We have recently seen an increase in scams and would like to provide you with some tips on how to identify them and what to watch for. Prize Pitch (Lottery) Scams The classic prize pitch scam involves victims receiving notification by mail, phone, or e-mail indicating they have won a prize (monetary or other valued …
Continue reading “Scams are on the rise. Protect yourself, don’t become a victim (part 1).”
We have recently seen an increase in scams and would like to provide you with some tips on how to identify them and what to watch for.
Prize Pitch (Lottery) Scams
The classic prize pitch scam involves victims receiving notification by mail, phone, or e-mail indicating they have won a prize (monetary or other valued items).
However, in order to collect the prize the victim is required to pay various fees or taxes in advance. Victims either never hear from the organization again or receive further requests for money.
Tips:
Watch out for Charity Scams
Fraud artists hope to profit from people’s generosity. Consider the following precautions to make sure your donations benefit the people and organizations you want to assist:
• Be wary of appeals that tug at your heart, especially pleas involving current events.
• Ask for written information about the charity, including name, address and telephone number. A legitimate charity or fund-raiser will give you information about the charity’s mission, how your donation will be used and proof that your contribution is tax deductible.
• Ask the solicitor for the registered charitable tax number of the charity. Question any discrepancies.
• Check out the charity’s financial information. For many organizations, this information can be found online or call them.
• Watch out for similar-sounding names. Some phony charities use names that closely resemble those of respected, legitimate organizations. If you notice a small difference from the name of the charity you intend to deal with, call the organization to check it out.
• Be skeptical if someone thanks you for a pledge you don’t remember making. If you have any doubts about whether you’ve made a pledge or previously contributed, check your records. Be on the alert for invoices claiming you’ve made a pledge. Some unscrupulous solicitors use this approach to get your money.
• Refuse high-pressure appeals. Legitimate fund-raisers won’t push you to give on the spot.
• Be wary of charities offering to send a courier or overnight delivery service to collect your donation immediately.
• Be wary of guaranteed sweepstakes winnings in exchange for a contribution. According to law, you never have to donate anything to be eligible to win.
• Avoid cash gifts. Cash can be lost or stolen. For security and tax record purposes, it’s best to pay by check.
Advance Fee Fraud
Classified advertisements for loan opportunities do not guarantee the legitimacy of a company. Some companies claim they can guarantee you a loan even if you have a bad credit history or no credit rating at all. They usually request an up-front fee of several hundred dollars. If you send your money to these companies, it is unlikely you will get your promised loan and your advance payment will be at risk.
Advance fee loans operating for a criminal purpose generate millions of dollars annually in the U.S. Persons with poor credit ratings are usually the key targets and once the ‘loan processors’ receive your money, they usually disappear.
If you have doubts about the organization, contact the Better Business Bureau for further information.
Most important, do not give out your personal or account information unless you are absolutely sure you know who you are dealing with. If you have any questions or concerns, please call us at 707-443-8662.
Between working, spending time with your friends and family, and pursuing your hobbies, there never seems to be enough time in the day. As a result, we are all looking for ways to cut the amount of time spent on mundane chores. Setting up automatic payments for recurring bills is a modern convenience that saves a significant amount of time. As long as you have the funds in your account, you’ll simply be able to set it and forget it, right? Yes—you could, but here are a few reasons why you should monitor your automatic payments:
Overdraft Fees
When making manual bill payments, you can always check to ensure you have sufficient funds in your account before you pay. When you enroll in auto-pay, there’s a greater risk of an overdraft to your account. While truly being able to set it and forget it would be great, it’s a good idea to continue checking in on your accounts before your automatic payments clear each month. This is especially crucial if you’ve automated any variable expenses, such as a utility bill. Try to get in the habit of checking your account balance before your auto-pay clears. While it’s not exactly a “set it and forget it” approach, it’s still more convenient that manually paying your bills each month.
