Abbey Bowser, Author at High Point FCU

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!

Lawn-Care Scams Sprout up in Spring

Spring is here, and lawn-care scams are sprouting like mushrooms after rain. And unlike that brown spot in the grass, they’re not easy to see. Here’s what’s important to know about these scams and how to stay safe.

How the scam plays out

In a typical lawn-care scam, a company will target homeowners with ads, calls and other tactics. They’ll offer to inspect the lawn and provide a free quote for services the lawn requires. When the victim accepts this offer, a date and time will be set for the complimentary inspection.

On the day of the inspection, though, victims arrive home to see a sign posted on their lawn detailing all the work that has already been done on behalf of this company! The victim is billed for the work, and when they protest, the business claims the victim verbally agreed to the services.

This is probably just the beginning of a lawn-care nightmare. The company may continue to send workers to service the victim’s yard, regardless of how many times they say they don’t want or need these services. Failure to pay will prompt the scammer to threaten to call collection agencies. Usually, the victim pays out of fear of having the lawn-care company follow through on their threat.

Sometimes, the scam takes the form of a company doing shoddy work and overcharging for it, not delivering on services or tacking on extra charges and fees without warning.

Avoid getting scammed

Before hiring a lawn-care company, the Better Business Bureau (BBB) recommends taking the following steps:

Research the company.Look up the business’s profile on the BBB website or search for its name on the bureau’s list of accredited lawn maintenance companies. Look for any necessary licensing and insurance as well. To avoid signing a “verbal contract,” do not contact a company before doing your research.
Ask for a lawn inspection before getting a quote.
Get everything in writing.Make sure the contract clearly explains terms of the agreement and for how long it is valid. The contract should also list the quantity, size and types of plants and other materials that will be used by the lawn-care company. Keep a personal copy of anything you sign.
Ask for references and pictures of past jobs.  
Get specifics on pricing.
Ask for receipts for all paid invoices.

If you’ve been scammed

If you’ve been duped by an unscrupulous lawn-care company, you may have difficulty getting out of contracts or agreements. Report the scam to the FTC and the BBB. Also contact local law enforcement to ask about suggested next steps.

Don’t get scammed by a lawn-care company! Follow the tips outlined above when hiring a provider and keep your money safe.

Getting the Most Out of Youth Accounts

Managing money is a foundational life skill. There are so many factors involved and so many open-ended questions at play. How much should you be saving? When is it worth spending more? How do you keep spare change from burning a hole in your pocket? It takes years of discipline and training to perfect this skill, and ongoing self-control to maintain it.

That’s why it’s best to give your kids a head start on money management and saving. As a parent or guardian, remember that the lessons you plant today will take root and blossom, enriching your child’s life for years to come.

Here at Olean Area Federal Credit Union, we understand the enormity and difficulty of this task. In honor of National Credit Union Youth Month, we’re focusing on ways to help make this process as smooth and as simple as possible.

Olean Area FCU is proud to offer a specialized Youth Savings Account that is designed just for kids. You can learn more about it by clicking here.

Ready to open an account for your child? Does your child already have one? Read on for three steps to take for ensuring your child gets the most out of a new or existing account:

Set a goal

Now that your child’s money will be sitting in an account instead of a piggy bank, let her use this opportunity to save up for something big. Sit down with her and discuss what she’d like to save for. You can create a long-term goal, like saving up for college or for a first car. Also establish a short-term goal, like a new gaming console or a hoverboard.

Set a date for your goals, and then set up a savings calendar for illustrating how much money needs to be saved each month to reach the intended target by the designated date. Discuss ways to add to the savings, being sure to include money from birthday gifts, summer jobs, allowances and chores.

Bank together

Whether your child is a first-grader or a teenager, if this is their first time owning an account, they’ll need you to show them the ropes.

Always bring your children along with you when you stop by Olean Area Federal Credit Union to deposit their savings. Show them how it works and let them see the account balance growing. If your child asks you to withdraw money from their account, make sure they see how this translates into a dip into their savings.

For teens, you’ll need to walk them through that first deposit and withdrawal. When they’ve probably got the hang of it, it’s time to take a step back and let them be on their own. They’ll feel like a million dollars managing their account independently.

However, share with your teen that every swipe of their debit card also means a dent in their account balance. Also be sure to warn kids of all ages about security. They should know to never share their account information with anyone, and to keep their debit card in a safe place.

