Skip to main content

Archive for the ‘Blog’ Category

Buy Now, Pay Later

Posted on: February 20th, 2025 by Ashley No Comments

Buy Now, Pay Later: What is this payment option?

Several “Buy Now, Pay Later” (BNPL) options are available when shopping online. You may see these offers from companies like Klarna, Afterpay, or Affirm, to name a few of the most popular. These companies provide the option to pay for your item(s) in anywhere from 2 to 12 payments (or even more) over a few weeks, months, or a year. Depending on the company, the amount of the purchase, and the payment plan selected, there may or may not be interest charges and/or convenience fees.

Most buy now, pay later companies do not require a credit check. Instead, they conduct a soft pull which does not impact your credit score and they offer interest free payment plans for smaller purchases. This also means that your payments to a BNPL company do not impact your credit score. Keep in mind, there are some BNPL platforms that do use a hard credit check when they offer longer-term financing for higher priced goods.

Pros and Cons of Buy Now, Pay Later

There are some pros to BNPL options, but the cons can be financially disastrous.

Pros:

Cons:

Yes, having no impact on your credit score is both a pro and a con. On one hand, you don’t need good credit to make a purchase; and typically, late payments won’t negatively impact your score right away (more on this below). On the other hand, if you handle your payments well, your credit score is still not impacted. Usually when you make on-time payments on debt, your credit score reflects that. You become a “good borrower” in the eyes of most creditors and lenders – BNPL options (usually) don’t share your good payment habits to credit bureaus.

Circle back to the comment above at how late payments won’t negatively impact your credit score – that is not at first. If you’re late for too long, your defaults will eventually be sent to a debt collector. If a collector is unable to reach you for payment, at that time your debt could be reported to the credit bureaus. If it gets this far, your credit score could drop. Read more here about how debt collectors report your debts.

Shadow Debt: The Dark Side of BNPL

What happens if you use buy now, pay later options a little too frequently? We call that shadow debt. Shadow debt is sneaky, it’s not as top of mind as other types of debt like your auto loan, your mortgage, a loan on a boat or ATV, etc. Shadow debt can add up quietly in the background. It can eat up your cash flow and leave you wondering where all your money is going. It is the biggest risk when opting for BNPL payment options.

While BNPL payment options can be useful in some circumstances, proceed with caution. Keep track of your purchases and set up your own payment reminders. If there is something you want but you can’t afford it at the moment, set a savings goal and create a savings plan.  

If you find yourself needing new car tires or a new refrigerator or stove, but you can’t afford it upfront, talk to your financial institution about options. NorthRidge has solutions for these types of situations, stop by or give us a call!

Prevent Card Skimming Fraud

Posted on: February 11th, 2025 by Ashley No Comments

There is recent news about card skimming fraud happening in St. Louis County areas. We want to remind our members and community to be careful where you use your card and always do a scan before inserting your card into gas pumps, ATMs, vending machines, etc.

Card skimmers collect data from your debit and credit cards’ magnetic strip, allowing scammers to access your accounts and other personal information.

How Card Skimming Happens

Skimmers read the magnetic strip on a card when it is swiped at a point-of-sale machine or ATM. Skimmers can also record PIN entries.

A skimming device is not obvious at first glance. Devices installed on the outside of card reading machines can look like they belong there. Some devices are attached inside the card slot, making it even harder to detect. The skimming device reads and collects your card information.

If you notice a skimming device is present after you inserted your card, you should call local authorities and your financial institution immediately. Unfortunately, most people never notice the device until it’s too late.

Avoid Getting Skimmed

Always stay aware of your surroundings and vigilantly protect your payment information! Being extra cautious could save you from falling victim of identity theft.

NorthRidge has contactless cards!

Identity Theft – Protect Yourself

Posted on: July 3rd, 2024 by Ashley

Protect Yourself

On our blog last week, we talked about the ways identity thieves steal your information and what they might do with it once they get it. Things like using your identity when being arrested or investigated, maxing out your credit cards and taking out new credit in your name, acquiring income in your name, and more. Things that have the potential to be totally financially devastating if not caught early.

