Category Archives: Uncategorized

Paying For Your Child’s College

Caylee Smith, Marketing Coordinator

College is expensive – Everyone can agree on that. As true as it may be, your child’s education is an investment. It has been proven time and time again that the higher your education, the more money you will likely earn in the future. If you intend to help your child pay for their education, it is never too early to start planning, as this investment is a big one.

You have many options when it comes to paying for your child’s education, but that doesn’t mean that they are all the best option. If you still have some time before your child heads off to college, look into opening a College Saver Certificate, where you can make unlimited deposits (at least $50) into an account that earns higher dividends. If your child is starting college soon, check out our list below to determine how you can get the most out of your investment, and the least money coming out of your pocket.

1. Submit a Free Application for Federal Student Aid (FAFSA)

The office of Federal Student Aid provides grants, loans, and work-study funds for college students. Filling out the form is completely free and can be done online. Once you complete the form, you will be notified with what your child has qualified for, which you are free to accept or decline. Federal student aid includes:

  • Grants – These are funds that do not have to be repaid. That’s right, free money!
  • Loans – These are loans that must be repaid, with interest. The are two types of loan programs, the Direct Loan Program and the Federal Perkins Loan Program. You can find out more about them here.
  • Work-Study – This is a work program through which you earn money to help pay for school, kind of like having a part time job.

Once you complete your FAFSA, only accept the grant money first (It’s free!). Before accepting any loans, it is important to see if your child can qualify for any scholarships, and then determine if getting a loan is right for you.

2. Find Scholarships

There are thousands of scholarships out there, your child will just need to do the work to find them. Your student can meet with their high school or college counselor (or both) to find scholarship applications that they qualify for. You can also search online with the U.S. Department of Labor’s free scholarship search tool.

3. Student Loans

If you still do not have enough to cover your child’s education expenses after applying for grants and scholarships, you can start shopping around for the best loan. Consider the federal loans that you were offered after completing the FAFSA, but also look into private student loans as well. Below are the differences:

  • Federal Direct Loan Program – These are available to eligible college students. You may only qualify for this type of loan by completing the FAFSA. Depending on what your child qualifies for, he/she may not be required to pay interest or make payments until after they graduate. If you are planning to be the primary borrower on your student’s loan, you may qualify for a Direct PLUS Loan for Parents. However, that loan does charge interest during all periods.
  • Federal Perkins Loan Program – To qualify for this loan, you also must complete the FAFSA. This type of loan has a lower interest and is offered by the school. The amount you can borrow depends on your financial need and what the school can offer.
  • Private Student Loans – These types of loans are not funded by the government, therefor you do not have to fill out a FAFSA in order to qualify. The big difference with Private Student Loans is that you will more than likely have to make payments while your child is in school, interest rates may be fixed or variable, and they are not subsidized, so interest is charged during all periods.

4. Home Equity Loan

Another option that may be more appealing than taking out student loans, is to use the equity you have built up in your home. With a home equity loan, you can finance up to 80% of your home’s value, less any outstanding loans (such as your mortgage). You can purchase a Home Equity Loan with a rate as low as 4.49% APR*, so when comparing that to Student Loan rates, a Home Equity Loan may be the better and cheaper option. If you have any questions, you can reach out to our Home Equity Loan Officer.

Conclusion

What is the best option for you? File a FAFSA, find scholarships, and then think about Student Loans or a Home Equity Loan.

Grants – FREE
Scholarships – FREE
Federal Student Loans (Paid by Students) – 3.4% – 6.8%
Federal Student Loans (Paid by Parents) – 6.31% – 8.5%
Private Student Loans – Varies
GCEFCU Home Equity Loan – 4.49% – 14.49% APR*

 

*APR=Annual Percentage Rate. Actual rate may vary based on credit worthiness and terms of your loan. A home equity loan of $50,000 for 5 years at 4.49% APR will have a monthly payment of $931.92. Taxes and Insurance are not included, your actual payment may be higher.