Unnoticed Errors
There are a number of benefits to enrolling in auto-pay. It’s convenient and you’re less likely to miss a payment. A major downside, however, is actually something out of your control. Payees do occasionally make mistakes. While rare, these mistakes could be costly. If you aren’t monitoring your automatic payments, a significant mistake could go unnoticed.
Cancelled Services
If you’ve enrolled in auto pay and had only positive experiences, you might simply let your automatic ACH or Bill Pay services take care of everything. However, your auto-pay service doesn’t know when you’ve stopped going to the gym or canceled a service. If you’re letting your auto-pay take care of everything, you may find yourself wasting money on subscriptions you’re not using. Instead, simply check in on your account statements each month to ensure that you aren’t throwing your hard-earned money away.
If you decide to sign up for auto pay, set up eAlerts using the Compass app. You will receive a notification when your balance is low or when a transaction has occurred. It’s a great way to stay on top of your payments without having to manually make them yourself. Auto pay is incredibly convenient and is a payment process that is certainly worth looking into, but it’s important to have good financial habits rooted in an awareness of what you’re paying and when.
One thing you don’t want to waste – your time. With mobile banking, you can access your accounts anytime, anywhere. It’s safe, secure and super easy to use.
Deposit checks without visiting a branch. All you need to do is sign, snap a picture of both sides of the check, and submit the check through the Compass mobile app. It’s that easy!
Tagging transactions allows you to locate your purchases quickly and organize.
With the Low Balance Alert, you can receive notifications when your balance goes above or below a pre-selected threshold or for large transactions.
Mobile banking helps you spend time doing what matters most to you. Ready to get started? Just download the Compass Community Credit Union app and follow the prompts. For more information, visit https://compassccu.org/personal-banking/mobile-banking/
Buying a home is often one of the biggest financial decisions you can make. The process of becoming a homeowner can take a great deal of patience and fiscal commitment, but in the end, it’s an incredibly rewarding milestone to achieve. However, it’s important to remember the total cost of buying a home encompasses more than just your down payment and monthly mortgage. Below are some often overlooked and unexpected costs of buying a home.
Utilities
Typical utilities include electricity, water, internet, heating, cooling, and waste management. Be sure to factor in utility costs when determining whether you can or can’t afford to purchase a home. If you want a better idea of what the costs will be for a home you’re interested in, request a copy of previous bills from the real estate agent.
Homeowners Insurance
Your home is far more than a roof to sleep under. In many cases, a home is one’s most valuable asset—an asset that most can’t afford to replace out-of-pocket in the event of disaster-related damage or total loss. Homeowners insurance helps protect your asset. Additionally, most lenders require that you have insurance on your home, as it safeguards them (as well as you) against financial loss. Make sure you add in the cost of protecting your home when putting together your monthly budget.
Property Taxes
Beyond your mortgage, down payment, and insurance, it’s important that you also remember to factor in property taxes. The cost of your taxes will vary depending upon where you live and the value of your home. The taxes will either be billed directly by your local taxation office or paid through your mortgage lender. If paying directly, you’ll usually make two payments each year. If paying through your lender, the cost will be added to your monthly mortgage payment. Make sure to budget for this ongoing, recurring cost, as you will always need to pay property taxes.
Maintenance and Repair
As a renter, your landlord was likely responsible for regular maintenance and repairs. If your furnace stopped working, you could call your landlord and they would coordinate making the repair at no extra cost to you. As a homeowner, though, it’s up to you to fund maintenance and repairs. According to the one percent rule, you should set aside one percent of your home’s value each year for home maintenance. If your home is valued at $200,000, you should be setting aside $2,000 to cover any repair costs.
When you’re ready to take that next step to buy your home, Compass is here to help you with the financing. If you have any questions, feel free to reach out to us at 707-443-8662 x5.