There are steps you can take to protect yourself from falling victim to identity theft. It’s important to be aware of the possibility and keep it in mind.

Guard your cards. Credit/Debit card fraud is a type of identity theft. This is when someone gains access to your payment card and uses it to make purchases you did not authorize. Be cautious about where you enter your card information online, never make purchases from an untrustworthy or unknown website and never allow websites to “remember” your card number. Do not give your card information over the phone unless you made the call and you know you’re speaking with a trustworthy business. Go paperless when possible for bills and statements and review your statements to verify account activity. Card fraud may not require that you freeze your accounts and file a report with the FTC, but ask your financial institution’s fraud department what they recommend.

Use credit monitoring services. You can use a paid service for robust monitoring, which might be necessary depending on your financial status or if you operate a business. CreditKarma.com is a great free service that allows you to review your credit report to find if any new accounts have been opened in your name. Report and investigate anything that doesn’t add up.

Protect your phone. If you store personal information in your smart phone, you need to keep your phone locked and secure with passcode, touch ID, or face ID.

Be Wi-Fi Aware. Public Wi-Fi is an identity thief’s playground if it is not secure. Make sure the Wi-Fi you’re accessing is the correct network and that it is authenticated. Sign out of all accounts as soon as you are finished. Consider using a VPN when on public Wi-Fi.

Practice good cyber security. Be wary of spammy emails, it’s better to just delete it if it seems suspicious. Stop and think before clicking links. Change your passwords regularly and don’t use the same password over.

Signs of Identity Theft

Identity theft is so devastating because many people don’t know they are a victim until they are notified by a financial institution. Do not rely on others to notify you of potential fraud – know what to look for and conduct checkups on your information regularly. Early detection can limit the damage. You may be a victim of identity theft if:

It Happened… Now What?

If you notice anything fishy with your accounts, medical records, taxes, or even your criminal record, you need to take immediate action to resolve it. Remember, fast action limits damage.

Steps to Take Immediately:

First, call the fraud department at your financial institution(s) where fraud has occurred. They will give you instructions on what you need to do. You may or may not need to complete the following steps below, but ask the fraud department what they recommend. They will most likely deactivate any compromised cards. If necessary, ask them to freeze or close your accounts to prevent any additional charges.

Second, contact one of the three major U.S. credit reporting companies to report yourself as a victim of identity theft and place an initial fraud alert. The one you contact must tell the other two, so you only need to contact one.

Equifax: 888-766-0008
Experian: 888-397-3742
Transunion: 800-680-7289

equifax experian transunion logos

Next, order a credit report. You are entitled to one free copy of your report once per year from all three credit bureaus. You must contact all three to order a report from each one, starting with one immediately and the other two in a month or so to track any new fraudulent activity. Review it immediately and report any fraud details you find to the FTC and possibly the police.

Then, file a complaint with the FTC about the theft by going to reportfraud.ftc.gov or by calling 877-438-4338. Include as much detail as possible about the theft and follow their instructions carefully. Save and print your completed complaint. The printed complaint becomes your Identity Theft Affidavit. This affidavit helps you create an Identity Theft Report. Keep records of the day and time you file your complaint, the complaint reference number, and extra copies of the affidavit.

Finally, file a police report by going to your local station (or the station where the theft occurred if it was an attack on your criminal record). Bring your FTC Identity Theft Affidavit, any other proof of the theft, proof of address, and your government-issued photo ID.

You can never be overprotective of your personal information and identity! Protect it and protect your financial future.

Identity Theft

Posted on: June 26th, 2024 by Ashley

What is Identity Theft?

Identity theft is a federal crime. It is when someone uses your personal information without your permission or knowledge. The purpose is usually for financial reasons. Identity theft is the most common form of financial fraud. Prime targets are children, students, military members, veterans, and seniors but it can happen to anyone.

Typically, identity theft is when a thief steals your personal information to pose as you in some way. Synthetic identity theft is the use of some of your personal information, like your Social Security Number, combined with fake information, like a different name, to create an entirely new persona. This type of identity theft is harder to detect and can lead to more damage.

identity theft graphic

How do they get your info?

