January 2015 - RMLEFCU Blog

22 Jan

Car Buying Tips: Getting a Fair Price on a Quality Car

So you’ve made the decision to buy a new car! Now it’s time to start the process of looking for and purchasing the right vehicle. It is, most definitely, a process, but with these hot tips from RMLEFCU you’ll be sure to get your car at the best price.

Research online:

This is probably the best car-buying tip we have. From the comfort of your own couch, you have access to millions of customer reviews, professional reviews, videos, photos, price ranges, etc. You can find out anything there is to know about a car except for perhaps, what it actually feels like to be in that car. You can even go so far as to purchase your car online, but we don’t suggest that. Check out our auto resource center powered by Autotrek for help in finding your perfect fit.

Get preapproved for a car loan

This is key in a few different ways. First of all, financing through the dealership will only allow them to squeeze that much more money out of you through “financing deals” and “special interest”. Having the money ready from a different source cuts their negotiating power and adds to yours. Second, getting a preapproved loan allows you to shop around, in no hurry, for the best deals. While most dealerships won’t go below 4% interest, a lot of credit unions, like RMLEFCU will often go as low as 1.99% APR*. That’s practically free money! During February, 2015 we are sweetening our already great rate by offering no payments for 90 days! Read More →

21 Jan

What is Overdraft Protection and Why Do You Need it?

What is Overdraft Protection?

Overdraft protection is best described as a short term loan from your credit union that is activated when you purchase something with a debit card or a check that is more than the amount of money you have in your account. Instead of bouncing a check or being denied the transaction, the financial institution will cover the cost of the purchase for a fee, and expect that you will replenish your empty checking account soon. Overdraft protection has earned a bad reputation largely due to the hefty fees associated with each overdraft charge. Fees for each transaction can be as high as $35.00, so when you overcharge your account for that $5 latte, you’re really paying $40.00. However, there are many benefits to having overdraft protection on your account, including avoiding bounced check fees, Not Sufficient Funds (NSF) fees, the ability to make a purchase in an emergency situation, and avoiding the embarrassment of having a card turned down for insufficient funds.

Obviously, the best way to avoid overdraft fees and spending is to keep an eye on your bank account and manage your spending to fit your income. However, everyone runs into financial hiccups every once in awhile, and it’s comforting to know that overdraft protection is there for emergencies. To receive all the benefits of overdraft protection and avoid the nasty fees that come with it, ask your financial institution if they offer an overdraft line of credit or the ability to link your checking to your savings account. Read More →

15 Jan

Getting Your Finances Ready for 2015 Part 1: Establishing Credit

It’s the start of a new year, and everyone is filled with motivation to try and better themselves in someway. We all know it won’t last long, so seize this moment to make a change that matters: establishing and keeping good credit through the use of a credit card.

What exactly is credit, and why is good credit important?

Your credit, which is reflected in your credit score, is your financial history including credit accounts, account history, outstanding loans, paid off loans, and a history of your debt repayment. Lenders will review your credit score when deciding whether or not to give you a loan, or to decide the interest of the loan. How you’ve handled your bills in the past is the best indicator of how you will handle your bills in the future.

Establishing good credit early can be hugely beneficial for goals later in life: buying a car, buying a house, or getting a loan to start your own business. Establishing good credit is important because it allows you to pay less in the future for your loans. With bad credit, every purchase you finance will be considerably more expensive because your interest rates will be higher. Bad credit can also prevent you from being able to finance something in the first place, usually large purchases like a house or an apartment. It can even affect your chances at employment!

How do I establish credit?

We have a simple, three step program for you to start establishing credit.