Fall Upcoming Holiday Closures. Articles

Transcription

1 Fall 2014 VISA Rewards Get the rewards you really want with an SMCU VISA. Double rewards points through 12/31 and no fee on custom card images. See Page 2 for more. Checking for Change Help us pick seven deserving non-profits to be our 2015 Feel Good Checking partners. Nominate your favorite before October 24. See Page 4 for more. Articles SMCU members can save money every month with Sprint. Page 2 Which home equity loan is best for me? Page 3 Grow Your Co-op. Get Paid! Page 4 Consolidating Debt Can Help Get it Under Control. Page 5 Join the SMCU Board of Directors. Page 6 SMCU Celebrates ICU Day. Page 6 Upcoming Holiday Closures Veterans Day - Tues., November 11 Thanksgiving - Thurs., November 27 Christmas Eve - Wed., December 24 (close at 3pm) Christmas Day - Thurs., December 25 New Year s Eve - Wed., December 31 (close at 3pm) New Year s Day - Thurs., January 1 1

2 Get Rewarded with an SMCU Visa Get rewarded for shopping this holiday season when you use your SMCU Visa Credit Card. In addition to enjoying one of the lowest rates in town, you can earn and redeem points for some of the most sought after items in the CURewards catalog. Favorites include name-brand DSLR cameras, HD TVs, top-of-the-line gaming systems, and air travel on your terms. Plus, between now and the end of the year: 2 Earn double points on all purchases Get 5,000 bonus points instantly for opening a new Visa Design your own unique card for free CUREWARDS All SMCU cardholders will earn double CURewards points on all purchases (cash advances excluded) made with their SMCU Visa between October 1 and December 31, Members who open a new Visa credit card with SMCU between October 1 and December 31, 2014 will receive 5,000 bonus CURewards points upon opening their account. See CURewards.com for details on how points are accrued and redeemed. DESIGN YOUR OWN CARD Between October 1 and December 31, 2014 you can design your own card for free (regularly $9.95.) You can choose from our library of hundreds of images or upload your own to make your card uniquely you. To get started, log-in to Online Banking, click View Your Visa and select Design Your Own Card. THE FINE PRINT RIGHT TO DECLINE: Under certain circumstances (as described in the Credit Card Account Agreement), we may decline to process your application or transaction, in which case you will be notified. OFFER END DATE: This is a limited SMCU Members Can Save with Sprint Tired of paying too much for your cell bill? We don t blame you. So we re helping you save with the Sprint Credit Union Member Discount from Love My Credit Union Rewards. As a Seattle Metropolitan member, you can save on your monthly wireless bills plus have your activation and upgrade fees waived. SMCU Members Can Get 10% off of select regularly priced Sprint monthly service Activation fee waived (up to $36 in savings) Upgrade fee waived (up to $36 in savings) 3 Ways to Get Your Discount Call 877-SAVE-4CU ( ) and let them know you re a credit union member. Ask to be a part of the NACUC_ZZM Corporate ID to save. Go to LoveMyCreditUnion.org/Sprint Visit your nearest Sprint store Current and new Sprint customers need to verify credit union membership to take advantage of these exclusive discounts. Visit or download the Love My Credit Union Rewards app in itunes or Google Play to verify your membership. Stop paying too much for your wireless services. Start saving with the Sprint Credit Union Member Discount today. time offer, valid only during the promotional period between October 1, 2014 and December 31, RESTRICTIONS: Equity Platinum and Savings-Secured Visa cards are not eligible for the CURewards program. RATE: APR is Annual Percentage Rate. Rates range from 6.99% to 17.99% as of 10/1/14. APR reflects any prepaid finance charges and is subject to change without notice. Rates/financing are offered based on applicant s credit qualifications and other underwriting criteria. CREDIT CARD ACCOUNT AGREEMENT: For further details about terms and conditions on your account, please refer to the Credit Card Account Agreement.