Monitor your child’s activity

Don’t aim to be a helicopter parent, but do keep an eye on your child’s account. If he’s depositing a lot less than planned, ask him where his money is going. If your teen is maximizing his daily ATM allowance, speak to him about money management and impulse purchases.

Your teen’s daily withdrawal limit may need occasional adjustment, so keep a careful watch on spending to see if any modifications are needed.

Remember: Every financial lesson you teach your child today equips them with money management skills for a lifetime.

How to Build Up Your Credit from Scratch

Q: I’ve never had a credit card and my credit history is non-existent. I’m ready to build up my credit from scratch. Where do I start?

A: Building a credit history from the bottom up can be tricky business. It may take a while until you see results. But, with time, effort and responsible financial choices, you can build an excellent credit history, which will positively impact your financial health for years to come.

Here are 5 steps you can take to get the ball rolling on your credit file.

1. Visit Olean Area Federal Credit Union

Stop by Olean Area Federal Credit Union to speak to a Lender about opening your first credit card right here. We offer most of our members secured credit cards even when they don’t have a substantial credit history.

2. Open a secured credit card

Secured credit cards are starter cards requiring you to make a deposit of several hundred dollars before you can open a credit line in that same amount. The card issuer will hold this deposit as collateral in case of a missed payment. After eight or 12 months, you will get your deposit back if there is no outstanding balance on your card. You can then close your account and open an unsecured credit card. Secured credit cards are not long-term solutions, but they are great first credit cards since almost anyone can qualify.

3. Open one or several low-balance cards

There are several credit card companies, including Capital One and Credit One, offering cards specifically geared to the new credit card owner. These cards do not require a credit history to qualify, though you may need to prove that you lead a financially responsible life.

4. Use your cards responsibly

It’s not enough to have credit cards open in your name; you need to use them, too. With a starting balance of $200 or so, you’ll have to be careful to spend just a bit each month and keep your credit utilization at less than 30%. You’ll also have to be vigilant about paying your bill in full and on time each month. You can set up an automatic payment, so you never miss a bill.

5. Become an authorized user

If you have a family member or partner who has an excellent credit score and a credit card that they’ve had for a while, ask them about making you an authorized user on their card. This will add the card’s payment history to your growing credit file and can increase your score. Keep in mind, though, that any time you use the card, the primary account holder will be responsible for paying the bill. Also, find out whether the card issuer reports authorized user activity to the credit bureaus, so this step isn’t wasted.

Beware the Amazon Watch Raffle Scam

Everyone admires Amazon’s scale, and scammers are no exception. Recently, they’ve been piggybacking on Amazon’s reach and name to pull off a scam that’s already taken in thousands of innocent victims.

Here’s all you need to know about the Amazon watch raffle scam:

How the scam plays out

In the scam, the target receives a text message appearing to be from Amazon and telling them they’ve won an Apple Watch, or a similar prize, such as Airpods or a Garmin Fitness watch.

If the victim clicks on the embedded link, they’ll land on a page asking them to provide their personal information. Alternatively, clicking the link may download malware onto the victim’s device.

Red flags

First, it’s important to note that Amazon will never ask a consumer for their personal information or for remote access to a device.

Second, familiarize yourself with the red flags that can help you spot when you’ve been targeted by an Amazon watch raffle scam or a similar ruse:

The text message includes an unusual link.
The message promises an instant and/or large reward.
The text message urges you to act now.
The text appears to be sent from Amazon, but you never signed up to receive text messages from them.

Avoid the scam

Follow these precautions to avoid the Amazon watch raffle scam.

Never click on a link sent in a message from an unverified number.
If an offer sounds too good to be true, it probably is. If you’re still unsure, call the number to verify if it is legitimate.
Never respond to suspicious-looking text messages. Instead, block the number.
If you receive a text message that appears to be from Amazon, update the login credentials of your Amazon account. You may want to do a security sweep on your device for viruses and malware if you’ve already clicked on the link.

If you’re still unsure whether a text message has actually been sent by Amazon, you can check out Amazon’s scam information page here to help you verify the authenticity of the message.

Stop the scam

Do your part to stop those scammers by reporting all scam attempts to the FTC and the BBB. You can also warn your friends and family about the circulating scam.

Stay safe!