The Science of Saving

Every child dreams about their future. Some of those dreams may require money to come true. How do you help your children achieve their dreams? One way is to help them learn how to save their money.

In April, Gulf Coast Educators FCU is celebrating Youth Month, which is a program that helps teach and encourage kids to develop good financial habits. Every new member under the age of 18 who opens a savings account during the month of April will receive two free tickets to Space Center Houston.*

The theme this year is “The Science of Saving,” showcasing fun, sci-fi-inspired characters. Science has proven that if you start with small goals, saving your money can become a regular habit. This year’s Youth Month inspires children to begin saving the money they earn so they can attain their dreams of a happy future.

How Can You Help Your Child Save?

The credit union offers three different kinds of youth accounts. You can check them out below.

Sandy Savers Kid’s Club – This is a fun savings club just for kids 12 years of age and under. As club members, kids become inspired to save by being rewarded with cool prizes. Then money saving becomes a skill for their future – like when they’re saving for that first “mussel” car or “sand castle.” Click here to learn more.

Student Checking Account – Our Student Checking Account is just for members 13 – 17 years old. It gives your teen the chance to gain the financial independence they’ve been looking for, without spending a dime. With their own checking account and debit card, they can learn how to save and spend responsibly. Click here to learn more.

College Saver Term Share Certificate – We’re here to help build your child or grandchild’s future. We understand that it’s not easy to start saving for college and sometimes it’s hard to take that first step. That’s why we’ve created the College Saver Term Share which can be opened for $25. Click here to learn more.

Explore More Savings Articles

The Science of Saving

The Science of SavingSaving your money isn’t always easy, especially when you don’t have a lot to spare. After paying all your usual expenses, there may be very little “fun” money at the end of the month. When we do find ourselves with some extra cash, like a tax refund, many of us rush out to buy those shoes or that electronic gadget we’ve been eyeing for months instead of putting it into our savings.

Read More

 

Prepare Your High School Senior for their Financial Life

Prepare Your High School Senior for their Financial LifeCongratulations, you’ve helped your high school senior successfully navigate almost 12 years of school. Once they graduate, they will begin a new chapter in their lives as young adults and either continue with school or enter the workforce. Either way, you can help them make sure they are well prepared financially.

Read More

 

Sandy Savers 2.0: Start Young for a Lifetime of Good Habits

Sandy SaversEvery parent’s dream is for his or her child to grow up healthy and successful. Being successful doesn’t happen over night, it takes years and years of practice and instilling the correct behavior, whether that be saving habits, morals, work ethic, etc. Starting these habits at a young age can help your child in the future.

Read More




*New members between the ages of 0-17 years old that open a credit union membership during April 1 – 30, 2018 will receive two (2) free tickets to Space Center Houston. This offer is limited to the first 50 new memberships only. GCEFCU has the right to cancel this promotion at any time for any reason.

IRS Tax Scams

Adam Smith, League City Branch Manager

Taxes, everyone has to pay them…and this time of year is when we are all getting our W2’s and other tax documents in order and ready to file. Everyone has until April 17th to file and then we wait for our returns. It can be a stressful time for some, and unfortunately criminals are taking advantage of that. IRS and tax scams have been around since 2013. Since 2013, over 10,000 people have fallen victim to this scam and have paid a collective $54 million dollars because of the phone scams, according to the Treasury Inspector General for Tax Administration.

How do these scams work?
You will receive a phone call that is usually from a blocked or unsolicited number, or even sometimes set it up to appear to be from the IRS. The “IRS” agent on the phone will claim that you have an outstanding bill or owe back taxes, and they will demand payment immediately. To make this threat seem more real, they will threaten if payment is not received, to have local law enforcement ready to come to your job or house and arrest you. For payment, they might want money wired to them or even a prepaid debit or gift card, or even in some cases a Best Buy or iTunes card. These are just a few examples of what could happen. The criminals will often change the script or try to increase the level of intimidation to make you comply.

