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Putting You One Step Ahead

Credit Union Offers Effective Ways to Save Cash

Five Tips that May Surprise You

The credit union that saved customers more than a million dollars in 2016 by refinancing their loans with no closing costs is now offering tips that everyone can use to save money.

Here is what Infinity Federal Credit Union advises all consumers:

1.)   Start with Small Debts to Help You Conquer the Big Ones

We generally recommend chipping away at the card with the highest interest rate, with a big exception.  If you have a mountain of debt, studies show paying off the little debts can give you the confidence to tackle the larger ones. You know, like paying off a modest balance on a department store card before getting to the card with the bigger balance. So, if you have had trouble climbing that debt mountain, sometimes psyching yourself up by tackling a little hill is worth it.

2.)    Always Choose Federal Student Loans Over Private Loans

Federal loans have flexible terms of payment that you can use if your employment dreams don’t exactly go according to plan after college. Plus, federal loans typically have better interest rates. So be smart about the loans you take out.

3.)    Keep Your Credit Use Below 30% of Your Total Available Credit

Otherwise known as your credit utilization rate, it is calculated by dividing the total amount on all of your credit cards by your total available credit. And if you’re using more than 30% of your available credit, it can ding your credit score.  This is where you should consider a higher credit limit increase to offset the 30% to strengthen your credit score.  But don’t increase your borrowing just because the credit limit is raised.

4.)    Consider an All Cash Diet

If you’re consistently overspending, this will break you out of that rut. Don’t believe us? Try it!  We would think that the more cash-based a payment is, the more likely people will be cautious about spending. Cash is real. It’s a tangible thing, a piece of paper with value attached to it. When you spend it, you have less of it in your wallet. You see this and process it.  Psychologically, it is easier for someone to purchase more because a card, while tangible, does not represent actual money. It’s just a piece of plastic, and a shopper does not see the result of their expenditure for almost a month.

5.)     Use Shared Branching

Do you constantly use the ATM at a gas station or the closest bank to take money out of your credit union account?  At some point, that $3.75 fee will add up over time, and you will realize that the $100 you spent on fees could have been used elsewhere.  Take advantage of the SURF network that most credit unions participate in and perform a normal transaction as you would at your local credit union!  The amount of money you will save from random ATM fees will astonish you.

Constantly offering services and information like these tips, Infinity Federal Credit Union scored a 95% satisfaction on its newest survey of customers.