While some of these may seem like old tactics, they are still widely used and very effective for thieves. These things are especially important to keep in mind when you are traveling.

Mail Theft. Stealing mail out of mailboxes is still a common form of thievery. Consider a PO Box or a locking mailbox if possible.

Dumpster Diving. Thieves dig through trash to find key information about you. Shred documents that contain information about you before throwing them away.

Shoulder Surfing. Always conceal keypads with your hand or body when entering PINs, credit card information, or passwords.

Purse/Wallet Theft. Don’t carry your Social Security card in your wallet. Keep minimal payment cards on you and know which ones you have.

Computer Hacking/Online Identity Theft. The digital world has provided more opportunities for identity thieves, making it easier than ever for them to steal your information. Virtually lock your identity by practicing cyber security every single time you go online.

What happens with your info?

An attack on your identity can cause severe damage to your finances, credit score, and complicate your life in many ways. Thieves might:

Think if any one of the above things happened to you and how devastating it could be. Oftentimes, identity theft includes more than one of the above. It is so important to protect your information. Stay tuned in this week and next while we share best practices for protecting yourself, signs of identity theft, and the immediate steps to take if it happens to you.

Watch next week after this series for a quick one-question quiz on identity theft and your chance to earn a $20 Visa gift card!

Employment Scams

Posted on: April 2nd, 2024 by Ashley

Job and Employment Scams

In an increasingly virtual world, with countless remote-work jobs becoming more and more available, there are more opportunities than ever for scammers to get creative with employment scams. A scammer will advertise for a “job” in the same ways an honest employer would – on job sites and social media, in local newspapers, even on TV or on the radio. You are promised a job, and in return they collect your personal information and sometimes your money.

Examples of a Job or Employment Scam

Remote work. Many people dream of working from home, scammers know this and regularly try to take advantage. Scammers offer a job such as reshipping or reselling products or offering start-up kits to help you start your own business with just a small investment. The general rule of fraud applies here: If it sounds too good to be true, it probably is. If you are offered a job where you are led to believe you can make tons of money in relatively short time, it is almost undoubtedly a scam.

Common Remote Work Scams:

How to Avoid Job and Employment Scams

Before you apply to a job posting, look the company up online. Make sure they exist, are honest, and have real employee reviews from career websites like Indeed or Glassdoor. Some small companies may not have reviews, but you can determine their legitimacy in other ways.

Mention the job to someone you trust, like a relative or best friend. Get the advice from others who are not emotionally invested.

Do not pay for the promise of a job. Honest employers, especially government jobs, will never ask you to pay to get the job. Do not fall for the idea that you can pay for a startup kit or masterclass to launch a successful online business from home. These offers are almost always a scam to get your money and very, very few people are successful in operating a business from this type of scenario.

What to do if you Paid a Scammer

Accidents and lapses in judgement happen… but now what? Immediately contact the financial institution you used to send money and report the fraud. You can ask to have the transaction reversed, if possible, but it is unlikely you get your money back if you paid out of a checking account (with a cash transferring app or a debit card). If you used a credit card, you may have more luck reversing the transaction.

If you provided information about your accounts (card numbers, account numbers), contact your financial institution immediately to deactivate cards and close accounts.

Report Job Scams to the FTC

If you see a job scam, or lose money to one, report it to the FTC at ReportFraud.ftc.gov. You can also report it to your state attorney general.

Find out more about how to avoid scams at ftc.gov/scams.

Source: FTC Consumer Advice. https://consumer.ftc.gov/articles/job-scams

Quiz and Contest Rules

There will be a two-week timeframe from when this blog is posted to read it and take the quiz. Those with the correct answers will be entered into the drawing for that post. Winners will be contacted via the information they entered when taking the quiz. One entry per person. NorthRidge employees and their immediate family (spouses, parents, children, live-in partners), and board members, are not eligible to win. Additional giveaway rules are located here.

