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Press Release / Siouxland Federal Credit Union

July 23, 2024

Re:  Siouxland Federal Credit Union Gives to Siouxland Flood Recovery Fund

Siouxland Federal Credit Union has donated $15,000 to the Siouxland Recovery Fund to assist flood victims, as they recover from the recent disaster that has affected several communities and people in the Siouxland area. Joel Steenhoven, President of Siouxland Federal Credit Union said, “We previously delivered several cases of water to both Riverside Lutheran Church and Isaac Walton League recently. With this latest monetary donation, we hope those in need will continue to be helped, as they rebuild their homes and lives. Our thoughts and prayers go out to all affected.”  



As you’re probably already aware, your credit score can impact your financial picture across several categories. Lenders evaluate your score in determining whether you’ll be approved for a loan or credit card, what interest rate they’ll charge, and even whether you’ll be eligible for job or security clearance. If you need to give your credit a boost, we have five suggestions for helping you get back on track. But first: the basics.

What is a Credit Score?
A credit score uses historical information about a person’s past use of credit to calculate the likelihood that they will pay back what they owe on time and in full. Ranging from a low of 300 to a high of 850 (sometimes referred to as “perfect credit”), credit scores are calculated based on payment history, amount owed, length of credit history, types of credit used, and new applications for credit.In general, a score of 660 and above would make a borrower eligible for credit with favorable interest rates. A score below 600 may result in difficulty getting approved for credit and is likely to be subject to high-interest rates.If you don’t know your credit score, you can contact one of the three major credit bureaus; Equifax, Experian or Transunion.
1. Be punctual with payments
Paying your bills on time is the biggest single factor used to calculate your credit score. Late payments, past due accounts, and accounts in collections have a negative impact on your credit. Always aim for consistent, timely payment (even it’s the minimum amount). Punctuality pays off: a positive payment history across 18 months or longer increases the likelihood that you’ll receive more favorable loan terms from lenders.If you’re falling behind, be proactive in your financial planning. Create a realistic monthly budget that accounts for bills and everyday expenses like gas and groceries. Struggling to keep track of multiple bills? Consider automation. Automated payments can minimize late fees. If you know you will miss a due date, call your credit card company or lender. They may be able to help by moving your due date out.
2. Pay down your debt
How much you owe is another big factor when it comes to credit score calculation. If you have a large amount of debt or are carrying balances on credit accounts for extended periods of time, it can negatively affect your score.Make it a goal to pay down your debt. Take inventory of any categories where you can reduce non-essential spending so that you pay a little extra on your credit accounts. A credit counselor can walk you through different options for dealing with debt and may be able to help you pay it off more quickly.
3. Don’t max out your credit limit
The amount of credit you use (also called credit utilization) also affects your score. Our financial counselors suggest using less than 30 to 40% of your available credit. Spending above that threshold or carrying high balances relative to your credit limit will cause your score to fall. If you are using more of your credit limit than you would like, consider making adjustments in your budget and spending choices to reduce your overall reliance on credit.Keep in mind that regularly utilizing small amounts of credit (and paying it off) will increase your score. People without established credit history typically receive lower credit scores.
4. Maintain good habits
Your credit score is built on patterns over time, with an emphasis on more recent activity. Improving credit and rebuilding a credit score that has fallen will take some patience, but it can be done! Credit scores can and do change. A history of timely payments and accounts that you have held for five years or longer have a positive effect on your credit score. Quickly opening multiple accounts, carrying high balances for a sustained period, or even closing unused accounts have a negative effect on your score. Events like foreclosure and bankruptcy, while they serve an important purpose for those with severe debt, have a significant and lengthy impact on your credit score. (We are not lawyers, and this is not legal advice. If you are considering one of these options, we encourage you to consult a legal professional and to investigate other alternatives as well.)
5. Chat with a credit counselor
While talking to a credit counselor won’t have a direct effect on your credit score, you can gain valuable insight and information. We will work with you to understand your financial situation, explore different options, and make a personalized plan. We can help you review and understand your credit report. If debt is preventing you from making progress, we can help you explore debt management plans and other options that can accelerate your path forward.

 



You might be reluctant to make upgrades when you’re ready to sell your house. After all, you won’t be in the house to enjoy them for long. But did you know that most projects recoup an average of 60% of their costs, according to the 2023 cost versus value report from Reporting magazine. 

