May 2021 - High Point FCU

Technology a Necessity in Today’s World

Whether you’re trying to keep up with younger family members or you’re trying to make an appointment for a COVID vaccination, like it or not, you need to be up on the latest technology.

Some devices may still be somewhat intimidating, but digital devices have become more user-friendly over the years.

If you can yell, “Alexa!” you have the ability to get the news and weather, find out where your delivery is and, more importantly, call for help just by using your voice.

Older adults and technology usage

According to AARP , people over age 50 are using smartphones, tablets, smart speakers and wearable devices as much as adults ages 18-49. Many say they use their devices daily, mostly for social media.

Those who are not adopting technology say there is a lack of knowledge and a presence of health problems, such as hearing and vision issues. Cost is also sometimes noted as a reason for shying away from buying that smartphone or Apple watch.

Most devices that are specifically designed for older people, such as wearable fall-detection devices, are viewed as a negative stereotype for aging.

Useful products for older adults

Charlotte Yeh, the chief medical officer at AARP, says technological devices geared toward older adults should not only focus on protecting their safety, but also give them a feeling of purpose and connection, as well as a positive view on aging.

Some examples of these products include the Amazon Alexa Care Hub, created for independent living with the security of knowing you’re connected to loved ones; and the BUDDY app for Fitbit smart watches to monitor and manage fall prediction, prevention and detection, medication schedules and reminders, GPS locations and emergency notifications, all with modern style.

Some libraries and township recreation departments provide free instruction on how to use tablets and e-readers, like Amazon Kindle. Check their schedules or grab your teenage grandkids to hook you up. Technology is a necessary part of today’s world, and once you embrace it, you’ll feel less isolated and more in control of your daily life.

Financial technology

Having the ability to manage your financial accounts without going into a branch is especially important for older adults. If you haven’t already, enroll in High Point FCU’s digital banking service, and enjoy 24/7 online account access! Learn about the benefits of digital banking here.

5 Steps to Take Before Making a Large Purchase

Bitten by the gotta-have-it bug? It could be a Peloton bike that’s caught your eye, or maybe you want to spring for a new entertainment system? Before you go ahead with the purchase, though, it’s wise to take a step back and follow these steps.

Step 1: Wait it out

Often, a want can seem like a must-have, but that urgency fades when you wait it out. Take a break for a few days before finalizing a big purchase to see if you really want it. For an extra large purchase, you can wait a full week, or even a month. After some time has passed, you may find that you don’t want the item after all.

Step 2: Consider your emotions

Before going ahead with your purchase, take a moment to identify the emotions driving the decision. Is this purchase being used as a means to fix a troubled relationship? Or maybe you’re going through a hard time and you’re using this purchase to help numb the pain. Be honest with yourself and take note of what’s really driving the purchase. Is it really in your best interest?

Step 3: Review your upcoming expenses

What large expenses are you anticipating in the near future? Even if you have the cash in your account to cover this purchase, you may need that money soon for an upcoming expense. Don’t spend money today that you’ll need tomorrow.

Step 4: Find the cheapest source for this item

If you’ve decided you don’t want to go ahead with the purchase, there are still ways to save money. In today’s online world of commerce, comparison-shopping is as easy as a few clicks. You can use apps like ShopSavvy to help you find the retailer selling the item at the best price.

Step 5: Choose your payment method carefully

Cash can be your go-to choice if you have the funds on hand now. A low-interest credit card may offer purchase protection, just make sure you can meet your monthly payments. Finally, a buy now, pay later program can be just what you need if you have 25% of the purchase price saved up and you can afford to pay off the rest in fixed installments.

If you’re ready to make a large purchase and need a loan, contact Olean Area Federal Credit Union to explore your options!

Micro-Deposit Scams

Scammers are always upping their game, and they’ve recently pulled out an old trick: the micro-deposit scam. Unfortunately, too many people have already fallen victim, and we don’t want anyone else getting caught in the trap. To that end, we’ve compiled this guide on micro-deposit scams, how they play out and what you can do if you’re targeted.

What is a micro-deposit?

Before we can explore the actual scam, it’s important to understand how a micro-deposit works.

Micro-deposits are small sums of money that are transferred online from one financial account to another. Their purpose is to verify if the account on the receiving end is actually the account the sender intended to reach. Micro-deposits are generally less than $1 and can be as small as $0.02. They are also typically deposited in pairs; within one to three business days of linking accounts, two micro-deposits should appear in your account.