So here are some important things to remember regarding the IRS and these scams:
• If you do owe back taxes, the IRS will never call you and demand a specific method of payment. If they are going to contact you, it will be through mail.
• If they do call you, they will not accept payment with a Best Buy gift card.
• They will not demand payment without giving you the right and opportunity to question or appeal the amount owed.
• The IRS will never call and threaten to bring in police or other law enforcement to have you arrested.
• Another common sign that it is a scam is that they will ask you for your personal information, such as your social security number, financial account or routing numbers, or debit card information.

What do I do if they call me?
There are several options. The first and easiest one – just hang up. You can call the IRS and simply ask if there is an investigation they have with you. IF they are threating to have you arrested, call your local police department and ask them about it. You can report the scam to the Federal Trade Commission. The website IRS.gov has a lot of valuable information regarding this scam and what to do.

We are here to help
At Gulf Coast Educators, we are here to help at any time if you feel that you might have been scammed. We can notate and put a password on your account to help secure it. If you want to contact the Credit Bureaus, we have the information that we can give to you to do so.

Being a trusted source of financial information, ensuring the privacy of your information, and identifying your needs and suggesting a solution that will improve your financial life are some of the service promises that we strive to do each day for our members. Whether that means helping you deal with potential fraud, or general day to day business, we will be here to assist you.

Sources:
https://www.treasury.gov/tigta/
https://www.irs.gov/

IRS Tax Scams

Adam Smith, League City Branch Manager

Taxes, everyone has to pay them…and this time of year is when we are all getting our W2’s and other tax documents in order and ready to file. Everyone has until April 17th to file and then we wait for our returns. It can be a stressful time for some, and unfortunately criminals are taking advantage of that. IRS and tax scams have been around since 2013. Since 2013, over 10,000 people have fallen victim to this scam and have paid a collective $54 million dollars because of the phone scams, according to the Treasury Inspector General for Tax Administration.

How do these scams work?
You will receive a phone call that is usually from a blocked or unsolicited number, or even sometimes set it up to appear to be from the IRS. The “IRS” agent on the phone will claim that you have an outstanding bill or owe back taxes, and they will demand payment immediately. To make this threat seem more real, they will threaten if payment is not received, to have local law enforcement ready to come to your job or house and arrest you. For payment, they might want money wired to them or even a prepaid debit or gift card, or even in some cases a Best Buy or iTunes card. These are just a few examples of what could happen. The criminals will often change the script or try to increase the level of intimidation to make you comply.

So here are some important things to remember regarding the IRS and these scams:
• If you do owe back taxes, the IRS will never call you and demand a specific method of payment. If they are going to contact you, it will be through mail.
• If they do call you, they will not accept payment with a Best Buy gift card.
• They will not demand payment without giving you the right and opportunity to question or appeal the amount owed.
• The IRS will never call and threaten to bring in police or other law enforcement to have you arrested.
• Another common sign that it is a scam is that they will ask you for your personal information, such as your social security number, financial account or routing numbers, or debit card information.

What do I do if they call me?
There are several options. The first and easiest one – just hang up. You can call the IRS and simply ask if there is an investigation they have with you. IF they are threating to have you arrested, call your local police department and ask them about it. You can report the scam to the Federal Trade Commission. The website IRS.gov has a lot of valuable information regarding this scam and what to do.

We are here to help
At Gulf Coast Educators, we are here to help at any time if you feel that you might have been scammed. We can notate and put a password on your account to help secure it. If you want to contact the Credit Bureaus, we have the information that we can give to you to do so.

Being a trusted source of financial information, ensuring the privacy of your information, and identifying your needs and suggesting a solution that will improve your financial life are some of the service promises that we strive to do each day for our members. Whether that means helping you deal with potential fraud, or general day to day business, we will be here to assist you.

Sources:
https://www.treasury.gov/tigta/
https://www.irs.gov/

 

12 Identity Theft Protection Hacks

As consumers step up their online shopping leading up to the holidays, it’s a prime time of the year for identity theft. While you are busy snagging hot deals on Black Friday and Cyber Monday, thieves are phishing for your information.

