Tag Archive for: money

Calculator and magnifying glass on a yellow background with a sign that reads Build Good Credit.

A Free Guide to Understanding & Improving Your Credit Score

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A Free Guide to Understanding & Improving Your Credit Score

Hey everyone! It’s your friendly neighborhood financial guru here, and guess what? It’s the perfect time to talk about something super important for your financial well-being: your credit score.

Now, I know “credit score” might sound a little intimidating. But trust me, it’s not as scary as it seems. Think of it like a report card for how well you manage your money, especially when it comes to borrowing. This three-digit number plays a big role in many parts of your life, from getting a loan for a car or a house to even renting an apartment.

That’s why we at United Fidelity Bank believe that understanding your credit score is a key ingredient in your recipe for financial success. And to help you on this journey, we’ve got a tool that puts you in the driver’s seat: our very own Credit Score tool, available right within your online and mobile banking!

Yep, you heard that right! No need to go searching all over the internet or pay for expensive services. If you’re a United Fidelity Bank customer, you have access to this powerful FREE resource right at your fingertips. Let’s dive into what makes our Credit Score tool so awesome and how it can help you achieve your financial dreams.

Why Should You Care About Your Credit Score?

Before we get into the nitty-gritty of the tool, let’s quickly chat about why your credit score is such a big deal. Imagine you want to buy a new car. When you apply for a car loan, the lender will look at your credit score to decide if you’re a reliable borrower. A good credit score (usually above 670) shows them you have a history of paying your bills on time and managing your debts responsibly. This can mean getting approved for the loan with better interest rates, saving you money in the long run.

It’s not just about loans, though. Landlords often check credit scores when you’re applying to rent an apartment. Utility companies might use it to determine if you need to put down a security deposit. Even some employers might peek at your credit history as part of their hiring process (though this is becoming less common and varies by location).

So, having a healthy credit score opens a lot of doors and makes your financial life much smoother. But how do you get a good score? That’s where understanding how it’s calculated comes in handy, and our Credit Score tool is here to help you with just that!

Understanding How Your Credit Score is Calculated

Ever wondered what goes into that mysterious three-digit number? Our Credit Score tool breaks it down for you! It shows you the key factors that influence your score, like:

  • Payment History: 40% of your score is payment history – a snapshot of how well you’ve paid your bills on time. Consistently paying your bills on time is important.
  • Credit Usage: 23% of your credit score is based on the amount of credit used out of the total credit available. Experts recommend using less than 30% of your total credit.
  • Account Mix: 11% of your score is based on revolving credit (credit cards) and installment accounts (student loans, auto loans, mortgage).
  • Credit Age: 21% of your score is credit age. The longer your credit history, the better.
  • Inquiries: 5% of your score comes from “hard” inquiries, such as when you apply for a loan or credit card.

By showing you these factors, our Credit Score tool helps you understand what you’re doing well and what areas you might need to focus on to improve your score over time. It’s like getting a personalized roadmap to a better credit future!

More Than Just a Number

Our Credit Score tool is so much more than just a number! It’s packed with features designed to give you a complete picture of your credit health and empower you to make smart financial decisions. Let’s take a closer look at some of the things you can access:

  • Personalized Credit Report: Get a detailed look at your credit history, including information about your accounts, payment history, and any negative items that might be in your report. Understanding your credit report is the first step towards taking control of your credit. Our tool makes it easy to read and understand, so you can spot any errors and address them.
  • Real-Time Credit Monitoring Alerts: Life moves fast, and sometimes things happen that can affect your credit without you even realizing it. With real-time credit monitoring alerts, you’ll get notified if there are any significant changes to your credit report, such as new accounts being opened or changes in your credit balances. This helps you stay informed and quickly address any potential issues, like fraudulent activity.
  • Credit Score Simulator: Ever wonder how a certain financial decision might impact your credit score? The Credit Score Simulator lets you play around with different scenarios, like paying off a chunk of debt or opening a new credit card (though be careful with that one!). This helps you understand the potential consequences of your actions before you take them, allowing you to make more informed choices that support your credit goals.
  • Credit Score Education: We believe that knowledge is power! That’s why our Credit Score tool includes educational resources to help you learn more about credit scores, how they work, and what you can do to improve yours. You’ll find helpful articles, tips, and explanations right within the tool, making it easy to boost your financial knowledge.
  • Set Credit Goals: Do you have big financial dreams? Maybe you’re saving up for a down payment on a house, or perhaps you want to qualify for a better interest rate on a future loan. Our Credit Score tool can help you get there with its personalized Credit Goals feature!
  •  This is tricky because we don’t own the tool – may be best to remove this statement.  Sorry I didn’t mention that the 1st time.

The Best Part? It’s Absolutely FREE!

Yes, you read that correctly! Our Credit Score tool is absolutely FREE for all United Fidelity Bank customers. You can check and refresh your credit score and credit report daily without impacting your score at all. That’s right, checking your credit score with our tool won’t hurt it! So, there’s really no reason not to take advantage of this valuable resource.

Think about it – you get access to your credit score, personalized reports, real-time monitoring, a simulator, and educational resources, all for free, right within your online and mobile banking. It’s like having a personal credit advisor available 24/7!

Your Partner in Financial Wellness

At United Fidelity Bank, we’re more than just a bank – we’re your financial partner. We understand that navigating the world of finance can sometimes feel overwhelming, and we’re here to provide you with the tools and resources you need to succeed. Our Credit Score tool is just one of the ways we’re working to help you build a brighter financial future.

By offering this free and comprehensive tool, we hope to empower you to take control of your credit, understand your financial health, and achieve your goals. We believe that when you’re financially confident, you’re better equipped to handle whatever life throws your way and pursue your dreams with greater peace of mind.