As mentioned, micro-deposits are primarily used to verify account ownership. For example, if you’d like to link your checking account at Olean Area Federal Credit Union with an investment account, the investment brokerage firm will want to verify it’s sending your dividends to the correct account. Before sending any of your investment earnings, it’ll do a test run by sending a pair of micro-deposits to your checking account. You’ll be notified that the firm has sent these deposits, and asked to verify the amount of the deposit by logging into your newly linked account. Once you’ve completed this step, the brokerage account will withdraw the small amount of money sent through the micro-deposits and proceed with regular deposits of investment dividends, as planned.

How the scam plays out

In this scam, crooks will link brokerage accounts with strings of random numbers, hoping to hit a valid account. When a deposit is verified from an account, they will use additional information about the account holder to withdraw funds in addition to those deposited from the account that was verified. Then take the withdrawn funds as their own.

What to do if you’re targeted

Micro-deposits are small enough to fly under the radar and you may unknowingly verify one with an uninformed click. Here’s what to do if you’ve received a micro-deposit from an unknown source:

Don’t verify it. This way, the scammer won’t know they’ve hit an authentic account.
Do not click any links embedded in the verification request message or download any attachments.
Let us know you’ve been targeted.
Report the scam to the Federal Trade Commission at FTC.gov so they can do their part in catching the scammers.
Let your friends and family know about the circulating scam so they can be on the alert as well.

Scammers are using micro-deposits to gain access to consumer accounts, but Olean Area Federal Credit Union is doing everything possible to stop them before they can do any real damage. Together, we can beat the scammers at their game. Stay safe!

When Should I Do It Myself and When Should I Leave it to the Pros?

Q: Which home improvement projects can I tackle myself, and when should I leave it to the pros?

A: It’s tempting to want to do everything yourself, but it isn’t always the best choice. Here’s how to know when to do it yourself and when to hire professionals.

Home improvement projects you can probably do on your own

Cosmetic improvements.This includes painting, wallpapering, wood staining, installing adhesive carpet tiles and replacing the hardware on cabinets and drawers. Check out tutorials on YouTube for useful tips, tricks and hacks.
Minor plumbing jobs.Almost anyone can snake a clogged toilet, and most people can handle fixing a minor faucet leak or changing a shower head. Maybe even installing a toilet. Again, YouTube is your best friend when it comes to DIY adventures.
Minor electrical work.You can probably install new light fixtures and change your light switch plates without much issue.
Install tiles.Think a new backsplash for your kitchen, new tiles for your bathroom floors and walls, and new floors for your kitchen and foyer.

Six questions to ask before tackling a project on your own

Have I done a project like this before? If this isn’t your first time doing a project like this, you can probably handle it now.
Do I have a reliable resource to turn to with any questions that may arise? It’s best to be prepared in case you run into trouble mid-project. Get that contractor friend on speed dial!
Will this project involve any structural framing? It’s best not to tackle projects that involve cutting through walls without professional guidance.
Will this job involve any electrical, plumbing or HVAC work? If your project involves cutting through pipes and wires, it’s best to call in the pros.
Do I have the resources to complete this job? Make an estimation of how much the job will cost you in time and money before you begin.
Will this job risk personal injury? Don’t risk your safety on a project that should really be left to the pros.

Paying for a home improvement project

A home improvement project can be expensive. Consider tapping into your home’s equity through a home equity loan or a home equity line of credit with Olean Area Federal Credit Union to help you pay for the project. Call, click, or stop by today!

All You Need to Know About HELOCs

If you’re a homeowner in need of some cash, look in your own home. You can tap into your equity through a home equity line of credit, or a HELOC. Let’s take a look at HELOCs and why they can be an excellent option for cash-strapped homeowners.

What is a HELOC?

A HELOC is a revolving credit line letting homeowners borrow money against the equity of their home, as needed. Since it’s backed by a valuable asset, a HELOC will generally have a lower interest rate than unsecured debt, like credit cards.

Once you’ve been approved, you can borrow as much or as little as needed during a period of time known as the draw period. That time window generally lasts five to 10 years.

How much money can I borrow through a HELOC?

The amount of money you can take out through a HELOC will depend on your home’s total value, the percentage of that value the lender allows you to borrow against and how much you currently owe on your home.

Many lenders will only offer homeowners a HELOC that allows the borrower to maintain a loan-to-value (LTV) ratio of 80% or lower.

Is every homeowner eligible for a HELOC?

Like every loan and line of credit, HELOCs have eligibility requirements. Exact criteria will vary, but most lenders will only approve homeowners who have a debt-to-income ratio of 40% or less, a credit score of 620 or higher and a home with an appraised value that is at minimum 15% more than what is owed on the home.