Watch Out for These Spring Cleaning Scams

As you spruce up your house for spring and summer, watch out for these spring-cleaning scams. Stay safe!

The bait-and-switch scam

How it plays out: You’ll see a commercial advertising super-low rates on a cleaning service, such as four carpeted rooms cleaned for just $29. Because of this great deal, you’ll quickly book a slot for the service. Unfortunately, when the cleaners arrive at your home, they’ll hit you with unexpected fees for vague factors like “high-traffic areas” to bring the price up by several hundred dollars.

Protect yourself: It’s best to avoid services offering prices that are too good to be true. It’s also a good idea to do some research on any new agency you hire to work in your home. Ask specific questions about possible extra charges, and speak to previous customers if you can. If possible, get the terms and pricing of the job in writing before the agency sends workers to your home.

The bogus house-cleaning agency

How it plays out: You hire a house cleaning agency to help spring-clean your home. Unfortunately, the agency is bogus, and the “house cleaners” end up robbing you blind.

Protect yourself: Never allow workers into your home without proper references and research. Check out any agency you want to use online, look up their business on the BBB website and ask for names and numbers of previous clients. It’s best not to leave the house cleaners alone in your home.

Scammy cleaning products

How it plays out: A salesperson knocks on your door offering a “miracle cleaning solution” at a great price. In truth, the solution is nothing more than a mixture of water and hand soap.

Protect yourself: Stick to the cleaning products you always use and be super wary of anyone hawking products you’ve never heard of before.

The pay-up-front scam

How it plays out: A vendor offering cleaning services of any kind demands full, upfront payment via cash or a prepaid debit card or money order. Once they’ve been paid, you’ll never see them or your money again.

Protect yourself: There’s never a good reason to prepay in full for a service or to be forced to pay via cash or with a prepaid debit card or money order.

Spring Clean Your Finances

Are you ready to make your finances sparkle? Here are six ways to spring clean your money matters:

Sweep out your budget

It’s time to shake the dust from your budget! Pare down your spending until your budget’s looking neat and trim.

Freshen up your W-4

If you received an especially large refund this year, you may want to adjust the amount you withhold. The IRS’s tax withholding estimator can be a useful tool to help you determine the perfect number.

Deep clean your accounts

Do a Marie Kondo on your finances and get rid of any accounts you no longer need. For instance, are there dormant accounts at a financial institution you no longer use, or a 401(k) from your old job? Consolidate it. A minimalist approach to your finances will make it easier to manage your accounts, give your savings a greater chance at growth and help you avoid fees for unused accounts.

Toss out your debt

If you’ve been stuck on the debt cycle, make this spring the season to break free.

First, trim your budget, designating any extra funds for your debts. Next, choose a popular debt-busting approach, such as the avalanche method, in which you pay off debts in order from highest-interest to lowest, or the snowball method, where you start with the smallest debt and then move up your list. Going forward, maximize payments to the first debt on your list, making sure not to neglect minimum payments on the other debts. Before you know it, that debt will be gone!

Dust off your saving habits

Get into the habit of maximizing your savings with a tangible financial goal. You can also make savings an itemized line in your budget so you have funds set aside for this purpose. Finally, automate your savings by setting up a monthly transfer from your checking account to your savings account.

Make your investments sparkle

It’s time for a spring cleaning for your investments! Check if your allocation strategy is still serving you well, whether you need to adjust your diversification, and if your retirement accounts are on track for your estimated retirement timeline.

Follow our tips to make your finances shine!

Saving on Home Renovations

Is your home in desperate need of a facelift? As you probably know, home renovations don’t come cheap. In fact, the average kitchen remodel tops $60,000 and bathroom overhauls can cost $18,000!

With some careful planning, though, you can shave thousands of dollars off these price tags.

Here are 7 ways to save:

1. Don’t do a complete remodel

Instead of knocking down walls, give the outdated area a fresh coat of paint, new light fixtures and some minor décor upgrades.

Potential money saved: $30,000.

2. Shop around for a contractor

Find someone professional, reliable and willing to give you a decent price. Check out at least three different contractors before making your decision. Ask for references and meet with each contractor in person to get a feel for their professional conduct and character. Also, be sure to sign a detailed contract.

Potential money saved: several thousand dollars.