Are you in the market for a new or used car? When it comes to car shopping, timing is everything! Did you know you have a better chance of leaving the dealership with a great deal in the winter? Or that getting pre-approved can save steps at the dealership and keep you focused on your budget? Here are the six best tips to get you into a new ride this season:
1. Get pre-approved! Before you buy, apply online with Compass at compassccu.org or call 707-443-8662. Get pre-approved so you have the best chances of negotiation. Once you’re pre-approved, you can shop for the car as if you had a check in your pocket. This helps you stay focused on the actual selling price of the car, rather than keeping track of the interest rate, down payment, loan term and trade-in.
2. Winter months offer the greatest potential for deals. After the holiday shopping rush has settled down, consumers are less likely to make larger purchases such as a car. Foot traffic through car dealerships usually remains slow from the New Year into February.
3. Shop during the week. By avoiding the weekend crowd, you’ll be more apt to get the salesperson’s undivided attention. They may even feel more willing to negotiate because of how few people shop for cars mid-week.
4. Make your offer late in the day. If you know what you want, and have done your research, it might save you time and money to visit the dealership closer to closing time. The salesperson might not want to spend hours negotiating a deal, pressing them to make a good deal.
5. Don’t think about the monthly payments. Of course, you have to consider the monthly payments and whether or not you can afford them! However, worry about the actual price of the car. A low monthly payment won’t do you any good stretched out over a long period of time and will eventually add up to more than the sticker price!
6. Avoid tax refund season. Consumers commonly use their tax refund checks to purchase big ticket items—like a new car! The bad news about this time of year is that dealers don’t feel the need to offer quite as many discounts to entice shoppers to buy.
Not sure what to buy? Research and shop inventory – click here.
It’s been said that to retire comfortably you should have at least $1 million saved. While that may seem like an unreachable number, it really isn’t that hard if you put your mind to it.
For example, if you start putting away $400 a month in your 20s, or $650 a month in your 30s, or $1,300 a month in your 40s, and get at least a 6% return on your investment, you could actually hit that milestone by 67.
That’s the power of compound interest. With compound interest, any interest you earn accrues interest on itself. So while it might not seem like you’re not putting a lot of money away, over time it can really start to add up.
Here are a few simple ways to start saving for retirement:
• Enroll in your employer’s 401(k) plan and make sure you take advantage of any company match
• Contribute to a Roth IRA or Traditional IRA. To learn more, click here.
• Talk with an investment professional.
• Can’t seem to find any extra money to save? Go out to eat less often and avoid impulse purchases. Most of all, put yourself on a budget.
Being late every now and then when paying your bills doesn’t sound like a big deal. However, those late fees can really add up.
In addition to charging a late fee, creditors could increase your interest rate. Some credit card companies will even reset your rate to a default APR as high as 29.99%.
Fortunately, Compass Community Credit Union has a way you can avoid all this and simplify your life in the process. It’s our free Bill Pay.
With Bill Pay, you’ll never have to worry about missing a payment or paying late fees. Simply schedule the payment date and that’s it. No need to spend time writing a check, paying for stamps and dropping it in the mail.
Taking care of your financial future is important. Using our free Bill Pay can make it a little simpler. To get started or to learn more, click here.
Financial stress haunts many of us. We say, “If only I had more money?”
At Compass, helping members become more financially confident is a big part of who we are. One step you can take to increase your peace of mind: create an emergency fund.
For those who have limited income or little room in their budget to put money away, an emergency cash reserve may be even more essential than college funds or retirement savings. You may know how many years you are from retiring and how soon the kids will be old enough for college. But, there’s no way to tell when your car’s transmission will begin to slip, your goalie daughter will break a tooth or an arm, or your job will evaporate.
Emergencies happen when we least expect them, and our wallets usually suffer collateral damage.
Here are five steps to reduce your financial stress:
1. Figure out the cost for your monthly “must-haves.” On your most recent checking account statement, circle the amounts you paid for essentials. This means the necessities required for bare-bones living, such as your rent or mortgage payment, groceries, gas, insurance, utilities, credit card and loan payments.
