Credit In The Sky

Recently I took a flight to visit my kids back in Michigan. In the middle of the flight the flight attendant made the announcement that if we signed up for their special credit card offer we would be receive a free round-trip ticket and double miles any time we used the card to book flights with the card.

Since moving to Florida last year I've made quite a few trips back to Michigan to visit family so I decided I would give the offer a try and asked for an application as the flight attendant made her rounds down the aisle.  As I looked around to the others that also took the application I could see only one thing - they all were quickly filling out the application without bothering to read the "fine print."

I decided to take a little extra time to read all that print...and I mean ALL of it - 3 pages in small type to be exact. To get the "free flight" you had to charge at least $500 in the first 3 months, the interest rate topped out at nearly 20%, the cash advance interest rate was more than 26%, the balance transfer fee was 3% of EACH transfer and if you happened to be late on a payment your rate jumped up to nearly 28%...and stayed there for at least 6 months.

So what is that "free" ticket REALLY costing us?

When choosing a credit card, everyone should take the time to read the fine print and be aware of penalty fees and interest rate increases.  Although laws have been created to protect consumer from unfair practices, there still are a lot of options to take into consideration before signing your name on the dotted line.

Just remember if something sounds too good to be true...it usually is!

^Amy

Don't Get SKIMmed

Last night I stopped by my local Publix to use the ATM to get a little cash so my husband and I could try out the new frozen yogurt place down the street. When I got to the ATM I remembered all the stories on the news about the Publix stores being targeted by thieves for skimming.  These clever robbers can install a skimming device and a hidden camera on an ATM machine in less than a minute! What these little machines do is read the information on the magnetic strip on your ATM/Debit card and transmits that info to a nearby machine where they quickly make a duplicate of your card. Next they have a hidden camera that records you as you type in your PIN so they can use their fake card around town pulling money out of your account.

Working for a credit union I have been taught what to look for and ran through my checklist to make sure that the machine I was about to use was safe.   Here’s what I do, and what you should do too to avoid becoming a victim of this latest ploy:

• Use an ATM you regularly use (ask the store manager if they routinely check their machines)
• Use well-lit, visible from the street ATM’s
• Look around to see if there is anything unusual hanging off of it or attached to it
• The card slot;   touch it, feel it, -is it loose, if so, don’t use it!
• Cover your hand when entering your PIN number – if the thieves can’t see your PIN from their hidden camera, they can’t use the fake card.
• Watch out for shoulder surfers (the guy that stands right behind you, just over your shoulder)
• Think it looks suspicious?   Take a picture and send it to your institution with the address of the ATM
• If you think there may be a problem, listen to your inner voice and walk away – DO NOT USE IT!

Here’s what a skimmer can look like:

And here’s what that same device looks like placed over a real card reader:

Looks pretty good, doesn’t it?  That’s why it’s important to wiggle it and if it feels even a little loose, don’t use it – alert the store manager or your financial institution right away.

So the next time you get a craving for frozen yogurt and need some quick cash – just make sure you run through the checklist so you can enjoy that yogurt with peace of mind that your money is safe.

^KAT

Keeping Track of Finances Is Like Child's Play

My grandson and granddaughter have a ton of toys, games, and books.  They have a great playroom where all of these are kept.  Everything in the playroom is systematically categorized.  There is a place for cars, dolls, books, balls, kitchen, and art.  As the saying goes:  “A place for everything and everything in its place."

So, what’s the big deal?  My daughter is an organization freak?  Actually, no—quite the opposite.  What drives her to keep things in order is that she can easily find a specific toy when the kids want it; she can make sure that all the parts to all the games are kept together, and yes, she can also control what the kids are playing with.

Ok, great, so what does that have to do with credit unions and finances? 

I think about all of the places I spend money; for example, I pay my mortgage, buy groceries, and pay for auto, life, and homeowner's insurance.  I pay utilities, medical bills, pet expenses and so many other things.  And just like the kids' toys, if I want to keep organized, I must apply "a place for everything and everything in its place" to my finances.

I can easily find Chutes and Ladders, BuzLightyear ™ or the story of Cinderella in the playroom and I can easily find out what portion of my expenses goes for auto insurance or pet care or groceries using FINANCEWORKS.  My online  account at Tropical Financial Credit Union offers this handy dandy tool that tracks all expenses by category.  I simply look at my account and the multi-colored pie chart instantly shows me what my expenses are.  I can also set budgets and create goals. I can even set alerts to let me know if I'm getting close to budgeted amounts in different categories. It can’t get any easier!