3. Consider long–term benefits

It often makes sense to pay more now if it’ll save you big down the line. For example, if you’re installing clapboard siding, you’ll save in the long run by paying more for pre-primed and pre-painted boards. Using the prefinished boards means you’ll need half as many paint jobs in the future.

Money saved: $1,250 (for a 10×40 area).

4. Pick decent but midgrade materials

When long-term functionality is not a criterion, choose the midgrade option. One area where you’ll see this at play is in carpeting. Olefin and polyester carpeting will run you $1 to $2 per square foot, while wool costs upward of $9 to $11 per square foot.

Money saved: $400 (for a 40-square-feet area).

5. Bring in natural light without windows

Looking to bring a splash of sunshine into your kitchen? Instead of adding a window, consider installing a “light tube.” It slips between the rafters on your roof and works to funnel sunshine down into the living space below.

Adding a double-pane window can run you $1,500; a light tube costs $500.

Money saved: $1,000.

6. Lend a hand

Save big by doing some of the demolition work yourself, painting some walls, or even sanding walls to prep them for painting. You can also lend a hand with the cleanup instead of hiring a crew.

Money saved: $200 or more.

7. Increase efficiency, not size

Cramped kitchen? Don’t assume you need to push out walls to make it work. Instead, reorganize your kitchen for optimal efficiency and save tens of thousands of dollars. Upgrade your cabinets with Lazy Susans, pullout drawers, dividers and more. Consider hiring a professional organizer to show you how to maximize your space — you’ll still save big overall.

Money saved: up to $60,000.

Before making any decisions, be sure to call, click or stop by Olean Area Federal Credit Union today to learn about our fantastic rates on Home Improvement Loans, Fixed Home Equity Loans and Home Equity Lines of Credit (HELOC)!

Don’t Get Caught in an Auto Warranty Scam

Another phone call, another scam. It’s not just you, those robocalls just won’t stop! More than just an annoyance, scam calls cost 56 million Americans a financial loss in 2020. One of the most common scams over the phone is the auto warranty scam. Here’s all you need to know about it:

How the scam plays out

In this ruse, scammers posing as representatives of a car dealership or manufacturer call to tell you that your auto warranty is about to expire. The scammer then goes into a pitch for renewing your warranty. During the call, you may be prompted to press a number to stay on the line, and then you’re asked to provide personal information to continue the process of renewing your warranty. If you follow instructions, you’ll be playing right into a scam.

How to spot a scam

Look out for these red flags:

Hello, it’s Robot calling. When it’s a robocall on the line, you’re almost certainly talking to a scammer.
Feel the pressure? Scammers notoriously lead victims to act first and think later by claiming their offer is available for a limited time only.
Just a small fee … Is the caller demanding a small processing fee before supplying you with real details and information on the plan? If yes, you’re being scammed.

Protect yourself

Some things in life are not meant to be shared, especially your private information. Never share your Social Security number, credit card information or checking account details with an unverified caller.

Be skeptical of mail and phone calls warning that the warranty on your car is about to expire. If you buy a service contract, you may find that the company behind it won’t be in business long enough to fulfill the commitments.

It’s instinct to grab the phone when it rings, but hold off just a moment. First, check the Caller ID. Legitimate telemarketers are required to display their phone number and the name/or phone number of the company they represent. If this information is missing, you’re being phone-tagged by a scammer.

Don’t let an authentic-looking Caller ID fool you, though. Scammers often spoof numbers to make it appear as if they are calling from a legitimate company. If you suspect spoofing, ignore the call, and then call the number of the company that allegedly reached out to you, to ask about the call.

If those robocalls are not letting up, you can always block the number on your phone. That’ll show those scammers!

Stay safe!

Feeling Stuck in Your Car Loan? Might Be Time to Shop Around!

Some bills can’t be changed. For other bills, though, a little legwork can make a big difference in your monthly payment. Your car payment is a great example. Refinancing your vehicle loan can lead to a lower monthly payment, a shorter payment term or both! It depends on various factors, including the value of your vehicle, how much you owe and your credit standing.

Read on for three common life changes that might mean it’s a good time to refinance your vehicle.

1. Your credit rating improves

One of the biggest factor determining your auto loan status is your credit score. When your lender builds a loan package, they pull a credit report as a central part of that process. That number can determine your interest rate, whether you’ll pay an insurance premium and what other fees your lender might charge.

