Category: Borrowing Basics

Why Personal Lines of Credit May Be the Best Choice

Many people turn to credit cards when financial fires need to be put out quickly. While credit cards can serve as a solid plan B, a Personal Line of Credit (PLOC) may be a better choice in certain situations.  A PLOC can be used to consolidate debt, make home improvements, pay off higher-interest debts—even help you with unplanned rainy days. Understanding the opportunities PLOCs present can help you take full advantage of the services the credit union provides members. Benefits of PLOCs While some people find the convenience of credit cards in these situations alluring, there are distinct benefits that make PLOCs far preferable in the long-term. These are just a few of the benefits of PLOCs worth considering when exploring…

February 17, 2021Borrowing Basics No Comments

Does Closing a Credit Card Affect Your Credit Score?

Your old credit card. It has plagued your thoughts and haunted your monthly bottom line for years—even decades. That exhilarating moment you FINALLY pay it off gives you such relief that you want to cut the card up and bid the credit card company good riddance forever. But is this really the best move for your credit score? Starting off with a clean slate might feel good, but sometimes holding on to an “old friend” is better. Let’s dig a little deeper. Anatomy of a Credit Score Before we get too deep, it’s wise to explore the anatomy of a credit score and how closing a credit card may affect it. Your credit score consists of five factors: Payment history Amount owed Length of credit history (how long accounts…

February 15, 2021Borrowing Basics, Wallet Wins No Comments

3 Strategies for Improving Your Credit Score

Your credit score is a number you need to know. Lenders, insurance companies, and even some employers use this score to decide how reliable you are. It pays to do your best to make sure it’s as high as can be. There are many ways to find out your credit score. As a PEFCU member, you can access your score with the FICO feature in our mobile banking app. Your FICO score, the most widely used credit scoring tool, specifically details what affects your score. If you need more details, you can order a free copy of your credit report through www.AnnualCreditReport.com. From there, you can check to see if the information on your report is correct and file a complaint if necessary. If you’re ready to boost your score, take these three steps to…

January 19, 2021Borrowing Basics, Wallet Wins No Comments

Building Good Financial Habits for Life

Where do you see yourself a year from now? Hopefully, you see yourself better off financially. But resolutions and goals with no plan are bound to fail. While it’s reported that around 73% of Americans plan to start the new year with resolutions, about 12% of them don’t even think their goals are possible. In fact, an average of 80% of us don’t meet our resolution goals. But failing to meet your resolution doesn’t make you a failure. In fact, you’re an amazing person who might not have an amazing plan. We want to see you live your best financial life as much…

January 4, 2021Borrowing Basics, Future Planning, Wallet Wins No Comments

Your Mortgage Questions Answered

Buying a house is a big step. In fact, it is typically the biggest financial a person can make in their lives. With the right information and some guidance, owning a home can be more within your reach than you think. Below, we at PEFCU answered frequently asked questions about buying a home. Q: Do I need excellent credit to get a mortgage? What does my credit score need to be? A: When we receive your credit report, we don’t only review your credit score, but we view your credit history. Q: How much is needed for a down payment? A: PEFCU requires 5% down payment of the purchase price plus closing cost. The…

December 7, 2020Borrowing Basics No Comments

Refinancing Loans to Boost Your Savings

Let’s be honest: saving money isn’t as easy as it sounds. You create a monthly budget and try your best to follow it—then something always pops up and throws you off track. Sure, you can switch cable providers or phone plans, but those savings are usually minimal. Want to see more progress? Then refinance your current loans. You may find you are giving half or more of your income toward monthly loan repayments. By refinancing, you can save a substantial amount of money. You can then place these funds into an emergency or retirement account so you can build your personal wealth. What is Loan Refinancing? Loan…

November 4, 2020Borrowing Basics 2 Comments

Renting vs. Buying – Pros and Cons

Given the high upfront costs associated with buying a home, it is no surprise most young people start asserting their independence by renting their own living space instead. As they advance in their careers, save money, get married, and start families, most eventually buy a home. On the other hand, many other homeowners are selling their houses and choosing to rent to downsize. Whether you’ve been renting for a long time and want to buy a home or are a homeowner considering renting instead, you’re in the right place! In this article, we will discuss the pros and cons of renting and buying. Hopefully, we will help you decide which is best for you. Renting: Pros & Cons A common…

November 2, 2020Borrowing Basics No Comments

Car Buying 101: What You Need To Know

Where to start? Who said that buying your first car would be easy? Chances are that you’ve received lots of unhelpful and conflicting advice on your way to the dealership. So, before you take that test drive, here are six car buying basics that you should know: Loan pre–approval is your most powerful negotiation tool. Get this first! If you know your approval limit and interest rate, you’ll be able to effectively strategize. PEFCU usually offers better rates and terms than banks. Just reach out for more info. The total price is more important than the monthly payment. This is very basic. Many people think if they can handle the monthly payment, it doesn’t matter how long it takes to pay off the car…

July 6, 2020Borrowing Basics 3 Comments

5 Things To Know About Publix Stock Secured Loans

George Jenkins (Mr. George), the founder of Publix Super Markets, Inc., believed in investing in people. He believed that if his associates owned Publix, they would care for and continue to improve the business. When Mr. George founded Publix Employees Federal Credit Union (PEFCU), associates had the opportunity to own a Credit Union that met their unique financial needs. What better way for you to take advantage of ownership than to borrow against your non-ESOP shares when you need it? The PEFCU Stock Secured Loan will come in handy for planned events or unplanned rainy days. Here are five facts you…

July 4, 2020Borrowing Basics No Comments

Benefits of Refinancing Your Auto Loan

Are your car payments wrecking your budget without putting a dent in your loan? Are you throwing away money in interest payments each month? If so, refinancing your auto loan may be an easy solution. It’s a painless process that could keep your money in your pocket. Let’s review what auto refinancing is and how to decide if it’s right for you. What is Auto Loan Refinancing? Refinancing your auto loan sounds hard, but it’s simple. When you originally bought your vehicle, you likely financed it with the dealership or some other lender. By refinancing your loan, you are just switching it from your current lender to a new lender to save money. Why Should You Refinance? Better Rates: You would want to refinance your auto loan to take advantage of better loan rates. If auto loan rates are…

July 2, 2020Borrowing Basics No Comments