

Why this sudden interest in expanding their digital presence? Expectations of a new generation are garnering the importance of banking from anywhere in the world.

With the prediction that by 2020, 85% of all member interaction being done through the Internet, how can credit unions in Dallas stand up to the plate?

Personal Service
GO Federal Credit Union in Dallas takes pride in their customer service to their members. In order to continue supporting members, building a digital strategy that enhances member experience is key. GOFCU wants to make banking as convenient as possible. From time-saving online services to exclusive member discounts,they’ve got the tools their members need to be stress-free and financially secure. GOFCU’s Live Chat feature allows members to connect with a representative for any help they may need.

Board Involvement
GOFCU, a credit union in Dallas is member-owned. Each member has a vote in how the credit union is run.Rather than having shareholders and a profit-driven philosophy, GOFCU is service-driven and committed to improving the financial wellbeing of all members. All profits are returned to members through lower rates on loans, higher dividend yields, and less fees.

Consider the Millennials

New data has shown that 65% of millennials haven’t physically visited their credit unions in months. Baby boomers are even switching to on-line banking. Becoming innovative in their digital presence bridges this gap and creates an exceptional banking experience.

GO Federal Credit Union in Dallas is listening to their members by using digital wallets and mobile apps. They offer convenient online and mobile account access allowing members to take advantage of their GOFCU membership anytime, anywhere.

Federally insured by NCUA and Equal Housing Lender

Credit Card Smart

Having a credit card is a good thing for emergency situations and is also an excellent way to build your credit history. However, you can get in over your head by using credit cards for some purchases that you shouldn’t. Some of those things are:

·         College Tuition

Paying for your college tuition with a credit card is a good way to put yourself into debt before you even complete your first year of college. There are other options, such as obtaining a student loan that will have a lower interest rate and lower payments that are manageable.

·         Taxes

Paying your taxes with a credit card will incur interest rates and only paying the minimum due will allow that interest due to keep growing. Working out a payment plan for your taxes may be a better option.

·         Large Weddings

No one wants to start out their newly married life in debt because of their wedding day. Plan your wedding on what you can afford to spend. Look at all your options for the money you need before pulling out that credit card.

·         Vacations

Everyone loves a good vacation, but you don’t want to carry this year’s vacation into your next one. It adds to the stress of enjoying your peaceful escape. Plan your vacation where you can spread the charges out longer to balance the financial burden.

·         Medical Bills

Using your credit card to pay for your medical expenses can leave you with a large bill from a hospital or a doctor. Many facilities are willing to work out payment plans to cover the substantial costs of going to the doctor or having a medical procedure.

Credit cards are not money. They are a way to help balance purchases when you already have the money to pay for items, or need them for an emergency because there are no other options. Remember to use your credit cards wisely to create a history of good payments and to establish better credit.

With the GOFederal Credit Union Visa Credit Card, you’ll receive interest rates lower than most bank and department store cards that can save you money every month. You can also set-up automatic payments from a GOFCU account, make payments using GOFCU online banking, or stop by your nearest GOFCU branch to make it easier to stay on top of your bills.

Federally insured by NCUA and Equal Housing Lender

Debit Cards and Your Credit Score

The world of credit scores and credit history can be confusing. A common question from members of one of Dallas’ best credit unions, GO Federal Credit Union, is what effect, if any, debit cards have on your credit.

The answer is: they don’t have any impact on your credit for the most part. Standard debit cards do not affect your credit score or show up in your credit history because debit cards aren’t extending a line of credit. When you use your debit card, money is immediately withdrawn from your bank account. When you use a credit card, charges are applied to an account, and you received a bill at the end of the month to make payments on those charges.

Exclusively using debit cards means that you will not go into debt. However, the downside is that you aren’t building up any credit history. This may negatively impact your credit score.

Prepaid debit cards work similarly to regular debit cards. They store money on an account, but you aren’t borrowing money from anyone to use them. This makes credit bureaus uninterested in the use of prepaid debit cards.

Yes, some prepaid debit card companies do report your history to the credit bureaus. It is important to understand that this doesn’t affect your credit score the same way credit cards do.  If they report your use to the credit bureaus, all it shows is a history of your payments. This report does not actually impact or help your credit score.

GO Federal Credit Union offers the GOFCU Visa Credit Card. By getting a GOFCU Visa Credit Card, members receive lower interest rates and no annual fee, no cash advance fee, and no balance transfer fee. And to assist with the transition from a debit card to a credit card to help increase your credit score, GOFCU allows members to set-up automatic payments from their GOFCU account, make payments using GOFCU online banking, or stop by their nearest GOFCU branch.

Federally insured by NCUA and Equal Housing Lender

Credit Unions Vs. Banks

If you're debating between a credit union or a conventional bank, it’s important to keep in mind the vital distinctions such as rates of interest and branch accessibility to identify which elements are essential to you. Let’s list some primary differences below to help you decide which is the right choice for you.  

The Important Distinction

On the surface, banks and credit unions may appear very similar. After all, both are equipped to accept those convenient automatic deposits. Both are also able to provide people access to checking and savings accounts, credit cards and loans. The differences lie at the very core of the operations, and they’re significant. Banks are for-profit institutions that generally strive to earn shareholders money. Credit unions are not-for-profit, member-owned cooperatives. Essentially, account holders are a means to an end for banking institutions. At credit unions, members are served each and every day. Credit unions exist to offer a group of individuals linked by a certain bond which might be based upon location, company, belief, subscription, or various other variables.