Keep a copy of the documents your lender provided regarding your credit score. That can allow you to revisit what it was to see if your credit score has improved. Nine months of steady repayment can boost your credit score, resulting in a less costly loan.

If you didn’t have much credit history when you purchased, refinancing could do you a world of good. Interest rates as high as 18% are common for new borrowers. Just a few months of solid payments may cut that rate in half.

2. You didn’t shop around initially

Many people feel railroaded throughout the car-buying process. They choose a car, and then are told the price, the monthly payment and everything else. It’s almost like the lender for your car loan is predetermined.

Dealers usually have a smaller range of lenders with whom they exclusively work. Those lenders have limited exposure to competition, so they can charge higher fees and rates. Do your own comparison shopping. Dealer rates can be 1 to 1.5% higher than those offered at smaller lenders, like credit unions.

If you’ve never shopped around for a car loan, it’s worth doing now. Do your shopping inside a 15-day period, though; multiple checks on your credit could negatively impact your credit score.

3. You need to change your monthly payment

Your financial situation may have improved since you bought the car and you can now afford to pay more per month. You’ll save money in the long term by doing just that. Shorter-term loans usually have lower interest rates. Also, you’ll pay off the overall balance on your car faster.

If money is tight, consider refinancing for a longer term. Although you’ll pay more in interest, you’ll reduce your monthly payment and save the money you need now. You may also be able to reduce the monthly payment if your credit score has improved, interest rates have dropped or if you’re getting a better rate from another lender.

Contact Olean Area Federal Credit Union to find out how refinancing can improve your financial life!

If You Hear This, You’re Talking to a Tax Scammer

It’s tax season, and the scammers are at it again! Beat them at their game by knowing what to look out for. If you hear or see any of the following lines this tax season, you’re dealing with a scammer:

1. “We’re calling from the IRS to inform you that your identity has been stolen and you need to buy gift cards to fix it.”

If your identity has indeed been stolen, no amount of purchased gift cards will get it back.

2. “You owe tax money. We’ll arrest you, unless you buy iTunes gift cards.”

In this ruse, the scammer will also ask for the access numbers to the iTunes card to get easy and untraceable access to cash.

3. “If you don’t pay your tax bill now, we’ll cancel your Social Security number.”

Your Social Security number cannot be canceled, suspended, frozen or blocked.

4. “We’re calling you about a tax bill you’ve never heard about.”

The IRS will never initiate contact about an overdue tax bill by phone.

5. “This is the Bureau of Tax Enforcement. We’re putting a lien or levy on your assets.”

Sounds scary, except for the fact that the Bureau of Tax Enforcement isn’t real.

6. “This is a pre-recorded message from the IRS. If you don’t call us back, you’ll be arrested.”

Scam alert: The IRS does not leave pre-recorded voicemails to individual taxpayers.

7. “You must make an immediate payment over the phone, using our chosen method.”

The IRS says that agents will never call to demand immediate payment using a specific method.

8. “Click here for more details about your tax refund.”

The IRS will never send emails with information about tax refunds. Clicking on the link in emails worded like this will put malware on the victim’s device.

9. “You owe the federal student tax.”

The federal student tax is yet another invention of tireless scammers.

10. “This is an SMS/social media post from the IRS. We need more information.”

The IRS doesn’t initiate contact with taxpayers, or ask for sensitive information, via text message or social media.

Stay alert during tax season and keep your money and your information safe!

How Much Money Should I Keep in My Checking Account?

Most of us use our checking accounts on a daily basis. Every swipe of a debit card, every bill we pay and every personal check we write takes money out of our checking account.

But, how much money should we be keeping in these super-convenient accounts? Let’s find out.

What’s your magic number?

It’s best to have one to two months of living expenses in your checking account at all times. Some experts suggest adding 30 percent to that for an extra cushion.

To determine your exact living expenses, track your spending over several months, including all bills and discretionary spending.

Why keep that much money in your checking account?

Here are three reasons you want to keep your checking account well-padded at all times:

Avoid overdrafts. Even high-income earners can miscalculate their spending and end up with an overdrawn account. Why risk being charged overdraft fees for every transaction when you can easily avoid them? Here at Olean Area Federal Credit Union, you can sign up for overdraft privilege to help you avoid embarrassment and a merchant fee.