Don’t let an identity thief take the jingle out of your holiday. Follow these 12 tips to keep your financial information secure during the holiday season.

Online or at home…

1. Update your antivirus software. Make sure that your computer security software installs updates regularly. And make sure your operating system is also up to date.

2. Don’t overshare on social media. Leaving home for a holiday trip? Don’t post this information publicly—be aware of your social media privacy settings.

3. Bring packages inside. Stealing delivered packages is not uncommon during the holidays. Packages left outside might also make thieves believe you’re out of town.

4. Don’t open suspicious emails or click on links. There is an increase in phishing scams around the holidays. Remember, the IRS, banks, and credit card providers will NOT ask for personal information in an email or by calling you. If in doubt, hit delete or hang up. Go to the company’s website or call using a phone number you looked up yourself.

5. Shop with familiar companies. Fake and unscrupulous internet retailers exist. Be suspicious of unbelievably low prices compared to other vendors. If you stick with stores you know, you may avoid sending your credit card to a thief.

6. Strengthen your passwords. When doing a lot of online shopping, it can be tempting to use the same password (or an easy-to-remember password) for multiple stores. Don’t do it! Your passwords should contain a mixture of upper and lower case letters, as well as numbers and symbols for maximum security—after all, you’re giving stores credit card and personal information. Don’t use the same passwords you use at your financial institutions.

7. Give from the heart, but be smart. The holiday season is a time when many give generously to charity. You’ll notice a big uptick in the number of emails, letters and phone calls you receive from charitable organizations. Use caution—especially with vague sounding or unfamiliar charities. Don’t give credit card information if a charity calls you. Instead, do homework, and if you wish to give, contact them directly.

When you are out shopping…

1. Watch your wallet and bags. Thieves know you’re distracted during holiday shopping. Keep track of your wallet at all times and don’t leave purses, shopping bags or your phone behind while you browse.

2. Use caution on public Wi-Fi. In the rush of Black Friday, be careful about buying items using your mobile phone or tablet in public. If you’re on your cellular network, your information should be safe (provided the retailer’s website is secure). But hackers can easily monitor your information if you use free (open) public Wi-Fi networks.

3. Keep track of your cards during check out. Lines are long and cashiers are tired. If you leave a credit card on the counter, there’s no way of knowing who may pick it up. Make certain you get your card back after every transaction. Return it to its place in your wallet—never drop it in a shopping bag or stick it in your pocket.

4. Guard your PIN. If you pay with debit cards, block the keypad while you enter your PIN.

5. Be careful what you say. Many stores ask you for personal information when you’re checking out. For example, you will typically be asked for your home address, phone number and perhaps your birthday when you sign up for a customer loyalty program. Don’t reveal too much information out loud in a crowd.

Sources:
CyberScout – CyberScout is leading the charge against hackers and thieves, providing identity management, credit monitoring and cyber security for more than 17.5 million households and 770,000 businesses. Contact your bank, credit union, insurance company or employer to find out if they offer CyberScout services.

Safe Online Shopping

Nowadays, more and more people prefer to do their shopping online. You can find many great deals, often with low-cost or free shipping. Having an easy-to-access marketplace that’s open 24/7/365 where any product is at your fingertips is great, but it’s important to be cautious when shopping online. The tips below can help ensure your purchases are secure.

Use credit cards instead of debit cards when shopping online. Credit cards generally offer additional protection compared to debit cards because credit cards are not linked to funds you own. Additionally, credit cards have a limit to the amount you are responsible for if your account information is stolen.

Use secure online payment services (like PayPal). With these services, the retailer never receives your financial information – that limits the chances of your information being stolen. You can even link your Gulf Coast Educators FCU debit or credit card to your PayPal account.

