Volume 3, Issue 1
Winter 2009
The Catholic Credit Union
www.cucatholic.com
Here are some facts about the National Credit Union
Share Insurance Fund (NCUSIF):
The NCUSIF is the only insurance fund that operates on a paypay-asas-youyou-go
system which prevents the accumulation of annual losses.
In these uncertain economic times having concerns and questions about
your finances is expected, but you can rest assured that having your
account at The Catholic Credit Union means your assets are protected.
Your accounts are safe because they are covered by federal insurance
from the National Credit Union Share Insurance Fund (NCUSIF) backed
by the US Government. Credit Unions as financial cooperatives invest
their money primarily in small consumer loans to their members. They
are prohibited by law from investing in leveraged buyouts, loans to
Third World countries or speculative land deals.
The NCUSIF has its financial statements audited annually by the GAO
and an independent auditing firm.
In 1985 under a bold recapitalization plan, credit unions transferred
one percent of their insured deposits to the fund. Credit unions have a
direct financial stake in the loss performance of their insurance fund.
Credit unions give up earnings on their one percent deposits, and
annually increase insurance deposits as assets and earnings grow.
The fund is supported only by credit union contributions and not by
taxtax-payer dollars. The NCUSIF has never had a negative balance!
National Credit Union Share Insurance Fund (NCUSIF)
In 1970 Congress created the National Credit Union Share Insurance
Fund (NCUSIF), to insure member's deposits in credit unions up to the
$100,000 federal limit, just like the FDIC does for banks. This fund is
supported by credit unions, not tax-payer dollars. The fund has never
had a negative balance and remains extremely healthy with the legal
limit being held in reserves. NCUSIF, administered by the National
Credit Union Administration, is capitalized by credit unions and backed
by the U.S. Government. Since October 1996, the fund's equity ratio has
been maintained at or near 1.30 percent of federally insured credit union
deposits, exceeding the federal limit of 1.00. This means that there is
$1.30 on reserve for every $100 on deposit.
Credit unions continue to
be safe, consumer-friendly
financial service providers
that offer consumers with
alternatives to for-profit
financial institutions.
And for many low-income
people who cannot afford
the fees and high minimum
balances required at some
banks, credit unions are
their only source for
affordable loans and a
good return on savings.
How the credit union difference improves safety and soundness:
As cooperatives, credit unions are democratically controlled by the
members.
Every member is a shareholder with a vote in the operation of the
credit union.
Operating costs are lower in part because board members are
trained volunteers.
NotNot-forfor-profit, credit unions tend to be conservatively run because
members manage their own money.
Car loans and small personal loans account for more than half of
credit union lending. As a result, the average loan delinquency for
credit unions in the United States is around one percent of total loans.
Join us for our 52nd Annual Meeting on Sunday February 8th, 2009
at 2:00 pm in the St Joseph’s Social Hall.
Our Gift to You - Skip Your Next Loan Payment!
Inside this issue:
1
Credit Unions—your
Money is Safe & Sound
NCUSIF Facts
1
Need extra cash?
Skip your next Loan
Payment!
1
Annual Meeting
Reminder-see you
there!
1
Credit Scores– more
than just a number
2
Family Membership—
Give the gift of
membership!
2
The holidays are over and the bills are piling up, but don’t
worry, we have one last gift for you—skip your next loan payment! You can choose to skip either your January or February
payment and use the extra cash for whatever you need!
xtra
Need e
cash?
Holida
y
gettin bills
g you
down?
Debit Cards—FEE FREE! 2
Credit Union Do’s
And Don'ts
2
Call us or stop in to see if you qualify!
The cost is $20.00 per loan, per payment skipped. Only one month per loan may be skipped, either January or February.
Your Credit Score—more than just a number
You may have heard of credit scores and wonder what they are. How do they affect your ability to get a loan? How
do they affect the interest rate you get on loans? What else is affected by your credit score? How is your score determined and what affects it? Credit scores are part of what is used to help lenders evaluate your ability and willingness
to repay a loan. Your credit score is based on your payment history, the amount of credit you have outstanding, the
amount of credit you have available, and other factors. And while your credit score is just a portion of the information lenders look at in determining credit worthiness, it will usually be a big factor in determining what interest rate
you will receive. The better your score, the better rate you will receive and the more money you will save.
How to Get Reports
You can obtain free credit reports annually from
all three major credit bureaus in three ways:
Online:
www.annualcreditreport.com
Phone: 877-322-8228
After a short verification including your Social
Security number, your report will be mailed to
you at the address listed on the report
By Mail:
Get form from the above web site or write a
letter with your Social Security number, date of
birth, full name (plus Jr,Sr,etc.) and current
address and previous address and send to :
Annual Credit Report Request Service,
PO Box 105281,
Atlanta, GA,303-48-5281.
