Making Cents Videos

“Today Ascentra is Making Sense of Auto Insurance”

Auto Insurance is a policy purchased by vehicle owners to alleviate costs in the event of an accident or theft.

Requirements may vary, but nearly every state requires drivers to carry a minimum of liability insurance.

Liability insurance will pay medical expenses, lost income, and vehicle repairs for the other driver, if you’re at fault in an accident.

Some states also require personal injury protection, and uninsured motorist coverage. --Which can cover the costs, when the other driver lacks insurance coverage.

While liability insurance covers the damage your vehicle has caused to others, it does not cover, damage to your own vehicle.

Collision and comprehensive are additional coverages,     that can protect your vehicle in the event of an accident, or non-collision related incident.

Review of your policy every year. You may find that you can save money, while keeping or even 

What is a credit score?

A credit score is a number ranging from 300 to 850 that rates a consumer’s creditworthiness.

Financial Institutions use your credit score to determine your creditworthiness and often base interest rates for loans and credit cards on how high or low that number is.

Payment history, Total amount owed, Length of credit history, Types of credit, and credit inquiries are the main factors in determining your credit score.

Typically, a score of 680 or higher is considered good and will earn you the best interest rates, and a score of 550 or lower will often make getting approval difficult.

While some financial institutions determine your approval or denial exclusively by your credit score, at Ascentra your credit score is only one factor.  We listen to your story and help you make the best decision possible for your current situation and your future.

If your credit is considered low, we want to help you rebuild your score so you have more options and can pay less interest in the future.

So how can you improve your credit?

First, maintain on time payments. Create a budget and stick to it to help pay down your unsecured debt. The less debt you have, the more available credit and the better your score will typically be.

Next, consider consolidating your debt with a home equity loan, or secure the loan with other property. This will bring all your outstanding debts into one, easy-to-manage payment and make it easier for you to make progress.

Third, avoid new credit inquiries if possible. Each time you apply for a new credit card or loan, the financial institution will need to pull a credit report. These credit pulls can lower your score.,so make sure you plan ahead and don’t open any new lines of credit without considering the effects.

And lastly, manage credit card debt responsibly and keep your balance to 30% or less of your available credit.. It’s easy to spend with credit, but remember that you will pay interest. Keeping your debt below 30% of your available credit will help improve your score.

If you are looking to improve your credit, Ascentra can help. Our certified Financial Coaches are here to help you create a plan free of charge. We also offer a secured credit builder loan with a 6-12 month term to build your credit.

To learn more about improving your credit or creating a budget, feel free to set up an appointment to see an Ascentra Financial Counselor and see what Ascentra can do for you.

There are good tips, like having an emergency fund and there are bad tips, like spending all your money on the pizza pouch for your emergency slice of pizza. 
At Ascentra, we’re here to help you decide which ones to follow and which to leave behind. 
Bad tip: Let George make your lunch.
Good tip: Instead of opening a credit card with a big bank that hides the annual fee and high rates in the fine print, open an Ascentra Visa credit card. You'll love our fine print, where explain there will be no annual fee and no high rates.
So follow the good tips, not the bad and head on over to ascentra.org/visa to apply today.

“Today Ascentra is Making Sense of Identity Theft”

Identity theft is a crime that uses your personal information to commit fraud -  at your expense.

The methods used by thieves to get your information are on the rise.

Skimmers are devices which are placed on ATMs, and secretly swipe your debit or credit card information.

Phishing, is when a scammer pretends to be your financial institution, or a company you do business with, and tricks you into divulging your information.  

Less sophisticated methods include stealing your mail, or doing a change of address request so billing statements go elsewhere.

Even your children may be at risk. Fraudsters may persuade minors to divulge information, through online video games. 

Avoid becoming the victim of ID theft by being proactive.  Never give out personal information to unsolicited calls or emails.

Review statements regularly, place mobile or email alerts on credit cards.

And be sure to lock computers, laptops, and all your mobile devices. 

The holidays tend to get a bit out of hand, especially when it comes to spending money. The regret that comes with that January credit card bill can be a bit of a… pink nightmare.

But it doesn’t have to be that way. Here are a few tips to help you defeat the holiday bill regret.

Don’t buy on impulse. I know the deals are almost as attractive as my leg lamp, but don’t give in. Go into the holidays knowing what you need to buy and don’t buy random gifts on impulse JUST because it’s on sale.

Keep track of your spending. You can use Ascentra’s Financial Tools to see how much you’ve spent vs your income so you can stick to your spending plan.