Women’s History Month Part 3

Posted on: March 7th, 2024 by Ashley

Women in Credit Unions Today

Earlier this week, we wrote about the historical female figures that shaped credit union history. But, importantly, there are still amazing women leaders in the credit union movement today. A study conducted by Credit Union National Association, or CUNA, (now known as America’s Credit Unions) found that over half (51%) of credit union CEOs are women. And generally speaking, about 60% of all credit union employees are women. For us at NorthRidge, that percentage is closer to 90%!

Gigi Hyland

A particularly influential credit union leader today is Gigi Hyland, the Executive Director of the National Credit Union Foundation. From Gigi’s bio: “The Foundation is the philanthropic and social responsibility leader of the credit union movement in the US; they raise funds, make grants, manage programs, and provide education to empower consumers to achieve financial freedom through credit unions.” TLDR; the Foundation is the heart and soul of the credit union philosophy: people helping people.

Before joining the Foundation, Ms. Hyland was a board member of the NCUA (National Credit Union Administration). The NCUA insures member deposits at credit unions and is the governing body for credit union regulation. While there, Ms. Hyland led the development of many new programs and initiatives for the benefit of credit unions and consumers.

Prior to her board presence with NCUA, Ms. Hyland spent 14 years serving the credit union movement as an executive, attorney, and advocate.

Authoring this blog is Ashley Kjenaas, Marketing Coordinator at NorthRidge Credit Union. I had the honor of meeting Gigi Hyland. It was October 2023, and I was in Madison, WI at Credit Union Development Educator (CUDE) training that is provided by the National Credit Union Foundation. At the CUDE graduation ceremony, Gigi watched our presentations (talk about intimidating!) and when she spoke after, she said something that will forever be in my heart, “We are not just a credit union movement, we are a world peace movement.”

That is who we are, and that is our mission. And we have Gigi Hyland as an incredible leader to move us forward.

Empowered Women Empower Women

Women’s History Month Part 2

Posted on: March 6th, 2024 by Ashley

Women in Credit Unions

Earlier this week, we introduced you to the Mother of Credit Unions, Louise Herring. An amazing pioneer of the credit union movement, and a woman we honor still to this day. If you missed the post, read it here!

Today is about another remarkable woman and pioneer of the credit union movement, Dora Maxwell.

Dora Maxwell

Dora Maxwell was born in 1897 in the state of New York. She and her five siblings were raised by her mom after her dad passed away when she was just two years old. While she was in high school, at age 14, her mom passed away. Dora left high school after two years and worked various office jobs for the rest of her teen years to afford a place to live. She began working as a secretary for a community church to supplement her income.

Dora eventually attended a class to learn about cooperatives. She was moved by the idea of grocery cooperatives but did not think one would work in New York City. Though, she knew she wanted to do something constructive with this knowledge. It was then that she partnered with Hyman Cohen, who had also attended the class, to start a credit union.

This was in the early 1920s, and credit unions at that time were not well-known yet. There were, however, organizations called axias that were operating illegally in New York. Axias were similar to credit unions but were not chartered and legal.

Dora Maxwell photo

Dora Moves Credit Unions Forward

Dora helped organize one of the first credit unions in New York: Consumers Cooperative Credit Union. It was headquartered in the church where she worked. She volunteered as the treasurer for the credit union for some time before being called upon to assist with additional charters around New York City and into upstate New York.

The New York Banking Commissioners Department in the early 1920’s was intimidating, male-dominated, and determined to not issue additional charters for credit unions. In Dora’s own words they were “antagonistic” and “armed.” But she persisted, month after month. Dora is credited with chartering over 120 credit unions in New York.

If you recall from our story about Louise Herring the conference held in Estes Park, CO to establish the Credit Union National Association, Dora Maxwell was also in attendance. From there, she traveled around the country to connect leaders of special groups with CUNA to allow for more new charters than ever before.

Dora believed in serving the underserved and focused heavily on small, rural communities that did not have other banking options. She was fierce in her belief that credit unions should uplift the communities they are in and do good. Dora was a credit union champion and incredible woman.