Provide a cushion for pre-authorization holds. Some merchants place a pre-authorization hold on your debit card until the transaction completes. These holds can reduce your available checking account balance by up to $100 per hold. Keeping your account well-funded allows you to comfortably accommodate the holds without fearing a negative balance.

Keep liquid funds available. A robust checking account means access to cash is just an ATM transaction away.

Can I be keeping too much money in my checking account?

Having an overstuffed checking account may mean you’re missing out on higher returns you can earn if you were to keep those same funds in a Olean Area Federal Credit Union Money Market Account or in a Share Certificate.

Once you’ve determined exactly how much money you should be keeping in your checking account, look into other options for the rest of your funds. Speak to a Member Service Representative at Olean Area Federal Credit Union to learn about our savings options to find out which is right for you.

If you dare

Now that your checking account numbers are worked out, you may want to consider an unconventional way of making money management simpler: Open two separate checking accounts.

Here’s how it works. You’ll open a second Olean Area Federal Credit Union Checking Account, and when your paycheck clears, transfer all the funds you need to pay your bills into your second account. If you have any bills linked to your previous checking account, be sure to update the information before they are due. This way, you’ll be paying all of your bills from one account. Best of all, with two accounts, you’ll be able to tell exactly how much spending money you have left each month without doing mathematical gymnastics.

It’s budgeting made simple!

All You Need to Know About Checking Accounts

Checking accounts offer easy and convenient access to your funds, and most financial institutions also allow an unlimited amount of monthly transactions.

Accessing your funds

Checking accounts are designed to be used for everyday expenses. You can access the funds in your account via debit card, paper check, ATM or in-branch withdrawals, online transfer or through online bill payment.

Maintenance fees

Many banks charge a monthly maintenance fee for checking accounts; sometimes as high as $25 a month. Fortunately, as a member of a credit union, you never have to worry about steep fees. Olean Area Federal Credit Union checking accounts have no fee as long as you have a monthly direct deposit, or maintain a $300 minimum balance. In the absence of a monthly direct deposit or a minimum balance of $300, there is a $3/month service charge.

For those who utilize electronic banking options and write fewer than five checks per month, the myE-Checking is an ideal choice. This account has no monthly fee as long as you have a debit card, E-teller and receive E-statements.

Interest rates

Most checking accounts offer a very low Annual Percentage Yield (APY) on deposited funds, or none at all. Institutions offering checking accounts with interest or dividends generally charge a monthly fee, which is higher for accounts having higher rates. They also generally require that a minimum balance be kept in the account at all times and/or a minimum number of monthly debit card transactions.

Click here to explore current Olean Area Federal Credit Union checking account rates.

Security

Funds kept in a checking account at a bank are federally insured by the FDIC for up to $250,000. Credit unions feature similar protection, with all federal credit unions offering government protection through the National Credit Union Share Insurance Fund (NCUSIF). State and private credit unions may be insured by the NCUSIF as well, or through their own state or private insurance. Olean Area Federal Credit Union is federally insured by the National Credit Union Administration (NCUA) to offer you complete protection for your funds.

Managing your checking account

Managing a checking account is as simple as 1-2-3:

1 – Know your balance at all times to avoid an overdrawn account.

2 – Automate your finances. Set up automatic bill payment through your checking account and you’ll never be late for a payment again. You can also consider automatic monthly transfers from your checking account to savings, so you never forget to do so.

3 – Keep your account funded with one to two months’ worth of living expenses at all times. This way, you’ll always have enough funds to cover your transactions without fear of your account being overdrawn.

You can learn more about our checking and other accounts at OleanAreaFCU.org. Not yet a member? Learn about our membership and apply online by clicking here.

Top 10 Do’s and Don’ts for Personal Loans

1. Do use it to consolidate debt.

Put all high-interest credit card debt and payday loans into one loan with a fixed rate, a fixed monthly payment and a closed-end term. You’ll save money and make debt management a lot simpler. Be sure to close any credit cards you pay off so you don’t rack up another large bill.

2. Don’t use it to pay for your college tuition.

Instead, take out an education loan with the help of Olean Area Federal Credit Union. Educational loans could potentially offer you alternative payment options, such as forbearances or income-based repayment terms. Additionally, you could receive other benefits when filing your annual tax returns.

3. Do use it to finance renovations on your home.

Be smart about your renovations, though, and only choose those that will increase your home’s value.

