Tag Archives: Credit Cards

VCNB Can Make Your Life Easier

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Christmas is here and, if you’re like many of us, it just feels like there aren’t enough hours in the day. We can’t help with your child’s homework, your gift giving stress or your crazy work schedule but we can help with your bills and banking needs. In fact, there are a few ways we can make your life easier.

Balance Check –It’s important to always know how much money you have. Did your paycheck get direct deposited on time? Did the phone company cash your check? Check your balance instantly with our Online Banking and Mobile App. It’s safe and quick to sign in with your password or with your fingerprint on a mobile device.

Paying Bills – Use Online Bill Pay to pay your bills, set up payment reminders and even receive your bills electronically. You can log in to pay bills individually or set them up on autopay to insure they are paid on time, every time. Want to learn more? Log in to your Online Banking and click the Bill Pay tab.

Zelle® – Send money to people you trust using Zelle. It’s available in your Online Banking and Mobile App and you can send and receive money to individuals using just their mobile phone number or email address. That means you can pay the babysitter or even send a last minute cash gift to someone. If your coworkers agree to split the cost of a gift for the boss, you can send them all a request for payment. It’s a free, fast and safe way to avoid the ATM.

Gift Cards – If you need a quick gift, VCNB is waiving fees for gift cards now through December 31, 2021. Stock up for the holidays at any of our sixteen local branches! 

Credit Cards – Have a VCNB Visa® Favor Platinum card? Pay your bill and check your balance online. It’s quick and easy to log in and maintain your account!

Earn Rewards – If you are spending with your VCNB Visa® Platinum card or with a VCNB Rewards Checking debit card, you can sign up to earn UChoose® Rewards points for your regular purchases. Register your cards with UChoose to earn one point for every $3 spent with your Rewards Checking debit card and one point for every $1 spent with your Visa Platinum credit card. Those points can be redeemed for travel, merchandise, gift cards and more! Rewards Checking customers can even earn cash back. While you’re spending for others, be sure to reward yourself!

ATM Deposits – Sometimes you need to make a deposit but simply can’t make it to the bank during our hours. VCNB ATMs use the latest in technology to deposit checks and cash. Need cash back from that check you deposited? No worries! Just follow the instructions on the screen to receive immediate credit for up to $500 per day. The remainder of the balance will be processed and credit will be given next business day if deposited before 2 p.m. and on the second business day if deposited after 2 p.m.

Go Mobile – Downloading VCNB Mobile is like carrying a bank branch in your pocket. Deposit a check, transfer funds, open accounts and more using our mobile app any time of the day or night.

Life can be hard and, while we love the holidays, they can make life more complicated. Take the complications and the stress out of managing your banking with help from VCNB! Have questions? Our Customer Service Team and the staff at all of our branches are here to help!

Three Steps To Managing A Credit Card

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A credit card can be a useful tool when managed mindfully. Setting and following ground rules is a powerful first step to success.

Whether you have your first credit card or have gotten yourself into trouble with several, it’s never too soon or too late to learn good credit card management habits.  Here are some rules to live by.

Know Your Why

If you haven’t already done so, now is the time to set some ground rules for yourself. First, you need to decide why you have a credit card.

Some cards offer incentives for using them. For example, the Visa® Platinum Card at VCNB offers UChoose® Rewards Points for every purchase. These points can be redeemed for incentives like gift cards, cash back and travel. Many of our customers use this card for much of their spending and then pay off the balance when it’s due.

Some credit card holders keep their cards for emergencies. If the fridge dies or you have a medical issue, a card to help you past this bump in the road offers peace of mind. Others use their card only for building credit or for specific kinds of purchases like hotels when they travel or just at the gas pump.

This is a personal decision for you to make and there’s no wrong answer.

Keep Your Debt In Check

We caution customers against allowing debt to accumulate. In fact, we encourage customers to never charge more than they can afford to pay off in a month and to actually pay off that balance monthly. Even a small balance left unattended can accumulate large interest charges and snowball into a massive sum over time. In fact, making the minimum payment on even a few hundred dollars could be costly: added interest could amount to hundreds of dollars over a period of years before the debt is paid off.

Make A Plan For To Pay Off Debt

If you have credit card debt, we recommend making a plan to pay it off as quickly as possible.