NorthRidge aligns with Dora Maxwell’s belief in uplifting communities and operating for the greater good. Our purpose is to support the people in our communities; to encourage their learning and understanding of their unique financial situations and provide tools for our members to reach their dreams. Dora’s amazing leadership still guides us, 100 years later. What an impactful woman!

Newspaper clipping from the Pittsburg Press in the 1920s: Three government representatives were in Pittsburg today completing organizations of Federal Credit Unions, those "poor man's banks" which promote thrift and make possible low interest borrowing by members. They have more than 600 applications from large and small business firms and individuals and expect to spend a month or more in Pittsburg and vicinity. Miss Dora Maxwell, who was trained in the work through the Credit Union Extension Bureau in Boston and has been organizing the "baby banks" throughout the country, was the vanguard of the official representatives.

Women’s History Month

Posted on: March 4th, 2024 by Ashley

Women in Credit Unions

March is Women’s History Month, and March 8th is recognized as International Women’s Day. At NorthRidge, we are proud to recognize the roles that women have played in history, and specifically, in the history of the credit union movement. We are also proud to recognize the women that still shape credit unions today. Afterall, our NorthRidge team is almost 90% women! Take a look at our Meet the Team page.

This week, we are going to highlight and honor some of these amazing women. 

Let’s rewind briefly: The credit union movement is about inclusion and financial wellness for all. The credit union philosophy is “People Helping People,” a phrase credited to the Mother of Credit Unions.

The Mother of Credit Unions

Louise McCarren Herring was an Ohio native who graduated from University of Cincinnati with a business degree. After graduation, she went to work for the corporate office of the still well-known grocery chain, Kroger. While there, Louise started noticing the effects of debt. This was in the early 1930’s, so desperation and despair were growing increasingly rampant. 

Louise grew outraged at a local organization called “The Bucket Shop.” It was a loan operation that charged insanely high interest rates to desperate people that ran out of other options. Thus, inevitably trapping them in a cycle of debt from which they could not emerge (a similar type of operation still exists today, commonly known as payday lenders).

Then, Louise learned about new financial institutions that were slowly growing on the east coast, known as credit unions. People pooled their resources together and loaned money to each other… at much lower interest rates than The Bucket Shop.

Still fresh out of college, Louise led the development of 13 credit unions to serve Kroger employees. Credit unions at that time were typically much smaller operations ran by volunteers.

The Movement

Credit unions began to spread across the United States. Leaders of this early credit union movement decided they needed to create a nationwide support association. So, they called a conference in Estes Park, Colorado in August 1934 to establish such an organization. Credit union organizations were asked to send a representative to the meeting and the Kroger Company sent Louise Herring, age 23 and the youngest to attend.

This Estes Park conference birthed the Credit Union National Association, or CUNA (which has just undergone a name change to America’s Credit Unions as of 2024), a trade association for all credit unions in the United States of America. Louise Herring was the first female board member for CUNA and utilized that position to launch the Ohio Credit Union League. She went on to help charter over 500 credit unions in her career. She was a key leader in the credit union movement, and a firm believer of the equality of access to affordable banking services for all people from all walks of life.

Louise Herring and quote: "Be ashamed to die until you have won a victory for humanity."

Credit unions across the country still honor and celebrate the impact and importance of Louise Herring’s work in the movement. America’s Credit Unions (formerly CUNA) annually awards the Louise Herring Award for Philosophy in Action. This award recognizes certain credit unions that “demonstrate the exceptional effort to integrate credit union philosophy (not for profit, but for service) into their daily operations and recognize their commitment to superior service to their member owners.” NorthRidge Community Credit Union has won this award twice in the Minnesota capacity and received an honorable mention nationwide in 2022. We are honored to live out what Louise Herring, incredible woman and credit union pioneer, started.

Romance Scams

Posted on: February 14th, 2024 by Ashley

Knowledge is Power

The best way to protect yourself from becoming a romance scam victim is knowing what could happen. We saw no shortage of fraud and scams in 2023. The use of artificial intelligence (AI) continues to grow, so undoubtedly we will see more in 2024. 

Today is Valentine’s Day, a day for love and romance! In keeping with that theme, today’s topic is romance scams. These scammers target individuals who use social media and dating apps. Read on!