4. Do use it for moving expenses.

Whether you’re moving cross-country for a job opportunity or another reason, a personal loan can help pay to transport your car, to move your belongings and to buy furniture for your new residence. Be prepared to show proof of your new employment though, if applicable.

5. Do use it to pay for hefty expenses.

This would include large, unexpected expenses, like a funeral or adoption costs.

6. Do use it to foot medical bills.

Especially for things that are not covered by most insurances such as fertility treatments, large dental treatments and cosmetic surgery.

7. Don’t use it to pay for everyday expenses.

If you find yourself doing this, you may be in financial trouble and adding an additional monthly obligation may be more harmful than helpful. Speak to an Olean Area Federal Credit Union representative for help with debt management and general financial guidance.

8. Do use it to purchase a car or recreational vehicle.

This could include an older boat or RV that may not qualify for vehicle financing due to the age of the item.

9. Do use it to take a dream vacation.

Don’t do it twice a year, but a personal loan can help you finance your trip for a milestone anniversary or another special occasion that warrants an extravagant vacation.

10. Do use it to pay for a wedding.

A personal loan would allow you to finance some or all the costs associated with getting married.

Are you ready to apply for a personal loan? Contact us today!

Report Scams to the National Elder Fraud Hotline

With more and more older people becoming targets of scammers, the U.S. Department of Justice’s Office for Victims of Crime instituted the National Elder Abuse Fraud Hotline for people to report fraud against anyone age 60 or older.

A 2020 Federal Trade Commission (FTC) report says the most money lost in scams by older adults in 2019 were romance scams. Older adults reported aggregate losses of nearly $84 million on romance scams in 2019.

According to the U.S. Department of Justice’s Office for Victims of Crime website, many are too embarrassed or afraid to report the crimes, so many go unreported and victims suffer alone.

The toll-free number of the National Elder Fraud Hotline is 833–FRAUD–11 or 833–372–8311.

Professional staff members trained to handle scams and abuse targeting older people are available every day from 6 a.m. to 11 p.m. Eastern Time. With kindness and understanding, they assist victims in filing official local and state reports and help victims make official reports to the FBI’s Internet Crime Complaint Center, or the FTC.

Callers can remain anonymous and friends, family and care-givers may call the hotline if fraud is suspected. Translation services are also available.

Keely Frank, a case management shift supervisor for the Virginia-based hotline, says reporting fraud as soon as possible is key to victims recovering their losses. In addition to the hotline, Frank says, victims should also report crimes to the local police, their financial institutions, state attorneys general and, in the case of home contractors, state licensing boards.

Reporting crimes to the proper authorities will help others avoid becoming victims.

Beware of PPP Scams

The Paycheck Protection Program (PPP) has been one of the most important pieces of legislation signed into effect since the COVID-19 pandemic began. The unsecured loans through the Small Business Association (SBA) have enabled our favorite retail shops, restaurants and small businesses to stay afloat, even as the coronavirus devastates sectors of the economy.

Not surprisingly, scammers have been using the PPP for their own purposes, mainly to con struggling business owners out of money. In these scams, they’ll pose as SBA representatives or legitimate lenders to ask for personal information from the borrower. They may also send bogus emails appearing to be from the SBA to lead the victim into downloading malware.

Scammers are getting smarter all the time, but so are we! Here’s how to avoid PPP scams:

Know how PPP loans are processed

Ready to apply for a PPP loan? Just download the SBA PPP loan application, fill it out and submit it to an SBA-approved lender. You’ll also need to provide some documents, such as tax returns for 2019, verifiable payroll expense documents, your most recent mortgage or rent statement, etc.

If you’re applying for a Second Draw PPP Loan, you will also need documentation that shows how you have used, or plan to use, your original PPP funds.

After you’ve submitted your application, just sit back and wait for approval.

How can I protect my business from PPP fraud?

Do:

Be wary of any individuals demanding immediate payment or asking that you make immediate contact to be eligible for a PPP loan. These are likely scammers.
Only use a lender that is accredited by the SBA. You can find all SBA-approved lenders here.
Look for the .gov at the end of each email or website allegedly from the SBA or another government entity.
Report any suspected scams to the Better Business Bureau (BBB). Don’t let those crooks walk free!