Always look for the “https” URL when shopping online. The added “s” at the end of “http” means that the site you’re visiting is encrypted, so your financial data (such as your credit card details) are kept private. In most cases, the text in the URL is preceded by a padlock symbol, which also means your information is protected.

Avoid shopping via public Wi-Fi. Instead, opt for your mobile phone network. It may be more convenient to use public Wi-Fi, but there are many risks. Most hotspots are not secure, so your information is available for any hacker to use.  If using your own data is not an option, there are many hotspot shield apps that you can purchase.

If an online deal seems “too good to be true” – avoid it. Be cautious of bait and switch scams and any website that looks questionable. Check to see if the site is reliable and if anyone has reviewed the product, company or deal.

Only share what’s required for your purchase. You’ll likely need to give your name, address, phone number, email and credit card information. It’s best to just fill in the required information fields that have asterisks.

Online shopping is great and convenient, but you should still be cautious when giving your personal information over the internet. If you do happen to have your card information compromised, GCEFCU will work with you to get your money back and everything taken care of.

To learn how to link your GCEFCU credit or debit card to PayPal, click here. To apply for a GCEFCU credit card, click here.

Information is for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author.

Sources:
https://www.webroot.com/us/en/home/resources/tips/online-shopping-banking/shopping-10-tips-to-safer-shopping-online
https://staysafeonline.org/stay-safe-online/protect-your-personal-information/online-shopping

Home Repair Scams

Sept. 18, 2017 – With the recent devastation our area has seen from Hurricane Harvey, we have received many notices already from members being scammed by home repair companies. These remodeling and repair scammers will be out in full force for the next few months, so it is important to take caution.

Do Your Homework – Check their rating with the Better Business Bureau. You can search for any business by clicking here. You may also ask for recent letters of recommendation from past customers. If the business doesn’t have any, a good source of information from past customers can usually be found on the company’s social media pages, such as facebook and twitter. If the business does not have any letters of recommendation or social media pages, consider it a red flag.

Get Estimates – It is always a good idea to get multiple estimates from different companies. Have them print a quote with exactly what they will be doing so that you can compare the different contractors. This can also help you to negotiate prices.

Ask Questions – Ask your questions via email, so that you have in writing exactly what the company has promised you. Below are questions that you should ask before paying someone any money.

  • How many projects like mine have you completed in the past year?
  • Will my project require a permit?
  • How long will my project take?
  • What type of insurance do you carry?
  • Will you be using subcontractors on this project?

Red Flags – How can you tell if a contractor might not be reputable? You may not want to do business with someone who…

  • Knocks on your door for business or offers you discounts for finding other customers
  • Just happens to have materials left over from a previous job
  • Pressures you for an immediate decision
  • Only accepts cash, asks you to pay everything up-front, or suggests you borrow money from a lender the contractor knows
  • Asks you to get the required building permits

Sources:
https://www.texasattorneygeneral.gov/cpd/home-remodeling-and-repair
https://www.consumer.ftc.gov/articles/0242-hiring-contractor

State of the Auto Industry

Car Sales Are Down.

The past 7 years have included record breaking sales for the auto industry, but that isn’t the case now. For the first half of 2017, all of the big name carmakers have struggled to move vehicles off the lot. Sales for General Motors, Ford, and Fiat Chrysler have all declined.

Why Is This Happening?

The auto industry has been at an all time high over the past few years. Since the Great Recession of 2008-2009, there have been more jobs, rising wages, and low interest rates, increasing the discretionary income for individuals and making it easier to purchase and afford newer cars. But now, industry experts say that they have reached the peak, and there is nowhere to go but down.

Caylee Smith, Marketing Coordinator

Other experts attribute the decline in sales to the way newer cars are built. “Vehicles made in the past 15 to 20 years are vastly more reliable than their predecessors,” suggests Bloomberg’s Kyle Stock. “The U.S. auto industry is in a pickle, in part, because it did too good of a job.”

On the other hand, some blame it on the rising car prices. Others say that because the industry did so well, there aren’t any interested buyers right now.