Remember that the gift is in the giving, but it doesn’t need to be expensive. Shoot, my boys were just as happy with me telling them we’re going out for dinner as they were with their gifts.

While you’re doing your smart shopping, don’t forget to use your Ascentra VISA Credit Card. When you use it you’ll lock in a low 4.9% APR from November 1 - December 31. And you don’t even have to bargain like at the Christmas tree farm.

 

What is a down payment? 

A down payment is the initial cash you put down when you are buying your home. It represents a percentage of the total purchase price, and the buyer will often take out a mortgage loan to finance the remainder.

With a larger down payment, the buyer needs to borrow less, monthly mortgage payments are lower, and less is paid in interest over the loan term.

At Ascentra, a fixed-rate home loan requires a minimum 5% down payment and a first-time homebuyer adjustable rate mortgage loan requires a 3% down payment.  To avoid paying private mortgage insurance, a down payment of 20% is needed. 

The down payment funds can come from a variety of sources.  Oftentimes, people use assets like savings or retirement accounts.  Additional sources for funds include gifts from family members, grants or secured borrowed funds.  

Help may also be available in the form of down payment assistance programs.  At Ascentra, we offer a $7500 first-time home buyer grant for qualifying individuals.*

All down payment funds require documentation.  We want to make the process as simple as we can.  We are here to guide you and make sure your home buying experience is as smooth as possible.

We are your mortgage experts.      

Phishing is a cybercrime that may come in the form of unsolicited emails, text messages, or calls.

Scammers claim to be from legitimate institutions. They may say that you have to respond right away to avoid an account suspension and that you need to provide them information.  
In some cases, they entice victims with an offer that is too good to be true.   

Their goal is to get your personal information, such as account numbers, social security numbers, login IDs and passwords. With this, they can steal your money or identity.  

Email or text links will direct you to bogus websites that may look like the real deal, then ask for this information. Malicious links may give scammers access to personal information on your computer or device.

Be skeptical, report any unusual behavior, and don’t fall for their bait. 

And always do business with a local member owned credit union that you trust. 

“Today Ascentra is Making Sense of Overdraft Protection”

Overdraft Protection is a service tied to your checking account that for a fee, will allow you to make purchases with a check, debit card, or allow automatic payments to process even if you lack sufficient funds.

Options and fees vary by financial institution.  One option is automatic transfers of predetermined increments from a savings account, when you fall below your available balance. Doing this will incur a fee in the $5 to $12 range.

Another option is tying your account to a line of credit. This also deposits predetermined increments to your account, but instead of a fee, you are charged interest on the amount borrowed. 

Finally, Be careful with  Courtesy Pay  which may charge a fee of up to $40 for every transaction that falls below your balance.

You can opt-out of these services, but you run the risk of being declined for purchases, or being charged Non-Sufficient Fund fees.

Avoid these fees altogether – by reconciling accounts, setting up text alerts, and sticking to your spending plan. 

You know back in my day, we didn’t have any CON FLABBERIN’ Black Friday or Cyber Monday.  You just went to the mall and left your kid in line to meet Santa while you got the shopping done.

But this year, things are different. That dadgummit virus has made things difficult, but there are still ways to make sure your holidays are as merry as ever. Here are a few things the wife and I plan on doing.

Shop early. Stores are using the entire month of November for deals, so we can get our shopping done early and save some money.

Why shop in store when I can shop online? The interwebs is so fast now that I can get all my shopping done in minutes!

Set a spending plan and stick to it! Ralphie doesn’t need the most expensive Red Ryder BB gun. A more affordable alternative will do just fine. (CU of Ralphie)

Take advantage of Black Friday and Cyber Monday. As the kids have told me, they’ll have “deals, on deals, on deals”. Whatever that means.

Lastly, use your Ascentra VISA Credit and Debit Cards for qualifying purchases on Black Friday and Cyber Monday. You’ll earn two times the uChoose Rewards points. Now that’s a major RE-ward.

 

“Today Ascentra is Making Sense of Trusts”

It’s hard to put a price tag on the future.

a trust helps ensure that your loved ones will be taken care of and can save you and your family from heartache down the road.

A trust is a document that states the rules you want followed to distribute your assets to your beneficiaries and is managed by a trustee.

A trustee ensures that your financial affairs are protected and passed to your beneficiaries exactly as you intended.

Trusts aren’t just for the rich and famous; a trust can benefit those with even modest assets.