List the reports that you would like (Experian,
Equifax, TransUnion).
How can I improve my score? Every borrowers’ score is a reflection of his or her unique profile, so there is no way
to say in advance exactly how each item in your credit history impacts your credit score or what impact it will have in
the future, for example how much your credit score will be impacted if you pay off a delinquent account or cancel a
credit card. However, there are things you can do to improve your credit profile and maintain a good credit rating.
Some of these include: Making Timely Payments. Making your payments on time is the best way to increase your
score. Delinquencies, foreclosures, bankruptcies and judgments will decrease your score. The Number of Trade
Lines. The number of credit cards, lines of credit and other types of credit (“trade lines”) you have available will
affect your score. If you have a lot of trade lines, this may decrease your score because of the risk that you might not
be able to pay off all of your accounts, and this may affect your ability to pay off your mortgage loan. You may wish
to consider canceling credit cards you do not use regularly or choosing 2-4 cards to use and canceling the rest. If you
close or cancel an account voluntarily, it will not have a negative effect on your credit score. You may also wish to
reconsider accepting “pre-approved” offers for credit cards, or if you accept an offer, perhaps you should cancel another credit card. On the other hand, if you have no trade lines, this will likely decrease your credit score. Also, you
may want to keep open accounts that you have had open for a long time, as the length of time you have had lines open
can also effect your score. Lenders generally want to see that you have some credit available and that you can handle
credit wisely. How You Use Credit. The amount outstanding on each of your credit cards will also affect your
score. In general, the lower the amount outstanding, the more likely it is that your score will be higher. Do Not Apply For Credit You Do Not Need. Whenever you apply for credit, the creditor will obtain a credit report from one
or more of the three credit bureaus. Each credit inquiry will stay on your record and will affect your credit score.
Even if you are turned down for the credit or change your mind and withdraw your application, your credit score will
be affected. This is because each inquiry suggests that you are increasing the amount of credit available to you.
How Can I Correct Mistakes On My Credit Report? Because credit scores are based upon your credit record, it is
very important that you obtain a copy of your credit report from time to time to make certain that the information is
accurate. If the information is not accurate (for example, someone else with the same name as yours may have their
credit mixed up with yours), you should immediately take steps to get it corrected. No one can do this but you.
Lenders, credit card issuers and other credit providers send regular reports about their accounts to the major credit
bureaus. This is where the information on your credit report comes from. There are three major credit bureaus; you
should contact each one because not all providers report to each bureau. Also, if you have joint credit (for example, if
you are married and have joint accounts with your spouse), it is a good idea to get the credit report for each of you
because there may be information on one report that does not appear on the other. If you ask for a copy of your credit
report to check your credit history, it will not affect your score.
What To Look For Credit reports include all kinds of obscure information, such as every address you have ever used on a credit application. Every
single word and number should be scrutinized for accuracy, but here are a few big things to check right away: ▪ Liens and other big negatives ▪ Late payments
or accounts sent to collection ▪ Lawsuits, unpaid traffic tickets and other public records—these could be a clue to identity theft ▪ Accounts with companies you don’t recognize—
another ID theft indicator, but they could just mean your creditor or loan has been sold ▪ Accounts showing balances you’ve already paid ▪ Inquiries ▪ Accounts listed twice –
sometimes this happens when lost cards are replaced or the account is transferred to another bank, but make sure the duplicates don’t both show as open or as both having
balances ▪ Good news that isn’t there-an up-to-date mortgage, car loan or other longtime account that isn’t listed, contact the creditor and ask it to be reported so that your
positive credit will be counted.
Good News—Your
CCU Debit Card
is now
FEE — FREE!
Now you can enjoy the convenience
of paying for everything with your
CCU Debit Card without any
additional costs, just sign and
you are done!
Remember to say ‘credit’ and sign for
all your purchases unless you need
cash back, then say ‘debit’ and use
you PIN.
You can access any 5th 3rd ATM
surcharge-free when you need cash
too! Visit www.cucatholic.com and
see the free ATM locator to find
the closest ATM to you.
*ATM surcharge fees still apply.
Page 2
Credit unions...
•
•
•
•
•
•
•
•
•
•
•
•
•
•
DO
Offer safe and sound banking
Have not-for-profit status
Have local owners
Insure deposits up to $250,000*
Stand ready to lend
Protect the interests of their members
Have members
DON'T
Need a bail out
Cost taxpayers anything
Participate in high-risk loans
Profit from your debt
Gamble with your money
*$250,000.00 is the minimum temporary insurance provided by the NCUA until 12/31/09,
after which date the minimum insurance provided by the NCUA will be $100,000.00
per account
With our FAMILY MEMBERSHIP your
family members and relatives are
eligible for all the great low-cost
services we have to offer!