For most people, the first step toward paying off debit is making a realistic budget. Click here to read about the basics of building a good budget.  If your budget is tight and you think you don’t have extra money for paying off that debt, click here for some practical ways to cut expenses.

Finally, avoid accumulating more debt while trying to pay off the old. It may be a challenge but you’ll never see a zero balance if you keep charging what you can’t afford. For more on this topic, visit our partners at Nerd Wallet who have a repayment calculator and tips to help you.

Get Smart About Credit

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The American Bankers Association sponsors a program called Get Smart About Credit. We take this program into several local high schools throughout the school year, hoping to educate young people about how credit affects all aspects of their life.

Since October 18 is Get Smart About Credit Day we thought it would be a good idea to provide a crash course in credit for our readers by debunking some common myths.

MYTH #1 – I don’t use credit cards so I don’t need a credit score.
Your credit score is enormously important to your financial health and impacts more than just your ability to get a credit card. In fact, your credit rating affects many aspects of your life that you may not consider. Your ability to get a job, to insure a home, to borrow money and to get a cell phone contract are impacted by your credit score. With a mediocre or poor credit score, a consumer may be able to borrow money but may only qualify for a higher interest rate than a consumer with good credit.

MYTH #2 – Credit is tied to how much money I have.
Credit has nothing to do with how much money you have in the bank. A consumer who earns $35,000 a year has the same ability to earn an excellent credit rating as someone who earns $350,000. It’s not about how much wealth you have but it is about how you manage your credit usage.

MYTH #3 – Debit cards will help my credit
A debit card is attached to your checking account. That means you are simply accessing your own funds rather than borrowing money like you would with a credit card. Using a debit card will not improve your credit score.

MYTH #4 – Closing a credit card will help my score.
Closing an unused credit card will not help your score. In fact, it could actually hurt your credit score because closing a credit card lowers your total available credit. Since credit utilization and the debt-to-credit ratio are big factors in your credit score, lowering your available credit is detrimental to your credit health. In other words, it reflects more favorably on a credit report to use $500 worth of $3,000 in available credit than to use $500 of $1,000 in available credit.

MYTH #5 – Once a credit score is bad, it cannot be rebuilt
Fortunately, credit can be rebuilt over time. A credit report is really just credit history. It keeps a record of all credit opened in a consumer’s name and whether each item is closed, active or inactive. Rebuilding credit isn’t always easy but it can be done with easy tasks like paying bills on time and playing close attention to the amount of debt carried each month.

What questions do you have about credit? Tell us in the comments!

How I Ditched Debt: ‘Born Spender’ Goes on a Spending Fast

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In this series, NerdWallet interviews people who have triumphed over debt using a combination of commitment, budgeting and smart financial choices. Responses have been edited for length and clarity.
and then we saved

And Then We Saved

Who: Anna Newell Jones
How much: $23,605 in 15 months

Anna Newell Jones considers herself a “born spender” whose desire for the latest fashions and gadgets landed her in debt.

When she got married in May 2009, she had a big secret — she owed nearly $24,000 in credit card debt, student loans and money that her parents borrowed for her. She was living paycheck to paycheck and felt like she had hit a bottom financially. So she shared with her husband, Aaron, a plan to cut her expenses to the bone, pay off debt and become a financial adult. And she decided to blog about her efforts to keep herself motivated and accountable.

First up was making a list of wants and needs customized to herself. Do-it-yourself hair color in a box made the “needs” list, but salon services did not. Then she did what she calls a reverse budget — she analyzed the previous three months’ spending to see where her money was going so she could determine what could be cut.

Newell Jones declared a “spending fast” in 2010: spending the bare minimum and only on necessities. The Denver resident found it freed up time previously spent shopping, returning items and worrying about the financial hole she was digging. That extra time helped her figure out how to increase her income, including photographing weddings on weekends, writing a book and creating her website at andthenwesaved.com.

» SIGN UP: Set and track your own goal to ditch debt

What was your total debt when you started? What is your debt today?

At the tail end of 2009, I [had] $23,605.10 in debt, and I managed to eliminate all of it in only 15 months! I have a mortgage now. Apart from that, I’ve been able to remain completely debt-free.

How did you end up in debt?