3 Which home equity loan is best? If you are planning a home improvement project or looking for a good way to consolidate your high-interest debt, you may be thinking about borrowing against the equity in your home. While that can be a great way to get the money you need, knowing a little about the available options can help you avoid ending up with the wrong loan. Why borrow against your equity? To Consolidate High- Interest Credit Card Debt Interest rates on a home equity loan or line of credit are typically lower than rates on a credit card, and because the payment term on equity loans are typically longer, you can lower your total monthly payment, which can provide breathing room in your monthly budget. For example, let s say you have $30,000 in credit card debt at an interest rate of 14.99%. If you made just the minimum payments on this card of $600, or 2% of the balance, it would take you 44 years to pay off the balance in full and you d end up paying $48,826 in interest. If you instead took out a $30,000 equity loan at 2.99% with a 5-year repayment period, you d make 60 monthly payments of $ and pay just $2,336 in interest over the life of the loan a savings of $46,490 and pay off your debt nearly 40 years faster. To Pay for Home Improvements or Repairs You may want to take out a loan on your equity to remodel or renovate your home. However, if you choose to do this, you should make sure you are doing a renovation that will add to the value of your home. According to Remodeling Magazine s annual Cost vs. Value Report for 2014, the top 5 home remodeling projects adding the most value to homes are: entry door replacement, deck additions, converting an attic to a bedroom, garage door replacement, and a minor kitchen remodel. To Pay Education Expenses College is expensive and can be hard to pay for, so it might make sense for you to take out a home loan to pay for your child s college education if the rate on your home equity loan is lower than other alternatives such as parent student loans, credit cards or private loans. Which Type of Equity Loan is Right for You? There are two main types of loans you can get from the equity in your home: a fixed-rate home equity loan (HEL) or a home equity line of credit (HELOC). Both loan types typically come with low interest rates, can be tax deductible, and can give you access to your cash when you need it. The amount you borrow on both a HEL and a HELOC is often limited to about 80% of the value of your home. For example, if your home is worth $200,000 and you have a mortgage of $100,000, you d be able to borrow up to $60,000. Both a HEL and a HELOC allow you to borrow money by leveraging the equity in your home, but only one of them might be right for you. A HEL is a good option if you need to receive all of your funds up front and prefer to pay your loan in set payments each month, since the interest rate is fixed. HELs are often used to finance major purchases, whether it s medical bills, home renovations, debt consolidation, or student loans. A HELOC is a better option if you need access to your funds but might not need a specific amount of money. You should think of a HELOC as you would a credit card because it is a revolving line of credit you use the amount of money you need and then pay it back at a variable interest rate. With a HELOC you don t have fixed payments because you are only paying back the amount you borrow, not the full credit line available. So a HELOC gives you flexibility with access to your money. Used correctly, home equity loans can be a great financial resource to help you pay off debt quicker or increase your home equity. To find out if an equity loan can help you reach your goals, call one of SMCU s equity loan experts at or visit smcu.com/equity to learn more about SMCU s Home Equity Loans. Steve Nicastro, NerdWallet.com 3

4 Help Choose Our 2015 Community Partners! SMCU is dedicated to giving back to the communities we serve. In fact, we make it a priority. One way we give back is through Feel Good Checking. For every Feel Good Checking account opened, we donate $20 to one of our seven non-profit community partners, who are chosen each year by SMCU and members of our community. Now that 2014 is coming to a close, it's time for you to help decide who our 2015 partners will be. Between now and October 24, you can nominate your favorite non-profit organization* to be in the running to be an SMCU Feel Good Checking partner. We encourage all SMCU members as well as members of our community to participate. Your voice helps make SMCU a reflection of you, which is an important part of our being a co-op. Vote for your favorite finalists from November 3 to November 10. Once the nomination period has ended, SMCU will review the list of organizations and narrow it down to 3 finalists in each of 7 different categories, including our current partners who will be up for re-election. 4 Partner Categories Animal Welfare Arts & Culture Education Environment & Sustainability Families & Neighborhoods Health Hunger & Housing The finalists will be announced on Monday, November 3. For one week, you will be able to vote for your favorite finalists. The results of the vote will weigh heavily in the selection process. The 2015 Feel Good Checking partners will be announced on November 24. Visit smcu.com/cfc to nominate an organization and to vote for finalists. Grow Your Co-op. Get Paid! As a member of Seattle Metropolitan Credit Union, you enjoy benefits that many bank customers don t, benefits like low loan rates, fewer fees, and local decision making. Most importantly, as an SMCU member, you help build SMCU and share directly in its success. Because we are a financial cooperative, we return excess revenue to our members in the form of better rates and services. That means that when more people join SMCU and use the products and services we offer, our members reap the rewards. That s why we created the Grow Your Co-op Member Referral Program to reward you for being an SMCU member and for recommending us to your friends and family. When you refer a new member to SMCU, we ll pay you. All they have to do is join the co-op and, when they open their membership, either: Open a checking account, or Be approved for a loan*. Once they do that, you (the referring member) will get $50 deposited into your savings account. Your friends and family (the referred members) will get a new membership in a great co-op and a chance to earn money by referring others. Visit smcu.com/refer for full details. *Share-Secured Loans and any real estate-secured loan, such as mortgages, equity, and HELOCs are excluded.