Controlling what toys the kids play with is not much different than controlling how much I spend on dining, travel, or entertainment! 

It’s not a secret, it’s a system.  FINANCEWORKS – as a member of Tropical Financial Credit Union it is free when you sign up for online banking.  Need more information?  Give us a call at 305-261-8328 or outside Miami-Dade call 888-261-8328 so you can start organizing today!

^Steve

How Do I Write A Check?

When I was going to high school in the 80s I never had a “how to” class when it came to money or money management.  In fact it wasn’t until I was in college that I even learned how to write out a check.  Back then we had our parents to take care of all that and I never thought about it until I was on my own and faced with paying my own bills.  It was the local credit union, Michigan State University Federal Credit Union, which took the time to show me how it was done.   In addition to showing me how to write a check, they also took the time to show me how to balance my checkbook, something so critical to a young person on a limited income.

Here we are more than 30 years later and most high schools still don’t teach practical financial skills as a part of their regular curriculum. But credit unions continue to offer education and outreach in their communities to help bridge the gap.  Here at Tropical Financial Credit Union, we also understand the need to have resources available to our community. We offer online tools through a program called “Balance,” along with The Learning Years life stage and holding seminars and workshops to help individuals navigate this tough economy.   

In a quick check of my old credit union they are still offering education, now in an online library… and like Tropical Financial Credit Union the tools have changed but the commitment to community hasn’t.

^Amy

Call A Do-Over!

I was pretty good at basketball as a kid.  I had a pretty good shot, even over bigger kids from my gym class. My biggest foe was Doug Weatherbee. He was bossy and bigger than the rest of us, and he always called do-overs.  He would miss the easy basket from the top of the key - "do-over!" He would pass it off to a guy from the other team by mistake - "do-over!" And every time he would do better. But what could I do? He was always the first guy to be picked and I only could hope I would be on his same team, since he got all the do-voers.  I never got to call a do-over.

After all these years, I've finally found a way to be Doug Weatherbee. I've called a do-over on my car loan.

Hey, we’re not kids any more. We're not playing games and don't like it when it feels like the rules are stacked against us. Take your car loan.  Wouldn't you love to call a do-over right now?  Jump for joy, you do get a chance at a do-over!  You can re-finance your current auto loan, reduce the interest rate and reduce your monthly payment.

At Tropical we call our do-over an AUTO MOVER because you are moving your loan from your current lender to Tropical.  Our program also offers a $200 AUTO MOVER incentive.  So you get the opportunity to reduce your interest rate, reduce your payment AND get up to $200 just for making the move.  Can it get any better?  Yes it can!  You can even choose to modify the term of the loan to make your monthly payments even lower!

Call a do-over and use the rules to your advantage. Take that, Doug Weatherbee!

^Steve

Better Than A Bank

It was the best phone call I have received in a long time.  I am a marketer and out of the blue I was talking directly to my audience. And she called me.

“Are you a bank?” asked the woman on the phone.

“We are better than a bank,” was my instinctive marketer response.

She replied with, “I don’t understand what that means.”

iStock Photo

So began a 45 minutes conversation where I discovered this elderly woman had been paying numerous fees for years to one of the mega banks (who shall remain nameless here) and finally hit her breaking point –  when her debit card was denied for a purchase “on-the-line” (online).  After talking for a while and explaining overdraft and the idea of “opt-in” she was so surprised that no one from her bank ever explained it to her.  I wasn’t surprised at all.

We talked about her 16-year old teenage grandson who had been asking for a credit card and she wasn’t sure how to help him with that. I told her about our new student checking account that would allow him to have a debit card that he could use “on-the-line” without putting him in debt.   She could be joint on the account to watch over him and teach him financial responsibility.  Surprised again, she responded with, “You can do that?!?!” 

Yes, Mrs. H, we can do that.  And we will take the time to explain all this to you, because we listen and make sure you’re getting the best financial products to fit YOUR life.  THAT is a credit union.

Like I said, “We’re better than a bank.”

^Amy
www.Tropicalfcu.com