FAQs

Stay informed about the latest scams to protect yourself. Here are some common ones to watch out for:

• Phishing: Be wary of suspicious emails, texts, or calls asking for personal information.
• Smishing: Similar to phishing, but through text messages.
• Vishing: Fraudulent phone calls claiming to be from a legitimate source.
• Skimming: Protect your card information by shielding your PIN when entering it and checking for card skimmers at ATMs.

Missing credit cards should be reported immediately.

Keeping your information secure is UMCU’s top priority. If your credit card has been lost or stolen, please contact us immediately at 734-662-8200. If it is after business hours, please call the after-hours number for lost or stolen Visa cards at 1-800-847-2911. If you feel your personal information has been compromised, please contact us so we can do everything possible to protect your UMCU accounts. You will also want to review your credit report to see if any loans have been opened fraudulently in your name.

• There are a number of excellent online resources where you can learn more about how to fight fraud and identity theft.
• The Federal Trade Commission offers an overview of what you should do and who you should contact if you feel you've been a victim.
• The Consumer Financial Protection Bureau offers contact information for the major credit reporting agencies, along with other helpful information.
• The Consumer.gov website lists ways you might find out your identity has been stolen and offers advice on identity theft recovery.

In summary:

1. Contact UMCU immediately. Report the fraudulent activity to the University of Michigan Credit Union as soon as possible.
2. Change Passwords: Update passwords on all accounts.
3. Review credit report: See if any accounts or loans have been opened fraudulently in your name.

There are several ways you can establish credit:

· Open up a secured or unsecured credit card

· Become an authorized user on someone else’s credit card

· Open up a credit builder loan

· Get credit for rent or utility bills you pay

Overall, opening up an unsecured credit card in your own name is the best way to establish credit in the long run. This type of account can help with several of the FICO Score factors: it can show on-time payments, low revolving utilization, a (long) credit history, if kept open, and a different type of account than a loan.

The FICO Score ranges from 300-850. A good credit score is one that is anywhere in the range of 670-739. Having a good credit score means you’re more likely to get approved for loans or credit compared to someone with a lower credit score. Remember though, having an even higher score means you may qualify for lower interest rates. The rest of the credit score range is below.

300-579: Poor

580-669: Fair

670-739: Good

740-799: Very Good

800-850: Exceptional

There are two different credit scoring models: FICO Score and VantageScore. The FICO Score is the one most commonly used in consumer lending. Below are the different factors that go into calculating the FICO Score and how much of the total score they account for.

35% - Payment history

30% - Utilization (amounts owed)

15% - Length of credit history

10% - Hard inquiries (new credit)

10% - Variety of accounts

There are two types of personal bankruptcy: chapter 7 and 13. These should always be used as a very last resort option as they can have a severe negative impact on your credit. Bankruptcy can be an option if your debt has become unmanageable, even with some of the alternative options listed above. If you cannot keep up with your debt payments or living expenses or if you have creditors threatening to sue you or garnish your wages, bankruptcy may be an option consider. If this is an option you want to explore, you should speak to a bankruptcy attorney in your area for legal advice and the proper steps to file.

There are several other options to help pay off debt faster:

• Creditor hardship programs
• Balance transfer
• Consolidation loan
• Debt Management Program (DMP)
• Home refinance
• Home equity line of credit (HELOC)
• Home equity loan or second mortgage
• Reverse mortgage
• Settlement

There are pros and cons to every option and several factors to consider like credit impact, monthly payment, interest rate, fees, collateral, and more. If you’re comparing options, it may be worth speaking to a certified financial counselor for free to review your debts, budget, and options and see what might be best for your situation.

Everyone's financial situation is unique. The best course of action is to speak to a certified financial counselor at UMCU. They will go over your situation in detail and help you create a plan to get out of debt as soon as possible. Give us a call at 800-968-8628, visit a branch, or request an appointment online today!

1. Enable autopay for your bills so they always get paid on-time. It's one less thing to remember!
2. Wait 24 hours if you weren't planning on purchasing something. This helps prevent impulse purchases!
3. Choose groceries over dining out - groceries are almost always more cost effective!
4. Consider using cash for smaller purchases.
5. Whenever possible, use coupons, discounts, rebate apps, etc. to save money.

The whole goal of a budget is to balance your income and expenses. Some people like to break down every single category and have expenses to the exact cent, where others like to be more general and round up their expenses.

Even though they may not cost a lot, small expenses can sometimes add up more than we realize and could take away extra money for savings, debt repayment, or bigger ticket expenses. Track them closely and set a budget!

Think of saving as paying a debt to your future self. It can be tempting to neglect your savings when you really want to spend your money on something fun, have extra bills this month, or don't always remember to move funds to your savings account. However, making savings a priority in your budget will make it a habit instead of an afterthought. A good idea is to set up automatic transfers so that funds are deposited into your account from your gross income. Then you won't have to remember to set aside money to savings.

A good way to keep spending and saving in balance is following the 50/30/20 rule which divides your funds into three categories:

50% - Needs

"Needs" are things that you absolutely must spend money on each month. This includes:

• Groceries
• Housing
• Utilities
• Medical expenses
• Transportation (gas, bus fare, etc.)

30% - Wants

"Wants" are things that you do to treat yourself and have fun! Think: shopping, dining out, hobbies.

10-20% - Debt Repayment & Savings

Think of savings as paying yourself first. It's a good idea to setup automatic transfers so that funds are deposited into your account every pay period or once a month. Take the work out of manually transferring your money so it'll automatically become a habit.

Let's be honest: creating a budget is not the most exciting task. But it sets you up for success in the long run because you can see the numbers, totals, and categories you're working with.

Yes! In fact, your budget will be more sustainable if you make adjustments over time. Barring a major life change, try to keep the budget changes slow and steady so it's easier to adapt.