They allow you to pass on your investments quickly and privately, and can save your beneficiaries from hefty estate taxes and probate fees. 

Depending on your financial situation, there are many different types of trusts such as charitable, special needs, living and after death.

To some, they can be complicated and time-consuming to manage.

Seeking professional advice from a trust service company can make it easier, and help you make the right decision for yourself and your loved ones.

“Today Ascentra is Making Sense of IRA Rollovers”

If you’ve been putting money away in an employer retirement plan such as a 401k, you have options on moving your retirement dollars safely.

If you’re switching jobs, and don’t want to move your existing retirement plan to your new employer, or pay penalties and taxes if you cash it out, you have the option of rolling it over to an IRA- an Individual Retirement Account. 

An IRA rollover from a qualified retirement plan has no penalty and no tax consequences.

Perhaps you’re retiring, and wish to have more control over who, where, and how your hard-earned money is invested -  An IRA rollover may be a perfect option. 

Before making any big financial decision, it’s important to talk to a trusted financial advisor, to find out what works best with your retirement goals, and to make sense of any penalties or tax consequences that could apply.  

With the right help, it can be done safely and easily.

It seems no matter how hard you try, there’s always some CON FLABBERIN’ unexpected expenses around the holidays. Like your kid shoots their eye out and needs new glasses.

That’s not the only unexpected expense you might run into during the holidays. Here are a few things that could come up and how to be prepared for them.

Increased shipping costs. If you don’t start shopping early and plan on shopping online, you could end up paying for expedited shipping just so it’s under the tree in time for Christmas. Instead, take our advice and shop early!

Of all the people to buy me a Christmas gift, my paper boy? Really? Now I feel the need to get HIM something. Luckily, I know this happens every year, so I’ve added a little wiggle room in my holiday spending plan so it’s not as unexpected. That will come in handy when you forget about your office white elephant exchange.

Why is wrapping paper so dang expensive? I’ll save myself some money and hassle, and just use my newspapers. I’ve heard it will give it a “trendy” look anyways.

If that’s not enough to get you through the holidays, with an Ascentra Holiday loan you can borrow up to $2500 dollars for 12 months with a rate as low as 5.9% APR. You should take advantage of that.  I triple dog dare you.

 

What is Escrow? 

An escrow is essentially an account that holds funds for your annual taxes and homeowners insurance throughout the year.  With each monthly mortgage payment you make, money is held in an account by the lender, then those funds are used to make your annual property tax payments and home owners insurance payments on your behalf.

When you escrow the lender will add 1/12^th of your insurance premium and 1/12^th of your tax bill to your monthly payment, so the lender has enough set aside to pay the bills when they are due.

It is important to know that escrow accounts are regulated, and all lenders are required to follow the same rules.  If you are purchasing a home and have less than a 20% down payment or you have less than 20% equity when you refinance, lenders require you to escrow your taxes and insurance as a part of your monthly payment.  If you are putting down at least 20% or have at least 20% equity on a refinance, you have the choice if you want to pay your taxes and insurance on your own. At Ascentra we do not require you to escrow in this situation, it is entirely up to you.

Annually our escrow department will do an escrow analysis, which includes new insurance premiums, new tax rates, and a 2-month cushion that is allowed by the government. We then calculate your new monthly payment based on those factors. 

Your mortgage payment may go up or down year to year depending on changes to your property taxes or insurance rates. 

If your escrow comes up short for any reason, you have the option to pay any shortage or you can finance that amount out over the next 12 months of mortgage payments.

At Ascentra, we handle all of our loan servicing in house, so if you ever have any questions, we are here to help.  We are your mortgage experts.

“Today Ascentra is Making Sense of Scholarships.”

Scholarships are a great way to help offset the increasing costs of college.  The keys to winning scholarships include: knowing where to look for them,

having an application strategy,

and using creative writing techniques to make your essays stand out. 

Applying for scholarships should be viewed as a part-time job for students.

Devote the same days and time each week, to researching and applying for scholarships. 

Start by looking for smaller scholarships from local service organizations, such as Rotary or Kiwanis. Or businesses such as credit unions. 

These scholarships usually require short essays, and tend to give you better odds of winning. 

For larger and national scholarships, use free and reputable websites that match you to scholarships, such as fastweb.com.  

Billions of scholarship dollars go unclaimed every year!  Set yourself up for success, by graduating with little to no student loan debt. 

Identity theft is a crime that uses your personal information to commit fraud -  at your expense.