Don’t:

Pay for a program that promises to process or expedite a PPP loan request if the organization behind the program is not accredited by the SBA.
Share any personal information with an unverified caller or email contact. If it’s personal info, make sure to keep it that way!
Click on links or download files from an unfamiliar email address.

Stay safe!

Buying A Home in The Winter

Q: What do I need to know about buying a house in the winter?

A: Icy driveways and snowed-out open houses can be less than thrilling, but there are surprising benefits to purchasing a home during the coldest time of year.

The challenges

It can be difficult to check out a property that is covered in snow. There will also be some structural elements, like the septic tank, roof and A/C system that can be difficult or impossible to inspect.

Home-shopping during the winter also means working with fewer homes for sale. That’s because most sellers put their houses on the market in the spring, hoping to sell well before autumn.

Finally, if you decide to go through with a sale during winter, expect delays during the process. Inclement weather can push off the scheduling of important events, like the inspection, appraisal and final walk-through.

The advantages

Homeowners who choose to list their properties for sale during winter may be quite eager to sell. You’ll also find homes that have been on the market since the previous spring with an equally motivated seller. Plus, the smaller pool of buyers during the winter puts you at an advantage. These factors will make it easier for you to negotiate a lower price and to ask for extras like light fixtures and appliances.

Buying a home in the winter can also mean enjoying better service from the professionals you work with during the process. Your real estate agent, home inspector and lender will have fewer clients and therefore be able to provide you with optimal service.

Finally, inspecting a home during harsh weather will enable you to see how the house handles the cold, snow and ice and to check out the heating system.

Tips and tricks

If you’ve decided to go house-hunting during the winter, keep these tips in mind:

Ask for photos showcasing the home’s exterior during the spring and summer months.
Offer a starting bid that is well below the listed price.
Ask for documentation, such as inspection receipts and purchase dates, for the home features that are difficult to check out because of the weather.

Next season’s sellers will start listing homes right after the Super Bowl. So, if you can’t find that perfect house just yet, hang tight until you find what you seek.

The real estate market may cool down during the winter, but if you know how to optimize the advantages, you can walk away with a hot deal during the coldest time of year.

Are you in the market for a new home? Contact Olean Area Federal Credit Union to ask about our home mortgage options!

Financing a Home Renovation with a Home Equity Loan

Q: I’m doing some home renovations this spring and I’m not sure how to finance this expense. There are so many options! Which one makes the most sense?

A: As a member of Olean Area Federal Credit Union, you have several options for funding a home renovation. You can open a HELOC, or a Home Equity Line Of Credit, which is an open credit line that’s secured by your home’s value for up to 10 years. You can also fund your renovations with an unsecured loan or use your credit cards.

One of the best ways to fund a home renovation, though, is by taking out a HEL, or a Home Equity Loan. Let’s take a closer look at this popular loan option.

What is a home equity loan?

A home equity loan is a loan secured by a home’s value. When homeowners open a HEL, they will receive a fixed amount of cash in one lump sum. Most home equity loans have a fixed interest rate, a fixed term and a fixed monthly payment.

What are the advantages of a home equity loan?

The primary benefit a HEL has over other loans is its fixed interest rate. This means the loan will not be subject to increasing interest rates and borrowers know exactly how much their monthly payment will be for the entire term of the loan. Also, the interest paid on a home equity loan is often 100% tax-deductible (consult your tax adviser for details).

Another benefit of the HEL is its repayment plan. Borrowers will be making payments toward the loan’s principal and interest throughout the term. At the end of the loan term, the entire balance will be paid in full.

Are there any disadvantages to taking out a home equity loan?

While a home equity loan offers the funds needed to cover a home improvement project with an affordable repayment plan, it’s important to know about every aspect of a HEL before applying.

Obtaining a HEL could potentially include closing costs. It’s best to find out if there are any fees and, if so, how much these fees will amount to before applying for the loan.

Also, when taking out a home equity loan, borrowers will receive their funds in one shot. This makes a HEL a great option for homeowners who know exactly what kind of work they will do on their homes. However, if they only have a vague idea about the renovations they want to do and how much they’ll cost, they may end up borrowing an insufficient amount.

Finally, borrowers will need to make a monthly payment on their loan throughout its life. Before taking out a HEL, be sure you can afford the payments.

Call, click, or stop by Olean Area Federal Credit Union to learn more about home equity loans and to start applying for your loan today.