5 Consolidating Debt Can Help Get it Under Control Debt consolidation is an effective strategy to get bills back under control for those who owe. And that category seems to include most people these days, as the latest figures from the U.S. Census Bureau showed that 69% of American households were in debt to somebody in What Is Debt Consolidation, and How Can It Help? Consolidating debt involves paying off most or all of those owed and effectively shifting the burden to a single lender. Ideally, that leaves just one monthly payment to make, and usually that payment is less than the total of all of the previous minimum payments. Often, total interest costs can be reduced, leaving more money to cover other expenses. Plus, not having to deal with a stack of bills can cut down on errors, missed deadlines, and overdrafts and may help eliminate hefty fees and damaged credit. Consolidation Options Most people have a number of options when it comes to consolidating debt, each with its own advantages. Home Equity Financing Homeowners can use the equity they ve built up in their property by borrowing against it to pay off credit card balances and other high-interest loans, a move that with current rates often reduces monthly payments dramatically and may provide a tax benefit as well. Those who own a home and owe less on the mortgage than the home is worth may be able to take advantage of this option, which comes in two basic forms. The first is a home equity loan, which is a fixed-term loan. The second is a home equity line of credit (HELOC), which allows you to borrow money as you pay your balance down, up to the credit limit. Both types of loans use your home as collateral. Credit unions often offer lower rates on this sort of financing than banks are able to provide, and some lend borrowers up to 90% of the accumulated equity (the home s value minus any mortgage balances) and provide up to 15 years to pay it off. With mortgage rates near historic lows, home equity financing can cut the cost of consolidating debt. Personal loans For those who don t own a house or simply aren t comfortable using their home as collateral, personal loans can provide another way to consolidate. The interest cost may be higher than with home equity financing because personal loans are typically unsecured, or not backed by property. Personal loans usually have shorter terms than equity loans, which can lead to a higher payment than other types of loans. In a pinch, owners with relatively new cars and some built up equity in the vehicle may be able to use that as collateral to get a lower-rate auto loan to pay off other debt. Credit card balance transfers Another way to consolidate involves transferring balances onto a single credit card. A number of credit cards permit transfers from other cards, often with an initial discount on the interest rate for a few months to more than a year. Others will take on the transferred balances without charging an upfront fee. Remember the savings may disappear rapidly if the balance isn t paid off before the low-rate introductory period ends and the regular rate kicks in. When To Consolidate If you are starting to feel overwhelmed by your financial obligations, now may be the time to take a serious look at simplifying life by consolidating some or all of that debt. This can also offer a strategy for handling a balloon payment that may be looming, say from the end of an auto lease for a car you d like to keep. By taking a few simple steps, you may save money each month while spending less time dealing with bills. Roberta Pescow, NerdWallet.com 5

6 Join the SMCU Board of Directors The Board of Seattle Metropolitan Credit Union is looking for talented and enthusiastic candidates for Board and Associate Board positions to join us in implementing exciting new initiatives and shaping the future of this dynamic financial institution. In addition to the rewards that serving a notfor-profit organization bring, participation on the SMCU Board includes the opportunity to take advantage of professional development opportunities, meet other professionals from around the state and country, and learn about financial institutions. The ideal candidate will have financial acumen, a collaborative working style, strong ethical standards, a commitment to continuous learning, an appreciation of cooperative organizations, and an undergraduate degree in a related field. Governance experience and the ability to read complex financial statements are desirable. SMCU is striving to bring greater diversity to our governance team, so women, minorities and young people are encouraged to apply. We invite you to attend an orientation reception on Thursday, Nov. 20, at 6:00 p.m. at our Downtown headquarters to learn more about SMCU and the roles and responsibilities of board members from board members and staff. SMCU Employees Celebrate International Credit Union Day by Giving Back. On October 16, 2014, credit unions around the world celebrated International Credit Union (ICU) Day and this year s theme: Local Service. Global Good. That s 200+ million people from 56,000 credit unions in 101 countries joining together to celebrate their cooperative spirit. Globally, this cooperative spirit has led to lifechanging opportunities in the form of small business start-ups, home ownership, and education. In some countries, members encounter their first taste of democratic decision-making through their member-owned credit unions. Locally, employees of SMCU came together on Monday, October 13, ordinarily a credit union holiday, to volunteer more than 475 combined hours to lend a hand to some fantastic Seattle-area non-profit organizations. Please RSVP to if you plan to attend. Please plan to arrive at the credit union between 5:30 and 5:45 p.m. to ensure access to the downtown lobby. Application materials, specific qualifications and instructions for applying will be available on November 1 by contacting Martin Dinn, Administrative Coordinator, at or martin.dinn@smcu.com. All application information must be received no later than 3 p.m. on Friday, Dec. 19, Please send your application to: Seattle Metropolitan Credit Union Attn: Nominating Committee PO Box 780 Seattle, WA Seattle Metropolitan Credit Union is Federally Insured by the NCUA and is an Equal Opportunity Lender.