The methods used by thieves to get your information are on the rise. 

Skimmers are devices which are placed on ATMs, and secretly swipe your debit or credit card information. 

Phishing, is when a scammer pretends to be your financial institution, or a company you do business with, and tricks you into divulging your information. 
 
Less sophisticated methods include stealing your mail, or doing a change of address request so billing statements go elsewhere.

Even your children may be at risk. Fraudsters may persuade minors to divulge information, through online video games.  

Avoid becoming the victim of ID theft by being proactive.  Never give out personal information to unsolicited calls or emails. 

Review statements regularly, place mobile or email alerts on credit cards.

And be sure to lock computers, laptops, and all your mobile devices.  

What is PMI?

PMI is short for private mortgage insurance. PMI is insurance required on mortgage loans for borrowers in two specific situations.

If you don’t submit a 20% down payment when purchasing a home, PMI is required.

OR If you don’t have 20% equity in your home when you are refinancing, PMI is required.

PMI is not homeowners insurance. Private Mortgage Insurance actually protects the lender in the instance that you stop making payments on your loan. The cost of PMI is included in your monthly mortgage payment.

You can request to stop PMI once your reach 20% equity in your home.  These requests are evaluated based on your payment history.  PMI is automatically canceled once you reach 78% equity in your home.

It is always a good idea to read your mortgage statement and be aware of the amount of equity you have in your home, since stopping PMI can save you money each month.

Here at Ascentra, members receive letters annually letting them know the percentage of equity in their home. This makes it really easy to track when you can cancel your private mortgage insurance.

At Ascentra, we handle all mortgage servicing in-house.  So if you have questions, we are here for you.  We are your mortgage experts.

 

“Today Ascentra is Making Sense of Wills.”

A will organizes your affairs in case something happens to you. 

In life, you can decide the how your property and assets are distributed, and name who will provide care for minor children, after your death. 

Some estimate that about 70% of Americans, do not have a will.  

If you don’t have a valid will, state laws will decide how your assets are distributed.  This may be the most important document you ever sign. 

You don’t have to own a sprawling mansion or have attorneys on payroll to create a will. The process of creating one is simple. 

An attorney can help draft one, tailored for your situation.  They should be revised with major life events like marriage, having children, and divorce.

There’s also online services that walk you through the process, and can produce one for a fee.  

While it is hard to talk about death with your family, putting it on paper can be easier. 

A will helps your loved ones honor your wishes, but most importantly can lessen their stress during a time of mourning. 

“Today Ascentra is Making Sense of Auto Loan Refinancing”

Have you thought about refinancing your auto loan? 

To start, look at your current interest rate and life of your loan.

Make sure your car is worth more than your loan by checking the NADA website.

Do your research and shop around by comparing your current rate.

But be aware, other lenders may charge application, refinancing or processing fees.

Check your credit history.  If you’ve been making consistent on-time payments, there is a good chance your credit score has improved, qualifying you for a lower interest rate.

When refinancing, be careful not to extend the life of your loan as it can cost you more in the long run and can affect the trade-in value of your vehicle.

Even if your rate saves you a small amount per month, think of how much you will save over the lifetime of your loan.

Figure out what’s best for you and cruise on down to Ascentra and see how much you can save!

There are good tips, like create a budget and there are bad tips, like spending large googly eyes. 
At Ascentra, we’re here to help you know which ones to follow and which to leave behind. 
Bad tip: Let George crive your card.
Good tip: Download the CardValet app and load your Ascentra Visa® Credit and Debit Cards. You can turn your cards on and off if they get misplaced, setup alerts for every time your card is used, and more!  
So follow the good tips, not the bad and head on over to ascentra.org/visa to apply today.

“Today Ascentra is Making Sense of Certificates of Deposit”

Looking to stack up your savings?

A certificate of deposit, or CD, is a safe investment option that locks in your funds while earning you higher interest.

When you put money into a CD, you make an agreement to let your financial institution hold onto your cash for a set amount of time.  

Most CD’s have a minimum deposit requirement, and can be opened with as little as $250.

Term lengths vary and are typically as short as three months or as long as five years.  The longer the term, the more you can earn.

If you invest $10,000 into a 53 month CD with a 3% APY, you can earn more than $1,300 once the term is up.

Avoid closing or making an early withdrawal as it will result in a penalty fee.

If you don’t need quick access to your cash, contact your trusted financial institution to apply for a CD and sit back, relax and watch your money grow!