I’m a natural spender. I like new things. I used to live for finding that perfect shirt or decoration for my house. … Even though I owed money to others (like my parents for school), I was always able to find money when I wanted something. I was completely overwhelmed by my debt and thought I’d die with it, so in a lot of ways I decided, “Ah, screw it! Might as well at least enjoy myself!” Basically, I spent money I didn’t have on things I didn’t really need. I was reckless.

What triggered your decision to get out of debt?

I wanted my financial life to be about more than just covering my minimum balance each month or not bouncing a check. I got to the point where I was tired of feeling like crap about myself and the situation I had created for myself. I had, in a lot of ways, hit my “financial bottom.” I was desperate enough to make sacrifices and do whatever I had to to get out of debt.

What steps did you take to reduce your debt?

I made some very serious lifestyle choices … meaning I only spent money on necessities (rent, basic food, etc.) and nothing extra. I started my blog as a way to hold myself accountable. I thought that maybe if I went public about my debt and about how much it weighed on me, I’d be more likely to not immediately ditch the entire idea once things got difficult.

How has your life changed for the better since you got out of debt?

Oh man, it’s so much better! Life without debt, shame, worry and anxiety centered around money is so freeing. Before, I was stressed and worried all the time, and it showed. Now I own several businesses, have money to save for my family’s future, and have the freedom to spend more time with my husband and son.

How do you remain debt-free today?

I’m very mindful of my money and my spending. I regularly do reverse budgets [to watch for overspending issues that could crop up]. I also run a Spending Fast Bootcamp and connect with members of the bootcamp each week in Facebook Live videos. Helping them helps me stay aware and present, rather than mindlessly slipping back into my old “spender” ways.

How to tackle your own debt

Jones, who says her blog kept her accountable, wishes she had known about other people who were also battling debt and also felt ashamed and isolated. She created just such a community on her website. Support and accountability can help, she says.

  • Analyze your current spending, to see where money has been going and pinpoint expenses that can be reduced or eliminated
  • Identify your own wants and needs. Needs are non-negotiable, while wants can wait. But every person’s list will vary.
  • Save for an emergency fund. When you are trying to repay debt, watching balances go up can be discouraging. But emergencies will happen. Be prepared with money designated for just such occasions. An amount as low as $500 in reserve can insulate you from an unexpected expense and running your credit cards back up.

More From NerdWallet

Bev O’Shea is a writer at NerdWallet. Email: boshea@nerdwallet.com. Twitter: @BeverlyOShea.

The article How I Ditched Debt: ‘Born Spender’ Goes on a Spending Fast originally appeared on NerdWallet.

Thinking Like a Woman Could Pay Off With Credit Cards

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Women shop a lot: We make 85% of all consumer purchases, according to data from the research firms Yankelovich Monitor and Greenfield Online. All that shopping means we’re pulling out our credit cards often — and it turns out, perhaps thanks to all that practice, we really know what we’re doing.

On average, women carry about $100 less credit card debt than men do ($5,536 versus $5,635), are less likely to be 60 or more days overdue on their credit card card payments, and have slightly higher credit scores (675 versus 670), according to the credit bureau Experian. “Women seem to be doing a better job at managing their credit,” says Kelley Motley, director of analytics at Experian.

Men might want to take a page from women’s credit card playbook by adopting these four credit card habits.

  1. Don’t be scared to use credit cards responsibly

Women have 23.5% more open credit cards than men do, according to Experian. Despite that, women have lower average overall balances, which suggests they are opening more cards without maxing them out. In other words, they might be opening new ones to strategically score discounts or other benefits, but for the most part, they aren’t getting into trouble by running up massive balances with them. That means many women are reaping the rewards of credit cards — fraud protection, points, discounts — without winding up with crushing credit card debt.

“Rather than just using one card, they may be using different cards, with different rewards structures, to make certain purchases,” says Catey Hill, author of the forthcoming book “The 30-Minute Money Plan for Moms: How to Maximize Your Family Budget in Minimal Time.” “If you pay them off on time and in full each month, rewards cards, even multiple rewards cards, can be very lucrative.”

  1. Understand behaviors that can improve credit scores

Men were more likely than women to say they considered their credit score knowledge good or excellent — 61% vs. 54% — according to a recent survey by the Consumer Federation of America and VantageScore Solutions. But women were actually the ones who reported more accurate knowledge on many factors about how credit scores work. Women had a better understanding of how to raise a credit score and of the factors used in determining credit scores.