2. Estimate how long you might need to stay afloat in an emergency. Most people should have enough savings to cover for three to six months without a paycheck. You may want to adjust this target up or down if your job would be harder or easier to replace. Let’s say your monthly amount is $2,500, so your emergency savings goal, if three times that, is: $7,500. Mission impossible? Maybe not, if you set up milestones on the way.
3. Make a road map toward your goal. Using $2,500 as an example, you’d get there in about 23 months by putting aside $50 every two weeks. Boost that $50 to $75, and it would take only 15½ months to get to $2,500. Within four years, you could reach your goal of $7,500.
4. Set up “driverless savings.” Once you’ve decided how much to set aside regularly, set up automatic transfers in online banking. Instead of hoping there’s money left to save at the end of each pay period, set it and forget it. That’s a crucial step for success.
5. To manage your stress, keep on saving after you reach your goal. Life is unpredictable, so there may be times you’ll need to draw cash from your emergency account. Just keep squirreling away into your savings, and you’ll replenish your reserve.
Some credit union members like to use our low-interest credit card or equity line of credit as a financial safety net. But when it comes to building confidence, nothing beats having savings in reserve. If you would like to open a separate “Emergency Savings Account”, you can open a secondary savings account online or stop by one of our branches.
Phone scams have been around almost as long as phones. Sadly, the prevalence of automated robocalls has exploded and appears to invade our lives almost daily.
Three general warning signs your call may be a scam:
Beware of these particular scams that are sweeping the nation:
The IRS Swindle
A threatening phone caller “from the IRS” (or “from the Federal Reserve”) says you’re guilty of tax evasion and must pay the penalty at once with your credit or debit card, or else face jail time or revocation of your driver’s license. Some folks with complex financial lives may pay up, assuming they made a mistake on their taxes. Wrong—the IRS never demands payment over the phone. Self-defense: Don’t pay. Report the scam to the U.S. Treasury Inspector General’s office at 1-800-366-4484.
The “Family member” Scam
The person claims to be a family member in trouble and needs your help, asking you to send them money or use your credit card. You might be asked to guess who’s on the line. If so, don’t give out any names. You ask the caller to identify who they are. Then ask them to describe something you know only the real person would know like a special occasion or trip together, a gift you gave or received or something in your home that they would know. Self-defense: Be absolutely sure you know who you are speaking with and do not give out any information until you know for sure who it is you’re talking with.
The “Computer Crash” Con
You get a phone call from a self-described “computer security expert” who warns that your Windows PC or laptop may be infected with a fatal virus. You might be asked for money to protect your system or to remove this nonexistent malware. If you agree to download a fix or allow remote access to your computer, the crook can ask for your passwords—and may actually install malware that you then have to pay to get rid of. Self-defense: Hang up on this scammer. No legitimate IT security pro will ever cold-call you in this way.
If you find yourself running out of money before you run out of days until your next paycheck, you’re not alone. In fact, even people who earn tons of money find themselves in this situation every month. And the reason they do is because they have no idea where all their money went.
To figure that out, start with a money diary. Every time you buy or pay for something, write it down. This includes everything from your mortgage and car payment to something as small as a candy bar. Then at the end of the month, take a look and see where all your money is going. Now look to see which expenses you can reduce or eliminate — like that large cup of fancy coffee every morning.
Once you find and reduce frivolous expenditures, take that money you would normally spend on them and deposit it into your savings account for a rainy day fund.
Next, establish a budget. Most financial experts recommend the 50/30/20 budget. 50% of your after-tax dollars on necessities like a mortgage, groceries, and other bills. 30% on wants like clothing and eating out. And 20% on savings and debt repayment. Tracking expenses and living on a budget may take some getting used to in the beginning, but over time it will give you a better financial future.
In short, a credit union is a cooperative financial institution where people work together to make everyone’s lives better. Everyone who has an account here is a member. And every member is an owner.
Rather than making profits to send to far-off shareholders, Compass CCU reinvests in our credit union. Which means we reinvest in YOU. That’s why we say that, at Compass Community Credit Union, we guide you to better banking.