Whatever the case may be, it means good news for car buyers.

What Does This Mean For Me?

It means discounts, price drops, and good deals. “Companies like Ford and GM have many levers to pull to avoid a disaster – namely, a mix of lowering production and raising incentives to lure drivers back to the dealership,” says Stock.

Buyers are seeing prices for both new and used vehicles start to drop. New vehicles as much as 10% and used vehicles as much as 50%.

“A combination of historically low gas prices and improvements in fuel efficiency mean consumers can upgrade from cars to SUVs without forking over a huge chunk of their paycheck to gas stations each month,” says Annalyn Kurtz with Fortune.

This, in conjunction with the deep discounts from car manufacturers, can only mean one thing: It’s a good time to be a car buyer.

Sources:

https://www.thepennyhoarder.com/life/cars-transportation/perfect-time-to-buy-a-car/?utm_source=Facebook_Organic_20170811
http://fortune.com/2017/04/12/auto-industry-decline/
https://www.usnews.com/news/national-news/articles/2017-07-03/auto-sales-down-in-june-as-2017-weakness-continues

How to Find the Right Auto Loan Insurance

We all know the value of insuring our home, life and vehicles. But have you ever considered insuring your car loan in case you’re unable to make the payments? Buying a car is the second largest purchase most of us will make in our lifetime, following buying a house.

Auto Loan Insurance, or “credit insurance,” covers the payments on your vehicle loan in an emergency or an unexpected life event. There are five common types of credit insurance:

Credit Life Insurance pays off all or some of your loan if you die. Life insurance protects you and your lender, and often you will find that a rate discount is given if purchased. Most people carry life insurance through their employer, which can be used to pay off your mortgage, college tuition, and every day bills, as well as other loans. Unlike regular life insurance, Credit Life Insurance doesn’t require you to have a medical exam for coverage. By making this purchase, if someone listed on the financing passes away, the loan is usually paid off in full.

Credit Disability Insurance covers your vehicle loan payments if you’re ill or injured and can’t work (per doctor’s orders). In most cases, credit life and credit disability insurance are offered as a package from a lender, but you can purchase them individually.

Involuntary Unemployment/Loss of Income Insurance covers your vehicle loan payments if you are laid off.

Credit Property Insurance protects your vehicle loan if your car is stolen or destroyed by an accident or natural disaster.

GAP Insurance adds more protection to your auto loan policy. It will pay the difference between the balance of a lease or loan due on a vehicle if you’re in an accident and your vehicle is considered a covered total loss. On auto loans, insurance companies value cars based on a high retail value, clean loan value, and rough condition value. In the past, insurance companies would pay high to clean loan value. However, in today’s market, the low value is mostly paid. GAP insurance is one of the cheapest ways to protect your loan, costing on average about $5 per month.

If you decide credit insurance is right for you, the following questions can help you find the right policy and provider:

  • How much is the insurance premium? Will it be folded into my vehicle loan payments?
  • Will this policy cover the entire amount of the loan or just a portion of it?
  • Is the policy effective immediately or is there a waiting period?
  • Is there a cancellation policy? If so, what are the rules around it?

Most lenders (car dealerships and credit unions) offer credit insurance products once you’re approved for a loan, but don’t feel pressured to take them. Do your homework and make sure each option is right for you.

To learn more about the credit insurance products available at Gulf Coast Educators, you can contact any of our lending team members by calling 281-487-9333.

Information is for informational purposes only and is not intended to provide legal or financial advice. The views expressed are those of the author.

SOURCES:

  • https://www.federalreserve.gov/econresdata/2016-economic-well-being-of-us-households-in-2015-Automobile-Purchase-Decisions-and-Auto-Lending.htm
  • http://www.zerohedge.com/news/2017-02-07/over-25-trillion-us-student-and-auto-loans-hit-new-record-high
  • https://www.consumerfinance.gov/askcfpb/799/my-dealer-offered-me-credit-insurance-what-it.html