What are you waiting for?

It’s time to unlock the power of our Credit Score tool and start taking control of your financial future!

Here’s how to get started:

  1. Log in to your United Fidelity Bank Online Banking account. You can do this through our website or our mobile app.
  2. Look for the “Credit Score” tool. It’s located on the main menu or dashboard.
  3. Enroll in the tool. It’s a quick and easy process.
  4. Start exploring! Check your score, review your report, set some goals, and dive into educational resources.

It’s that simple! Enroll in our Credit Score tool today to better understand your credit and work toward a brighter financial future. We’re here to support you every step of the way.

The Summer Before College: Helping Your Child Prepare for the Transition

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As a parent, some of the greatest joys in life are getting to watch your child grow into the person they were meant to be and witnessing their accomplishments… like, graduating and going to college!

 

Sending your child to college is a significant milestone. While this new journey can be daunting, it’s important to remember that college is more than just four years of higher education. It’s a gateway to once-in-a-lifetime opportunities, personal growth, and multiple new skills.

 

You can help make the transition less stressful by preparing your child for academic, social, and emotional challenges they may face in the process.  Here are some tips to help you and your child prepare for their new home away from home and to ensure they are set up for success.

 

Take A Campus Tour

If you haven’t already, be sure to take a walk around campus. Many colleges have summer orientation which is a great opportunity for your teen to familiarize themselves with the campus. These visits will be especially beneficial if they already have their class schedule, as walking around the campus to check out each building where classes will be held can help your new student feel more confident on their first day of school.

 

Find A Place to Live

Work with your teen to secure a place to live. Many colleges require incoming freshman to live on campus for their first year. However, if they do not have to, work with your child to help them secure a safe and affordable place to live either on or off campus. If your teen has a roommate, this is also a great opportunity for them to connect and get to know them better.

 

Educate them on Money Management

Talk to your teenager about finances and how to be responsible with money while they’re away. Now that your child will have more freedom, educating them on the importance of financial responsibility can help keep them out of unnecessary debt. The summer before college is a great time to start teaching them the basics of budgeting and saving money. If they don’t already have one, have them open a checking account and get a debit card so they have access to their money. For emergencies, consider having your child apply for a student credit card. These often have low credit limits and are great to have available in the event of an emergency.

 

Share Some Life Skills

Teaching your child life skills such as cooking, doing laundry, checking the oil in their car, etc. can help make their transition to college life less stressful. Work with your child to equip them with as many life skills as possible before they go off to college. This is also a great opportunity to bond more with your child before they step into a world of their own.

 

Plan a Closet Clean Out

The summer before attending college is the perfect time to encourage your child to do a closet clean out. Unfortunately, your child will not be able to take everything they own to college with them. However, by doing a closet clean out, they’ll get a better idea as to what they already have. This can make packing for college easier and more organized.

 

Communicate the Importance of Time Management

The time leading up to college is a great time to teach your child about effective time management. While you’ve been responsible for ensuring they get up on time and make all of their appointments, the months before college are a great time to take a step back and allow them the opportunity to manage those things on their own. This is a great opportunity for your child to have a small glimpse at what being on their own could be like.

 

Discuss Work and Social Needs

College is a great opportunity for your child to discover more about themselves and shape them into who they want to be. Talk to them about the various clubs, organizations, and other opportunities available on campus they may want to participate in to meet like-minded individuals. Share with them the importance of building a network and how this can benefit them in the future both personally and professionally. If the college your child is attending holds a fair for incoming freshman to discover the campus clubs and organizations, encourage them to attend. This is always a great way to meet new people and discover what they might be interested in, as well as, possibly providing unique experiences that may benefit them in their future.

Teaching Kids the Basics of Money

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Have you ever asked yourself, “When should I start teaching my kids about finances?”

 

While there’s no right answer to this question, a good place to start is whenever they have developed fundamental math skills. This is typically between the second and fourth grade.

 

The goal when beginning to teach your child about money is to help them understand the value of money and the importance of saving. You’ll want to use simple terms and relatable examples that you know your child will be able to grasp. One of the best ways to do this is to use your personal experience. Explain how you work a job to make money, and the money you make from said job allows you to buy things like groceries, clothes, vacations, etc.

 

If you want to take it a step further, you could set them up with a regular allowance or pay them for doing certain chores around the house. This will give them an applicable experience in understanding the most basic way money is earned. There are multiple ways to introduce money fundamentals to your child(ren), so do some research to find one that works best for you.

 

Once they understand how money is earned, you can segue into the basics of saving money. A great way to do this is by using a visual example such as a piggy bank or clear jar. This allows children to literally see the money they save and how it accumulates over time. When they are comfortable with the concept of saving, share how their savings can be used for something else in the future. Explain the different ways they could use their savings – to buy something they want for themselves or purchase something for someone else for a special occasion such as a birthday. If you haven’t already, this would also be a good place to open a savings account for your child.

 

When applying this to real-life, give them the opportunity to use their savings to purchase something they want. This will allow them to determine if they have enough money saved or not helping them comprehend if they need to save some more money or if they already have the amount they need. Once they have the amount needed, let them hand the money to the cashier so they get excited and experience the value of “this for that.”

 

Helping your child save money can bring up feelings of frustration due to having to wait to purchase something they want. This is a great opportunity to validate those feelings and explain that you, their parent, or guardian, also sometimes have to wait to purchase things you want. Set a regular time together where you sit down and count their money with them, so they know just how much they have saved. And don’t forget to encourage them on their saving journey.

 

Setting a good foundation for understanding money can help your children be more responsible with it as they get older. Even the smallest money tips can impact the way your children will think about and use money in the future. Visit our Personal Money IQ and scroll down to the “Kids and Money” section for more tips.