How do I repay my HELOC?

Some lenders allow borrowers to make payments toward the interest of the loan during the draw period. When the draw period ends, the borrower will make monthly payments toward the principal of the loan in addition to the interest payments.

For many borrowers, though, repayment only begins when the draw period ends. At this point, the HELOC enters its repayment phase, which can last up to 20 years. During this time, the homeowner will make monthly payments toward the HELOC’s interest and principal.

In lieu of an extended repayment phase, some lenders require homeowners to repay the entire balance in one lump sum when the draw period ends.

How can I use the funds in my HELOC?

There are no restrictions on how you use the money in your HELOC. However, it’s generally not a good idea to use a HELOC to fund a vacation, pay off credit card debt or to help you make a large purchase. If you default on it, you risk losing your home, so it’s best to use a HELOC to pay for something that has lasting value, such as a home improvement project.

If you’re a homeowner in need of some extra cash, consider taking out a HELOC through Olean Area Federal Credit Union. Call, click, or stop by today to get started!

Beware the USPS Smishing Text Scam

Your phone pings, alerting you to a new text. You swipe to find a message from the USPS. It tells you the scheduled delivery for your package has been changed and they want you to click on a link to confirm. Just one click, and it’ll be done.

Stop! Don’t click that link! If you receive a text like this, you are likely looking at a scam. Here’s what you need to know about the USPS smishing text scam.

How the scam plays out

The United States Postal Inspection Service (USPIS) is warning of an uptick in smishing scams that use the USPS as a cover. If the victim clicks on a link in a message like the one described above, they’ll be downloading malware, giving the scammer access to their device and personal info.

Stay ahead of this scam by knowing this simple fact: The USPS never sends unsolicited text messages about deliveries. You’ll only get a message from them if you’ve signed up for alerts about a package’s delivery. If you haven’t, and you still receive a message about a scheduled delivery change, you’re looking at a scam.

What to do if you’re targeted

Confirm the identity of the sender by checking with the USPS if you actually have a delivery schedule change.
Don’t reply or click on links.
Save a screenshot of the text to share with law enforcement agencies and delete the message.
Block the number and update the security on your device.
As always, don’t share sensitive information, such as your Social Security number or account details, with an unverified contact.

Report the scam

Do your part to stop the scammers by reporting it to the proper authorities.

First, email a screenshot of the text to spam@uspis.gov. Make sure your screenshot shows the number of the sender as well as the date it was sent. You’ll also need to include your name in the email so the team can reach you if necessary, along with any other relevant details about the scam.

You can also report the scam to FTC.gov.

Stay alert and stay safe!

What You Didn’t Know About Home Loans

If you’re in the market for a new house, learn all you can about home loans before going too far into the process.

Here are some things you may not know about home loans:

Rates fluctuate daily

If you’re looking for a new home, you may be checking mortgage rates as often as some people check their Twitter feeds, but rates fluctuate daily. Know that the rate you see today may be different than the one you actually get when you get approved for your loan.

The cheapest interest rate does not guarantee the cheapest loan

An adjustable-rate mortgages (ARM), which can be the loan boasting the lowest interest rate, may not have the lowest rate a few years down the line after it adjusts. Understanding the terms of when you are subject to an interest rate change and what the limitations to those changes is important.

A fixed-interest rate mortgage can ultimately cost you more

A fixed-rate mortgage can have a higher interest rate, however it would not be subject to a future change later in your term. If rates drop further throughout your loan’s term though, you won’t be able to take advantage of the new rates unless you refinance. In the event that you wished to refinance, you may be subject to another set of closing costs.

A lower credit score will cost the borrower

A high credit score can translate into tens of thousands of dollars in interest payments saved over the life of a home loan. A credit score difference of 100 points can increase a monthly mortgage payment by $150 or more.

The housing market impacts rates

Lenders need to turn a profit from their loans, which means the higher the volume of loans they process, the less they need to earn from each one to remain profitable. When the housing market is booming, and lenders are granting loans on a frequent basis, they will be more inclined to offer lower interest rates to borrowers.

You can have your mortgage payments automated

Missing a mortgage payment or paying it late can have serious consequences. Avoid that by signing up to have your monthly mortgage payments automatically deducted from your checking account.

If you apply for a home loan through Olean Area Federal Credit Union, and have a checking account with us, you can set up autopay for your monthly payment. Explore our mortgage loan options today!