PS, don’t forget, you have a chance to win one $20 Visa gift card for every blog posted with the topics of fraud and scams this year! Take the one-question quiz at the end of each blog post about fraud and scams (like this one!). If you answer correctly, you’ll be entered for a chance to win!

Is it love?

Romance scams can be either be quick or take time. Scammers use new, but fake, relationships to steal money from people after spending days, weeks, or even months, talking to their victim online. They gain trust from their victim over time via various online conversations. Then, they ask for money or personal information. There may give a variety of reasons for needing money or your personal information:

Scammers typically ask for you to pay them in ways that are harder to trace and impossible to reverse, like gift cards or apps like Venmo or Cash App. If someone you have never met ask for money in these ways, be very suspicious and proceed with caution (phone conversations and FaceTime do not count as meeting, remember that AI can be used to trick you).

Lastly, another common lie from an online “love interest”, is an offer to help you invest in cryptocurrency. While many victims of romance scams send money with a gift cards or peer to peer services, the most substantial losses — more than one-third of losses to romance scams in 2022 — were in cryptocurrency, according to the FTC.

Romance Scams image

Send a simple e-card to your online sweetie for Valentine’s Day instead of money. If you decide to meet in person, do so at a public place and make sure you tell someone where you are going and when they should expect to hear from you afterwards. Have a safe and LOVEly Valentine’s Day!

Quiz and Contest Rules

There will be a two-week timeframe from when this blog is posted to read it and take the quiz. Those with the correct answers will be entered into the drawing for that post. Winners will be contacted via the information they entered when taking the quiz. One entry per person. NorthRidge employees and their immediate family (spouses, parents, children, live-in partners), and board members, are not eligible to win. Additional giveaway rules are located here.

Scams to Watch out for in 2024

Posted on: January 22nd, 2024 by Ashley

A new year could bring new scams.

Scammers and fraudsters are constantly looking for new ways to get money from you. It is up to you to protect yourself from falling victim to a scam. Oftentimes scammers are so sophisticated that they can trick you into willingly giving them cash or worse, your account information. If this happens, it’s usually impossible to get your money back.

This year, we are going to take some extra time to chat about scams, and how to protect yourself from becoming a victim. Because these topics are so important, we are including a chance to win one $20 Visa gift card for every blog posted with the topics of fraud and scams. Take the one-question quiz at the end of each blog post about fraud and scams, answer correctly, and you’ll be entered for a chance to win!

Scams in 2024: Artificial Intelligence

Scammers might use new technology, like AI, to add new twists to scams that have worked in the past.

Today, we’re going to talk about AI powered scams. Artificial intelligence can easily create videos, photos, and voices that look and sound like celebrities, your employer, or even your relatives. You are tricked to believe that you are speaking to someone you know and trust, but you are not.

These impersonation scams or deepfake scams are on the rise and can be extremely realistic.

Grandparent Scam

A common AI scam is when a scammer calls someone pretending to be a grandchild (or other type of relative). AI can collect audio data (from social media or other sources) to clone your relative’s voice and sound like them when they speak to you. They will mention a stressful or urgent situation they are in and request money. They may also request you keep it a secret from the family so they will not be embarrassed (affecting your emotions by making you feel special that this “relative” reached out to you, but to also avoid getting caught in their scam). Then, they request a wire transfer of money or that you buy gift cards and give them the information.

To avoid scams like this, confirm the identity of this person. Ask them questions that only your relative would know. Stop the conversation and reach out to that relative by the contact information you have for them. You could also reach out to another relative that would know the situation if it was real.

Typical Scam Elements

Learn to recognize a scam right away by remembering these scam hallmarks:

Stay Vigilant

It is unfortunate that this is the world we live in, but you must remain constantly vigilant and alert when it comes to protecting your money, your accounts, and your identity.

NorthRidge will never ask you for your login information. Do not give your online banking login information to anyone, not even someone claiming to be from your financial institution.

When in doubt, hang up, do not text back, and/or delete suspicious emails.

Online Loan Application
Online Loan Application
Online Loan Application