Considering the fundamental differences between banks and credit unions, members of a credit union are likely to find a high level of service is provided to them no matter how much – or little – money is placed into an account. Credit union membership also tends to provide individuals with benefits that go beyond service, including:

•             Higher interest rates on deposit and investment accounts – Credit union members typically receive a higher return on their financial investments, such as savings accounts and certificates of deposit. Since credit unions work on members’ behalf and not shareholders, profits made benefit members directly.

•             Low interest rates on credit cards and loans – Credit unions are also generally able to provide their members better rates on money borrowed. Since credit unions do not have to earn huge profits to satisfy shareholders, they reinvest money earned for their own members. Oftentimes, that reinvestment translates into lower rates.

Making the Best Decision for You

People have many choices on where to put their hard-earned dollars. Credit union membership provides a distinct advantage for people who wish to enjoy a higher level of service and greater value attached to the financial accounts they hold. From lower rates on loans to higher earnings on savings, credit unions are all about serving their members.

Federally insured by NCUA and Equal Housing Lender

The Importance of Understanding Checking vs. Savings Accounts

When opening an account at credit unions in Dallas, you will be given choices for different checking and savings accounts. Knowing your choices will help you receive benefits from each of them.

What is the Difference?

GO Federal Credit Union in Dallas will be able to give you the information that is needed so that you can choose which account will work best for you.

·       Your Checking Account: GOFCU offers a variety of checking account options. Each account features terrific benefits including FREE online bill payment, FREE Home Banking, FREE audio response (Touch & GO), FREE E-Statements, FREE online check viewing and more. These accountsare transactional. Your everyday spending money is what belongs in these accounts.

·       Your Savings Account: GOFCU offers a variety of savings options to meet the needs of every member. All savings accounts earn competitive dividends and are federally insured up to $250,000 by the NCUA. With these accounts, earningdividendslets your money make you more money! These accounts are not transactional. You should use them sparingly and mainly add to it and forget it’s there.

The Benefits

Having checking accounts at a Dallas credit union like GO Federal is the best way to keep up with your money. It is advised and encouraged that you have both a checking and savings account. They both do different things that work together to benefit you as much as possible.

You can also get help from GOFCU so that you know where to place your money and how to easily access it. But the most important thing is to understand that your checking and savings accountscan work together. GO Federal Credit Union is here to help improve the financial well-being of its members.  

Federally insured by NCUA and Equal Housing Lender 

Credit Unions and Your Credit Score

Opening a checking or savings account with a credit union is a smart way to manage money and establish creditworthiness with a financial institution. If you are tracking your credit score, you may be concerned that opening an account may impact your credit score. 

How Do Credit Unions Impact Credit Score?

Overall, credit reports track debt to income ratios, on-time payments and how much debt you have on your credit cards in relation to your credit allowance.

If you have a credit union account, the following will not appear on your credit report:

·         Withdrawals or deposits

·         Closing an account

·         Check writing

·         Multiple Accounts

Two Instances Which May Impact A Credit Score

1.       Credit unions may pull your credit report when you first open an account. This could result in a soft pull which does not impact your credit score. A credit union may do a hard pull which is usually performed if you are applying for a loan. If a hard pull is done, this may impact your score for up to 12 months and may minimally reduce your credit score. 

2.       Check overdrafts are defined as a payment request coming through, but there are not enough funds to cover the payment. Typically, acredit union will cover the charge, but apply a fee for the overdraft. These do not appear on your credit report, if you bring your account to current and pay the fees.

Managing your credit report is essential for a future home, auto, or personal loan. Always ask questions to confirm your understanding to make the best financial decision for your financial goals.

Federally insured by NCUA and Equal Housing Lender

A Credit Union: A Gift that Keeps on Giving for 20- and 30-somethings

In Your 20’s You Are Earning Money for the First Time. A Credit Union can Help You Save Into Your 30’s for Big Purchases  

Young people in their 20’s and 30’s have received a bad reputation for doing everything on the Internet and doing very little in their communities. A credit union in Texas helps young adults remain active in their communities by giving great benefits, including saving money from a job that can help support a family. Most people in their 20’s are earning a living for the first time after graduating from a 2-year or 4-year college. The great thing about earning a living is the feeling of financial independence it gives to recent college graduates. However, many people in their 20’s start out making minimum wage, so their earnings go directly into living expenses with very little left over. This is where credit unions can help give young adults a place to save their money. 

Credit Unions Give Young Adults Better Savings Rates

It is well known that young adults need to save money. There are several significant expenses that come in the late 30’s and early 40’s as young adults enter middle age: buying a house, buying a car for the family, and starting college savings account for growing children. A credit union can help young adults start a savings account with a higher interest rate than is typically offered by a for-profit bank. As young adults enter middle age, the magic genie of compound interest starts to make this savings account grow until, 20 years later, it offers a golden pot at the end of the financial rainbow. 

Credit Unions Help You Save for the Future

A credit union offers a savings account that will compound over the years. As a 20-something adult makes money from a job and puts some of it into a savings account every month, the savings account will grow substantially.  This is because credit unions funnel their profits back to their members through better dividends and lower interest rates for their members.

The great feature of saving even small amounts per month, is that it is doable for even a 20-something with the help of a financial advisor at your credit union. These benefits are generally not available through a savings account at a traditional bank. If you are in your early 20s or 30s, you can start saving now. Then, when you’re ready, you can buy a home through a Texas credit union mortgage loan offering better rates than most banks.

Federally insured by NCUA and Equal Housing Lender