But complacency can mean your house stays on the market for months—time that costs you money. That’s why these seven updates that rank high on buyers’ wish lists, from the National Association of Home Builders’ (NAHB) "What Home Buyers Really Want" report, are worth considering:

  1. Laundry room. 63 % of buyers prefer the washer and dryer on the first floor.
  2. Energy-saving features. Not surprisingly, many home buyers are concerned about the environment as well as saving money. They look for Energy Star-rated appliances, ceiling fans, programmable thermostats, and energy efficient windows.
  3. Roomy garage. Many buyers want garage space that’s accessible, big enough for two cars, and has cabinets and shelving to keep things organized.
  4. Open-concept kitchen and dining room. About 85% of respondents said they prefer these areas to be completely or partially open.
  5. Walk-in pantry. Many are looking for pantries with built-in organization systems to keep food and preparation items out of sight. It’s a bonus if your pantry doubles as a broom closet.
  6. Smart-home features. Buyers are looking for a wireless home security system, video doorbells, and security cameras.

Home improvements can be a great way to increase the value of your home but keep this list in mind, so you spend your money on the right renovations.

Get a Head Start on Your Next Vacation                                  

Going on regular vacations is essential for your mental health. A relaxing break in your day-to-day routine soothes the soul and reduces stress. However, if you pay for that vacation with credit, especially at a cost you can’t comfortably pay off in 1 or 2 months, then the vacation could cause even more stress.

Here’s a great idea one credit union member, Steve N., and his family uses to pay for a vacation. It enables them to save up money before the trip and save them from financial stress after the trip. He writes:

“Every year we start saving for our next vacation as soon as we return from one. Each month we transfer a fixed amount out of our checking account into a credit union money market ‘vacation account’ that receives a higher rate of interest. My wife and I agree to use this account only for vacation savings.”

Steve emphasizes getting agreement from the family. For any successful family budget goal, you must have buy-in. He continues:

“In addition to our monthly transfer, we have an agreement to deposit every gift of money we receive—from Christmas, birthdays, whatever—into this account. The same goes for any rebate checks we receive from product purchases during the year. Basically, every little ‘extra’ check we receive goes directly into this account.”

Every so often, Steve and his wife pull money out of their money market account and put it into a short-term share certificate/CD (certificate of deposit) to get an even higher yield. He says they have CDs maturing almost every month that they can then deposit into their money market vacation account.

Steve and his family are doing several smart things that you can apply to any savings project:

  • They have a goal—to vacation without borrowing money.
  • The goal has a deadline—the date of the next vacation.
  • They automate their savings—it’s easier to save when it’s done automatically and not randomly.
  • They agree on the strategy and work together.

This is just one way to save for a specific goal. If you’re interested in learning other ways to reach your savings goals, stop in at one of our branches or call us at 402-494-2073.

As summer hits its stride, the idea of financially preparing for the holidays might feel like overkill. 

July is an ideal month to assess your financial picture and make mid-year adjustments that will help you cruise into the holiday months with fewer concerns.  To make planning easier, here is a seven-item checklist you can use as your guide: 

1.  Review Your Budget

With a customizable budgeting worksheet or free app, identify areas where you may be overspending and eliminate costs or comparison shop if possible. Budgeting isn’t about guilt, rather it is a way to ensure you’re saving a little each month – ideally 10% of your income. Less still counts.

2.  Automate Savings

July is an ideal month to assess your financial picture and make mid-year adjustments that will help you cruise into the holiday months with fewer concerns. To make planning easier, here is a seven- item checklist you can use as your guide:

allocating savings so that when peak holiday spending season comes around, you’ve avoided (or at least minimized) high interest credit card balances that can put a damper on the season and coming year. Look into opening a holiday-specific savings account at your financial institution and start saving now.

3.  Strategize Debt Repayment

Review the balances and interest rates of your credit cards, loans, and other debts. Tackle high-interest payments first (so you’re able to put more toward principal in the long run).  

4.  Check Your Credit Report

Request a free copy of your credit report from AnnualCreditReport.com. Review the report for any inaccuracies or signs of identity theft. Dispute any errors you find, which could be a contributing factor to a lower score.

5.  Revisit Investments

If you have any investment accounts, assess whether your allocations still align with your long- term goals and risk tolerance. Market conditions often change, and your investment strategy should account for these fluctuations.

6.  Maximize Retirement Contributions

If you have a retirement account, check your contributions, and see if you have any room in your budget to increase them. This especially applies if your employer offers matching contributions, as it’s essentially free money. The sooner you invest, the more time your money has to grow.

7.  Review Insurance Policies

Ensure that your health, auto, home, and life insurance policies still meet your needs. Life changes such as marriage, the birth of a child, or significant purchases might necessitate  adjustments to your coverage or comparison shopping for more favorable rates.