“Women might be slightly more conscientious than men about knowing and understanding their credit scores,” said Stephen Brobeck, executive director of CFA. And as for understanding the actions that can raise credit scores, including making on-time payments every month and maintaining a low credit utilization rate, “that’s the most critical information to have,” Brobeck said.

  1. Get your free credit reports regularly

The CFA survey also found that women are more likely than men to understand the importance of checking their credit reports regularly, something all consumers can do for free at annualcreditreport.com. The reports do not include credit scores, but rather the details of one’s credit history. This makes it possible to spot any errors and work to correct them.

According to the survey, women may also be more likely than men to follow through and obtain their credit report — 67% of women said they’d done so, versus 63% of men.

  1. Avoid delinquencies and maintain low, manageable balances

A late payment or delinquency can lower a credit score. Making regular monthly payments to keep all credit cards (and other accounts) in good standing is an important part of building a strong credit history.

“Women are typically the CEOs of their household and know how to stick to a monthly budget, manage day-to-day spending and pay bills on time,” says Kerry Hannon, personal finance expert and author of the forthcoming book “Money Confidence: Really Smart Financial Moves for Newly Single Women.” “When they sense they’re in debt or bumping up against a shortfall, they trim back their budget, slashing discretionary items like meals out or clothing purchases.”

That kind of fiscal conservatism helps prevent a buildup of credit card debt. Plus, keeping balances manageable can help improve your credit utilization ratio, which is a factor in your credit score.

After all, when it comes to your credit score, how you manage your money matters more than the size of your paycheck. While women typically bring home only about 80% of what men do, according to the American Association of University Women, they still come out on top when it comes to credit scores.

“It shows you don’t have to earn a ton to manage your money well, and that you can take control of your finances even on a smaller budget,” says Hill, the author.

In other words, shop like a woman and you might just end up with a better credit score.

This article was written by NerdWallet and was originally published by Forbes.

More about credit cards

Kimberly Palmer is a writer at NerdWallet. Email: kpalmer@nerdwallet.com. Twitter: @KimberlyPalmer.

The article Thinking Like a Woman Could Pay Off With Credit Cards originally appeared on NerdWallet.

 

Declare Your Independence From Credit Card Debt

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Independence Day is just around the corner bringing with it cookouts, fireworks and community celebrations to honor this important day in American history.

But what about your own independence? Your financial independence?

Every day is a good day to consider the health of your finances, especially if you have a large amount of consumer debt. If you are looking to reduce some of that debt this year, here are four simple tips to help you get started.

  1. Put away the card – If you already have credit card debt, you don’t need to accumulate more. Stop using your card and focus on paying down the balance. It may be painful at first but it will be worth the victory of seeing a zero balance. If you do use your card, be sure to pay off those charges each month.
  2. Cut expenses – Look for ways to trim your budget and apply the savings to your debt pay-off. Shop around for a better phone deal, reassess your insurance rates and look for ways to save on your utilities. For some, eliminating a meal out each week is a painless way to save a few dollars. Remember, when it comes to debt, every dollar counts.
  3. Budget – Make a budget that accounts for every dollar in and every dollar out. It doesn’t have to be fancy. You can use a pen and paper or an app on your phone. Just be sure to list every expense, including those that occur irregularly like property taxes and car maintenance. Be realistic in your planning but be sure to give every dollar a job. Each dollar should be committed to an expense or a savings goal. As you create your budget, if you find that you have more expenses than income, see step three above. It’s time to work on reducing expenses. Also, review your budget regularly to remind yourself of how much money you have available and why you are cutting expenses. Keeping a log of daily expenses may open your eyes to small expenses that add up quick like morning coffee, magazines and other nonessentials.
  4. Prioritize – If you have a balance on more than one card, prioritize the payment schedule. Some people like to focus on the card with the smallest balance. In doing so, you will celebrate an accomplishment of paying off a debt quickly. Others like to choose the card with the highest interest rate and focus extra payments there. Whatever you do, remember to always pay the minimum balance on every bill. Also remember that once you pay off one debt, you need to apply the funds you were spending there to the next bill on your list. This “snowball effect” will help you pick up momentum and pay off debt faster.

If you have a large amount of credit card debt, it probably didn’t accumulate overnight so you can’t expect to pay off everything overnight either. However, making a few changes, and even some sacrifices here and there will go a long way toward helping you achieve your financial goals.